The Quick Read: No. Unexercised and unvested stock options do not count as qualifying assets on an asset-based mortgage, so options alone cannot support a cash-out refinance. Options that have vested, been exercised and been sold or held as shares in a brokerage account can count, subject to underwriting. The route runs through documented, seasoned, liquid assets, not the grant.
- Stock options are not an eligible asset on the asset depletion path.
- Privately held company stock is not an eligible asset on either path.
- Brokerage shares count at 100% on the asset qualifier path and 80% on the asset depletion path, through select programs.
- Cash-out leverage on the asset depletion path tops out at 60%, and cash-out proceeds never count as qualifying assets.
- Statements, seasoning and credit still matter, and every file is fully underwritten.
If you hold a big option grant, you may feel wealthy. A lender sees a right to buy something, not a balance. This guide shows where the line falls, how to cross it, and when a different loan fits better.
What “Asset-Based” Means Here
Asset-based means the lender reviews your file on what you own instead of what you earn. It is a consumer mortgage for a principal residence or second home, with investment property reachable only on one path. It is not hard-money or business asset-based lending, where a company’s equipment or receivables secure a loan.
This page covers the borrower with large balances and thin documented income. Think retirees, founders after a sale, and households living on a portfolio. You skip traditional personal-income documentation such as pay stubs and employment verification, but every file is fully underwritten and every asset is documented with statements.
Lendmire is a broker. It arranges these loans through select lenders in its network, and the lender makes the credit decision. Lendmire’s asset-based mortgage programs use two separate paths, and you are qualified on one at a time.
The Two Paths, Side by Side
Across the wholesale network, the first question is always which path fits you. On the asset qualifier path, your eligible assets cover the entire loan. On the asset depletion path, your assets become monthly income that must carry the payment.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Usable assets at least equal the full loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived income runs through DTI |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term; 60% cash-out |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
| Statements | Two months per account, 60-day seasoning | 120-day-old plus one within 45 days |
These are typical program figures through select lenders, subject to underwriting. They are ceilings, not offers. On the qualifier path, whether cash-out proceeds are allowed, and at what leverage, is set by the lender and is not published. Do not plan around a specific number there.
Where Stock Options Fall
Unexercised options are a right to buy shares at a set price. They are not cash, and they are not shares. A lender cannot verify a balance, because there is none yet.
On the asset depletion path, stock options and non-vested restricted stock units are listed as not eligible. Restricted stock units are shares an employer promises to deliver after you vest. Until they vest, they are a promise. The qualifier path counts only listed account types, so an option grant has nowhere to land.
The IRS explains why options are not treated like cash. Under IRS Topic 427, the tax result depends on the option type and arises when you receive, exercise or dispose of it. Exercise gives you shares, not money. The shares then sit in an account with a statement, and that statement is what a lender can use.
Here is how common holdings sort out:
| Holding | Counts? | What would change it |
|---|---|---|
| Unexercised options | No | Exercise and settle into an account |
| Unvested RSUs | No | Vest and deliver to a brokerage account |
| Vested shares in a brokerage account | Yes, 100% qualifier; 80% depletion | Statements and seasoning |
| Privately held company stock | No, on either path | Sale or buyout into seasoned cash |
| Cash and CDs | Yes, 100% | Statements and seasoning |
Privately Held Company Stock
If your options are in a startup, the shares you get on exercise are still closely held shares. They have no public market price and no easy sale.
The route for a founder or early employee is a sale, buyout or conversion into a seasoned cash balance. After that, the cash is documented like any other. Proceeds from the sale of a business are excused from the depletion path’s statement-age rule, though the lender still reviews the source.
What Cash-Out Changes
Cash-out is treated more tightly than a purchase or a rate-and-term refinance. On the depletion path, a principal residence or second home allows up to 60% on a cash-out, and an investment property allows 60% as well. Compare that to 80% on a rate-and-term refinance for a primary home. The cash you take out never counts as a qualifying asset, so you cannot borrow your way into eligibility.
Your home’s own value does not qualify you either. That matches the federal ability-to-repay rule for consumer mortgages, which asks lenders to consider income or assets other than the value of the dwelling and to verify them with third-party records. Real-estate equity on the depletion path is a separate matter: it counts at 60% when it comes from other property you own.
A Worked Example
Say you exercised vested options and sold enough shares to hold $1,500,000 in securities and $300,000 in cash. On the asset depletion path, securities count at 80%, which is $1,200,000. Cash counts at 100%, which is $300,000. Usable assets total $1,500,000.
Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test. The lender’s own calculation governs.
Paper wealth is a different picture. A large option grant that stays unexercised adds nothing to that total. The same person could look rich on paper and bring almost no usable assets to the file.
On the qualifier path, the test is simpler. Take an $800,000 loan. If you hold $330,000 in brokerage accounts, $300,000 in a 401(k) while under 59½, and $200,000 in savings, the brokerage counts at 100%, the 401(k) at 90% ($270,000), and the savings at 100%. Together that is $800,000 of usable assets, which can cover the loan on assets alone, subject to underwriting.
