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LAND AND CONSTRUCTION LOANS
The commercial property that is being offered as a collateral/
security has to pledge to lender in exchange for loan and its
value must be worth the amount of mortgage that has been
requested. A loan-to-debt is the commonly used ratio for
determining whether property is acceptable. The mortgage
amount is divided by the recent appraisal and net income of
borrower or a licensed professional determines the market value.
The resulting outcome has to be 75% of commercial loan.