The Quick Read: Lenders count equity pay only when you can prove it was earned, delivered to you, and likely to continue. Vested RSUs (restricted stock units, shares your employer promised and has now released to you) can count as income. Unvested grants do not. Deferred compensation is two different things: payouts you already receive, which can count as income, and a plan balance, which is an asset that counts only if you can reach it.
What Counts as Documentable Income?
Three words decide almost every file: vested, delivered, and documented. Vested means you have earned the shares. Delivered means they landed in your brokerage account. Documented means a third-party record proves both.
A grant letter does not meet that test. Neither does the total award value on your employer’s equity portal. Those show a promise. A lender needs to see what you actually received.
The same idea applies to deferred comp. A balance on a plan statement is not income. A payout that shows up in your bank account on a schedule might be.
Here is how the common situations sort out on a jumbo cash-out file.
| Situation | What the lender wants | Common risk |
|---|---|---|
| Unvested RSUs | Nothing. Not counted as income | Borrower expects credit |
| Vested time-based RSUs | Vest history, delivery proof | Short history with employer |
| Performance-based RSUs | Longer history, steady awards | Big swings year to year |
| Cash-settled award | Pay stubs, W-2 showing the cash | Mixed with bonus on stub |
| Deferred comp payout in progress | Payor letter, payout schedule | Payout ends too soon |
| Deferred comp balance | Plan terms on access | Locked until separation |
| RSU shares deferred into a plan | Lender-specific. Ask early | Not yet “received” |
That last row is a real gray area. Some employers let you push share delivery into a deferred plan. Whether a lender treats those shares as received income varies by lender, so raise it before you apply, not after.
How Does a Jumbo Cash-Out Differ From a Standard One?
A jumbo loan starts one dollar above your county’s conforming limit. Because the big agencies do not buy those loans, each lender or investor sets its own rules. Many borrow the agency approach to RSUs and then add their own conditions.
In the jumbo files Lendmire arranges through wholesale lenders, the headline program takes a 660 decision score and reaches up to 90% leverage. Several lanes top out just under 90% combined leverage. The rest stop at 80%. Loan amounts reach $5,000,000 on the largest lanes. Cash-out sits at lower leverage than a purchase, and the largest lanes add a cash cap. These figures are subject to lender guidelines and full file review.
Two other numbers matter for equity-pay borrowers. The first is the debt-to-income ratio, which compares your monthly debts to your monthly income. The fixed lanes allow up to 50%. The adjustable lanes allow up to 45%, and the interest-only lanes 43%. The second is reserves, which are months of your full housing payment held in accessible funds. Reserves rise with the loan amount.
Why does this matter for RSUs? Because the income you can document sets your ratio. And the assets you can document, including vested stock, help with reserves. You can read more on how the program fits together on Lendmire’s jumbo cash-out refinance program page.
One more split. Income decides whether you qualify. The appraisal decides how much you can borrow against the house. Above a lane’s threshold amount, two appraisals are typical.
What Is the RSU Document Packet?
Start with this list. Each item proves one specific thing.
| Document | What it proves | Where to get it |
|---|---|---|
| Vesting schedule, past and future | Your award history and what is still coming | Equity plan portal |
| Brokerage statements | Shares were delivered to you | Brokerage account |
| Recent pay stub | Stock income shows in payroll | Employer payroll |
| Prior W-2s | Stock income was reported | Payroll or tax file |
| Employer verification | Employment and equity pay are current | HR or payroll team |
| Proof stock is publicly traded | The shares have a market price | Ticker, plan summary |
Fannie Mae’s Selling Guide on restricted stock units is the benchmark many jumbo lenders copy. It asks for the stock to be vested and distributed to you without restrictions. It asks for the current vesting schedule showing past and future vesting. It also asks for a brokerage or bank statement showing receipt of earlier distributions. Sign-on awards paid as restricted stock that vest over time are not eligible.
Jumbo lenders can differ, so treat that as a benchmark, not a promise. Your lender’s checklist wins.
Pull full documents, not screenshots. A portal summary page often leaves out vest dates or withholding. Ask for the complete vesting schedule and every brokerage statement covering the period.
How Do You Read Your Own Paperwork?
Underwriters read your documents together. If the pieces disagree, the file stalls. So do the reconciliation yourself first.
Your pay stub shows stock income as a separate earnings line, often on the vest date. Your W-2 reports the value of vested shares as wages, usually folded into a larger box total. Your brokerage statement shows the shares that arrived. Your vesting schedule shows what was supposed to arrive.
