Example Life Company Terms for Commercial Real Estate Loans

Size: $2million and up
‍Term: 10 to 35-year loan terms (self-amortizing options available)
‍Interest Rates: Fixed rates vary
‍Amortization: Up to 30 years
‍Maximum LTV: 75% (although often-times capped at 65%)
‍Minimum DSCR: From 1.25x+
‍Interest-Only Period: Interest only period available for certain properties
‍Interest-Only Period: Partial-term and full-term

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 option

Disadvantages

• Typically, lower LTV limit
• Usually restricted to higher class assets
• Less likely to do cash-out deals