Compensation review
Offer letter, equity portal, two years of W-2s and your most recent statements.
Income that is not a salary
RSU and equity income
Vesting schedules counted the way underwriting wants to see them
The short version
If half your compensation arrives as restricted stock, most loan officers will quote you off base salary alone and leave a third of your buying power on the table. Counting equity income takes a two year history, a vesting schedule that runs at least three more years, and a lender whose guidelines actually allow it. That is a normal Tuesday in San Jose.
Qualifying income often lands 30% to 50% above base salary alone
ESPP discounts and cash bonuses can be added with the same two year history
Portfolio lines can replace a stock sale, which avoids a capital gain in a bad month
You get a straight answer about what will and will not count in the first call
What you get on this program
The work that sits behind the rate quote.
A vesting analysis
I take your equity portal export and build the two year average and the forward looking schedule underwriting needs.
The right lender match
Guidelines vary a lot on this. I know which desks count RSUs at a full average and which haircut them.
Sale timing
If you are selling shares for the down payment, we time the sale and the transfer so seasoning is never a question.
Pre IPO handling
Private company equity usually cannot be counted, so we build the file around salary, bonus and assets instead and say so early.
How this one runs
The same sequence every time, adapted to the program.
Qualifying income built
You see the exact number underwriting will use, before you shop.
Lender selection
The file goes where the guidelines are best for your mix of salary and equity.
Approval and offers
Credit approved file, then agent support through the offer.
Close
Conditions handled with your vesting calendar in mind.
What moves your pricing
Four levers underwriting looks at on this program, and what each one is worth.
| Factor | What it means for you |
|---|---|
| History | Two years of receipt at the same employer is the standard. A job change inside the same field can sometimes be bridged. |
| Continuance | The unvested schedule generally must run three more years from closing. |
| Share price | Most desks use a trailing average price, not today's price, which protects you in a volatile quarter. |
| Employer type | Publicly traded employers work best. Private equity grants usually cannot be counted as income. |
Programs people compare this with
Jumbo home loans
For Santa Clara County prices above the conforming cap
- Loans to $3,000,000
- 10% down available to $1.5M
- Fixed and 7/6 ARM
6.250%sample rate, 6.341% APR
Asset depletion loans
Qualify on portfolio balances rather than paystubs
- Portfolio based qualifying
- Retirement and brokerage accounts
- No employment required
6.750%sample rate, 6.901% APR
Self employed and bank statement
Twelve or twenty four months of deposits instead of tax returns
- 12 or 24 month statements
- Personal or business accounts
- No tax returns required
7.125%sample rate, 7.402% APR
RSU and equity income: the questions I get
Straight answers, including the parts other lenders leave out.
Still stuck on something
Call (408) 555-0124 or book a 20 minute slot. No documents needed for the first conversation.
With a two year history and a schedule that continues three years past closing, most of my lenders use a two year average at a trailing share price. Some haircut it further, which is why lender selection matters here.
It usually does. Once shares are publicly traded and you have a payment history on them, the income becomes countable, sometimes with only one year of receipt on a strong file.
It depends on your basis and your tax year. I will show both and recommend you run the tax side past your CPA before you decide.
Run your own numbers with me
Twenty minutes on rsu and equity income and whether it is really the right tool for your situation.
Sample figures across this site are illustrations, not quotes. Equal Housing Opportunity.