Life Insurance Company Commercial Mortgage Loan Options

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Life Insurance Company Commercial Mortgage Loan Options
(Easier Loan Process than Government or CMBS Loans)

"Lifeco" loans, or loans from life insurance companies, are a type of commercial real estate financing that offer mid to long-term, fixed-rate, and non-recourse options, often with lower rates and longer amortizations than other commercial real estate loans. 
Here's a more detailed breakdown:
Key Features of Lifeco Loans:
  • Long-Term Financing:
    Lifeco loans are typically designed for long-term holding periods, often with terms exceeding 10 years, sometimes up to 15 or 20 years. 
  • Fixed Interest Rates:
    Interest rates are usually fixed at the time of the loan application, providing borrowers with greater certainty and predictability. 
  • Non-Recourse:
    These loans are generally non-recourse, meaning the lender's claim is limited to the property itself, and the borrower's personal assets are not at risk. 
  • Lower Rates and Longer Amortizations:
    Lifeco loans often have lower interest rates and longer amortization periods compared to other commercial real estate loan types. 
  • Target Properties:
    Lifeco loans are commonly used for stabilized, low to mid-leverage properties, including multifamily, industrial, office, self storage, NNN single tenant retail and grocery-anchored retail properties. 
  • Loan Amounts:
    Loan amounts typically start at $1 million and go up to $50,000,000. 
  • Borrower Requirements:
    Lenders often require borrowers to have a significant equity stake in the deal, with some looking for at least 20-25% equity. 
  • Loan Servicing:
    Because life co loans are kept on a life insurance company's balance sheet, the borrower only needs to interface with their direct lender for any administration issues. 
  • Prepayment Flexibility:
    Some lifeco loans offer prepayment flexibility, allowing borrowers to repay the loan without incurring penalties. 
  • Construction-to-Permanent Loans:
    Life insurance companies also offer construction-to-permanent programs that lock in rates upfront for both construction and permanent terms, allowing for prepayment flexibility post-lockout/yield maintenance. 


Contact me with any questions regarding pricing, guidelines or scenarios.  

  
Bob McCormick, President
Call Toll Free 800 328-0144
Email- McCormickLending@gmail.com


14362 N Frank Lloyd Wright Blvd 1000
Scottsdale, AZ 85260

23 Corporate Plaza Dr. #150
Newport Beach, CA 92660


 mb0903631 nmls175743 nmls179756 Cadoc603J043 Equal Housing Lender

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