The Quick Read: Tech employees paid mostly in stock can buy with a mortgage through three routes: counting vested shares as income under conventional rules, using the shares as assets that qualify the loan or become income, or buying a rental on a DSCR loan that tests the property’s rent instead of the borrower’s pay. Which route fits depends on vesting history, how much vested stock sits in the account, and whether the home is a residence or a rental.
- Unvested restricted stock units are not income and not assets on any route covered here.
- Conventional underwriting converts vested stock into income using history, continuance and averaging rules.
- Asset-based programs skip that conversion. The asset qualifier path covers the loan with assets alone. The asset depletion path turns assets into monthly income.
- A DSCR loan on a rental tests the property’s rent against the monthly housing payment, not the borrower’s pay.
- Every figure below is subject to underwriting and lender guidelines, and none is a commitment to lend.
Why Do Lenders See Less Income Than You Earn?
Lenders see less because a paycheck is easy to verify and a vesting schedule is not. An employee earning most of their pay in stock shows a modest base on the pay stub. The real compensation arrives in lumps on vest dates, and the share price moves between those dates.
Lenders worry about three things:
- History. Has the stock been arriving long enough to count on?
- Continuance. Will it keep arriving?
- Value. What is a share worth when the underwriter looks, and when the loan is repaid?
Standard underwriting answers all three with caution. That is why a strong total package can still produce a thin qualifying income. The gap is rarely about the borrower’s strength. It comes from how the product measures them.
How Does Conventional Underwriting Treat RSUs, Step by Step?
Conventional underwriting counts only vested, delivered shares, and then averages them down. The rule was written for people with a salary and some stock on top, not for people living mostly on stock.
1. Confirm the units have vested. Fannie Mae added RSUs as eligible income in its SEL-2023-11 announcement. The stock must have vested and been distributed to the borrower without restrictions. Unvested units do not count. This follows Fannie Mae’s Selling Guide section on other sources of income.
2. Document the history. Underwriters want pay stubs, W-2s, the vesting schedule and brokerage statements showing shares delivered. Blueprint’s underwriting explainer says time-based RSUs need about 12 months of vesting history. It adds that the vest-date market value, not today’s price, drives the math.
3. Test whether it continues. The same explainer cites a three-year continuance test. Another agency’s version, summarized by mortgage insurer Enact, asks for one year of history plus likely continuance for three years.
4. Average and haircut the number. Lenders smooth out share-price swings. The result is usually well below what the borrower actually received.
Agency rules also disagree with each other. A Radian job aid shows the two agencies producing different monthly income from the same RSU facts. A lender’s own overlays add another layer on top.
Use this as contrast only. These are conventional agency rules. They do not govern DSCR loans or the asset-based programs below.
When Does a DSCR Loan Skip the Pay Question?
A DSCR loan skips it when the home is a rental. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. Across our wholesale network, the file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
The coverage ratio is monthly rent divided by the monthly housing payment: principal, interest, taxes, insurance and any HOA dues. On a single-family rental the rent usually comes from the appraiser’s market rent schedule or the signed lease. A 2-4 unit property uses the small-income-property appraisal form.
For a stock-paid borrower, the file still needs four things:
- Identity and credit.
- A source for the down payment.
- Liquid reserves.
- A property whose rent covers the payment.
The stock matters as an asset, not as income. Vested shares that have been sold, with brokerage statements and sale confirmations, document the down payment and reserves. Credit still drives which programs and terms are available.
Coverage below 1.00 is not automatically a dead end. Select lenders in the network offer sub-1.00 programs, but leverage and terms adjust. For the full mechanics, see Lendmire’s complete DSCR loans guide.
A DSCR loan also keeps the rental out of the borrower’s personal debt-to-income picture. That preserves capacity for a residence purchase later. A stock-heavy earner can finance rentals on property income and keep the personal side clean.
What If the Home Is a Residence? The Two Asset-Based Paths
The asset-based mortgage is built for borrowers with large balances and thin documented income. That description fits many stock-paid employees after a few vests. Select lenders in Lendmire’s network offer it for principal residences and second homes, and for investment property on the depletion path only. A borrower is qualified on one of two paths, an asset qualifier path or a depletion path, and the two never blend.
Path one: asset qualifier
On this path, eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. The lender’s ability-to-repay review rests on the assets.
Typical ceilings on select programs:
- Leverage up to 80% on a purchase and 75% on a refinance, for a principal residence or second home.
- Loan amounts up to $4,000,000.
- A 600 minimum credit score.
- Asset credit of 100% for brokerage accounts, CDs, money market and savings.
- Retirement accounts at 90% under age 59½ and 100% at 59½ or older.
- Seasoning of 60 days, with two months of statements per qualifying account.
- No reserves required at or below 75% loan-to-value. Above that, the lender sets them. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
An illustration, with the lender’s own calculation governing. Take an $800,000 loan with $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under age 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That counts $800,000 of usable assets, which covers the loan on assets alone.
For a stock-paid borrower, vested shares in a brokerage account are the engine here. The shares are documented and seasoned, and the borrower never has to prove how much income the stock “produces.”
Path two: asset depletion
This path converts assets into income. Usable assets, after the haircuts, are divided by 60 months. The result is a monthly qualifying income that must carry the housing payment and other debts through the debt-to-income test.
Typical ceilings on select programs:
- Loan amounts from $125,000 to $3,500,000.
- Leverage up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance, for a principal residence or second home.
- On an investment property, up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
- Haircuts: cash and CDs at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
- Qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when depletion is the only income source.
- Statements at least 120 days old at application, plus the most recent statement within 45 days.
