Life Company Loans
Larger commercial real estate projects are often best suited for life company loans. Life company loans are provided by life insurance companies, and is usually good for those looking to finance larger commercial type real estate projects like apartment complexes or shopping malls.
Life company loans have longer loan terms and lower interest rates. They are usually the most competitive option for commercial real estate loans with larger loan amounts of $10 million or more.
Here are some additional benefits to life company loans:
- Early rate locks usually available
- No personal liability
- Assumable to a new owner
- High LTV
Life company loans are usually non-recourse loans. A non-recourse loan is where the borrower isn’t personally liable if they default. Instead, the lender repossesses and sells the property itself in the event of a default.
Again, non-recourse financing is usually best for long term, or permanent, commercial real estate loans placed on a stable, performing asset like a shopping mall or apartment complex.
In order to secure life company non-recourse funding for large commercial real estate projects, make sure you have an expert like Mizar behind you. Adding commercial real estate to your portfolio requires determining the best financing options that will maximize your investment - at Mizar, we will guide and consult you every step of the way.