The Quick Read: Lenders count only vested shares that sit in an account in your name, not unvested grants, and they count them as assets rather than as paycheck income. Through select programs, those assets either cover the whole loan on the asset qualifier path or turn into monthly qualifying income on the asset depletion path. You are qualified on one path at a time. Every figure below is subject to underwriting.
Key Takeaways
- Unvested restricted stock units are a promise, not an asset. They count for nothing until they vest and land in your account.
- The asset qualifier path covers the entire loan with eligible balances and documents no employment or income. Loans run up to $4,000,000.
- The asset depletion path divides usable assets by 60 months to create qualifying income, which then runs through a debt-to-income test.
- Vested shares in a brokerage account count at 100% on the qualifier path and at 80% on the depletion path.
- Buying a pure rental is usually a different product, a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Who This Actually Fits
This fits Michigan tech workers whose pay is heavy on equity and awkward to document. Think engineers and IT staff at large public companies, software people in the automotive and mobility world, and remote employees of out-of-state employers who live in Michigan.
Their base salary may look modest next to the shares they have vested. Their pay stubs bounce around. Their brokerage statements tell a stronger story.
Asset-based qualification exists for that mismatch: big balances, income that is hard to document. It is a consumer mortgage for a principal residence or second home. Investment property is eligible only on the depletion path. Lendmire holds consumer mortgage licensing in 16 states, Michigan among them, and arranges these loans as a broker through select lenders in its network. The program figures described here do not change for a Michigan borrower, though each file is still underwritten individually and exact terms depend on the lender’s guidelines.
Key Terms Defined
RSU (restricted stock unit): A promise from your employer to deliver company shares later, once you meet a vesting condition.
Vesting: The date a granted unit becomes yours. NerdWallet’s RSU explainer puts the vested value at the number of shares times the market price on that date.
Sell-to-cover: Your employer automatically sells part of each vest to pay withholding. The rest of the shares go to your brokerage account, per Summitry’s RSU guide.
Asset qualifier path: You qualify on assets alone. Eligible balances, after the credit percentages, must equal or exceed the entire loan.
Asset depletion path: Usable assets are divided by 60 months to produce monthly qualifying income. That income must carry the housing payment and other debts.
Seasoning: The stretch of time money has sat in an account before a lender will count it.
Haircut: The share of a balance a lender discounts. A securities account counted at 80% takes a 20% haircut.
What Happens to Stock Pay Before a Lender Sees It
Stock pay becomes a mortgage asset in a few steps, and the lender cares about only the last one.
1. Grant. Your employer promises shares. Nothing is delivered. A lender sees no income and no asset.
2. Vest. Units convert to shares. Sell-to-cover trims the delivery, and the net shares arrive in your brokerage account.
3. Hold or sell. Shares you keep are securities. Shares you sell become cash, which you can move to a bank account.
4. Season and document. Statements show the balance and the history behind it.
5. Choose a path. The lender tests those balances one of two ways.
Across Lendmire’s wholesale network, the files that stall are almost never about the shares. They stall on paper trails: a transfer with no matching statement, or a balance that jumped last month and cannot be explained. A clean, boring statement history does more for you than a big number.
Path One: The Asset Qualifier
The qualifier path asks one question. Do your eligible assets, after the credit percentages, equal or exceed the whole loan amount? If yes, no employment or income is documented.
Typical ceilings on most files in the network, subject to underwriting:
- Up to 80% loan-to-value on a purchase of a principal residence or second home.
- Up to 75% on a refinance of a principal residence or second home. Cash-out on this path is set by the lender and is not published.
- Loans up to $4,000,000.
- Credit score of 600 or higher, with a housing history of 0x30x12. One 30-day late in the last twelve months is considered case by case.
- Reserves: none required at or below 75% loan-to-value. Above that, the lender sets them. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
| Asset on the qualifier path | Share that counts |
|---|---|
| Brokerage accounts (vested stock) | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Accounts combine. Here is an illustration; the lender’s own calculation governs. Say an $800,000 loan is backed by $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000) and $200,000 in savings (100%, so $200,000). Usable assets total $800,000, which covers the loan, so it is reviewed on assets alone.
Seasoning is 60 days, with two months of statements for each account you use. Your vested shares have to be in the account, not scheduled to arrive.
Path Two: The Asset Depletion
The depletion path turns assets into income. A lender discounts each asset, adds the results, and divides by 60 months. That monthly figure must carry your full housing payment and other debts through the debt-to-income test. It is a calculation convention, not a plan to spend your portfolio down.
| Asset on the depletion path | Share that counts |
|---|---|
| Cash accounts and CDs | 100% |
| Securities (vested stock) | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Not eligible on this path: stock options, non-vested restricted stock units, deferred compensation, custodial accounts, escrow accounts, foreign funds, cash on hand and funds from non-regulated financial companies. Cash-out proceeds never count as qualifying assets.
The illustration, again with the lender’s own calculation governing: $1,500,000 in securities counts at 80%, or $1,200,000. Add $300,000 in cash at 100%. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income, which then carries the housing payment and other debts.
Leverage on the depletion path differs from the qualifier path, as the limits below show:
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
- Loans run from $125,000 to $3,500,000.
Minimum qualified assets are the lesser of $1,000,000 or 1.25 times the loan balance. They are never below $250,000 liquid when depletion is your only income source. If you also have documented income, depletion income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Statements must be at least 120 days old at application, plus a most recent statement within 45 days. Credit follows the lender’s matrix. A first-time investor on this path needs a 700 score.
Which Path Fits You?