- Credit follows the lender’s matrix. A first-time investor needs a 700 score. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
An illustration, again governed by the lender’s own math. $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%) gives $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income, which then carries the housing payment and other debts through the debt-to-income test.
Depletion asset income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. A stock-paid borrower with a base salary can use that combination.
How Do the Routes Compare?
| Route | What it tests | Stock counts as | Best fit |
|---|---|---|---|
| Conventional | Vested RSU history | Averaged income | Steady vests, long history |
| Asset qualifier | Assets vs. loan | Seasoned brokerage assets | Large vested balance |
| Asset depletion | Assets ÷ 60 months | Securities at 80% | Balance plus income need |
| DSCR | Property rent vs. payment | Down payment, reserves | Rental purchases |
The first row is the agency contrast. The other three come from select programs in the wholesale network. Each is subject to underwriting.
Where Does the General Rule Break?
Each of these cases changes the answer, and none shows up on a pay stub.
- Unvested units. They do not count as income, and they are not eligible on the depletion path. Concentration risk is why: underwriters know unvested stock can be forfeited on termination. A layoff before vesting means the stock is gone.
- Private or pre-IPO equity. Conventional guidance generally expects a publicly traded employer. Private stock on the depletion path counts at 75% once held as an eligible asset, and illiquid shares generally cannot serve as a down payment or reserves until sold.
- Concentrated positions. A portfolio that is almost all one company is a risk to the lender as well as the borrower. Select lenders may apply lower leverage or tougher reviews to concentrated holdings. This varies by program.
- Sign-on stock still vesting. Stock from a sign-on package that is still vesting does not count as income on a conventional file.
- Double counting. Shares counted as qualifying income generally cannot also count as reserves on a conventional file. Asset-based paths avoid this because they test assets, not income.
- Options and similar equity. Stock options and non-vested RSUs are not eligible on the depletion path. Cryptocurrency, precious metals and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account, with the source reviewed by the lender.
- Short-term rental collateral. For a rental purchased with a DSCR loan, lenders often want documented STR history or an STR-specific appraisal. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
- Cash-out proceeds. On the depletion path, cash-out proceeds never count as qualifying assets.
Key Terms Defined
Vested: Shares the employee owns outright after meeting the vesting schedule.
Unvested: Units granted but not yet earned, which lenders do not count.
Continuance: The likelihood that stock compensation keeps arriving, usually tested over several years on conventional files.
Seasoning: The time assets have sat in an account before a lender counts them.
Asset depletion: A method that divides usable assets by a set number of months to create qualifying income.
DSCR: Debt service coverage ratio, meaning the property’s monthly rent divided by its monthly housing payment.
Sell-to-cover: The employer sells part of vesting shares to pay withholding, so the shares delivered are net of that sale.
What Does the Decision Look Like in Practice?
Start with the property type, then the asset base.
1. Buying a rental? Look at DSCR first. The borrower’s pay is not the test, and the rental stays out of personal debt-to-income. Plan for credit, reserves and a documented down payment.
2. Buying a residence with a large vested balance? Check the asset qualifier path first. If vested shares, cash and other eligible assets cover the whole loan after the credit percentages, income is not documented at all. If they do not, the depletion path may convert them into income.
3. Buying a residence with steady, long-running vests and a decent base? Conventional may still be a more affordable route. Price it alongside the asset-based options before deciding.
4. Time the sale of vested shares. Vest-date tax withholding means the shares delivered are net. Shares sold soon after vest generally carry little added gain or loss. Under the depletion path, a seasoned statement date matters more than the sale date, so sequence the move into cash early. Tax treatment varies, and RSUs are generally taxed as wages at vest, so consult a qualified professional (Hiltzik CPA explains the vest-date treatment).
5. Prepare seasoning in advance. Statement age drives the qualifier path (60 days, two months of statements) and the depletion path (120-day-old statement plus one within 45 days). Moving money late is a common reason a stock-paid file stalls.
Executives with larger packages face a related problem. Lendmire’s piece on how a super jumbo mortgage works for executives paid in stock covers that range.
Frequently Asked Questions
Can unvested RSUs help me qualify?
No. Conventional underwriting excludes them, and the asset depletion path lists non-vested RSUs as not eligible. Only shares that have vested and been delivered can count, either as income on a conventional file or as assets on an asset-based file.
Do I need to prove stock income to buy a rental?
No. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your stock matters as the source of your down payment and reserves, not as income.
Does the asset qualifier path need any income documentation?
No employment or income is documented on that path. The assets are documented, though. Two months of statements per qualifying account and 60 days of seasoning are typical, and eligible assets after the credit percentages must cover the whole loan.
What if my stock is in a private company?
Illiquid private shares generally cannot serve as a down payment or reserves until sold. On the asset depletion path, private stock counts at 75% once it is an eligible asset. Expect added lender review either way.
Is DSCR available for a residence?
No. DSCR loans are for non-owner-occupied investment property. A residence purchase uses a conventional file or one of the asset-based paths above, which Lendmire arranges through select lenders in its network, where consumer mortgage lending is available in 16 states.
Next Step
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare asset-based mortgage options based on your statements, the property, credit profile, leverage, and your goals. Lendmire is a broker, so lenders review eligibility and make the decision. Reach the team at 828-256-2183 or request a quote through the quote form.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Fannie Mae SEL-2023-11 announcement
2. Fannie Mae Selling Guide B3-3.1-09, Other Sources of Income
3. Blueprint: RSU Income, How to Review and Calculate
4. Enact: Underwriting Loans with Restricted Stock Units as Income
6. Hiltzik CPA: How RSUs Are Taxed
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Qualify for a Mortgage on Liquid Assets Alone · How an Asset Depletion Mortgage Works · How to Qualify for an Assets-Only Mortgage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.