Commercial real estate lenders including life insurance companies,
CMBS lenders, GSEs, banks, cooperatives, credit unions, CTLs, and more.
Life Insurance Lenders
Life insurance companies typically offer the lowest interest rates and reserves. Life companies can lock rates at application and offer loan terms up to 30 years. However, they prefer lending on properties that are well-occupied and located in desirable markets. Their maximum loan-to-value is usually 65%.
CMBS lenders offer the highest loan-to-values on commercial real estate. These lenders will also bypass occupancy issues on a property and will lend in tertiary markets. In return for this risk, CMBS loans carry higher interest rates. Origination fees are also higher because of the complexity involved with these transactions.
GSEs provide the lowest interest rate and highest LTV loans for apartments. The three GSEs involved in multi-family financing are Fannie Mae, Freddie Mac and the Federal Housing Authority. Each GSE provides unique lending programs for a borrower.
There are plenty of other lenders that each provide unique programs that could also fit an owners needs. Other lenders for commercial real estate include: Banks, Cooperatives, Credit Tenant Lease, REITs, Pension Funds, and Private Sources.