When Your Commission Income Complicates the Deal You Want to Make
You spend your days helping clients navigate one of the most significant financial decisions of their lives. But when it comes time to purchase an investment property yourself — or to refer a self-employed investor client to a loan originator — the financing side can get complicated fast.
In Alachua County, real estate agents are watching an interesting dynamic unfold. Gainesville, the county seat, draws a steady stream of University of Florida students, healthcare professionals, and remote workers, creating real demand for both long-term rentals and short-term rental properties. Meanwhile, the county’s more rural pockets — areas along the edges toward Newberry or Hawthorne — include land and homes that may fall within USDA-eligible zones, which opens up different financing conversations for primary residence buyers you represent.
Understanding how mortgage options work for investment properties and self-employed borrowers is not just useful for your own portfolio. It also makes you a more knowledgeable advocate for the investor clients you work with every day.
Why Self-Employed Income Is the Sticking Point
Real estate agents are typically classified as independent contractors. That means your income flows through 1099s, commission statements, and sometimes your own LLC or S-corp. Lenders look at this income carefully, and the way tax returns are structured often creates a gap between what you actually earn and what appears as net income after deductions.
This is not a dealbreaker — but it does require planning.
For most conventional loans, lenders will want to see a two-year history of self-employment income and will often average that income across both years. If your earnings have been growing, that averaging could reduce the qualifying income number. On the other hand, if you’ve had a strong, consistent record, you may be in a solid position.
Jim Blackburn, NMLS #1072866, at Stairway Mortgage works regularly with real estate professionals who face exactly this situation. The goal is to find a loan program that reflects your actual financial picture, not just a snapshot that doesn’t tell your full story.
Financing Options Worth Knowing About
For agents buying investment properties in Alachua County — whether it’s a rental near the UF campus, a small multi-unit in Gainesville’s midtown, or a rural property on the county’s western edge — a few loan types tend to come up frequently.
DSCR Loans (Debt Service Coverage Ratio): These loans qualify the property based on its expected or actual rental income rather than your personal tax returns. If the rental income covers the mortgage payment at a set ratio, you may qualify without needing to document personal income in the traditional way. This could be a strong fit for agents with complex tax situations.
Bank Statement Loans: Instead of tax returns, some lenders will accept 12 or 24 months of personal or business bank statements to determine income. This approach can reflect your cash flow more accurately than what shows up after deductions on a Schedule C or K-1.
Conventional Investment Property Loans: If your documented income supports it, a conventional loan on an investment property remains a well-understood path. Down payment requirements are typically higher for investment properties than for primary residences, and reserve requirements may also apply.
You can explore these program types in more detail through our mortgage loan programs page, which outlines what Stairway Mortgage offers to borrowers across different financial situations.
What the Short-Term Rental Trend Means for Your Clients
There’s been growing attention to short-term rentals and their role in local housing markets. Some platforms have shifted their positioning, and investors are paying close attention to municipal regulations that could affect which properties make sense as short-term rentals.
In Alachua County, Gainesville has its own rules around short-term rental licensing, and any investor client you’re advising should understand the local regulatory environment before purchasing. As their agent, knowing the financing side of that picture — including how lenders evaluate short-term rental income when underwriting — helps you have a more complete conversation.
DSCR lenders, for instance, may use a property’s projected rental income from an appraisal addendum rather than a lease agreement, which can be helpful when the unit doesn’t have a rental history yet. Not every lender handles this the same way, so it’s worth discussing with a loan originator who has experience with these property types.
Talk to Our Team if you have investor clients asking about financing short-term rental acquisitions in Alachua County.
How to Position Yourself as the Agent Who Has the Answers
Real estate agents who understand the mortgage process at a working level tend to close more deals. Not because they’re doing the lending themselves — but because they can have informed conversations, set realistic expectations, and connect clients with the right professionals early in the process.
If you’re working with self-employed buyers, for example, you already know that their income documentation can be a moving target. Referring them to a loan originator before they’re under contract — rather than after — gives everyone on the transaction more time to work through any documentation challenges.
Our resources for real estate professionals are built with agents in mind. Whether you want to understand how DSCR loans work, how bank statement programs are underwritten, or what your investor clients might encounter when they apply, those resources can help you stay current.
You might also find our step-by-step mortgage process guide useful when you want to walk a first-time investor client through what to expect from application to closing.
Working With Jim Blackburn at Stairway Mortgage
Jim Blackburn, NMLS #1072866, leads Stairway Mortgage out of Fort Lauderdale with a focus on helping borrowers — including real estate professionals — find loan programs that fit their actual financial situation. For agents in Alachua County who are building their own investment portfolios or who regularly refer investor clients, having a loan originator who understands commission income, DSCR loans, and self-employed borrower documentation can make a meaningful difference in how smoothly transactions close.
You can reach the team directly at (954) 993-1625 or use the link below to get started.
If you’re ready to explore what financing options may be available for your next investment property — or to prepare for the conversations your investor clients are about to bring to you — See My Options and let’s talk through what makes sense for your situation in Alachua County.