Life Company / Insurance Loans
One-line summary: Long-term, fixed-rate, non-recourse financing from life insurance companies’ general accounts, the lowest rates available in the market, with conservative leverage and a preference for prime properties.
Best for
Owners of high-quality stabilized multifamily properties in primary or strong secondary markets with experienced sponsors and conservative leverage. Best fit for long-term holders who prioritize the lowest rate and the longest fixed-rate term, and who can accept lower proceeds in exchange.
Key terms (typical)
| Attribute | Typical Range |
|---|---|
| Eligible properties | Class A and Class B stabilized multifamily |
| Loan amount | $5 million minimum (varies by lender, some go lower) |
| Loan-to-value (LTV) | Up to 65%, sometimes 70% on the best deals |
| Debt service coverage (DSCR) | 1.30x – 1.40x minimum |
| Term | 10, 15, 20, or 25 years (long-term fixed available) |
| Amortization | 25 to 30 years, with interest-only periods available |
| Rate type | Fixed for the full term |
| Recourse | Non-recourse with standard carve-outs |
| Prepayment | Yield maintenance |
Why borrowers choose this program
- Lowest rates available. Life company pricing is typically the best in the market, often 25 to 75 basis points inside agency for comparable deals.
- Long-term fixed. 15, 20, and 25-year fixed-rate terms available, locking in pricing well beyond what agency programs typically offer.
- Relationship lender. Unlike CMBS, life companies hold their loans on balance sheet. Your contact through the life of the loan is the original lender, making modifications and conversations smoother.
- Conservative is a feature. Lower leverage means less debt service, more cushion, and a property that’s positioned to weather rent cycles.
Considerations
- Lower proceeds. Maximum LTV is typically 65%, sometimes 70%, meaningfully below agency or CMBS. If you need higher leverage, this isn’t the right program.
- Property quality requirements. Life companies focus on prime properties in strong markets with experienced sponsors. Class B-minus or below, tertiary markets, or first-time sponsors are typically not a fit.
- Slower process. Life company underwriting is thorough and unhurried. 60–90+ days from application to close is typical.
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