Life company loans — commercial mortgages originated by insurance companies like MetLife, Prudential, New York Life, and TIAA — represent some of the best long-term fixed-rate financing available for commercial real estate. They’re not right for every deal, but for the right asset, they offer terms that banks and CMBS lenders rarely match.
What Is a Life Company Loan?
Insurance companies (life companies) hold large reserves to back their policies. They invest a portion of those reserves in commercial mortgages, which provide steady, predictable cash flows that match their long-term liabilities. This alignment makes them ideal long-term lenders — they want to hold loans for 10–30 years, which drives very different underwriting than banks or CMBS lenders.
Life Company Loan Characteristics
- Long terms: 10, 15, 20, or even 30-year fixed-rate terms are available — far longer than the 5–10 year maximums at most banks
- Lowest rates available: Life companies consistently offer the lowest fixed rates in the commercial real estate market, often 25–75 basis points below CMBS and 50–150 basis points below bank pricing
- Conservative LTV: Life companies typically lend 55–65% LTV, lower than banks (65–75%) or CMBS (75–80%). They’re not a high-leverage option.
- Strong DSCR requirements: Typically 1.30x–1.40x minimum, higher than bank requirements
- Non-recourse: Most life company loans are non-recourse with standard carveouts — a significant advantage for borrowers who want to limit personal liability
- Prepayment lockout or defeasance: Life company loans typically have lockout periods (no prepayment allowed for first several years) followed by defeasance or yield maintenance — the most borrower-unfriendly prepayment structures in the market
What Properties Qualify for Life Company Financing?
Life companies are extremely selective. They want the safest, most predictable assets in the best markets:
- Asset classes: Class A multifamily, well-leased industrial (especially credit tenants), Class A/B office in major markets (increasingly difficult post-2020), grocery-anchored retail, and well-located neighborhood retail
- Occupancy: 90%+ occupancy for 12+ months — no transition, no lease-up, no vacancy story
- Markets: Primary and major secondary markets — gateway cities plus strong regional metros. Life companies largely avoid tertiary markets and smaller cities.
- Loan size: Most life companies have loan minimums of $5M–$10M. Many focus on $20M+ deals. Smaller life company correspondents can go lower, but rarely below $3M.
- Sponsorship: Experienced, well-capitalized sponsors with clean credit and a track record in the relevant asset class
Life Company vs. CMBS vs. Bank: Quick Comparison
- Rate: Life company (lowest) → Bank → CMBS
- Term: Life company (longest, up to 30yr) → CMBS (5–10yr) → Bank (5–10yr)
- LTV: Bank (65–75%) = CMBS (up to 80%) > Life company (55–65%)
- Recourse: Life company (non-recourse) = CMBS (non-recourse) vs. Bank (usually recourse)
- Prepayment: Bank (most flexible) → CMBS (defeasance/yield maintenance) = Life company (lockout + defeasance)
- Flexibility: Bank (most) → Life company → CMBS (least)
How to Access Life Company Financing
Most life companies don’t lend directly to borrowers. They work through a network of approved correspondents — mortgage banking firms and brokers who originate, underwrite, and service loans on their behalf. RefiLoop (NMLS #2510864) has relationships with life company correspondents for eligible transactions. If your asset qualifies, we can bring you life company quotes alongside bank and CMBS options for a true apples-to-apples comparison.
Frequently Asked Questions
What is the minimum loan size for a life company commercial mortgage?
Most direct life company programs start at $5M–$10M. Some correspondents can access life company capital at $3M+. Below $3M, bank or CMBS financing is more practical.
How long does a life company loan take to close?
Typically 60–90 days — similar to bank financing. Life companies are thorough underwriters, and the process is not faster than bank financing despite the higher quality of terms.
Can I get a life company loan on a transitional or value-add property?
No. Life company loans require stabilized, income-producing assets. If your property is in transition, start with bridge financing, stabilize, then refinance into life company permanent capital. See our guide: How to Refinance a Commercial Loan Without a Bank.
Think your property might qualify for life company financing? Contact RefiLoop — we’ll assess your deal and tell you honestly whether life company capital is the right fit.
About David Greenbaum
David Greenbaum is a commercial mortgage broker and co-founder of RefiLoop. He specializes in helping commercial property owners refinance maturing loans between $200K and $15M across Texas, Florida, Georgia, North Carolina, Ohio, and other priority markets. With hands-on experience in commercial bridge loans, debt fund financing, and conventional CRE refinancing, David helps borrowers find the right capital source for their situation — not just the easiest one.