The Quick Read: Only when the stock has vested, reached you without restrictions, and shows a steady history you can document. Unvested grants rarely count. Jumbo lenders set their own policy, so one may use your vested stock and another may ignore it.
Why Does a Jumbo Lender Get to Decide?
A jumbo loan starts one dollar above the conforming limit in your county. Loans under that limit are built to meet agency guidelines. Jumbo loans are not, so each lender writes its own income rules. That is why you will hear a “yes” from one lender and a “no” from the next on identical paperwork.
Most jumbo lenders borrow the logic of the agency rules and then add their own overlays. Think of the agency rules as the starting draft and the overlay as the lender’s edits. Edits tend to make things stricter, not looser.
Across the wholesale programs Lendmire places files with, the envelope looks like this. The headline lane starts at a 660 decision score. Leverage reaches 90% on the highest lanes, and loans go up to $5,000,000 on the largest ones. The fixed lanes cap your debt-to-income ratio at 50%, the adjustable lanes at 45%, and the interest-only lanes at 43%. Reserves and appraisal requirements grow with the loan amount. All of it is subject to lender guidelines and full file review.
Cash-out sits at lower leverage than a purchase, and the largest lanes add a cap on the cash you can take. You can see how those pieces fit on Lendmire’s jumbo cash-out refinance program page.
Here is the practical point. Restricted stock only helps if it changes your debt-to-income ratio, and a ceiling of 43% to 50% leaves little room. For a borrower on the edge, counting or excluding stock can decide the file.
Taxable Income vs. Qualifying Income
The two terms sound alike and mean different things. Taxable income asks when you received value. Qualifying income asks whether the value will keep arriving after the loan closes.
| Question | Tax view | Lender view |
|---|---|---|
| What matters? | When shares vest | Whether vesting continues |
| Unvested grant | Not yet received | Usually excluded |
| Vested, delivered shares | Received | Can count with history |
| Account balance | Market value today | Averaged, then discounted |
A big grant on your W-2 does not equal a big number on the lender’s worksheet. The lender wants to know what will keep happening.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
What Does the Lender Look For?
Lenders check four things. If one fails, the stock income usually drops out of the calculation.
1. Vested and delivered. The shares must be yours without restrictions. Fannie Mae’s announcement on restricted stock says the stock counts only once it has vested and been distributed to the borrower.
2. A history of receipt. You need to show the stock has been paid out before, not just granted.
3. Likely continuance. The vesting should keep going for a meaningful stretch after closing.
4. Paper proof. Pay stubs, W-2s, and the vesting schedule must agree with each other.
Grant type matters too. A time-based award vests on a calendar. A performance-based award vests when targets are met. Lenders treat performance-based awards as less predictable, so they ask for more history.
The agencies show how the logic runs. For time-based awards, Fannie Mae looks for 12 months of receipt from the current employer. For performance-based awards, it recommends 24 months and may accept 12 to 24 months with offsetting strengths, per mortgage insurer guidance that summarizes the rule. Freddie Mac’s servicing guide section asks for two consecutive years on performance-based awards. It may accept between one and two years with a written analysis. It also sets a floor of at least 12 months with your current employer.
Freddie Mac also asks that recurring awards be likely to continue for at least three years. Its bulletin on the change covers that standard. Jumbo lenders may adopt these thresholds, tighten them, or set their own.
How Is the Monthly Number Calculated?
The lender does not take your account balance and divide by twelve. It builds an average from what actually vested, then often trims it.
The agencies do not agree on the method. Freddie Mac now uses a 200-day simple moving average of the stock price instead of the older 52-week average, per its bulletin. Fannie Mae’s method depends on whether you received shares or cash and how long you have received them. The same facts can produce two different monthly figures under the two systems.
Jumbo lenders commonly use their own convention. A two-year average of vested value is a typical one. Some also haircut the stock price to allow for swings. The details differ by lender, which is why the lender’s own worksheet matters more than any online calculator.
Picture a borrower whose base pay and cash bonus put the debt-to-income ratio just above a lane’s ceiling. Vested stock averaged over two years adds to monthly qualifying income. That pushes the ratio under the ceiling. Take the stock out and the file fails. Same borrower, same house, different lender policy.
Two things follow:
- Usable income is smaller than the headline. Averaging and haircuts lower it, and a falling share price drags the average down.
- A bigger loan raises the bar. Cash-out replaces your current loan with a larger one. The income test is the same as for a purchase, but a larger balance is tested against your ratio and reserves.
Do You Have to Sell the Shares?
No, not for the income to count. Vested shares that you still hold can support income if the lender’s rules are met. The lender wants proof they vested and were delivered to you, not proof you sold them.
Assets are a separate question. Freddie Mac says stock with limits on access is not an eligible source of funds to qualify. Unvested shares cannot fill reserves. Reserves on jumbo lanes are measured in months of the full payment and rise with the loan amount, so vested, accessible holdings matter if you want them counted there.
A margin balance can raise your debts at the same moment stock helps your income.
When Does Stock Income Count for Less, or Not at All?
Some situations shrink or erase the number. Know them before you apply.
