Life Company Loans

Apartment and Commercial Real Estate Life Company Financing

Life Companies offer an interesting alternative to Fannie Mae and Freddie Mac apartment financing, in that they have longer loan term options and exceptionally competitive interest rates. As a matter of fact, many investors would agree that life companies are also the most competitive option for 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. Still, they do have a few shortcomings. For example, they are known to be less competitive when it comes to leverage, especially when it comes to cash-out refinancing. Additionally, life companies tend to focus on the highest class/quality assets and therefore are very selective when it comes to financing.

2021 Sample Life Company Terms For Commercial Real Estate Loans

Size: $2 million and up

Term: 10 to 25-year loan terms (self-amortizing options available), Interest only period available for certain properties

Amortization: Up to 25 years

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

MinimumDSCR: 1.25 x’s


  • 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 with standard “bad boy” carve-outs


  • Tend to be less aggressive on max dollar deals.
  • Tend to focus just on higher-class assets.
  • Less likely to do cash-out deals.