The Quick Read: Stock pay can support a mortgage, but only vested shares that sit in a brokerage account count as assets, and the route depends on whether those assets cover the loan or become income. Lendmire, a mortgage broker, arranges asset-based mortgages through select lenders, subject to underwriting.
- Unvested restricted stock units are not income and not eligible assets on the depletion path.
- On the asset qualifier path, eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- On the asset depletion path, usable assets divided by 60 months become qualifying income.
- Brokerage accounts count at 100% on the qualifier path and securities at 80% on the depletion path.
- Every file is fully underwritten, with statements documenting the assets.
What Does “Paid in Stock” Mean to a Lender?
An RSU is a promise of shares. It has no tangible value until it vests. At vesting, the shares get a fair market value and are treated as income, and part of them is withheld for taxes, as Enact, a mortgage-insurance trade publisher, explains.
That sequence creates the problem for tech workers. A salary may look modest on a pay stub while the brokerage account holds a large balance. Conventional underwriting wants to turn vested stock into steady income, which requires a history of receipt and a likelihood of continuance. An asset-based mortgage skips that conversion and looks at the account itself.
This is a national explainer. The program figures below do not change by state. An Alabama borrower, whether working in a tech hub or remotely for an out-of-state employer, faces the same mechanics. Lendmire’s consumer mortgage lending covers 16 states, and Alabama is one of them.
How Does Conventional Underwriting Treat Stock Pay?
Conventional underwriting treats vested stock as income, and it asks for proof of a track record. For time-based vesting, Enact’s summary of the Freddie Mac approach has three parts: a one-year history of receipt, a likelihood the payments continue for three years, and sufficient proof of payment. Performance-based vesting needs more, including evidence the stock is publicly traded, vesting schedules, proof of prior payouts, and a 200-day simple moving average of the stock price.
History requirements vary by lender and investor. Blueprint, an underwriting-software vendor, says time-based RSUs need about 12 months of vesting history and performance-based RSUs typically need 24 months. Those are market-wide figures, not this program’s.
Blueprint also lists cases where RSU income should not be used: vesting is ending without new grants, award sizes are dropping sharply, or future vesting will be much lower than past vesting. A new hire with sign-on stock still vesting often lands here. So does anyone whose grants are tapering.
The income lens also depends on the W-2. Vest-date value drives the math, not today’s share price. That is why a strong stock run can leave the file unchanged, and why a short history can sink an otherwise wealthy borrower.
How Does an Asset-Based Mortgage Treat the Same Shares?
An asset-based mortgage looks at what is in the account today. Vested shares delivered to a brokerage account are assets, and across Lendmire’s wholesale network the program counts them at a set percentage. No vesting history is needed because the file never asks whether the stock will keep arriving.
There are two paths, and a borrower is reviewed on one at a time.
The asset qualifier path. Eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. Subject to underwriting, leverage reaches up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Loans run up to $4,000,000.
The asset depletion path. Usable assets, after haircuts, are divided by 60 months to produce a monthly qualifying income. That income must carry the housing payment and other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000.
The first path is simpler when assets are large relative to the loan. The second helps when assets are large but not large enough to cover the whole loan. Either way, this is not a no-documentation product. The program involves no traditional personal-income documentation, pay stubs or employment verification, but the lender fully underwrites each file, and statements document every asset.
What Counts, and How Much?
The two paths use different tables, and the figures should never be blended.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| CDs | 100% | 100% |
| Money market / savings | 100% | Cash accounts at 100% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
For a stock-paid employee, the line that matters most is securities. Vested shares held in a brokerage account count at 100% on the qualifier path and 80% on the depletion path, through select programs and subject to underwriting. On the depletion path, the other 20% of the balance is left out, which acts as a cushion against price swings.
Some assets are not eligible on the depletion path: stock options, non-vested restricted stock units, custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, and funds from non-regulated financial companies. Other asset classes, such as cryptocurrency or precious metals, 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 lender reviewing the source. Pledged or borrowed funds are not published as eligible either.
Two Worked Examples
These are illustrative only, and the lender’s own calculation governs.
Qualifier path. Consider an $800,000 loan. The borrower holds $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) while under 59½ (90% = $270,000), and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets, which equals the loan, so the file is reviewed on assets alone.
Depletion path. Picture a borrower with $1,500,000 in securities (80% = $1,200,000) and $300,000 in cash (100% = $300,000). That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
The first example suits someone whose vested shares plus savings cover the whole purchase. The second suits someone who wants to keep a large position invested and show income from it.
Seasoning, Credit and Minimums
Seasoning decides whether recently vested stock counts. On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
This matters for an employee whose shares just vested. Statements showing vested shares under the borrower’s name carry more weight than grant letters, a point Blueprint also makes about needing a paper trail of delivered shares. Shares that arrived last week may not be seasoned yet.
Credit has a 600 minimum score on the qualifier path. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must also never fall below $250,000 liquid when asset depletion is the only income source. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio. When it does, the minimum-assets rule is waived. That supplement route suits a salaried engineer whose pay is a bit short and whose brokerage balance fills the gap.
Reserves are not required on the qualifier path at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months. All figures are subject to underwriting and change with program updates.
Where the General Rule Breaks
Several edge cases come up repeatedly for stock-paid workers.
Sign-on stock still vesting. Unvested units are not income, and they are ineligible on the depletion path. If a large block vests in six months, waiting may help more than forcing the file today.
