The Quick Read: Usually yes, once the RSUs have vested and the shares sit delivered in a brokerage account in the borrower’s name, because the lender treats them as marketable securities rather than a special RSU category, though most programs count them at a discount to market value and subject to lender guidelines.
- Unvested RSUs carry no reserve value. Only vested, delivered shares count.
- Expect a haircut on volatile stock. The exact discount varies by lender.
- Private-company shares you cannot sell are the weakest candidates.
- Reserves commonly run around 6 months of PITIA, stepping up to about 9 months above $1,500,000.
- A fresh statement showing share count and market value is the core document.
Tech-equity investors tend to hold most of their liquidity in company stock. That makes reserve treatment the point where a DSCR or jumbo file either clears or stalls. The rest of this piece walks through how shares move from grant to counted asset, where the discounts come in, and how to sequence a sale so the same shares are not counted twice.
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What Counts as a Reserve, and What Doesn’t
Reserves are liquid assets left over after the down payment and closing costs are paid. They are not a fee, and they stay yours. The lender sizes them in months of PITIA (principal, interest, taxes, insurance, plus any HOA dues) so the file shows you can carry the property through a vacancy or a repair.
Across the wholesale network, the typical figure is about 6 months of PITIA. Conservative rate-and-term files at modest leverage under $1,500,000 can see reserves waived on some programs. Loans above that size typically step up to about 9 months. These vary by lender, leverage, loan size, and transaction type, and every file is underwritten individually.
Eligible assets usually include checking, savings, money market, CDs, and brokerage accounts holding stocks, bonds, or funds. Gift funds, borrowed funds, unsourced deposits, and unvested balances generally do not count. For the broader program picture, the complete DSCR loans guide covers how coverage, leverage, and reserves fit together.
When Do RSUs Become Eligible Reserves?
Only when the shares are vested and delivered. An RSU is a promise of future shares, not shares. Carta’s RSU guide explains that the tax event arrives at vesting, and for most companies delivery happens at the same moment. Reserves attach after delivery, not at grant.
The lifecycle works like this:
| Stage | Counts as reserves? | What the lender wants |
|---|---|---|
| Granted, unvested | No | Nothing. No value assigned |
| Vested, not yet delivered | Rarely | Plan-administrator proof of release |
| Delivered to brokerage | Usually, at a discount | Recent statement with shares and value |
| Sold to cash | Yes, as cash | Proceeds traced into a bank account |
| Withheld for taxes | No | Only net shares count |
The agency world gives the clearest contrast on the unvested point. Fannie Mae’s Selling Guide says non-vested stock options are not an acceptable source of funds for reserves, while vested stock is acceptable if its value can be verified. That guide does not govern DSCR files. It is useful here only because it shows the unvested line is universal. DSCR programs in the network take the same position.
How Much Credit Do Lenders Give Vested Shares?
Less than 100%. Most programs value volatile securities below market because stock can drop between application and funding, and because shares are less liquid than cash. The discount differs from one lender to the next, and the strictest overlays discount single-stock positions harder than a diversified fund.
Here is the comparative view from placing files across many lenders. Cash and money market balances count at face value. A diversified brokerage account counts at a discount. A concentrated position in one employer’s stock can draw a larger discount or extra scrutiny. Shares inside a 401(k) or IRA follow retirement-asset rules, which are usually discounted more than a taxable brokerage account.
Don’t treat any general estimate as a promise. The number that matters is the one in the specific program your file is placed with.
The mechanics are simple. The lender takes the statement value, applies the program discount, then subtracts whatever shares you need for the down payment and closing costs. What remains is compared with the required months of PITIA. Run that math before you apply, not after.
Public Company vs. Private Company RSUs
Public-company stock is far easier. It has a daily price, a ticker, and a statement that shows a clean market value. Private-company RSUs are a different animal. As Carta notes, private-company shares are often illiquid because you generally cannot sell until a liquidity event such as an acquisition or IPO. Shares you cannot sell are not liquid reserves, and whether they count at all is a program-level call.
Post-IPO lockups follow the same logic. If a lockup bars you from selling, expect the lender to leave those shares out until the restriction lifts. Blackout windows and insider-trading policies can also limit when you can sell, which matters if the plan is to liquidate shares to seasoned cash before the application.
The Double-Counting Problem
One pool of shares cannot do two jobs. If a full-documentation jumbo or bank-statement file uses vested RSU value to qualify the borrower on income, the same shares generally cannot also be counted as reserves. DSCR loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines, so this issue mostly shows up when a borrower mixes in a different program path.
The practical habit: decide which job the shares do before the file is built. If the shares are your reserve cushion, document them as assets. If they are your income, count them once and find the cushion elsewhere.
Sequencing: Closing Funds vs. Reserves From One Pool
This is where RSU-heavy borrowers get tripped up. Picture an investor whose liquidity is almost entirely vested shares. The down payment and closing costs come out of the same pool that has to show reserves afterward. If the lender counts the shares at a discount, the remaining balance after closing may fall short even though the gross holding looked large.
The fix is arithmetic done early:
1. Total the delivered, vested shares at statement value, net of any margin or pledge.
2. Apply the program discount your lender uses.
3. Subtract the funds needed for down payment and closing costs.
4. Compare the remainder with required months of PITIA, using the 6-month and 9-month benchmarks above as a guide.
5. If it falls short, decide whether to sell shares ahead of time, add cash assets, or reduce leverage.
Selling shares ahead of the application converts a discounted asset into a documented cash asset. Many lenders want the proceeds traced into a depository account, and some want seasoning on that balance.
