Restricted Stock / RSU Income
Your equity compensation is income. Let it count.
RSU programs count vested and future restricted stock as qualifying income, which matters enormously for technology, biotech, and executive borrowers in metro markets.
What makes this loan different
- Vested RSU history used as qualifying income
- Future vesting schedules counted by many lenders
- Stock price averaging methods vary; we shop them
- Pairs with base salary and bonus in the same file
Who this is built for
- Technology and biotech employees
- Executives with large equity components
- Borrowers whose base salary understates total comp
The stock compensation problem
In this market a large share of total compensation arrives as stock. A senior engineer may have a $210,000 base and another $190,000 vesting annually. A lender that ignores the equity is underwriting half the borrower.
Agency guidelines do allow RSU income with a two-year history and three years of continuance, but the way each lender averages share price and treats future vesting varies widely. That variation is worth real money.
Documentation
Vesting schedules, two years of stock statements or pay records showing vested shares, and an employment letter confirming the grant continues. We model the income under several lender methods before choosing where to send the file.
What lenders typically ask for
- Grant letters and full vesting schedules for all outstanding awards
- Two years of vesting history, typically shown through pay stubs, W-2s, or brokerage statements
- Employer verification of continued participation
- Brokerage statements showing shares received and any retained
- Standard credit, ID, and asset documentation
Requirements vary by lender and by file. This is a general picture of what is commonly requested, not a checklist for a specific loan.
Worth knowing
Continuance is the real test.
Lenders generally need to see that unvested awards will continue for some years forward — three is a common threshold. A borrower near the end of a grant cycle with nothing new awarded may not be able to use the income at all.
Share price volatility gets discounted.
Many lenders average the share price over a trailing period, or apply a haircut, rather than using the current price. A recent run-up usually counts for less than a borrower expects.
Not every lender accepts it.
RSU income handling varies widely. Some count it fully, some partially, some not at all. This is one where lender selection changes the answer.
Private company equity is a different conversation.
Awards in a company without a public market are generally treated very differently, and often cannot be used as qualifying income.
See what this program would take in your case.
We are brokers — this program is shopped across hundreds of wholesale lenders, not quoted off one rate sheet. A short application gives us enough to compare real options.
Program availability, terms, guidelines, and documentation requirements vary by lender and are subject to underwriting and change without notice. This is not a commitment to lend.