Net shares, not headline value. Employers usually withhold federal tax at the flat supplemental rate: 22% on supplemental wages up to $1 million and 37% above, per Carta. The shares that reach the account are smaller than the vest value. Only the delivered balance counts.
Private-company equity. Conventional treatment is harder. On the depletion path, private stock counts at 75%. The qualifier path does not publish a figure for it.
Concentrated positions. When one employer’s stock is both paycheck and collateral, price drops hit twice. The 20% left out of securities on the depletion path partly offsets this. It is not a hedge, though, and borrowers should think about how a falling share price would affect their finances after closing.
Cash-out proceeds. On the depletion path, cash-out proceeds never count as qualifying assets. Whether cash-out is allowed on the qualifier path, and at what leverage, is set by the lender and not published.
Which Route Fits Which Borrower?
| Situation | Typical best-fit route |
|---|---|
| Short vesting history, large vested balance | Asset qualifier or depletion |
| Vested balance exceeds the loan | Asset qualifier |
| Salary is a bit short on DTI | Depletion as supplement |
| Long, stable history, strong W-2 | Conventional income lens |
| Rental purchase | Depletion path, or DSCR |
Leverage differs by path. On a principal residence or second home, the depletion path allows up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. On an investment property, the depletion path allows up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, and that loan is business-purpose. For pure rental purchases, DSCR loans are a separate program that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. BiggerPockets describes that approach as focused on the property’s income rather than the borrower’s.
The flip point is simple. If the vesting history is long, grants are steady and the debt-to-income ratio clears, a conventional file may carry lower cost and less friction. If history is short, grants are tapering, or wealth sits in the account rather than the paycheck, the asset route usually fits better.
Selling Shares Versus Borrowing
Selling shares for a down payment has tax consequences. Vest-date value is already wage income, so a later sale adds capital gain or loss only on movement after vesting, and holding more than a year affects the capital-gains rate, as Summitry explains. Withholding is also a prepayment, not the final bill. A CPA worked example from Hiltzik CPA shows $180,000 of RSUs withheld at 22% against a 35% marginal rate, leaving a federal shortfall of $23,400.
Tax treatment varies; consult a qualified professional before selling a large block.
The asset qualifier path can reduce the need to sell, because eligible assets count whether or not they are liquidated. A lender still reviews the source and seasoning of any funds used. Selling can also make sense on its own. Reducing a concentrated position is often a sound goal, apart from the mortgage.
Common Mistakes and Denial Reasons
- Counting unvested units as assets. They generally do not count.
- Applying before shares are seasoned and statements are old enough.
- Using the headline vest value instead of net delivered shares.
- Moving funds between accounts right before application, which muddies the paper trail.
- Assuming “no tax returns” means “no review.” Credit, assets and the property are all reviewed.
- Mixing the two paths and expecting one table of percentages to apply across both.
The fix in most cases is sequencing. Let shares vest and season, gather two months of statements per account, and choose a path before the application, not after.
Key Terms Defined
RSU (restricted stock unit): A promise of company shares that becomes taxable income when it vests.
Vested: Shares you own outright, after the vesting schedule is met.
Seasoning: The length of time funds have sat in your account.
Asset qualifier path: Eligible assets cover the entire loan, and no income is documented.
Asset depletion path: Usable assets divided by 60 months become qualifying monthly income.
Haircut: The share of an asset’s value a lender will not count.
Frequently Asked Questions
Can unvested RSUs count toward an asset-based mortgage?
No. Unvested units are not current qualifying income, and non-vested RSUs are not eligible assets on the depletion path. They count once they vest and the shares are delivered to your account. Keep the vesting schedule handy so you know when that happens.
Do I need a vesting history to qualify on assets?
Not in the way a conventional income file does. Conventional underwriting asks for a track record of receipt and continuance. An asset-based file looks at the current balance, its seasoning and the statements. Lendmire arranges these programs through select lenders, and every file is underwritten individually.
Do I have to sell my shares to use them?
Not necessarily. Vested shares in a brokerage account are counted at a program percentage rather than sold. The lender reviews statements and seasoning. Whether selling makes sense is a separate tax and risk decision, best made with a tax professional.
Can I use this to buy a rental property?
Yes, on the depletion path, where investment property is business-purpose lending at lower leverage, up to 65% on a purchase or rate-and-term refinance. A pure rental purchase can also run through a DSCR loan, which looks mainly at property rent. Sub-1.00 DSCR programs exist through select lenders, with adjusted leverage and terms.
Is this a no-documentation loan?
No. The program involves no traditional personal-income documentation, pay stubs or employment verification, but the lender fully underwrites each file. Statements document assets, and credit and the property are reviewed.
How the Pieces Fit
The decision comes down to where your wealth lives. If it sits in a vested, seasoned brokerage account, the asset-based mortgage programs turn that balance into either full loan coverage or qualifying income.
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. Figures here are program ceilings and floors, not offers, and they remain subject to underwriting and lender guidelines. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Alabama page presents the program for Alabama borrowers.
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 traditional personal-income documentation understates 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
1. Enact: Underwriting Loans with Restricted Stock Units as Income
2. Blueprint: RSU Income, How to Review and Calculate
3. Carta
4. BiggerPockets: DSCR Loans, What Are They
5. Summitry: How Are RSUs Taxed
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: Can a California Widow Qualify for a Mortgage on Life Insurance and Retirement Assets? · How Montana Tech Employees Paid in Stock Get a Mortgage on Assets · How Much Does a Retiree Need in Assets to Qualify for a Mortgage?
Guides: Asset-Based Mortgage in Alabama
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.