Market Intel:

  • As expected, there was no change the Fed funds target rate range which remains at 1.75% to 2.00%.  The August statement was nearly identical to the June statement with very minor teaks to the language.  The FOMC upgraded their assessment of current economic conditions, describing economic activity as “strong” rather than merely “solid” as in the June statement – a nod to the 4.1% Q2 GDP print that was released last week.
    • Bottom-line: Get ready for another quarter point interest rate hike from the Fed at the next FOMC meeting on September 26th and again in December.  The outlook for additional rate hikes in 2019 remains clouded.  While U.S. growth has been impressive of late, aggressive interest rate hikes next year could put the expansion at risk.
  • On the trade front, the U.S. trade deficit widened by $3.1b to $46.3b in June
  • Global stock markets are selling-off in response to fears of an escalating trade war between the U.S. and China.
  • On the domestic front, the labor market continues to shine. Initial jobless claims were 218,000 for the week ending July 28, up just 1,000 from the previous week and below the consensus estimate of 220,000
  • Real consumer spending came roaring back even stronger than we estimated in the second quarter, rising 4.0% annualized up from a downwardly revised 0.5% growth rate in the first quarter.

Owner-User RE Financing:

SBA 504 & 7a (51% or more owner-occupied)

  • Up to 90% financing
  • 25 year fixed available on SBA 504 1st and 7a loan programs
  • NO covenants below $2.5mm in loan proceeds
  • Flexible prepay
  • Up to 90 day rate lock available

Conventional (below 50% still qualifies)

  • Up to 80% LTV
  • Up to 20 years fixed
  • NO covenants below $2.5mm in loan proceeds
  • Flexible prepay
  • Up to 90 day rate lock available


Non-Conventional Lending

  • Up to 80% LTV
  • Rates start at 7%
  • Can be interest only
  • Great for clients who cannot go to a lending institution for a loan.
    • No taxes
    • No income
    • Not excellent credit

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