The Quick Read: On a jumbo cash-out refinance, restricted stock unit (RSU) income counts only after the shares have vested and been delivered to you, and only with a documented history. Credit score and debt-to-income ratio (DTI) are the two gates. Across the wholesale jumbo lanes, the headline lane uses a 660 decision score and a 50% ratio ceiling on the fixed lanes, subject to lender guidelines and full file review. Cash-out is held to lower leverage than a purchase, so the equity you can reach is smaller than the headline 90%.
Key Takeaways
- Vested and delivered shares can count as income. Unvested grants do not.
- No national jumbo rulebook exists. Each lender sets its own credit, DTI and cash-out rules.
- The headline lane uses a 660 decision score. The fixed lanes cap DTI at 50%, the adjustable lane at 45% and the interest-only lanes at 43%.
- Cash-out leverage sits below purchase leverage, and some lanes cap the cash you can take.
- RSU income sits in the denominator of DTI, so how the lender averages it moves your ratio.
Key Terms Defined
RSU (restricted stock unit): A grant of company shares that you receive only after you meet a vesting condition, such as time on the job or a performance target.
Vested and distributed: The shares are yours, free of restrictions, and have been delivered to your account.
DTI (debt-to-income ratio): Your monthly debts, including the new mortgage payment, divided by your qualifying monthly income.
Overlay: A rule a lender adds on top of the baseline guidelines, usually to be stricter.
Cash-out refinance: A new mortgage that pays off the old one and hands you the extra equity as cash.
Seasoning: How long you have held the loan or the home before a lender will let you pull cash out.
What Makes a Loan Jumbo
A jumbo loan starts one dollar above your county’s conforming limit. Fannie Mae and Freddie Mac do not buy loans above it, so each jumbo lender writes its own rules.
FHFA sets the limits every year. It lets high-cost counties go higher, up to 150% of the baseline. Look up your own county on FHFA’s site rather than assuming one national number.
Cash-out matters here. A cash-out refinance increases your balance. A loan that would have been conforming at your current balance can cross the line once you add the cash.
How a Jumbo Cash-Out Is Underwritten, Step by Step
Across the wholesale jumbo programs Lendmire works with, the deal works through the same checks. This is the order a loan officer walks through.
1. Classify the loan. The new balance is compared with the county limit. Above it, the file is jumbo.
2. Confirm cash-out treatment. A cash-out pays off the first mortgage and returns cash. The agency standard for cash-out refinances expects the existing first mortgage to be at least 12 months old. Jumbo lenders often use a similar seasoning rule, but each sets its own.
3. Set the value. The appraisal drives everything. Maximum cash is the appraised value times the maximum leverage, minus payoffs. Some jumbo lanes require two appraisals above a threshold loan amount.
4. Qualify the RSU income. Only vested, delivered shares count. The lender reviews your vesting schedule, W-2s, paystubs and brokerage statements.
5. Calculate DTI. Your qualifying income, with the RSU average included, is the denominator. The new payment, taxes, insurance, association dues and other monthly debts are the numerator.
6. Check credit and reserves. Reserves are counted in months of the full payment and rise with the loan amount.
7. Verify again before closing. Expect a verbal employment check near the end. Because RSU income depends on staying employed, a job change in the middle of the file can change the answer.
Credit Requirements With RSU Income
The headline jumbo lane uses a 660 decision score, and leverage reaches 90% on that lane. Other lanes sit at different thresholds, and each is subject to lender guidelines and full file review. Cash-out loans run at lower leverage than purchase loans.
A score is the start of the credit review, not the end. Lenders look at the depth of your history, recent inquiries and how much of your available credit you are using. A file where most of the income is RSU-based gets read more carefully, because that income can move with the stock price.
| Credit factor | What the lender is looking at |
|---|---|
| Decision score | Whether you meet the lane’s floor |
| Credit history depth | Number and age of accounts |
| Recent inquiries | New debt opened near the application |
| Utilization | Balances against limits |
| Payment history | Any late payments on mortgage or other debt |
A higher score does not cancel a high DTI, and a low DTI does not rescue a weak score. The lanes treat the two together.
How RSU Income Becomes a Monthly Number
The lender cannot use a grant letter. It converts shares into a monthly figure.
Fannie Mae’s Selling Guide is the common reference point. Restricted stock counts only if it has vested and been delivered without restrictions. A sign-on bonus paid in restricted stock that vests over time cannot be used. The stock must also be publicly traded, and the lender wants the vesting schedule, past and future, plus proof of earlier deliveries. Many jumbo programs borrow this approach. Each lender may tighten it.
Several choices change your monthly figure:
| Method choice | Effect on your income number |
|---|---|
| Averaged share price, such as a 200-day moving average | Smooths out a spike or dip in the stock |
| History-of-receipt divisor | A longer history spreads the income over more months |
| Time-based versus performance-based vesting | Performance awards face closer scrutiny |
| Continuance review | Future vesting must look likely to continue |
Radian’s training material shows that the two agencies can turn the same grant into different monthly figures. So the answer depends on the method. It is worth asking your loan officer which method the lane uses before you apply.
DTI Requirements With RSU Income
Federal law does not set one DTI ceiling. The old 43% cap was removed from the General Qualified Mortgage definition and replaced with a price-based test, as NAHB’s summary explains. Lenders must still consider DTI or residual income, so the limit comes from the lender’s own guidelines.
