Purchasing a luxury property in Central Florida can be a complex process, especially when your income is derived from various non-traditional sources like RVU bonuses, locums/1099 contracts, and K-1 income. This guide will walk you through the steps needed to qualify smoothly for a $1–3 million luxury home in the vibrant neighborhoods surrounding Winter Garden, FL.
TLDR Summary:
• Understand how RVU bonuses, locums/1099, and K-1 income affect mortgage qualification.
• Explore Florida physician mortgage options tailored for doctors.
• Learn about specific luxury neighborhoods near Winter Garden, FL.
• Gain insights from local market data and client experiences.
• Navigate the pros and cons of various income types in mortgage applications.
What Are RVU Bonuses, Locums/1099, and K-1 Income?
Understanding RVU Bonuses
RVU (Relative Value Unit) bonuses are a common form of compensation for physicians, based on the number of services provided and their complexity. These bonuses can significantly boost annual income but may vary year to year.
Locums/1099 Income Explained
Locums, or locum tenens, refers to doctors who temporarily fill positions at healthcare facilities. Income from these roles is typically reported on a 1099 form, similar to freelancers or independent contractors. This type of income is often scrutinized more closely by lenders due to its variable nature.
The Nature of K-1 Income
K-1 income is derived from partnerships, S corporations, or LLCs, allowing individuals to report their share of the entity’s income. While it can be a substantial income source, it may fluctuate with the business’s performance.
How Do These Income Sources Affect Mortgage Qualification?
When aiming to purchase a luxury home, understanding how these income types affect your mortgage qualification is crucial.
Florida Physician Mortgage Options
For doctors, Florida physician mortgage options are tailored to account for unique income sources like RVU bonuses and locums/1099 income. These specialized loans for doctors often offer favorable terms, such as reduced down payments and no private mortgage insurance (PMI).
Pros:
• Customizable to fit unique income scenarios.
• Potentially lower interest rates and down payment requirements.
• No PMI, which can save thousands over the loan’s life.
Cons:
• May require a higher credit score.
• Limited to physicians and certain healthcare professionals.
One of my clients, a local physician, leveraged a Florida physician mortgage to secure a luxury home in Windermere, a prestigious neighborhood known for its beautiful lakes and upscale amenities. They appreciated the flexibility and understanding that came with the physician-specific mortgage.
Which Neighborhoods in Central Florida Are Ideal for Luxury Homes?
Central Florida offers a variety of luxury neighborhoods that cater to affluent buyers.
Windermere
Windermere is renowned for its stunning lake views and exclusive communities. It boasts properties with sprawling estates and access to top-rated schools, making it a favorite among families and professionals.
Dr. Phillips
Known for its dining and entertainment options, Dr. Phillips offers a mix of modern luxury homes and traditional estates. It’s an ideal location for those seeking proximity to Orlando’s attractions while enjoying a serene suburban atmosphere.
Winter Garden
Winter Garden combines small-town charm with modern conveniences. Its historic downtown area and close-knit community feel make it a desirable location. The luxury homes here often feature large lots and custom designs.
Local Market Insights
As of 2025, the Central Florida luxury market remains strong. In Windermere, the average home price is around $1.8 million, with properties moving quickly due to high demand. Dr. Phillips sees similar trends, with an average price of $1.5 million. Winter Garden’s luxury market is slightly more affordable, averaging $1.2 million.
What Are the Steps to Qualify for a Luxury Home Mortgage?
Navigating the mortgage process with non-traditional income requires careful planning.
1. Gather Comprehensive Income Documentation
Lenders will want to see a two-year history of income from RVU bonuses, locums/1099, and K-1 sources. Ensure all income is well-documented, with tax returns, 1099 forms, and partnership statements readily available.
2. Work with a Knowledgeable Lender
Choosing a lender experienced with loans for doctors and non-traditional income is crucial. They can better assess your financial situation and offer tailored solutions. At Dream Finders Realty Group, we have connections with lenders who specialize in these scenarios.
3. Maintain a Strong Credit Profile
A strong credit score can offset some of the perceived risks associated with fluctuating income. Aim for a score of 700 or higher to access the most competitive rates.
4. Consider a Larger Down Payment
While physician mortgages may offer lower down payments, providing more cash upfront can decrease the loan amount and monthly payments, making you a more attractive borrower.
5. Get Pre-Approved Before House Hunting
Pre-approval not only gives you an edge in competitive markets but also ensures you know what you can afford, streamlining the home search process.
Pros and Cons of Using Non-Traditional Income for Mortgage Applications
Understanding the benefits and drawbacks of using non-traditional income can help you prepare for the mortgage application process.
Pros:
• High earning potential can increase mortgage eligibility.
• Diverse income streams can offer financial stability.
Cons:
• Fluctuating income may require more extensive documentation.
• Lenders may apply stricter underwriting standards.
FAQs
How does a Florida physician mortgage work?
Florida physician mortgages are designed for medical professionals, offering terms tailored to their unique financial situations. These loans often feature lower down payments, no PMI, and flexible income underwriting.
Can I qualify for a luxury home with locum tenens income?
Yes, but it may require more documentation to prove income stability. Working with a lender familiar with locum tenens can simplify the process.
What is the best neighborhood for a luxury home near Winter Garden?
Windermere and Dr. Phillips are excellent choices for luxury homes, offering top-tier amenities and beautiful properties. Winter Garden is also a great option for those seeking a slightly more affordable luxury market.
How does K-1 income affect my loan application?
K-1 income can demonstrate substantial earnings, but its variability may require additional scrutiny by lenders. Ensure clear documentation to support your loan application.
Are there any tax benefits to using K-1 income for mortgage qualification?
K-1 income may offer certain tax advantages, such as pass-through deductions. Consult with a tax advisor to understand how it impacts your specific situation.
Conclusion
Purchasing a luxury property in Central Florida, with its unique blend of vibrant communities and serene landscapes, is an exciting endeavor. Whether you’re eyeing a home in Windermere, Dr. Phillips, or Winter Garden, understanding how your non-traditional income affects mortgage qualification is crucial. By leveraging Florida physician mortgage options and working with experienced professionals like those at Dream Finders Realty Group, you can navigate the complexities smoothly.
For personalized assistance in finding your dream luxury home, contact Dream Finders Realty Group. Let’s make your homeownership dreams come true in Central Florida!