- A short history. A time-based award under 12 months is generally ineligible. A performance-based award under 24 months needs an exception or compensating factors.
- Sign-on stock. Some lenders refuse restricted stock paid as a sign-on bonus, whatever the vesting length. Others read the rule differently.
- A job change. Freddie Mac allows a prior employer’s history as a compensating factor. You still need at least 12 months with the current one.
- An ending or shrinking schedule. If vesting is about to stop, awards are falling, or the plan has changed, expect the income to be left out.
- A newly public company. A stock without enough trading history for a 200-day average may not be usable.
- Private company stock. Without a market price, many lenders will not count it.
If stock is most of your income rather than a supplement, a different documentation path may fit.
Do Old Rules Still Matter?
Older web articles may be out of date. Freddie Mac did not accept restricted stock income before 2017, and Fannie Mae widened eligibility more recently. A page that says lenders “don’t count RSUs” may describe a rule that changed.
The federal framework itself is light on detail. The CFPB’s ability-to-repay rule requires a lender to make a reasonable, good-faith, verified judgment that you can repay. Its compliance guide says verification should rest on reliable records, not on what a borrower says. The rule does not list RSUs as eligible or ineligible.
The old fixed ratio cap and the income definitions that went with it have been replaced. A lender may now follow the agency manuals to meet the verification duty. That is why agency logic carries so much weight in jumbo files.
Is a Cash-Out Different From a Purchase?
The income test is the same. The difference is the loan. A cash-out refinance sets a new, larger balance, and cash-out leverage sits lower than purchase leverage on these programs.
Your appraisal sets the value. The cash you take is limited by that leverage, and on the largest lanes by a cash cap. A larger payment also leans harder on the stock income you are counting. Borrowers who count on vested stock should also ask how the lender would treat a drop in share price after closing.
Your equity matters as well. The CFPB’s home equity guide notes that a cash-out refinance can raise your payment and lengthen your payoff time. It also says lenders typically want a 10% to 20% equity cushion left behind.
Your Self-Check Before You Apply
Pull these items together first:
| Document | Shows |
|---|---|
| Recent pay stubs with stock payouts | Current vesting |
| W-2s for the last two years | History of receipt |
| Vesting schedule or award agreement | Continuance |
| Employer verification letter | Plan still active |
| Brokerage statements | Shares held and accessible |
Then ask the lender four things:
- Do you count vested restricted stock on a cash-out?
- How many months of history do you need for my award type?
- Do you average over two years or use a price average, and is there a haircut?
- Can you show me the monthly figure you are using?
If the answers are no, or the number is too low, waiting for another vest cycle can strengthen the file. Gathering documents early also helps.
Key Terms Defined
Restricted stock unit (RSU): A promise from your employer to deliver shares once you meet a vesting condition.
Vested: The condition has been met and the shares belong to you.
Qualifying income: The monthly income a lender will count to approve your loan.
Debt-to-income ratio: Your monthly debts divided by your monthly qualifying income.
Performance-based vesting: Shares vest when targets are hit, not simply on a date.
Time-based vesting: Shares vest on a set calendar schedule.
Jumbo loan: A mortgage that begins one dollar above the conforming limit for your county.
A Reasonable 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. Bring your vesting schedule and last two W-2s, and the conversation gets specific fast. Any outcome is subject to lender guidelines and full file review, and nothing here is a commitment to lend.
Frequently Asked Questions
Can unvested RSUs help me qualify?
Rarely. The agency logic that jumbo lenders borrow counts stock only after it has vested and been delivered. Unvested shares also cannot fill reserves. A lender may look at the vesting schedule to judge future income, but the grant itself is not income.
Do I have to sell vested shares for them to count?
No. Holding vested, unrestricted shares does not stop them from supporting income. The lender wants proof of vesting and delivery, usually through pay stubs, W-2s, and the schedule. Selling is a separate choice that affects your assets, not your income history.
Why is my usable income lower than my stock’s value?
Lenders average what vested over a set period, and some trim the share price as well. Averaging smooths out spikes. A falling price lowers the average, and a haircut lowers it again.
Does a cash-out refinance treat RSU income differently from a purchase?
The income test is the same. What changes is the loan: a cash-out sets a larger balance at lower leverage than a purchase, so the ratio and reserve tests bite harder. The largest lanes also cap the cash you can take.
What if one lender will not count my stock?
Ask for the reason. It may be a history requirement you can meet after another vest cycle, or a lender overlay that a different lender does not share. Because jumbo lenders set their own policies, a second review is reasonable.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and home buyers in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae announcement SEL-2023-11
2. Enact RSU underwriting blog
3. Freddie Mac Guide Section 5303.1
4. Freddie Mac Guide Bulletin 2024-16
5. Freddie Mac bulletin on restricted stock as assets
6. CFPB Ability-to-Repay and Qualified Mortgage small entity compliance guide
7. CFPB older Americans housing guide (home equity)
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: Fixed vs ARM for a Jumbo Cash-Out: Will You Sell Before It Adjusts? · Jumbo Cash-Out for High-Balance Homeowners: Terms That Decide It · Refinancing Out Of A Jumbo Adjustable Mortgage Before It Resets
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.