Here is a fictional borrower. A vest event releases 1,000 shares. The employer withholds 300 shares to cover taxes. Only 700 land in the brokerage account.
The schedule says 1,000. The statement says 700. A reviewer who sees both without context may think something is missing. The pay stub resolves it, because it shows the 1,000 shares counted as pay and the withholding taken out.
Write a one-paragraph note that ties the three records together. Keep it plain. State the vest date, shares vested, shares withheld, and shares delivered. That note can save a round of questions.
How Do Lenders Turn Vests Into Monthly Income?
The method is lender-specific. The common approach follows the agency pattern, and it is more conservative than your pay stub suggests.
For shares, the lender multiplies a stock price by the pre-tax vested shares. Then it divides by the months in the averaging period. For cash-settled awards, it averages the pre-tax cash paid. Freddie Mac’s Guide Section 5303.1 uses a 200-day average price for share-based awards. That is the average of the last 200 daily closing prices, which smooths out a one-day spike.
History matters too. The same Freddie Mac guide asks for two consecutive years of history on performance-based awards. Under 24 months may be acceptable with at least one year. Continuance, meaning the lender’s view that the income will keep arriving, must be likely for at least three years. Time-based awards typically need a shorter history, and the lender confirms the awards will continue.
Qualifying income can land far below total comp. Three things shrink it:
- Only vested, delivered shares count.
- Averaging over the period lowers a strong recent year.
- The averaged price can sit below today’s price, or above it, depending on the market.
Different agencies can reach different monthly figures from the same facts. A jumbo lender can differ again. So ask which method and which price basis the lender uses before you build your plan around a number.
How Do You Document Deferred Comp?
Deferred comp needs the most care, because the agency guides do not treat non-qualified deferred compensation as its own income type. What follows is how files tend to be handled, not an agency rule. A jumbo lender’s own guidelines decide.
When you are already receiving payouts, think of this as income from a payor. Fannie Mae’s general rules for retirement-type income ask for documentation from the payor, such as a statement or award letter. Expect to supply the plan document and the payout schedule. Lenders also want to see that the payments continue for years, and three years is the common yardstick. A plan that pays out over a shorter stretch may earn little or no credit. Lenders count the annual payout, not the whole balance.
If you hold a balance, this is an asset question, not an income question. Access decides everything. If the plan locks funds until you leave the company, a lender may not count the balance toward reserves. Fannie Mae’s retirement-account rule is a useful comparison. It counts such funds only when they are vested and withdrawable regardless of employment status. Read your plan’s distribution terms before you assume the balance helps.
| Deferred comp document | What it proves |
|---|---|
| Plan document | Distribution rules and timing |
| Latest plan statement | Current balance and vesting |
| Payout schedule | Amount and length of payments |
| Payor letter | Payments are active and ongoing |
| Bank statements | Payments actually arrive |
Keep a hard line between the two uses. Do not present one balance as both income and reserves.
Can Vested Stock Count Toward Reserves?
Often yes, and that helps a cash-out file. Fannie Mae’s rule on stocks and stock options accepts vested stock as funds for reserves, valued from a recent monthly or quarterly statement. It does not require you to sell. Non-vested options are not acceptable.
A jumbo lender may apply its own haircut or ask for more history. The point holds, though. If you hold vested shares, you may not need to liquidate them to show reserves. Since jumbo reserves scale up with the loan amount, that matters.
Retirement-plan balances follow the access test above. Brokerage shares count at statement value on the lender’s terms.
How Do You Fix Common Document Problems?
Most RSU files hit a snag. Most snags have a fix.
| Problem | Remedy |
|---|---|
| Portal shows only a summary | Export the full vesting schedule |
| Missing brokerage months | Download every statement in the period |
| Shares delivered below shares vested | Write a withholding note |
| Schedule ends soon | Add refresh-grant letters and an employer statement |
| Employer will not verify | Ask HR for a letter on the lender’s form |
| Pay stub mixes bonus and stock | Request an earnings breakdown |
A schedule that is running out is the hardest case. The lender wants evidence the awards will continue. Refresh-grant letters help. So does an employer statement that equity is a recurring part of your pay. Without proof, a lender may count only what the existing schedule supports.
What Is the Step-by-Step Order?
Work in this sequence, and do it before you apply.
