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RSU Income Qualification

How will lenders count your vesting RSUs?

If part of your pay comes as company stock (restricted stock units, or RSUs), a mortgage lender may count some, all, or none of it. Enter your salary, the RSU income on your last two W-2s, and your upcoming vests to see the range lenders are likely to count.

  1. Lenders size your loan from income that will last

    How much you can borrow depends on your yearly income, measured against your monthly debts (your ). Salary counts in full. Your count only if the lender believes that income will continue.

  2. History is what makes RSUs count

    Lenders look back at the RSU income on your , usually over 1 to 2 years, and want shares still scheduled to for at least 3 more years. A first grant from a new employer may be treated as a one-time and not counted at all.

  3. Different lenders, different answers

    Underwriters can read the same paperwork differently, so we show four approaches, from generous to strict. Upcoming vests are reduced by a for stock price swings.
Every number here comes from your last two W-2s and the vesting schedule in your stock plan account. The RSU mortgage income guide has a checklist of the documents lenders ask for.
Your pay and employer

Your salary, whether your company's stock trades publicly, and how long you've been receiving RSUs.

$

Company type

Private-company RSUs usually can’t be counted, because the shares can’t be sold yet.

Your RSU grant history

With only a first grant and no refreshers yet, strict underwriters can classify it as a one-time bonus and exclude all RSU income.

Your RSU history and upcoming vests

Past RSU income is on your W-2s. Upcoming vests are in your stock plan account (Fidelity, E*Trade, Schwab, Morgan Stanley at Work, or Carta).

$
$
$

How much the stock swings

Upcoming vests are reduced by 30% as a cushion for price swings.

Income each type of lender might count

Salary plus the RSU income each approach would accept, per year.

Most mortgages follow rules set by , but each lender’s interprets them. With the same W-2s, vest schedule, and grant letter, two underwriters can reach different results. If RSUs are more than 30% of your pay, plan to talk to 5 to 10 lenders; the spread between the most and least generous is routinely 30% to 50% of qualifying income.Both agencies accept time-based RSUs with as little as 12 months of history (unless the grant is treated as a sign-on award, which neither will count). The partial credit shown for a 1-year history (Fannie 35% to 60%, Freddie 50% to 75%) and the price cushion are this tool’s estimates of how underwriters make that call, not guide figures.

Generous lender

$275,600

includes $75,600/yr of RSU income

counts a first grant as ongoing pay

Fannie Mae rules (DU)

$226,460

includes $26,460/yr of RSU income

estimate for a typical Fannie Mae loan

Freddie Mac rules (LPA)

$237,800

includes $37,800/yr of RSU income

estimate for a typical Freddie Mac loan

Strict lender

$200,000

includes $0/yr of RSU income

treats a first grant as a one-time bonus

DU (Desktop Underwriter) and LPA (Loan Product Advisor) are the automated approval systems Fannie Mae and Freddie Mac provide to lenders.

Yearly income lenders will likely count ()

$200,000 – $275,600

At a rough anchor of about 4 times income, the low end ($200,000) maps to a home around $800,000 and the high end ($275,600) to around $1,102,400. The real limit depends on your debts, your rate, and the lender’s debt-to-income cap. Run the affordability calculator with your debts and rate for a tighter number.

Base salary

$200,000

always counted in full

RSU income, last year

$120,000

only 1 year entered, so no 2-year average yet

Next 12 months of vests, discounted

$75,600

600 shares × $180, minus a 30% cushion

What this means

Depending on the lender, nothing up to $75,600 a year of your RSU income would count on top of your $200,000 salary. The low end is your salary alone because a strict lender would treat your RSUs as a one-time award until you have two years of RSU income on your W-2s. At the 4 times anchor, the difference between the low and high end is about $302,400 of home price.

Before you shop for homes, ask each lender how it classifies your grant, then get pre-approved for a firm number.

What could raise the low end

  • A second year of RSU income on your W-2s, entered as the year before
  • A refresher grant, which shows equity is ongoing pay rather than a one-time award
  • Talking to several lenders: some count first grants that others exclude

What this models, and what to verify with a lender

Underwriters disagree most about your first (new-hire) grant. Some count its full vesting stream as ongoing pay; others classify the entire 4-year grant as a and exclude it, so it pays to compare lenders.

Pre-IPO RSUs are typically uncountable. Most conventional lenders won’t count them at all because there’s no way to sell the shares yet. A few private banks may, with a documented history of share sales, so ask before you apply.

What this tool doesn’t model:

  • The guides’ exact share-price averages (Fannie: 200-day moving average; Freddie: 52-week average). Enter a price near that average for a closer estimate
  • The declining-income rule (Fannie uses the most recent 12 months, not the 2-year average, when the current year is lower than the prior one)
  • Specialty, , or portfolio lenders, whose can be materially more generous
  • Grant letter language (“annual equity award” vs “sign-on/initial grant” can flip the call)
  • The 3-year requirement. We assume your unvested grants cover 3+ years past closing; if not, get an HR continuance letter on company letterhead
  • Recent layoffs or hiring freezes at your employer (these undercut the “reasonable likelihood of continuance” argument)
  • , and other performance stock, treated more conservatively than time-vesting RSUs because the share count itself isn’t certain

See the full RSU mortgage guide for the new-hire-grant trap, a documentation checklist, and how to compare lenders.

Results are estimates based on your inputs and the assumptions on this page, not quotes or advice. A lender, servicer, or tax advisor will give you different numbers. Disclaimer

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Terms used on this page

Terms from your stock plan paperwork and from lender underwriting.

RSU (restricted stock units)
Company shares granted as pay that become yours on a schedule. When they vest, their value is taxed as income and shows up on your W-2.
Vesting
The point when granted shares become yours, often in pieces over 4 years. Lenders want vesting to continue for at least 3 years after closing.
Refresher grant
An additional stock grant given after you join, often yearly. It shows equity is an ongoing part of your pay, which makes lenders more willing to count it.
Sign-on (new-hire) grant
The stock grant that comes with a job offer. Some underwriters treat it as a one-time bonus, and Fannie Mae and Freddie Mac don’t count sign-on awards.
Qualifying income
The yearly income a lender accepts when deciding how much you can borrow. It can be less than what you earn if some income lacks history or may not continue.
Fannie Mae and Freddie Mac (DU, LPA)
Two government-sponsored companies whose rules most US mortgages follow. DU and LPA are their automated approval systems.
Underwriter
The person at a lender who reviews your documents and decides which income counts. RSU rules leave room for judgment, so underwriters can disagree. More
Haircut (price cushion)
A discount this tool applies to your upcoming vests (25% to 40%) in case the stock price falls. Lenders don’t set this percentage.
DTI (debt-to-income ratio)
Your monthly debt payments divided by your gross monthly income. Lenders use it with your qualifying income to set how much you can borrow. More
Pre-IPO
A company that hasn’t gone public yet, so its shares usually can’t be sold. Most lenders won’t count pre-IPO RSUs at all.

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