Life company loans typically offer lower rates and significantly better loan servicing than CMBS loans. Life companies also offer far longer terms than CMBS— with many life companies offering up to 25-year, fully amortizing loans. However, life company loans have notoriously stringent lending standards; most properties must consist of Class A commercial real estate in a major MSA— and, unlike conduit lenders, life companies will typically look deep into borrower financials. In addition, life companies don’t offer nearly as much leverage as CMBS lenders, with leverage maxing out at 70%, and many companies only offering 50-55% leverage.
Sources: CMBS Lenders vs. Life Companies: What You Need to Know and CMBS Loans, Life Company Loans