Best Loan Programs for This Situation
Fannie Mae has specific RSU income guidelines. Best path for tech workers with established vesting history and stable employers.
For high-earners using RSU income to qualify for loans above conventional limits. Jumbo lenders often have flexible RSU guidelines.
FHA doesn't have specific RSU guidelines; treatment varies by lender. Base salary alone often qualifies tech workers for FHA.
RSUs (restricted stock units) and other equity compensation have become a major income source for tech, finance, and executive workers. Using them for mortgage qualification is possible but requires specific documentation that most lenders don't ask for proactively. The key tests are: two years of vesting history and a reasonable expectation that future grants will continue.
The Two-Year Vesting Requirement
To count RSU income, lenders need to see that you've received RSU vestings for at least two full years. This is verified through your W-2 (RSU income appears in box 1 and box 12 with code V for NQSO or is included in box 1 for RSUs) and your tax returns. A new RSU grant from a job that started 14 months ago generally cannot be counted even if the grant value is substantial.
Likelihood of Continuance
Lenders verify that RSU income is likely to continue by reviewing your current grant schedule and confirming ongoing employment. Many tech workers have a multi-year vesting schedule (e.g., four-year cliff-vested grants with annual refresh grants). If your employer can provide documentation showing your current grant schedule, this satisfies the continuance requirement. RSU income from employers with ongoing refresh grant programs is the strongest for qualification purposes.
Using RSU Income with Base Salary
Most tech and finance workers use RSU income as supplemental qualification on top of a strong base salary. In many cases, base salary alone covers the qualification at Bakersfield price points. RSU income becomes most critical when targeting higher-priced properties or when the base salary alone doesn't quite reach the required DTI threshold. Jumbo loan lenders generally have the most experience building RSU income into the qualification model.
RSU income can meaningfully change what you qualify for, but the documentation requirements are specific. I've seen tech workers with $300,000 total compensation struggle to get credit for half of it because their loan officer didn't know how to document RSU continuance. Get the grant schedule letter from your HR department before applying.
Have RSU income and want to know exactly how much of it will count toward your mortgage qualification?
Call Dan at (661) 342-9381. He'll review your income documentation and loan options in a free call.