1. Pull. Download the full vesting schedule, every brokerage statement, recent pay stubs, and W-2s.
2. Sort. Mark each equity item as vested and delivered, vested only, or unvested.
3. Reconcile. Match pay stub, W-2, brokerage, and schedule. Write a note for each mismatch.
4. Check deferred comp. Get the plan document, payout schedule, and access terms.
5. Submit. Send a clean packet and say which items you are counting as income and which as assets.
6. Respond. Answer conditions the same day you can. A lender may ask for newer statements as the deal works.
The lender must verify what it relies on using reliable third-party records. That is the baseline in the CFPB’s ability-to-repay rule. It is why a jumbo loan is not a no-documentation loan.
One practical observation from jumbo files like these: borrowers with strong equity pay often undercount their paperwork, not their income. The shares are real, but the packet does not prove it. A complete, reconciled packet makes the underwriter’s job simple.
Where Does the General Rule Break?
Five situations break the pattern.
- Sign-on awards. Restricted stock paid at hiring is excluded from qualifying income under the agency benchmark, even as it vests.
- Job change. History generally must be with your current employer. Freddie Mac asks that the stock vested and was distributed from your current employer.
- Private-company stock. The benchmark expects publicly traded stock. A jumbo lender may treat private shares more narrowly, or not count them.
- Performance swings. Results that jump from year to year invite a longer look-back and a lower average.
- Stock-price drop. A sharp fall between application and closing can shrink the averaged income or the asset value. Lenders may re-check.
There is also a retirement-account shortcut worth ruling out. Some programs convert retirement assets into qualifying income. That route applies to purchases and limited cash-outs, not a standard cash-out refinance. Do not plan around it.
Also, occupancy matters. This article assumes the home you live in. A second home or rental property carries a different leverage cap.
On a cash-out, there is one more timing issue. Lenders often want you to have owned the home for a minimum period, and your existing first mortgage may need to be seasoned before you pull equity. Ask your lender how its program counts that period. If you paid cash for the house, delayed financing rules may let you borrow sooner, but the loan is still treated as cash-out.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Key Terms Defined
Vested: You have earned the shares, and your employer can no longer take them back under the award terms.
Distributed (delivered): The shares or cash have actually reached your account.
Time-based RSU: An award that vests on a calendar schedule as long as you stay employed.
Performance-based RSU: An award that vests only if the company or you hit set targets.
200-day moving average: The sum of the last 200 daily closing prices divided by 200. Lenders use it to set a steady share price.
Non-qualified deferred compensation (NQDC): A plan that lets you delay part of your pay to a later date, often after you leave.
Continuance: Evidence that income will keep arriving, usually for at least three years.
Reserves: Months of your full housing payment held in accessible funds after closing.
Frequently Asked Questions
Do I have to sell my vested shares for them to count?
No. Vested shares can count as income through the vest history, and as reserves at statement value. The agency benchmark does not require liquidation. A jumbo lender may set its own conditions, so confirm before you apply.
Do unvested RSUs help my application at all?
They do not count as income. The vesting schedule still matters, because it shows what is coming and supports continuance. A lender may use future vests to judge whether the income is likely to continue.
How much history do I need with my employer?
It depends on the award type and the lender. Performance-based awards typically need a longer record than time-based ones. Freddie Mac asks for two consecutive years on performance awards, with shorter histories allowed in some cases. A jumbo lender may be stricter.
Does a deferred comp balance count as liquid funds?
Only if you can access it without restriction. If the plan locks the money until you leave, a lender may not count it for reserves. Payouts you already receive are a separate question and may count as income with proper documentation.
Can I use RSU income if I recently changed jobs?
Often not yet. History generally must come from your current employer, and sign-on stock is excluded. Some borrowers wait until they have a track record at the new company. Others rely on base salary and bonus.
Weighing a Cash-Out Against the Loan You Have
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. Lendmire is a mortgage broker licensed for consumer lending in 16 states, and it arranges jumbo loans through wholesale lenders. If your income comes from a business instead, see Lendmire’s guide to documenting a super jumbo cash-out with a profit-and-loss statement. Every program figure here is subject to lender guidelines and full file review, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and home buyers in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae Selling Guide: Restricted Stock Units and Restricted Stock Employment Income
2. Freddie Mac Guide Section 5303.1
3. Fannie Mae Selling Guide: Annuity, Pension, or Retirement Income
5. Fannie Mae Selling Guide: Stocks, Stock Options, Bonds, and Mutual Funds
6. CFPB: What Is the Ability-to-Repay Rule?
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 Size a Jumbo Cash-Out Around Its Use and Payment · Jumbo Cash-Out Lender Questions for a Homeowner With RSUs · Fixed vs ARM for a Homeowner With RSUs: Jumbo Cash-Out Timing
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.