The Quick Read: Usually not. The maximum is set by what a lender can count and what the appraisal supports, not by what your household can carry. Bonus and RSU income is counted only when it is documented, averaged, and likely to continue. The new payment is permanent. Size the cash-out to a specific need and a payment that works on base pay alone.
What Does “Maximum Jumbo Cash-Out” Actually Mean?
The maximum is the lowest result of several tests: leverage, loan size, income, reserves, and credit. Across the wholesale programs Lendmire places files with, the appraisal sets the ceiling on loan size, while income sets the ceiling on the payment.
A jumbo loan starts one dollar above your county’s conforming limit. The FHFA publishes that limit each year, and it is higher in high-cost counties. Jumbo loans fall outside the Fannie Mae and Freddie Mac framework, so each lender sets its own overlays.
Here is the envelope we work in. The headline lane takes a 660 decision score. Leverage tops out at 90% on the strongest purchase lanes, and the rest stop at 80%. Loans go to $5,000,000 on the largest lanes. Cash-out sits at lower leverage than purchase, and the largest lanes add a cash cap. More leverage does not always mean more cash. All of this is subject to lender guidelines and full file review.
The ratio ceiling matters most for you. The fixed lanes allow a 50% debt-to-income (DTI) ratio. That is your monthly debts divided by your qualifying monthly income. The adjustable lanes stop at 45%, and the interest-only lanes at 43%. The new, larger payment goes straight into that ratio. Take the maximum and you may sit right at the ceiling.
How Do Lenders Count Bonus and RSU Income?
They count only what is documented, stable, and likely to continue, and they average it. Your qualifying income can land well below what you actually earned last year. Jumbo lenders set their own rules, but the agency guides are the common benchmark.
| Income type | What usually counts | History wanted | Common reason it is discounted |
|---|---|---|---|
| Bonus | Averaged year-to-date plus prior years | Two years recommended | Declining or one-time pattern |
| RSU | Vested and distributed shares only | About a year or more, varies | Unvested grants, private employer |
| Sign-on stock | Generally not counted | Not applicable | Vests over time |
Bonus income. The Fannie Mae Selling Guide recommends a two-year history. A shorter record, no less than 12 months, can work if other strengths offset it. A stable or rising trend gets averaged. A falling trend gets separate, harsher analysis. Lenders typically ask for a paystub and W-2s, or an employer verification of employment.
RSU income. A restricted stock unit (RSU) is a grant of company shares that vest over time. Under the agency’s RSU rule, stock must have vested and been distributed to you without restriction. Unvested grants do not count, no matter how large. Sign-on awards paid as restricted stock that vests later are not eligible. If your employer is private, the shares are often hard to use. Valuing share income can involve a moving average of the share price, so a recent dip hurts.
Continuance. Freddie Mac’s guide expects employment income, including bonus and RSU pay, to be likely to continue for at least three years. A terminated bonus program means the income cannot be used. Treatment varies by investor, and some set stricter standards than the agencies.
Why Can Your Qualifying Income Sit Below Your Paycheck?
Because the lender is not underwriting your best year. It is underwriting an average, then asking whether that average will repeat.
Picture a borrower whose base pay is steady but whose bonus doubled last year. The lender averages the two years, not the peak. Now add a stock grant that vested for the first time recently. Only the vested, distributed part counts, and only with enough history. The paycheck feels like one number. The file shows a much smaller one.
The reverse also happens. A borrower with rising RSU income may qualify for less than the stock currently pays, because the average lags the trend. Your income can feel larger than the file says. Plan on the file’s number, not yours.
What Happens to the Payment If the Variable Income Drops?
The payment does not move. Your income does. That mismatch is the real risk of taking the maximum.
A cash-out loan is a bigger balance on a fresh set of terms. The CFPB notes that a cash-out refinance can lengthen your payoff time, raise your monthly payment, and reset your terms. The reset applies to the whole balance, not only the new cash. Closing costs also apply, and they reduce your net proceeds.
Run a stress test in three passes, using your own numbers:
| Scenario | What to assume | What you are checking |
|---|---|---|
| Base only | No bonus, no vesting | Can base pay carry the payment and your other bills? |
| Average year | The lender’s averaged figure | Does the file match your plan? |
| Best year | Recent peak | Treat as a bonus, not a budget |
If the base-only case strains your budget, the maximum is too big. RSU income adds a second layer. It moves with the stock price and your employer’s results. A falling share price can shrink the income and your net worth on the same day.
The home secures the loan. The CFPB’s research on cash-out refinancing warns that converting other debt into mortgage debt can put your home at risk if payments become unsustainable. Missing a credit card payment is painful. Missing a mortgage payment can end in foreclosure.
When Does Taking the Maximum Make Sense?
It can make sense when the need is specific, the payment is safe on base pay, and the variable income has a long, steady record. Those are narrow conditions, and they are worth checking one by one.
Taking a large amount can be reasonable when:
- Base pay alone covers the new payment and your other debts comfortably.
- Your bonus history runs two years or more without a decline.
- Your RSUs have vested and distributed, with more grants in the pipeline.
