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, as they have longer loan term options and exceptionally competitive rates. They are, however, less competitive when it comes to leverage, especially when it comes to cash-out refinancing. In addition, life companies are often 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. Life companies generally focus on the highest class/quality assets and therefore are very selective when it comes to financing.

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)

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


  • 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.


  • Tend to be less aggressive on max dollar deals.

  • Tend to focus just on higher class assets.

  • Less likely to do cash-out deals.