The Quick Read: Standard owner-occupied underwriting counts only equity that has vested and been delivered to you, so a salary-light, stock-heavy pay package often looks small on paper. Three routes exist: document the vested stock as income, qualify on your assets, or buy a rental that qualifies mainly on its own rent.
- Unvested restricted stock units and unexercised stock options are not income, and they are not usable assets on the depletion path described below.
- Vested shares that have been sold and seasoned as cash can fund a down payment and reserves.
- Asset-based programs can cover the loan outright or turn assets into monthly qualifying income, subject to underwriting.
- A rental loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so your equity grants are not the main input.
What Counts as Income When Your Pay Is Mostly Stock?
Only what has vested and been delivered counts. An RSU is a promise to hand you shares later. At vesting, the shares are delivered and their market value on that day is taxed as ordinary wages, whether or not you sell, as Carta’s RSU explainer describes.
That vest-date value is the number an underwriter works with. Blueprint’s review of RSU income says the calculation uses the fair market value on the day shares vested, not today’s stock quote. Your headline total compensation, the figure on the offer letter, is not what you qualify on.
This surprises many people. A stock that doubled after vesting does not raise your income, and a stock that dropped does not lower the vest-date value already recorded. Your brokerage balance is a separate matter, because it is an asset and not income.
How Does Underwriting Treat Equity Pay, Step by Step?
On a full-documentation loan, the underwriter works through a predictable sequence.
1. Split the pay. Base salary is separated from RSU or stock-award income.
2. Check vesting history. The lender looks for shares that actually vested and were delivered by your current employer.
3. Test continuance. Agency-style underwriting, according to Enact’s summary, asks that the awards be likely to continue for at least three years.
4. Collect documents. Expect pay stubs, W-2s, employer award letters, vesting schedules and brokerage statements.
5. Calculate. Vested shares at vest-date value become income, with limits if the pattern is declining. Performance-based awards usually need a longer record.
Documents must clearly separate RSU payouts from other pay. A short work history, a fresh grant with no vests behind it, or a grant about to run out all weaken this route. Different lenders reach different answers on the same file, because each applies its own overlays on top of the basics.
Three Ways to Qualify (and When Each Fits)
You are not stuck with one road. The table shows how each path treats an equity-heavy earner.
| Path | What the lender relies on | Where equity shows up |
|---|---|---|
| Full-doc, owner-occupied | Vested equity as documented income | Income line, if history holds |
| Asset qualifier | Eligible assets cover the whole loan | Vested shares held as brokerage assets |
| Asset depletion | Assets divided by 60 months | Vested, held shares in securities |
| Rental (DSCR) loan | Property rent versus payment | Down payment and reserves only |
Across the wholesale network Lendmire works through, these routes are placed through select lenders, and each file is underwritten individually. Lendmire is the broker. It arranges the financing and does not make the credit decision.
How Asset-Based Programs Read Vested Shares
Asset-based mortgages are consumer-purpose loans built for people with large balances and light documented income. They run on one of two paths, and a borrower is reviewed on one path at a time.
The asset qualifier path needs eligible assets, after the credit percentages, to equal or exceed the entire loan amount. No employment or income is documented. Brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% after. Leverage goes up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. Loans run up to $4,000,000, with a 600 minimum credit score, 60 days of seasoning and two months of statements per account, subject to underwriting.
An illustrative case: an $800,000 loan with $330,000 in brokerage accounts, $300,000 in a 401(k) under 59½ and $200,000 in savings. The brokerage counts at 100% ($330,000), the 401(k) at 90% ($270,000) and the savings at 100% ($200,000). That totals $800,000 of usable assets, which is reviewed on assets alone. The lender’s own calculation governs.
The asset depletion path turns assets into monthly income. Cash and certificates of deposit count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% and real-estate equity at 60%. Usable assets divide by 60 months, and that income then carries the housing payment and other debts through the debt-to-income test.
Here is an illustrative case: $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000) is $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income. Loans run $125,000 to $3,500,000. Qualified assets must be 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.
Now the point that matters for your pay package. On the depletion path, stock options and non-vested restricted stock units are not eligible. Vested shares that you hold in a brokerage account are securities, so they count at the securities percentage. Statements must be at least 120 days old at application, plus one within 45 days. Leverage on a principal residence or second home reaches 80% on a purchase or rate-and-term refinance and 60% on cash-out. On an investment property the ceilings are 65% and 60%. A first-time investor on this path needs a 700 score, and everyone else follows the lender’s matrix.
These programs are for consumer borrowers, so assets are fully documented. Skipping income paperwork never means skipping documentation. Consumer mortgage lending is licensed in 16 states, so confirm availability before you plan around it.
The Investor Path: Let the Rent Carry the Loan
If you want a rental, the cleanest route often sidesteps the whole income question. 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. The federal exemption for business-purpose credit turns on the purpose of the loan, not on the collateral.
DSCR stands for debt service coverage ratio. It compares the property’s monthly rent with its full monthly payment. A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your RSU schedule and W-2 history are not the main inputs. Rent is documented with a rent schedule (Form 1007 for a single-family home) or a small-income-property appraisal (Form 1025). Lendmire’s complete DSCR loans guide walks through how the ratio is built.
