The Quick Read: Shares you already own outright count, and shares you have only been promised do not. A restricted stock unit (RSU) that has vested and sits in your brokerage account is usually treated like any other stock. Unvested RSUs are generally left out. Deferred compensation is the gray zone, because it depends on the plan and on the lender.
Key Takeaways
- Vested, delivered shares can count toward reserves, usually at a value the lender sets after reviewing a recent statement.
- Unvested RSUs are generally excluded, even if the vest date is close.
- Deferred comp is decided lender by lender. Many lenders will not count it. Others count it only if you can reach the money.
- Cash you pull out in the refinance cannot count as reserves for that same loan.
- Ask before you sell shares or move money. The wrong move can shrink what counts.
What Are Reserves on a Jumbo Cash-Out Loan?
Reserves are money you keep after closing that could cover your mortgage payments if income stopped. Lenders count them in months of your full housing payment. That means principal, interest, taxes, insurance and any association dues.
A jumbo loan is a mortgage that starts one dollar above the county’s conforming limit. No federal rule sets reserve months for these loans. Each lender writes its own. Across the wholesale programs I place files with, the number of months rises as the loan amount rises. Bigger loan, more months. Simple.
Reserves are separate from your down payment and closing costs. On a cash-out refinance there is no down payment. The lender still wants proof you hold liquid or near-liquid assets after the loan funds.
Leverage matters here too. On the headline jumbo lane, the loan can reach 90% of the home’s value with a 660 decision score, and loans run up to $5,000,000 on the largest lanes. Cash-out sits at lower leverage than a purchase, and the largest lanes put a cap on the cash you can take. Every figure here is subject to lender guidelines and a full file review. Details on that path are on the jumbo cash-out refinance program page.
Reserves are one test. Your income, credit and the appraisal are separate tests. A household with a high salary and mostly unvested stock can look weaker on this one test than its net worth suggests.
How Does the Lender Sort Your Assets?
The underwriter puts each holding into one of four buckets. Everything else follows from the bucket.
1. Vested shares delivered to your account. These are post-vest RSU shares in a brokerage account in your name.
2. Unvested RSUs. These are grants you have not yet earned the right to keep.
3. Qualified retirement accounts. Think 401(k) and IRA balances.
4. Nonqualified deferred comp (NQDC). This is a balance your employer owes you under a separate plan.
Then the lender asks four questions, in roughly this order:
- Has it vested?
- Is it delivered to an account you control?
- Does the plan let you reach it?
- What discount does this lender apply?
The last one is the haircut. A haircut is the percentage the lender trims off an asset’s value before counting it. It varies by lender and by how volatile the holding looks.
How Are Vested RSUs Counted?
Once an RSU vests and the shares land in your brokerage account, the lender sees a stock asset. The value comes from your most recent statement, net of any margin loan against the account.
The benchmark most lenders look to is Fannie Mae, which sets the standard for conventional loans within the conforming limits. Its Selling Guide accepts vested stocks for reserves when the value can be verified. Fannie Mae also says that for reserves, the asset counts at 100% of its value and does not require you to sell it.
Jumbo is outside that box. Treat Fannie Mae as a reference point. A jumbo lender can be stricter, and some trim stock for price swings. Older industry practice discounted stock and retirement balances, and a jumbo lender may still lean that way.
| RSU status | Counts as reserves? | How it is valued | What to document |
|---|---|---|---|
| Unvested | Generally no | Not valued | Vesting schedule, if asked |
| Vested, still restricted | Lender-specific | Often discounted or excluded | Plan terms, lockup details |
| Vested, delivered, unrestricted | Usually yes | Statement value, possibly with a haircut | Recent brokerage statement |
| Sold, cash in your account | Yes, as cash | Full balance | Bank statement showing the deposit |
One more point on concentration. Many RSU holders own a lot of one company’s stock. Some lenders discount a large single-stock position. Others do not. Ask early.
Do Unvested RSUs Count?
No. Fannie Mae’s guide says non-vested stock options are not an acceptable reserve source, and it tells borrowers not to list them on the application. Fannie Mae’s announcement on asset rules says the same about non-vested assets.
