Life Company Loans For Apartments and Commercial Real Estate

For apartment properties, Life Companies offer an interesting alternative to Fannie Mae® and Freddie Mac® financing — often having longer loan term options and exceptionally competitive rates. Life company financing is less competitive when it comes to leverage, however, particularly when it comes to cash-out refinancing.

Even so, when it comes to larger balance ($10MM and up) commercial real estate loans for properties including office buildings, retail centers, single tenant retail (Walgreens, Target, Walmart, CVS, etc), and other commercial properties — life companies are often the most competitive financing option. That said, Life companies are very selective when it comes to financing, generally focusing on the highest class/quality assets.

Apply for a Life Company Loan

Sample Life Company Terms For Commercial Real Estate Loans 2022

Size:                  $2 million and up

Term:                 10 to 25 year loan terms (self amortizing options available)

Amortization:     Up to 25 years

Maximum LTV:   75% (although often times capped at 65%)

Minimum DSCR: 1.25 x’s

Non-recourse with standard “bad boy” carve-outs

Interest only period available for certain properties

Advantages:

• Will consider loan modifications or special requests (i.e. secondary financing) during the loan term.

• Early rate lock (up to 90 days prior to closing).

• Non-recourse.

Disadvantages

• Tend to be less aggressive on max dollar deals.

• Tend to focus just on higher class assets.

• Less likely to do cash-out deals.