Commercial mortgage lenders compared
Five kinds of lender make almost every commercial mortgage, and each prices off a different index, sizes loans differently and wants a different property. Pick the type first; the lender comes after.
| Lender type | Indicative rate today | Recourse | Best fit |
|---|---|---|---|
| Banks and credit unions | Priced deal by deal | Often full or partial | Smaller loans, local property, owner-occupied buildings, deals that need flexibility |
| Life insurance companies | 6.15 to 7.20% | Usually non-recourse with carve-outs | Stabilized, well-leased property at moderate loan-to-value, long fixed terms |
| CMBS (conduit) lenders | 6.75 to 7.50% | Non-recourse with carve-outs | Stabilized income property where non-recourse matters and you plan to hold |
| Agency (Fannie Mae, Freddie Mac, FHA) | 5.95 to 6.90% | Non-recourse with carve-outs | Multifamily only; the most loan per dollar of income |
| Debt funds and bridge lenders | 6.89 to 7.48% | Varies by lender | Lease-up, renovation or transition; anything not yet stabilized |
Banks and credit unions
Local and regional banks: recourse is common, terms are shorter, and a deposit relationship moves price.
Life insurance companies
The cheapest money for stabilized property at low loan-to-value, with long fixed terms and real prepayment penalties.
CMBS (conduit) lenders
Non-recourse loans that are pooled into bonds: no personal guarantee, rigid servicing after closing.
Agency (Fannie Mae, Freddie Mac, FHA)
Multifamily only. The highest loan-to-value on apartments, non-recourse, with published program rules.
Debt funds and bridge lenders
Floating-rate, interest-only bridge loans for properties in transition, sized on the business plan, at a higher price.
Not sure which lender type fits?
Send the deal. The desk will tell you which lenders would quote it and roughly where.