Equity still shows up in three places: the down payment, the closing funds and the post-closing reserves. All must be sourced and seasoned. Vested shares generally must be sold and documented as cash. Many DSCR programs also lean on credit score and property type, and the lender sets reserves.
One more benefit matters if you plan to buy several rentals. Each DSCR loan stands on its own property, so a debt-to-income ratio does not cap the count. Cash for reserves on each purchase still does.
Find Your Situation
| Situation | Typical treatment | Likely path |
|---|---|---|
| Public-company RSUs, several vests behind you | Vested income may count | Full-doc or asset-based |
| Recent hire, first grant | Little history to average | Asset-based or rental loan |
| Private-company employee | Equity not usable until sold | Rental loan, or asset-based after a sale |
| Options only | Not income or eligible assets | Wait, or exercise and sell first |
| After a sale or tender offer | Cash is an asset | Asset qualifier or depletion |
Run your own row honestly. Many equity-heavy employees land in the recent-hire or private-company rows, where the documented-income route is weakest.
Where the General Rule Breaks
Cash-out on a rental. A cash-out refinance on a rental whose proceeds pay personal expenses may be treated as consumer purpose, which brings income verification back. The consumer-side rule asks lenders to verify the income or assets they rely on using reliable third-party records, as 12 CFR § 1026.43 describes. Lendmire’s piece How a Cash-Out Refinance Replaces Your Mortgage and Pays Out Equity covers the mechanics.
Entities. Buying through an LLC can be an option, subject to lender program eligibility. A personal guaranty is typical, so your credit still matters.
Private-company equity. A cap-table valuation is not reliable income. Underwriters generally want evidence that stock is publicly traded, and Enact’s summary of the agency approach says the same. On the depletion path, private stock counts only at its own percentage once it is an eligible, documented asset.
Short history. Under about two years of vesting may be discounted or excluded. Treat this as a general pattern, not a fixed cutoff.
Withholding. Employers often withhold at a flat supplemental rate that can differ from your true tax rate. Carta calls withholding a prepayment, not the final bill. Sell-to-cover shares and after-tax proceeds are what actually fund your deal, so plan from net figures.
Double counting. The same shares cannot be income and an asset at once. Pick one treatment per file.
Other holdings. Crypto, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
What the Decision Looks Like in Practice
Start with a plain question: do you want to live in the property, or rent it out?
If you are buying a rental, start with the DSCR route. Check whether the property’s rent comfortably covers the payment, then check that your cash is sourced and seasoned. If your accounts are large but your documented income is thin, an asset-based loan on a residence may fit better.
Timing matters. A lot of equity-heavy borrowers apply the week after a big vest, then discover that tax withholding and a sale have not settled. Brokerage statements need time to season, and the statement rules above are why. Lumpy earnings are a separate issue. A deposit pattern that shifted recently is covered in Lendmire’s article Bank Statement vs Conventional Mortgage When Deposits Shifted Recently.
In files like these, the common failure is not weak rent or weak credit. It is liquidity that never got organized: shares not yet sold, statements too new, or proceeds that landed in an account no one documented. Fixing that in advance is usually cheaper than changing loan programs later.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
RSU (restricted stock unit): A promise of company shares that become yours, and taxable, when they vest.
Vesting: The point at which you earn the shares outright.
Asset qualifier: A path where eligible assets must cover the whole loan, with no income documented.
Asset depletion: A path that divides usable assets by 60 months to create monthly qualifying income.
Seasoning: The length of time money must sit in an account before a lender counts it.
DSCR: A property’s monthly rent measured against its monthly payment.
Frequently Asked Questions
Do unvested RSUs help me qualify for a mortgage?
No. They are a promise, not income or an eligible asset. On the depletion path, non-vested restricted stock units are specifically ineligible. Once shares vest, are delivered and are held in a brokerage account, they can count as securities, subject to underwriting.
Is the value of my shares today what lenders use?
Not for income. Income from RSUs is calculated at the vest-date value, not the current quote. For asset-based loans, the account balance counts at the program’s percentage, such as 100% on the qualifier path for brokerage accounts and 80% for securities on the depletion path.
Can I use my stock for a down payment on a rental?
Yes, once it becomes sourced, seasoned cash. Vested shares generally must be sold and the proceeds documented. Plan around net proceeds, because withholding at vest and any tax on a sale both reduce what you can use.
Do I need to show my pay on a DSCR loan?
Your pay is not the main input, because the file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, an appraisal and rent schedule, entity documents and your asset sourcing still apply.
What if my employer is private?
Private equity has no reliable value until it is sold, so it does not work as income. After a sale or tender offer, the cash is an asset, and either asset-based path may fit. A rental loan is the other route.
Next Steps
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. For a rental purchase, Lendmire’s team can also walk through how a DSCR file would read. Loan programs are placed through select lenders and are not a commitment to lend.
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.
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References
2. Blueprint: RSU income review
3. Enact: Underwriting loans with restricted stock units as income
4. CFPB: Regulation Z § 1026.3, exempt transactions
5. Cornell LII: 12 CFR § 1026.43
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 an Asset Qualifier Mortgage · How Much Can You Borrow With an Assets-Only Mortgage? · How Big Can an Asset Qualifier Mortgage Be?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.