Taxes at Vest and What You Actually Hold
Vesting is not the same as having cash. Taxes are due at vest whether or not you sell, and the shares you hold afterward are net of withholding. Employer withholding on supplemental wages is typically a flat federal rate. The IRS’s Publication 15 sets that rate at 22% (37% on supplemental wages above $1 million in a year), and for high earners it can under-cover the real bill.
Plan for it when you estimate post-vest net shares. Lenders count what is in the account, not what the grant notice said.
On the sale side, the vest-date value was already taxed as wages and becomes your cost basis. Selling later triggers capital gain or loss only on movement since vesting, which softens the tax drag of liquidating shares to season cash. Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
The Documentation Package
Clean paperwork is what keeps an RSU-funded reserve file from stalling. A typical package includes:
- The most recent brokerage or equity-plan statement showing share count and market value. Many programs want the most recent statement, often covering about two months.
- Vest or release confirmations showing delivery into the account.
- Plan-administrator records if the shares sit at an equity-plan custodian.
- Proof of sale and a bank-statement trail if you liquidated shares.
- A margin or pledge disclosure if the account carries a loan, since value is taken net of margin.
Market movement matters too. Reserves are a fixed dollar test, while share prices move. A drop between application and funding can shrink the counted value, so a thin cushion is risky.
Eligible vs. Ineligible at a Glance
| Asset | Typical treatment |
|---|---|
| Cash, savings, money market | Counted at full value |
| Vested, delivered public stock | Counted, usually at a discount |
| Unvested RSUs | Not counted |
| Private-company shares you can’t sell | Generally not counted |
| 401(k) / IRA holdings | Counted at a larger discount |
| Gift funds or borrowed funds | Generally not counted |
| Shares pledged or on margin | Valued net of the loan |
Scenario Cards
Long-tenured public-company employee. Several years of vests have built a diversified brokerage balance. The statement is recent, shares are delivered, and the position is sizable. Expect the discount to apply and the file to clear if the remainder after closing covers the required months.
Recent vest. Shares delivered last month. The statement may show them, but some lenders want to see a longer balance history or a documented vest confirmation. Bring both.
Private-company RSUs. Granted and partially vested, but no sale is possible. Plan on the shares not counting and source the reserves elsewhere.
Multiple-rental portfolio. A borrower with a primary home and several rentals should expect scrutiny on the whole obligation picture. Some jumbo programs measure reserves against payments on every property owned, not just the subject. DSCR files tend to be narrower, but ask early.
Where This Leaves the Leverage Question
A larger down payment lowers the monthly payment and can lift coverage, but it never erases leverage caps, credit floors, or reserve rules. Most purchase files land at 75% to 80% LTV on an investment property, and select high-leverage programs reach 85% with roughly a 700+ score. Most programs want a score around 660, with a 620 floor in parts of the network. The strongest files clear both tests: enough equity and enough rental coverage.
On coverage, 1.00 is where many select programs start. A separate select-lender path takes coverage below 1.00 with leverage and terms adjusted. And clearing 1.00 is not the same as positive cash flow, since repairs, vacancy, and management sit outside the calculation.
If you plan a later cash-out refinance, the same discipline applies. Cash-out tops out around 75% LTV on a standard rental, with about 6 months of seasoning as the common expectation. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Key Terms Defined
RSU: A restricted stock unit is a promise of company shares that arrive once a vesting condition is met.
Vesting: The point at which you earn the right to the shares, which also triggers the tax event.
Delivery: The moment vested shares are placed in your brokerage or equity-plan account.
Haircut: The discount a lender applies to an asset’s market value because the value can fall.
PITIA: Principal, interest, taxes, insurance, and any association dues, the monthly obligation reserves are measured against.
Seasoning: The time funds or ownership must be documented before the lender counts them.
Frequently Asked Questions
Do unvested RSUs ever count toward reserves?
No. Unvested shares have no reserve value because you do not own them yet. The same rule holds across agency and non-QM files. Wait until the shares vest and are delivered to your account.
Do I have to sell the shares first?
Not always. Many programs accept delivered shares with a current statement, applying a discount. Others want liquidation and a traced deposit. It depends on the lender, so confirm the treatment before you decide to sell.
Can the same shares count as income and as reserves?
Generally no. Shares used to qualify on income cannot also be counted as the reserve cushion. DSCR files qualify mainly on the property’s rental income, so the overlap mostly arises on other program paths.
Are private-company RSUs usable?
Rarely. If you cannot sell the shares until an acquisition or IPO, they are not liquid. Whether any value is credited is a program-level decision, so plan to source reserves from cash or public stock.
What if a market drop hits between application and funding?
The counted value can shrink, since reserves are a fixed dollar test. Build a cushion above the minimum, or move part of the position to cash before applying.
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. Lendmire is a broker arranging financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Programs change, and qualification is subject to lender guidelines and is not a commitment to lend.
About Lendmire
Lendmire is a DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Fannie Mae Selling Guide: Stocks, Stock Options, Bonds, and Mutual Funds
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How a 40-Year DSCR Loan Works as a Business Owner · DSCR vs Conventional Airbnb Loan Requirements on a 2-4 Unit Property · How to Choose the Right Loan for Your First Airbnb Cabin
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.