Pick the path by the size of your balances relative to the loan, not by your pay stub.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What it tests | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived income, plus DTI test |
| Vested stock credit | 100% | 80% |
| Investment property | Not available | Yes, 65% / 60% |
| Top loan amount | $4,000,000 | $3,500,000 |
If your liquid balances are roughly the size of the loan, the qualifier path is the cleaner fit, and it counts vested stock at 100% rather than 80%. Leverage is close between the two. On a purchase of a primary residence or second home, both paths reach 80%. On a rate-and-term refinance, the qualifier path allows up to 75% and the depletion path up to 80%. If your balances are large but smaller than the loan, depletion can still work, because it only needs the derived income to carry the payments. If you buy a rental, depletion is the only asset-based route, and it comes with the lowest leverage.
Combinations exist too. When you have documented income as well, depletion income can supplement it, which is the case where the minimum-assets rule is waived.
Where the Rule Breaks
Unvested units. They never count, on either path. Do not stack a loan application on next year’s vest.
Pre-IPO and private-company equity. A conventional lender requires publicly traded stock, since a private share has no observable price. On the depletion path, private stock that is already vested and eligible counts at 75%. Whether yours qualifies is a lender review, not a safe assumption.
Concentrated employer stock. If most of your balance is one company’s shares, a lender may review it more closely, ask for added seasoning or ask you to convert some to cash. Overlays differ across the network. The strictest want a diversified balance. The most flexible will take a single-stock account at its stated percentage.
Options and ESPP shares. Stock options are not eligible on the depletion path. Shares you bought through an employee stock purchase plan and hold in a brokerage account are ordinary securities.
Crypto, metals, collectibles and pledged funds. None are published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
A price drop mid-application. Securities are counted at their statement value, so a sharp fall in your employer’s stock can shrink your usable assets. Keep a cushion.
Selling to fund the deal. Selling vested shares can create a tax bill, and employers often withhold a flat 22% on supplemental wages that can fall short for higher brackets. Tax treatment varies; consult a qualified tax professional before counting that cash as spendable.
Layoffs and job changes. On the asset qualifier path, no employment is documented, so a recent job change matters less. Credit and the assets still do.
How a Conventional Lender Treats the Same Stock
A conventional lender takes the income route instead. Fannie Mae’s Selling Guide asks for a vesting schedule, proof the stock is publicly traded and brokerage statements showing past distributions. For share income it uses a 200-day moving average price, and one-time-based awards need income continuing for at least three years. The stock must have been vested and distributed to the borrower without restrictions. That is that program’s rulebook, not this one. Its problem for a tech worker is averaging and continuance: refresh grants, falling award sizes and vesting cliffs all weaken the file.
And If You’re Buying a Rental?
If the goal is a pure rental, the right tool is usually a DSCR loan. 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.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your stock pay mostly matters for the down payment and reserves. Credit, identity, the appraisal and the lease are all still verified, so it is not undocumented. Programs below 1.00 coverage are available through select lenders in the network, with leverage and terms adjusting.
Use the asset-based mortgage program when you want income-style qualification on a home you will live in, a second home, or an investment property where depletion makes sense. Use DSCR when the rent is the strong part of the file.
Stock-paid tech workers in other states face the same fork.
Document Checklist
Gather these before you apply:
- Two months of statements for every account you plan to use (qualifier path), or statements 120 days old plus one within 45 days (depletion path).
- Vest confirmations and the brokerage record of any sale and transfer.
- Bank statements showing the transfer of sale proceeds into your account.
- A written explanation for any large deposit.
- A government ID and credit authorization.
- For retirement accounts, your age and the full statement.
Mistakes That Cost Borrowers
- Counting unvested RSUs because the offer letter lists a large grant.
- Moving money between accounts mid-application and breaking the statement trail.
- Spending the same balance twice, once on the down payment and again as qualifying assets. Money that leaves the pool leaves the count.
- Forgetting that cash-out proceeds never count as qualifying assets on the depletion path.
- Assuming high leverage applies to a rental. On the depletion path, an investment purchase is capped at 65%. Every figure here varies by lender and program: guidelines, property type, leverage, and credit profile all apply.
Frequently Asked Questions
Can I use my unvested RSUs to qualify?
No. Unvested units are not an asset or income on either path, and non-vested restricted stock units are specifically excluded on the depletion path. Once they vest and the shares sit in your account, they can count.
Do I have to sell my shares to get approved?
Not necessarily. Vested shares in a brokerage account count as they are: 100% on the qualifier path and 80% on the depletion path. Depletion is a calculation convention, not a withdrawal plan. Selling is only required if you need cash for a down payment or closing costs.
Can I buy a rental property with this program?
Only on the asset depletion path, and at lower leverage: up to 65% on an investment property purchase or rate-and-term refinance, and 60% on a cash-out. For many investors, a DSCR loan on the property’s rent is the more natural fit.
What credit score do I need?
The qualifier path publishes a 600 minimum. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Housing history is 0x30x12, and multiple bankruptcies are not eligible.
Does my employer’s stock count if the company is private?
It depends on the lender’s review. Private stock can count at 75% on the depletion path when it is vested and eligible, but unvested or option-based equity does not count. Expect extra scrutiny, since the lender must support the value.
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. Call 828-256-2183 or request a quote. For a Michigan tech worker with vested shares, the strongest file is the one with seasoned, organized brokerage statements in hand before the shopping starts.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Summitry: How RSUs are taxed
3. Hiltzik CPA: How RSUs are taxed
4. Fannie Mae Selling Guide B3-3.3-07: Restricted Stock Units and Restricted Stock Employment Income
5. Fannie Mae SEL-2023-11 announcement
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 a 401(k) Counts Toward a Michigan Asset Qualifier Mortgage Under Age 59½ · How Ohio Tech Employees Paid in Stock Get a Mortgage on Assets · How Washington Tech Employees Use Vested Stock to Qualify for a Mortgage
Guides: Asset-Based Mortgage in Michigan
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.