Many people do not realize that insurance companies are active real-estate investors. They often make loans for nonresidential properties. While they can (and do) offer loans for typical American homes, they are more likely to invest in other property types.

For example, insurers often invest in rural properties, farms, larger multifamily units, and commercial properties. Some insurers specialize in particular property types, such as small strip shopping centers or standalone commercial buildings, like the type where fast food franchises operate their restaurants.

Insurers also make loans for larger residential properties. One of the reasons they specialize in nonstandard properties is the higher interest rates they can demand for the loan.

It is often more difficult for you to locate REO departments of licensed insurers. These are the companies, not the agents. However, a local agent might be able to help you find the information you need. Just as with larger banks or mortgage companies, you will need to locate the larger regional or home office of the insurer. Small regional insurers, sometimes called mutual companies, often invest in their community and close to their main (and usually only) office. That is where the REO department will be located.