- The money pays off higher-cost debt or funds a one-time need with a clear end.
- You would still hold meaningful reserves after closing.
Think of it as a bridge, not a lifestyle. Even then, the lender decides what it will count and what you can borrow.
When Should You Size Below the Maximum?
Size down when any part of your income story is thin, moving, or new. Honestly, this describes most RSU and bonus earners at some point.
Pick a smaller number if:
- You changed jobs recently, which can restart the income clock.
- Your bonus fell last year, or the plan is under review.
- Your pay depends on unvested or newly granted stock.
- You hold a concentrated position in your employer’s shares.
- The cash has no defined purpose yet.
The sizing framework is simple. Start with the use of the funds. Add a cushion for closing costs. Then test the payment against base pay alone. The result is usually well under the ceiling. Leaving equity in the home also keeps your options open, and the CFPB notes that cash-out draws down wealth you could use later.
Which Profile Are You?
| Profile | Lean toward | Why |
|---|---|---|
| Steady bonus, 2+ years | Larger draw possible | Averaging works in your favor |
| Rising RSU, vested | Moderate draw | Average lags the trend |
| Recent job change | Smaller draw | Income clock may reset |
| Front-loaded vesting | Smaller draw | Income may fade as grants end |
| Concentrated employer stock | Smaller draw | Pay and net worth fall together |
A lender can still decline a file that fits the left column. These are directions, not predictions.
Does Timing Matter Around Vesting and Bonus Dates?
Yes. Applying right after a vest or a bonus payout shows the lender fresh documentation, with a paystub that reflects the payment. Applying just before a vest can leave you with a thinner record.
The same goes for a pending job change. Starting a new role, or moving from a bonus plan to a different structure, can restart the history the lender wants. Work out your timeline before you apply, not after.
One more point from our desk. In files with heavy variable pay, the surprise is rarely the appraisal. It is the gap between the income the borrower expected to be counted and the income the underwriter used. Ask for a read on your averaged figure before you settle on a loan amount. And watch your reserves, which on jumbo lanes are measured in months of the full payment and rise with the loan size. A bigger draw can raise the reserve requirement, and the cash you receive may not count toward those reserves. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
For the full program details, see Lendmire’s jumbo cash-out refinance program.
What Are the Alternatives?
Your options depend on the goal. A smaller cash-out, a separate home equity line, or a rate-and-term refinance each change the payment differently. A home equity line leaves your first loan alone, which can matter if your current terms are worth keeping. A cash-out resets everything. Compare the total cost and the full payment under each, using your Loan Estimate.
Lenders also treat occupancy differently. A second home or rental gets different leverage than your primary residence, so the figures here apply to the home you live in.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Key Terms Defined
Jumbo loan: A mortgage above the county’s conforming limit, set by each lender’s own rules.
Cash-out refinance: A new, larger mortgage that pays off your old one and gives you the difference in cash.
RSU (restricted stock unit): A grant of company shares that vest over time.
Vesting: The point when shares become yours to keep or sell.
DTI (debt-to-income): Your monthly debts divided by your qualifying monthly income.
Reserves: Liquid savings, measured in months of your full payment, that you hold after closing.
Frequently Asked Questions
Do unvested RSUs count toward my jumbo cash-out?
No. Only stock that has vested and been distributed to you counts, and usually with a documented history. Sign-on grants that vest over time are generally excluded. Treatment varies by lender.
How long does my bonus history need to be?
Two years is the standard benchmark. A shorter record of at least 12 months can work when other strengths offset it. A declining bonus will not be averaged the way a stable one is.
Does a big appraisal mean I can borrow more?
Not by itself. The appraisal sets the ceiling on loan size, but your income, debts, reserves, and credit decide whether you qualify at that size. Leverage also runs lower on cash-out than on a purchase.
Can a job change hurt my application?
It can. A new employer or a new pay structure may restart the income history lenders want. A terminated bonus plan cannot be used at all.
Is a jumbo cash-out riskier than other cash-out loans?
The type is not the issue; the size is. A jumbo cash-out carries a bigger balance, so the payment is larger and reserves rise with the loan amount. The FHFA Office of Inspector General reports that cash-out refinances in general carry a higher default risk, particularly when paired with high DTI or lower credit scores. Pushing a large jumbo draw to the ratio ceiling stacks those risks.
Next Step
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and home buyers in 16 states with FHA, VA, conventional and jumbo purchase and refinance loans arranged through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and the agency guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For the program’s current guidelines, see jumbo loan programs.
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References
1. FHFA: 2026 conforming loan limit values
2. Fannie Mae Selling Guide: Bonus, commission, overtime and tip income
3. Fannie Mae Selling Guide: Restricted stock units and restricted stock
4. Freddie Mac Guide Section 5301.1
5. CFPB: Using your home equity guide
This article is part of Lendmire’s Jumbo Loans series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Should a High-Earning W-2 Owner Take an ARM on a Jumbo Cash-Out? · How to Sequence a Jumbo Cash-Out and Second Home With RSU Pay · Jumbo Cash-Out Documentation for RSU and Deferred Comp Earners
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.