A vest date that is close does not change the answer. The shares have to vest before the lender counts them. Underwriters see an unvested grant as a promise, not an asset. You could leave the job, or the company could change the plan.
Timing can help here, though. If a large vest lands before your statement date, the shares can count on the next statement. Statements go stale, so the lender may ask for a fresh one.
Can RSUs Be Both Income and Reserves?
Income and reserves are separate questions. Fannie Mae’s topic on RSU employment income says restricted stock must have vested and been distributed to you before it supports qualifying income. That is the income test.
Reserves ask a different thing: what do you hold today? The same vested shares can show up in both conversations. Many lenders prefer not to count the same stock twice, once as a source of income and again as a cushion. Whether yours does is lender-specific. Ask before you build your plan around both.
How Does a Lender Treat Deferred Compensation?
Deferred comp is where jumbo lenders diverge the most. Plenty will not count it at all.
Start with what it is. Nonqualified deferred compensation (NQDC) is pay your employer agreed to hand you later. It is not a 401(k). A 401(k) sits in a trust in your name. NQDC is typically an unfunded promise. Per a plan administrator’s overview, assets the employer sets aside remain open to the claims of its creditors, and the vesting schedule is whatever the employer designs.
Payout timing is set by the plan. It is often tied to leaving the company or a scheduled date. You usually cannot call and demand the money. Because of that, lenders tend to ask one question first: can the borrower reach these funds? Treat this as how files tend to go, not as a rule.
| Plan feature | Typical lender reaction | What to document |
|---|---|---|
| Unvested balance | Excluded | Plan statement |
| Vested, paid only at separation or a set date | Often excluded | Plan document, distribution terms |
| Vested, with a defined access right | May be partly counted, lender-specific | Plan statement, distribution terms |
| Funded in a trust you control | Treated more like an account | Trust statements |
Expect to hand over the latest plan statement and the plan’s distribution terms. If the lender says no, the balance still matters for your overall finances. It just will not count as reserves.
A short note on income. Some borrowers ask whether deferred comp can count as income instead. Lenders look at what you actually receive on a continuing basis, not the total balance. That is a separate test and a separate conversation.
What About Retirement Accounts?
Vested retirement funds are the stronger cousin of deferred comp. Lenders generally accept the vested portion. They check two things: whether the account lets you withdraw regardless of employment status, and whether you have a loan outstanding against it. Any loan balance comes off the total.
Some lenders also apply a haircut to retirement balances. You usually do not have to withdraw the money for it to count. Do not withdraw anyway without asking. A withdrawal can trigger taxes and penalties, and it changes what the statement shows.
Why Cash-Out Proceeds Do Not Count
The refinance itself cannot fund your reserves. Fannie Mae lists cash-out proceeds from the subject transaction among unacceptable reserve sources. Jumbo lenders generally follow the same logic. Borrowing against the house does not prove you have a cushion after the loan.
The appraisal sets the home value and your loan-to-value ratio. The reserves test is separate from that. You can meet the leverage limit and still come up short on reserves.
A borrower sometimes asks about a second home. One sentence covers it: occupancy decides the leverage, and primary, second-home and investment occupancy each have their own lane-specific limits.
A Worked Example
Say you are refinancing a primary home and taking cash out. The lender asks for a set number of months of the full payment. Call it a target of one full unit. Here is how one household might stack up, in rough shares of that target:
- Checking and savings: a little under half of the target, counted at full value.
- Vested RSU shares in a brokerage account: about the same again, counted at statement value, possibly with a haircut.
- Vested 401(k): a smaller slice, counted on the vested portion minus any loan.
- Unvested RSUs: zero.
- NQDC balance: zero at this lender, since the plan pays out only at separation.
- Cash-out proceeds: zero.
Add the counted pieces. If they reach the target, you pass the reserves test. If they fall short, you have options. You could take less cash out, since the loan amount drives the months required. You could wait for a vest and bring a newer statement. You could ask a different lender how it treats the plan. This is a model, not a promise. Real files turn on lender guidelines and full review.
What Documents Does the Lender Ask For?
