The Quick Read: Lenders count this income only after it is paid out, documented, and averaged over time. Vested RSUs and bonuses with a stable history can qualify. Unvested grants and a shrinking bonus usually cannot. Each wholesale jumbo lane sets its own rules, so the details depend on the lender and a full file review.
Key Takeaways
- Only vested RSU shares that were delivered to you count as income. A grant you have not yet received does not.
- Lenders average bonus and RSU income over about two years, so your qualifying figure can sit below last year’s pay.
- Jumbo guidelines are set by each lender. The headline wholesale lane starts at a 660 decision score and reaches 90% leverage. Cash-out leverage is lower than purchase leverage.
- The documents come first. Vesting schedules, brokerage statements, W-2s and pay stubs decide whether the income is usable. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
How Does a Lender Count RSU and Bonus Income?
A lender counts income it can verify, predict, and expect to continue. Base salary is easy. Bonus and RSU pay are harder because they move with company results and stock price. The lender converts them into one steady monthly figure, then adds that to your base pay.
Here is the logic in plain words. A bonus is cash that arrives once or twice a year. A restricted stock unit (RSU) is a promise of company shares that arrives on a vesting schedule. Neither is guaranteed month to month. So underwriters look back, usually two years, and ask whether the pattern is steady, rising, or falling.
A jumbo loan is any loan above the county’s conforming limit. That limit changes yearly, so check your county’s current number. In the files Lendmire arranges, jumbo lenders write their own underwriting rules. Some mirror agency guidelines for RSUs. Some are stricter. A few are more flexible.
Lendmire’s jumbo cash-out refinance program works through wholesale lenders. The headline lane starts at a 660 decision score and reaches 90% leverage. Several lanes top out at 89.99% combined loan-to-value (CLTV), and the rest stop at 80%. Loans run to $5,000,000 on the largest lanes. Cash-out sits at lower leverage than a purchase, with a cash cap on the largest lanes. All of this is subject to lender guidelines and full file review.
How Is the Loan Underwritten, Step by Step?
Underwriting follows five steps: classify the loan, convert your income, test your ratios and reserves, confirm the value, then re-verify. Income conversion is where RSU and bonus borrowers win or lose. Each step below shows what the lender checks.
Step 1: Classify the loan. If the new balance, including the payoff of your old loan, is above the county limit, the loan is jumbo. A cash-out means the new loan pays off the old one and hands you the extra equity.
Step 2: Convert income to a monthly figure. Bonus income is reviewed for how long you have received it, how often it is paid, and whether the trend is up, flat, or down. Two years of history is the usual preference. A steady or rising trend lets the lender average it. A falling trend triggers more analysis, and the lender will not average across the decline.
RSU income follows stricter rules. The Fannie Mae Selling Guide counts RSUs only after they vest and are delivered to you without restriction. It also expects the employer’s stock to be publicly traded. The lender typically wants a verification of employment showing RSU distributions, or a recent pay stub showing RSU receipt plus two years of W-2s. It also wants the vesting schedule, past and future, and a brokerage or bank statement showing earlier distributions. For income paid in shares, the guide uses a 200-day moving average of the stock price rather than today’s price. Trade summaries describe the result as spread over a 24-month history. Jumbo lenders that borrow this method may tweak it.
Step 3: Test your ratios and reserves. Your debt-to-income (DTI) ratio compares monthly debts to qualifying monthly income. On the fixed lanes Lendmire works with, the ceiling is 50%. It is 45% on the adjustable lanes and 43% on the interest-only lanes. Reserves are cash and liquid assets left after closing, measured in months of your full payment. They rise as the loan amount rises.
Step 4: Confirm the value. The appraisal sets the value your leverage is measured against. In a cash-out, a lower appraisal directly shrinks the cash available. Above a lane’s threshold amount, two appraisals are required.
Step 5: Re-verify. Expect a verbal employment check for RSU income. Lenders may recheck employment and vesting records before closing. If your bonus plan was cut or your vesting changed in the meantime, tell your loan officer early.
How Is Each Type of Income Treated?
Base pay counts first, bonus counts with history, and vested RSUs count with documentation. Unvested RSUs count for nothing. This table summarizes the typical treatment across jumbo lanes, though each lane’s rules differ.
| Income type | What lenders want | Common risk |
|---|---|---|
| Base salary | Pay stub, W-2, employment check | Low |
| Bonus | About two years of history | Declining trend |
| Vested time-based RSU | Vest records, brokerage statement | Shorter history |
| Performance-based RSU | Longer history, vesting outlook | Results-driven swings |
| Unvested RSU | Not counted | Zero qualifying value |
History matters most for the RSU rows. A trade-summary job aid from Radian reports that time-based awards need about 12 months with the current employer. Performance-based awards call for about 24 months. Lenders also look for income likely to continue for roughly three years. Sign-on RSUs that vest over time are excluded. Treat these as the benchmark, not a promise, because jumbo lenders can adopt their own version.
What Does a Combined Example Look Like?
Say your pay breaks into three pieces: base salary, an annual bonus, and RSUs. Picture base pay at about 60% of your total yearly compensation, the bonus at 15%, and vested RSUs at 25%. The lender does not add up the full 100%.
Instead, it takes your base salary at face value. It averages the bonus over its history. It values the RSUs using the averaged stock price and the shares that actually vested, spread across the review window. If your bonus rose sharply last year, the average pulls it below the latest number. If your stock jumped recently, the 200-day average pulls it below the spot price.
Next, the lender stacks the monthly total against your debts, including the new mortgage payment. On a fixed lane, that ratio has to land at or under 50%. Qualifying income can come in well below what you actually earned last year. That surprises many borrowers. It is also the reason to ask for an estimate before you shop for a cash-out amount.
