Author: Michael BernsteinPublished:
If you work for a publicly traded company, whether that's in tech or any other industry, there’s a good chance your compensation package includes Restricted Stock Units (RSUs). In fact, for many employees, RSUs aren’t just a bonus—they’re a significant part of how you’re paid.
But when it comes time to qualify for a mortgage, you might find that RSU income is suddenly become harder to use than expected - if your lender doesn't know how to handle it.
Many borrowers are surprised (and frustrated) to discover their RSUs aren’t being counted by their lender, but after reading this article, you'll learn exactly how to make sure your RSUs are counted towards your qualifying income.
What Are RSUs, and Why Do Lenders Struggle With Them?
Restricted Stock Units (RSUs) are shares of company stock that vest over time—typically over four years, with a portion vesting each year or quarter. Once they vest, they’re yours, and if your company is publicly traded, you can sell them just like any other stock. That means RSUs often represent real, ongoing income that’s available to cover living expenses—or a mortgage payment.
However, some lenders don’t know how to document or verify RSU income properly. Others simply avoid using it at all, even when it clearly contributes to your financial picture. That can affect how much home you qualify for—or whether you get approved at all.
How RSU Income Can Be Used to Qualify
The truth is, RSU income can count toward your mortgage qualification—as long as it’s documented correctly and meets standard lending guidelines.
Here’s what lenders typically look for:
- 12 months of RSU income from your current employer
- Evidence that RSUs will continue to vest into the future
- Stock from a publicly traded company
- Stable or consistent vesting history and stock value
If you’ve been receiving RSUs for a year or more, and it’s likely to continue, your lender should be able to include the RSU income as a part of your compensation package. It won’t replace your base salary—but it can significantly improve your qualifying income.
Why It Matters
When lenders don’t understand how to count RSU income, borrowers with stock grants can end up qualifying for less —or not at all (depending on how expensive homes are in your area). That’s not just frustrating—it can cost you the chance to buy a home you're fully capable of affording.
How RSUs Can Make the Difference
Let’s walk through a realistic scenario that shows just how impactful RSU income can be when it comes to qualifying for a mortgage—especially when you’re close to DTI limits.
👤 Example:
- Base Salary: $100,000/year
- RSU Income (vested annually): $25,000
- Monthly Debt (car, student loan, etc.): $500
- Home Purchase Price: $660,000
- Target Loan Amount: $540,000
- Interest Rate: 6.5%
- Loan Term: 30 years (fixed)
❌ If your lender didn't include the RSUs as a part of your income, your Debt-to-Income (DTI) Ratio would be 51.3%, meaning you don't qualify for the home purchase!
✅ With RSUs included as part of your income, your DTI now becomes 37.5% allowing you to very comfortably afford the home and get approved!
Here’s how we can help:
This is where experience matters. Being based in Austin, LendFriend works with tech professionals and employees receiving stock grants every day. We understand the nuances of RSU-based compensation, and we know how to present that income in a way that makes sense to underwriters.
We know what documents to request—and which ones make a difference. Vesting schedules, pay stubs, stock plans—we’ll guide you through what’s needed and explain why.
We know how to structure the income to match lending guidelines. Whether it’s averaged over 12 or 24 months or supported with offer letters and vesting projections, we can help paint an accurate picture of your income.
We know how to advocate for borrowers who don’t fit into a one-size-fits-all box. If your compensation is nontraditional, we’ll help make sure it doesn’t hold you back.
Thinking About Buying? Let’s Talk First
Whether you're ready to buy now or just exploring your options, we’re happy to take a look at your situation and help you understand how your RSUs can increase your buying power.
Our goal is simple: help you make confident, informed decisions—and avoid surprises down the road.
If your compensation includes RSUs and you're looking to buy a home, we’d be glad to walk you through how we handle it and what to expect. It could make all the difference in qualifying for the home you really want, give us a call at 512.881.5099 or apply now, and one of our loan officers will be in touch as soon as we receive the application.
