THE PROPERTY AND THE ASK Property type Pulls the supervisory LTV limit from the SLTV LIMITS tab. The full published wording for each category is on that tab. Market value of the property For a purchase the handbook (page 26, footnote 28) defines value as the LESSER of actual acquisition cost or the estimate of value. Use the lower one. Senior liens already on the property The handbook says all senior liens should be included in the LTV. This adds to the loan side, not the value side. Readily marketable or other collateral Only collateral the lender has a perfected interest in and would actually accept. It adds to the value side of the LTV. Loan amount requested Total project cost (price plus all costs) Drives loan-to-cost. The handbook defines LTC as the credit divided by total cost of the property plus all construction costs.

INCOME - ANNUAL Potential gross rent at 100% occupancy Vacancy and credit loss Underwrite the market rate, not last year's. The handbook allows an NOI that assumes market vacancy above or below the actual figure. Other income (parking, laundry, fees) Operating expenses (no debt service) Taxes, insurance, utilities, repairs, admin. Leave out loan payments, depreciation and owner draws. Management fee (% of effective gross) A bank imputes a market management fee even when you self-manage. The handbook names management fees as an expense that may not be a cash cost. Replacement reserve Recurring capital items - roof, HVAC, parking. The handbook notes these sit in a reserve and often never show up on a tax return.

LOAN TERMS Interest rate Displayed to one decimal place. The math uses exactly what you type, so 6.75% calculates as 6.75% even though the cell reads 6.8%. Amortisation period (years) Handbook page 40: 15 to 30 years suits most income property - multifamily at the top (up to 30), hotels at the bottom (not more than 20), office, retail and industrial in the middle (25). Loan term or tenor (years) When the balloon lands. Shorter than the amortisation period on most CRE loans. Interest-only? (Yes / No) Handbook page 40: even on interest-only terms the property should meet debt-service coverage AS IF the loan were amortising. This sheet always tests it that way.

YOUR BANK'S POLICY MINIMUMS Required DSCR The handbook publishes NO minimum DSCR - it requires each bank to set one in policy. 1.20x to 1.25x is common. Type your lender's number. Required debt yield Also a bank policy number, not a published limit. 10% is the figure most often quoted. Ask, then replace this. Bank internal LTV limit for this type Handbook page 26: banks set their own internal limits, which should not exceed the supervisory limits. Almost every bank sits below them.

STRESS SETTINGS Rate shock (added to your rate) Handbook page 42: capitalisation rates, interest rates and DSCRs should be stress-tested for a period of economic stress. Extra vacancy in the stress case

THE ANSWER

SCREEN RESULT—

Tests passed (out of 4)—

Largest loan this deal supports—

Room left against the loan requested—

WHAT THE PROPERTY EARNS

Effective gross income—

Total operating expenses—

NET OPERATING INCOME—

TEST 1 - LOAN-TO-VALUE (HANDBOOK p.26)

Supervisory limit for this category—

This deal's LTV—

Headroom to the supervisory limit—

Headroom to the bank internal limit—

Verdict—

TEST 2 - DEBT-SERVICE COVERAGE (p.43)

Annual debt service, as if amortising—

Annual debt service you actually pay—

DSCR = NOI / annual debt service—

Cushion over your policy DSCR—

Verdict—

TEST 3 - DEBT YIELD (p.43)

Debt yield = NOI / loan amount—

Cushion over your policy debt yield—

Verdict—

Debt yield at the loan it does support—

TEST 4 - BREAK-EVEN OCCUPANCY

Occupancy needed to cover costs and debt—

Cushion at your underwritten occupancy—

Verdict—

THE FOUR LOAN CEILINGS - LOWEST ONE WINS

Supervisory LTV limit—

Bank internal LTV limit—

Policy DSCR—

Policy debt yield—

DSCR BY AMORTISATION PERIOD (p.43)

15-year amortisation—

20-year amortisation—

25-year amortisation—

30-year amortisation—

STRESS CASE (p.42)

NOI with the extra vacancy—

Debt service at the shocked rate—

DSCR under stress—

Cushion under stress—

THE EXIT AND YOUR EQUITY

Balance owed at the end of the term—

LTV at maturity if value never moves—

Loan-to-cost—

Cash equity you are putting in—

Supervisory Loan-to-Value Limits

Quoted from the OCC Comptroller's Handbook, Commercial Real Estate Lending, v2.0 (March 2022), page 26 - a US government work.

	Screener label (this is what the DEAL SCREEN dropdown uses)	Loan category, as published in the handbook	Supervisory LTV limit (at or below)	Your bank's internal limit	What the handbook says about it
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Deal Pipeline

One row per deal screened. Type the eight blue columns; the rest works itself out.

	LTV	SLTV cap	Debt service	DSCR	Debt yield	First test to break
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CRE Loan Underwriting Screener

THE ANSWER

WHAT THE PROPERTY EARNS

TEST 1 - LOAN-TO-VALUE (HANDBOOK p.26)

TEST 2 - DEBT-SERVICE COVERAGE (p.43)

TEST 3 - DEBT YIELD (p.43)

TEST 4 - BREAK-EVEN OCCUPANCY

THE FOUR LOAN CEILINGS - LOWEST ONE WINS

DSCR BY AMORTISATION PERIOD (p.43)

STRESS CASE (p.42)

THE EXIT AND YOUR EQUITY

Supervisory Loan-to-Value Limits

Deal Pipeline

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CRE Loan Underwriting Screener: the full workbook

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	LTV	SLTV cap	Debt service	DSCR	Debt yield	First test to break
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	LTV	SLTV cap	Debt service	DSCR	Debt yield	First test to break
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	LTV	SLTV cap	Debt service	DSCR	Debt yield	First test to break
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