Run your own version with rough percentages before you apply. Take the lowest of your last two years rather than the best one. It gives you a sober starting point.
Where Does the General Rule Break?
The rule “vested, documented, averaged” has real exceptions. These are the ones that trip up borrowers most often.
- Short history. Some programs allow 12 to 24 months when offsetting factors exist, such as future vesting at least equal to past vesting. That is a lender judgment call.
- Private company stock. If the employer is not publicly traded, the agency documentation standard is not met. Jumbo lenders may treat it differently, or not count it.
- Declining bonus. A cut in the bonus plan can reduce or remove the income, and averaging across the drop is off the table.
- Share count versus dollar value. Many tech employers set grants in dollars, not shares. A falling future share count might not mean falling income, but an underwriter can misread it. Bring the grant letter and be ready to explain it.
- Stock-price swings. The 200-day average steadies the number, but a large drop between application and closing can still trigger a closer look.
- Job change. A new employer resets your history. Time-based RSU grants from a new job may not yet have a record to count.
- Occupancy. A primary home gets the highest cash-out leverage. Second homes and investment properties are available on some lanes at lane-specific leverage, and cash-out stays below purchase leverage on each. This article focuses on the home you live in.
- Seasoning. The agency benchmark asks that the existing first mortgage be at least 12 months old and that a borrower has been on title for six months, per the Fannie Mae cash-out guidance. Jumbo lenders may set different seasoning periods. A cash buyer may have a documented exception to the title rule.
Do not assume every jumbo lender accepts RSUs at all. Some do not. A broker can screen lanes before you spend time on an application.
What Rules Sit Under All of This?
One federal rule applies to jumbo loans too. Under the ability-to-repay rule, lenders must verify the income they rely on using reliable third-party records, per the CFPB’s compliance guide. A verbal claim is not enough. The same rule lets lenders consider bonus income when it is verified. It does not set a single DTI cap for these loans. So the 50% ceiling is a lender and program standard, not a federal number.
Should You Use a Cash-Out Refinance at All?
A cash-out replaces your current mortgage with a larger one. Your payment may rise, and the loan term may restart. It also puts more debt against your house. The CFPB’s research on cash-out borrowers warns that rolling unsecured debt into mortgage debt can raise foreclosure risk.
Weigh the alternatives honestly.
| Option | Best when | Tradeoff |
|---|---|---|
| Jumbo cash-out refinance | You want one loan and a lump sum | Resets your whole loan |
| Home equity line | You want to keep your current loan | Variable draw, separate qualifying |
| Sell vested shares | You hold shares you can part with | Selling may trigger taxes |
| Keep your loan | The cash is not urgent | No new funds |
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
How Should You Prepare?
Start with paper. A clean file is the single biggest help for RSU and bonus borrowers. Pull these items first:
1. Your last two years of W-2s and your most recent pay stub.
2. Your employer’s RSU vesting schedule, past and future.
3. Brokerage or bank statements showing share deliveries.
4. Your bonus plan or award letters.
5. Your existing mortgage statement.
Then pick a cash-out amount based on what you truly need, not the maximum the lane allows. Keep reserves in mind. Cash you spend on the house is cash you cannot count toward post-closing reserves. Also keep your job situation and stock sales steady while the file is in review. A surprise change in income or assets can reopen the file.
Key Terms Defined
RSU (restricted stock unit): A promise of company shares that you receive on a set vesting schedule.
Vesting: The point at which shares become yours and are delivered to you without restriction.
CLTV (combined loan-to-value): All loans against your home added together, divided by the home’s appraised value.
DTI (debt-to-income ratio): Your monthly debt payments divided by your qualifying monthly income.
Reserves: Liquid funds left after closing, measured in months of your full mortgage payment.
Seasoning: The waiting period a lender wants between a purchase or earlier loan and a new cash-out.
Frequently Asked Questions
Do unvested RSUs help me qualify?
No. Unvested units produce no qualifying income. Only shares that vested and were delivered to you count, and only with a documented record. A big grant that vests next year will not lift today’s file.
Can last year’s bonus be used as my monthly bonus income?
Not by itself. Lenders average bonus income over its history, usually about two years. A rising bonus gets averaged down. A falling bonus may be reduced or dropped. Bring both years of W-2s so the trend is clear.
Do all jumbo lenders accept RSU income?
It depends on the lender. Some follow agency RSU rules. Some add stricter conditions. Others may not accept it. That is why screening lanes before applying saves you from a wasted credit check.
Does the money from a cash-out count toward my reserves?
Usually not in full, and lender rules differ. Reserves are measured after closing, and cash you take out is meant to be used. Ask your loan officer how each lane treats proceeds you keep in an account.
What if my stock price drops while my file is in review?
The 200-day average smooths short swings, so a brief dip may not change your number. A steep, lasting decline can prompt a fresh look at the income. Tell your broker about big changes right away.
Your Next Step
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and home buyers in 16 states with FHA, VA, conventional and jumbo purchase and refinance loans arranged through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and the agency guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae Selling Guide B3-3.3-07: Restricted Stock Units and Restricted Stock Employment Income
3. Fannie Mae Selling Guide B2-1.3-03: Cash-Out Refinance Transactions
4. CFPB Ability-to-Repay/Qualified Mortgage Small Entity Compliance Guide
5. CFPB: CFPB Report Finds Cash Out Mortgage Refinance Borrowers Improve Credit Scores
This article is part of Lendmire’s Jumbo Loans series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: How to Document RSU and Bonus Income for a Jumbo Cash-Out · How to Get a Jumbo Cash-Out During and After a Divorce · Can You Get a Jumbo Cash-Out on a Living Trust Home?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.