Conventional Loan Sizing

Introduction and Downloads

This page is intended to provide fellow analysts with instructions and examples on calculating the size of conventional loans. It also addresses naming ranges, the present value function (PV), the payment function (PMT), and various financial modeling conventions.


Step 1: Open the Excel Example

Step 2: Read the White Paper, referring to the Example as a visual

Step 3: Watch the video

Step 4: Explore the functionality in the Example

Step 5: Recreate the Example in a blank workbook

Step 6: Incorporate these techniques anywhere


Conventional Loan Sizing - White Paper

Conventional Loan Sizing - Example

Video, presented by William Leach

Future Topics

Sizing construction loans

Basis eligibility of loan interest

Seller carryback loans

True debt test

Capitalization rate

Mortgage insurance premiums

Loan constant

Naming cell ranges

Calculating NOI (net operating income)

Ensuring all mandatory debt service meets DSCR

Calculating the principal paid down on a loan after year 15

Interest rate stacks

Tranche B loans

Residual receipts payment calculations

Related party debt

Maximum debt service coverage ratios (CTCAC and HCD)