If Options Are Your Main Asset: The Decision Tree
You have four realistic moves. None is free, and each changes your file differently.
| Move | Effect on the file | Trade-off |
|---|---|---|
| Wait for vesting | Nothing counts yet | Time; no change today |
| Exercise and hold shares | Shares count at 100% or 80% by path | Tax bill; market risk |
| Exercise and sell | Seasoned cash counts at 100% | Tax bill; gives up upside |
| Skip the asset route | Qualify some other way | Different loan, different tests |
Exercise can create taxable income. For nonstatutory options, the spread between the stock’s value and your price is typically reported on your W-2 under box 12, code V, as described in IRS Publication 525. Tax treatment varies; consult a qualified professional.
Some employers allow early exercise, sometimes paired with a filing called an 83(b) election. The shares may still carry vesting restrictions. A lender could treat restricted shares as restricted, so confirm the treatment with the lender before counting on them.
Seasoning and Documents After an Exercise or Sale
Seasoning is how long money has sat in your account. Brokers care because fresh deposits can signal borrowed or pledged funds. Through select programs, expect this:
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements 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.
- Both paths: every account holder is typically a borrower on the loan, and the source of large deposits gets reviewed.
Practical tip: if you plan an exercise and sale, do it before you apply, then let the cash sit. Moving money mid-file creates questions that cost time to answer.
Credit, Minimums and Other Gates
Assets do not replace credit. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs a 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. A housing event needs 4 years of seasoning on the depletion path.
The depletion path also has asset minimums. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If depletion is your only income source, you need at least $250,000 liquid. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and when it does, the minimum-assets rule is waived.
Retirement Accounts, Crypto and Other Holdings
Retirement accounts are usable. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age.
Cryptocurrency, 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. Custodial accounts, deferred compensation, escrow accounts and foreign funds are also ineligible on the depletion path.
Is This the Right Loan? Alternatives to Compare
Asset-based is one lane among several. Pick by how you can prove ability to repay.
| Option | Best when | Note |
|---|---|---|
| Asset qualifier | Liquid assets cover the whole loan | No income documented |
| Asset depletion | Large balances, thin income | Income derived from assets |
| Bank statement | You earn through deposits | Documents income with deposits |
| DSCR loan | The property is a rental | Business purpose; rent covers the payment |
| Wait and season | Assets are not yet liquid | Time is the cost |
For a rental property, a DSCR loan often fits better. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so your stock position matters little. 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. Select lenders in the network also offer programs below 1.00 coverage, though leverage and terms adjust.
The asset depletion path can reach an investment property, up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. That works when the property does not rent well enough or when you prefer to qualify on assets.
Agency loans have their own separate rules for stocks and stock options. Those are agency rules, not this program’s, so do not carry them across.
Why Files Get Declined or Reworked
Most problems repeat. Watch for these:
- Counting unexercised options or unvested RSUs as assets.
- Counting the cash-out proceeds toward the asset total.
- Fresh deposits without a documented source.
- An account holder who is not on the loan.
- Using the qualifier-path percentages on the depletion path, or the reverse.
- Applying to a program where the property type is not eligible.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, must equal or exceed the entire loan.
Asset depletion path: the route that divides usable assets by 60 months to create qualifying monthly income.
Vesting: the point when you earn the right to options or shares outright.
Seasoning: the length of time funds have been in an account before you apply.
Haircut: the share of an asset’s balance a lender discounts because the value can move.
Cash-out refinance: a new loan larger than your payoff, where you receive the difference.
Frequently Asked Questions
Do vested stock options count as assets?
Vested options are still options until you exercise them, so they do not count on their own. Once exercised, the shares sit in a brokerage account and count at 100% on the qualifier path or 80% on the depletion path, subject to underwriting and statements.
Can I use restricted stock units?
Unvested restricted stock units are not eligible on the asset depletion path. After they vest and deliver as shares to your brokerage account, they count like any other shares in that account. Plan for the tax event at vesting before you apply.
What if my options are in a private company?
Privately held company stock is not an eligible asset on either path. A sale, buyout or conversion into a seasoned cash balance in a regulated account is the documented route. The lender reviews the source of the funds.
Does the cash I take out count toward qualifying?
No. Cash-out proceeds never count as qualifying assets on the depletion path, and your home’s own value does not qualify you. Qualifying assets must come from separate, documented accounts.
Should I use a DSCR loan instead?
For a rental, often yes. A DSCR loan is reviewed primarily on the property’s rental income covering the payment, subject to lender guidelines, so your option grant is not the test. Stock still helps as cash to close or reserves.
What to Do Next
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.
Asset-based consumer lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Programs change, and all figures are subject to underwriting.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. IRS Topic 427, Stock Options
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset-Based Cash-Out Refinance Requirements for a Founder Before a Liquidity Event · Asset-Based Cash-Out Refinance Requirements With No Income Verification · Asset-Based Cash-Out Refinance Requirements and How Much Asset Information to Disclose
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.