Multifamily Life Company Loans

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 ($10 million 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.

Sample Life Company Terms for Commercial Real Estate Loans in 2024

Size	$2 million and up
Term	10- to 25-year loan terms
Amortization	Up to 25 years
Maximum LTV	75% (often capped at 65%)
Minimum DSCR	1.25x
Recourse	Non-recourse with standard bad boy carve-outs

Interest-only periods may also be 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.