Lending Sources

Categories Fannie Mae/ Freddie Mac Life Companies Banks CMBS
Loan Amounts $1.0M+ $1.0M+ No min requirement $3.0M+
Loan Terms Up to 15yr Fixed Up to 30yr Fixed Up to 10yr Fixed Up to 10yr Fixed
Amortization 15-30yrs 15-30yrs 15-25yrs 15-30yrs
Funding Timeline 75-120+Days 30-75 Days 30-45 Days 60-90 Days
Interest Only Yes On Low LTV No Yes
Recourse Non-Recourse Non-Recourse Recourse Non-Recourse
Forward Commitment N/A Up to 9 Months N/A N/A
Lender Fees $3,500 – 10,000 $3,500 – 10,000 0.50% of loan amount N/A
Prepayment Yield Maintenance (YM) or Defeasance Can be Flexible, YM is Normal Can be Flexible Defeasance
LTV 75-80% 75% 75-80% 75%

Fannie Mae/Freddie Mac

The Fannie Mae/Freddie Mac loan programs cater to the multifamily housing market. Historically Fannie and Freddie have originated more Multifamily housing loans than any other lender in the nation. Typically these loans fit investors looking to pull money out of the property, maximizing LTV ratios, and still maintain good cash flow through a 30 year amortization period. Closing will typically take 120+ days and the rate will not lock until closing. Common property types include: Apartment Complexes, Student Housing, and Manufactured Housing.

Life Insurance Loans

Life insurance companies that cater towards strong borrowers with well maintained properties that are lower leveraged. Borrowers looking for long term fixed rate financing to reduce or eliminate future interest rate risk tend to utilize this program the most. The rates will be locked upon application and can also offer forward commitments of up to a year. Some life companies can provide quick execution for time sensitive acquisitions and can be more flexible with prepayment penalty structure. Common property types include: Apartments, Industrial, Office, Manufactured Housing, Retail, Self Storage and Hospitality.


A CMBS loan, also known as conduit load, is a type of commercial real estate loan packaged and sold by Conduit Lenders, commercial banks, investment banks, or syndicates of banks. These loans almost always have a balloon payment at the end. They usually offer more flexible underwriting guidelines allowing investors that cannot usually meet stringent conventional liquidity and net worth guidelines to be able to invest in almost all types of commercial real estate.

Local & Regional Bank

Conventional commercial loans through a bank, savings institution, or credit union are typically utilized by borrowers with specialty property types, smaller loans, or unique loans. Banks offer flexible prepayment options and competitive pricing which attracts many borrowers who actively buy and sell commercial real estate. Ultimately banks have the ability to customize their own programs to fit the borrowers needs and property type.