In the wholesale jumbo lanes, the ceiling is 50% on the fixed lanes, 45% on the adjustable lane and 43% on the interest-only lanes. That means the structure you pick changes how much room you have.
Here is how RSU income moves the ratio, described in plain terms. Picture a borrower whose salary alone puts the DTI above the lane’s ceiling. The new cash-out payment is the same either way. Add a documented RSU average to income and the denominator grows, so the ratio drops. Now lower the stock price used in the average. Income shrinks and the ratio climbs back toward the ceiling.
That sensitivity is the real planning risk. A borrower can sit just under the ceiling on a high-price day and over it after a drop. Ask for the ratio under a conservative price, not only the best case.
Using the cash to pay off other debts can lower your DTI, but the lender counts any payments that remain.
What Changes on a Cash-Out Versus a Purchase or Rate-and-Term
Cash-out is the most closely reviewed transaction type. Across the wholesale jumbo lanes, cash-out runs at lower leverage than a purchase, and the largest lanes add a cash cap.
| Factor | Purchase | Rate-and-term | Cash-out |
|---|---|---|---|
| Leverage | Highest | Mid-range | Lower than purchase |
| Seasoning | Not applicable | Generally none | Often required |
| Cash back | None | Small or none | Allowed, may be capped |
| Scrutiny | Standard | Standard | Closer |
The agency eligibility matrix shows the same pattern for conforming loans. Its cash-out limit on a one-unit primary residence is 80%, and it adds reserves when DTI is high. That is a conforming rule, not the jumbo cap, but it shows why cash-out is held tighter. Occupancy matters too: primary residence gets the most favorable leverage, while second homes and investment occupancy sit at lane-specific leverage.
A limited cash-out refinance is the alternative if you need only a small amount back. The agency rules cap the cash and skip the seasoning check on the existing loan.
Where the General Rule Breaks
- Short RSU history. Below the lender’s minimum, the RSU income may not count at all. A recent IPO or job change can wipe it out.
- Private-company RSUs. The agency template requires publicly traded stock. Some jumbo lenders view private shares differently, so confirm case by case.
- Sign-on RSUs. Time-vesting sign-on stock is not usable under the agency template.
- Performance-based awards. These get a tougher review than time-based vesting.
- Overlays. Some lenders cap the share of income that can come from RSUs. That is a lender choice, not an agency rule.
- Selling shares instead. Selling vested stock to fund a project can avoid borrowing. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Documents to Gather Before You Apply
| Document | What it proves | Common issue |
|---|---|---|
| Vesting schedule | Past and future vesting | Missing future dates |
| Two years of W-2s | History of receipt | Stock not shown separately |
| Recent paystubs | Current delivery of shares | Out of date |
| Brokerage statements | Shares delivered or sold | Gaps between statements |
| Employment verification | Current job | Job change mid-file |
Missing vesting dates and stale statements cause most of the conditions on RSU files. Bring a clean set up front.
Scenarios
Strong history, moderate DTI. A borrower with several years of vesting history, a score well above the floor and a ratio under the ceiling has the cleanest file. The main task is a clean document set.
Short history. A borrower with one recent vest may find the lender will not count RSU income yet. Waiting for more history can change the outcome.
Ratio just over the ceiling. Paying off a revolving debt, or choosing a structure with a higher ceiling, may bring the file in. Each option has trade-offs in payment and leverage.
Risks Between Application and Closing
A falling stock price, a job change, a reduced grant or a missed verification can each change the numbers. Tell your loan officer about any change at work as soon as it happens.
If Your Numbers Fall Short
- Pay down debts that carry monthly payments.
- Wait for more vesting history.
- Ask about a different structure, since the ratio ceilings differ.
- Lower the cash you request to reduce leverage.
- Consider a limited cash-out if you need little cash.
Lendmire’s jumbo cash-out refinance program page lays out the lanes in one place.
Frequently Asked Questions
Do unvested RSUs count as income?
No. Agency rules, which many jumbo lenders borrow, require shares that have vested and been delivered to you. Unvested grants may help show future stability in some files, but they are not counted as monthly income.
Is there a federal DTI limit on a jumbo cash-out?
No. The federal ability-to-repay rule requires the lender to consider DTI or residual income, and the CFPB’s compliance guide says it must use reliable records. The actual ceiling comes from the lender, and in these wholesale lanes runs from 43% to 50% depending on the structure.
What credit score do I need?
The headline lane uses a 660 decision score. Other lanes differ, and a higher score can help in a file with heavy RSU income. Every figure is subject to lender guidelines and full file review.
Do I have to sell shares to qualify?
Not necessarily. Vested shares you hold can count as income if documented. Selling is a separate choice with tax effects to discuss with a tax professional.
How much cash can I take out?
Less than a purchase would allow. Cash-out leverage sits below purchase leverage across the lanes, and the largest lanes add a cash cap. The appraised value sets the ceiling.
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.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending partners, 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. FHFA — Calculating 2026 CLL Values Under HERA
2. Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance
3. Fannie Mae Selling Guide B3-3.3-07, RSU Income
6. Fannie Mae Eligibility Matrix
7. Fannie Mae Selling Guide B2-1.3-02 Limited Cash-Out
8. CFPB Ability-to-Repay and QM Small Entity Compliance 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: How to Document RSU and Bonus Income for a Jumbo Cash-Out · Jumbo Cash-Out Requirements Above the Conforming Limit · Jumbo Cash-Out Refinance Credit and Loan-to-Value Tiers by Program
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.