Build when the project pencils, not when the tax returns cooperate

It's a private or non-QM ground-up construction loan that qualifies on the project instead of on your personal income. Rather than tax returns and pay stubs, the lender looks at your cost to build, the finished (as-completed) value, the lot, and your experience and liquidity. It's designed for borrowers whose income is hard to document the traditional way, and for builds that don't fit agency rules.

These loans are usually expressed as loan-to-cost rather than loan-to-value, and the maximum is commonly up to around 85% LTC — meaning you bring roughly 15% of the total project cost, often satisfied partly by equity in a lot you already own. The exact figure varies by lender, the project, and your experience, so we confirm it deal by deal. Don't anchor on a single number until we've shopped it.

Correct — these programs don't require tax returns or pay stubs. That doesn't mean 'no underwriting,' though. The lender underwrites the project hard: the budget, the plans, the as-completed appraisal, the lot, and your reserves and track record. Think of it as moving the scrutiny from your personal income onto the deal itself.

Experienced builders and developers, self-employed borrowers whose tax returns understate their real cash flow, people with complicated or in-transition tax pictures, and second-home or investment ground-up builds that agency programs won't touch. If you're a W-2 borrower building a primary residence and your income documents cleanly, an FHA, VA, USDA, or conventional construction loan will almost always cost you less — and we'll tell you so.

Higher. Private and non-QM capital prices above agency programs because it takes on more risk and moves faster. The trade is speed, flexibility, and the ability to close when your income won't document conventionally. We're upfront about the pricing so you can weigh the real cost against the alternative of not being able to build at all right now.

Usually not automatically. Most no-income construction loans are short-term, interest-only loans meant to be refinanced or sold at completion, rather than a single-close that converts to a 30-year mortgage on its own. That makes the exit plan critical — we structure the takeout (a refinance or sale) up front so you're never stuck holding a short-term loan with no way out.

Often, yes — and that's one of its advantages. Private and non-QM construction capital can finance second homes and investment or spec builds that government and conventional programs restrict. The specific property uses a given lender allows vary, so we match your project to a lender whose box fits what you're building.

No. North Bay Capital is a licensed mortgage brokerage, not a lender — we broker these through private and non-QM capital sources. That's actually the point: because we're not tied to one balance sheet, we can shop multiple private lenders for the structure and pricing that fit your project, and walk you through the trade-offs honestly.