Life insurance company( life company) mortgages have long been the gold standard for marketable real estate borrowers looking for veritably long- term fixed rates. Life insurance companies look to make conservative loans on high quality means, so the stylish matches are frequently Class A office structures in top requests, anchored shopping centers with strong deals, and top- league hospices. Multifamily parcels frequently go for agency loans from Fannie and Freddie, but can also be a good fit.
Indeed compared to CMBS loans, life insurance loans frequently offer the stylish rates. Still, borrowers will need to bring a larger quantum of equity to the deal because the influence point for life co mortgages generally maxes out between 55 and 70 LTV. This is compounded by the conservative underwriting norms used by life insurance companies in calculating the value of a property. In addition, life insurance companies demand veritably educated backing( borrowers). For parcels and borrowers that do qualify, insurance company loans can be used for accession, refinance, and indeed( occasionally) construction.