Here is the checklist I give borrowers who hold equity compensation:
- The most recent brokerage statement showing share count, price and any margin.
- Your RSU vesting schedule and recent vest confirmations.
- The deferred comp plan statement and the plan’s distribution terms.
- Retirement statements showing the vested balance and any loan.
- Bank statements for the cash you hold.
- A note on any lockup or blackout window on your shares.
Asset documents go stale. One mortgage insurer’s training material describes a four-month validity window under conventional rules. Jumbo lenders may differ. If your closing slips, expect to refresh statements.
Where the General Rule Breaks
A few cases bend the rules above.
- Cash-out reserve trigger. On conventional loans, Fannie Mae requires six months of reserves on a cash-out when the ratio of debts to income exceeds 45%. Jumbo lenders set their own triggers.
- Stock lockups. Shares you own but cannot sell for a period may be discounted or excluded.
- Private company stock. If the stock is not publicly traded, lenders often decline to count it, since there is no clear daily price.
- Asset depletion. Using assets as income instead of reserves is a different test with different rules.
- Several financed properties. More financed homes can push the reserve requirement up.
Common Mistakes Before Applying
Here are the ones I see most.
Selling shares first. A tax bill can follow. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit. And you may not need to sell for the shares to count.
Assuming deferred comp equals a 401(k). It does not. Not even close.
Counting the cash-out. Plan your reserves from what you hold now.
Sending an old statement. A stale statement forces a redo.
Moving money mid-file. A transfer between accounts can raise questions the lender must clear. Ask the loan officer what the lender will count before you move anything.
One more thing about the monthly budget. Reserves are not spent at closing. But the cash you take out raises your loan balance, which raises your payment. Keep that in view when you size the cash-out.
Key Terms Defined
Reserves: Money left after closing, measured in months of your full housing payment.
RSU (restricted stock unit): A grant of company shares you receive only after a vesting schedule is met.
Vested: Earned and no longer at risk of forfeiture if you leave.
NQDC (nonqualified deferred compensation): Pay your employer owes you later under a plan outside the retirement-account system.
Haircut: The percentage a lender subtracts from an asset’s value before counting it.
Jumbo loan: A mortgage that starts one dollar above the county’s conforming limit.
Frequently Asked Questions
Do unvested RSUs count as reserves?
No. Lenders generally treat unvested RSUs as a future promise, not a present asset. They count only once the shares vest and reach your account. A recent statement then shows what you hold.
Do I have to sell my shares to use them?
Usually not. Under the conventional benchmark, reserve assets can count at full value without liquidation. Selling matters more for cash you need at closing. A jumbo lender may set its own rules, so ask first, and talk to a tax professional before selling.
Can deferred comp count as reserves?
Sometimes, but many lenders will not count it. The deciding questions are whether the balance has vested and whether the plan lets you reach the money. Expect to supply the plan statement and distribution terms.
What if my employer is a private company?
Lenders often decline private stock, since no public price exists. Some may review it case by case. Bring the grant documents and any recent valuation, and expect a lender-by-lender answer.
Does a cash-out refinance change the reserve picture?
Yes, in two ways. The cash you take out cannot count as reserves for that loan. And a larger loan balance usually means more required months. Taking less cash out can help you meet the requirement.
Your 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 latest brokerage, plan and bank statements, and the loan officer can tell you how the lenders are likely to count them, subject to lender guidelines and full file review. Nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges FHA, VA, conventional and jumbo home purchase and refinance financing in 16 states through wholesale lenders. 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
1. Fannie Mae Selling Guide B3-4.3-01, Stocks, Stock Options, Bonds, and Mutual Funds
2. Fannie Mae Ask Poli, liquidation threshold for vested assets
4. Fannie Mae Selling Guide B3-3.3-07, Restricted Stock Units and Restricted Stock Employment Income
5. NRS, Nonqualified deferred compensation overview
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: Jumbo Cash-Out Lender Questions for a Business Owner on Returns · How to Choose a Jumbo Cash-Out Lender for High Loan-to-Value · What to Ask a Jumbo Cash-Out Lender About Caps, Reserves and Appraisals?
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.