The Quick Read: You can use jumbo cash-out proceeds to fund a business, but the lender qualifies you and your home, not the business. Your vested, documented RSU income plus base pay is tested against the full new mortgage payment. Unvested units and business projections do not count. Your house secures the loan, so a business that fails does not release the mortgage.
How Does a Jumbo Cash-Out Refinance Work?
A jumbo cash-out refinance replaces your current mortgage with a larger one and pays you the difference. A loan counts as jumbo when it starts above the conforming limit for your county. FHFA sets those limits each year, with a higher ceiling in high-cost areas. Check the current county figure before you plan.
Jumbo cash-out estimate
Enter the value, the balance, and the cash wanted; choose the occupancy and the structure; the lanes, the payment, and the reserves follow.
Editable benchmark: 7.18% as of November 5, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a jumbo cash-out refinance quote.
Illustrative starting assumptions: a $2,000,000 home value in the jumbo range, a $1,000,000 current balance, a principal residence on a thirty-year fixed structure at the current Freddie Mac conforming benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conforming benchmark, a market reference and not a jumbo cash-out refinance quote; a jumbo loan is priced by the lender at lock. The lanes shown are the wholesale cash-out lanes behind this page as of the snapshot date; the calculator reads each lane’s leverage, loan maximum by occupancy, cash-in-hand cap, and reserves as the lane table states them, and a Lendmire loan officer confirms the lane on the file. The cash available is the loan the lane allows less the balances paid off, before closing costs, which are not included; on most lanes a jumbo cash-out begins one dollar above the conforming limit for the county, and two lanes start at a stated dollar floor instead. The HELOC line is the line program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Jumbo loans are not bought by Fannie Mae or Freddie Mac. Private investors buy them, and each sets its own rules. That matters for RSU income, because agency rules are a useful reference, not the rulebook.
Across the wholesale jumbo lanes Lendmire arranges loans through, the main limits look like this. The headline lane starts at a 660 decision score. Leverage varies by lane, and the highest-leverage lanes stay within the 80–85% range typical of this lending, while the rest stop at 80%. Loans go to $5,000,000 on the largest lanes. The fixed lanes allow a 50% ratio ceiling, the adjustable lanes 45%, and the interest-only lanes 43%. Cash-out sits at lower leverage than purchase, and the largest lanes carry a cash cap. All of this is subject to lender guidelines and full file review, and none of it is a commitment to lend.
Lendmire’s jumbo cash-out refinance program page lays out the lanes in more detail.
Can the Cash Go to a Business?
Generally yes. Once the loan funds and the old mortgage is paid off, the remaining proceeds are yours to spend. The lender is not underwriting your business.
Underwriting looks at your repayment-capacity from your own income and assets. The federal consumer-finance regulator’s repayment-capacity guide lists the factors a lender must consider: income or assets, employment, the new payment, other debts, the debt ratio, and credit history. A business plan is not on that list. Revenue the business has not earned yet is not your income for this loan.
How Are RSUs Underwritten, Step by Step?
Agency guidance gives a good picture of what documentation looks like. Jumbo investors vary, so expect some to ask for more. Fannie Mae’s Selling Guide on RSU income lists the typical file:
1. Employment verification. A completed verification of employment showing stock distributions, or a recent paystub showing receipt, plus two years of W-2s.
2. Proof the stock is publicly traded. Privately held stock is not eligible on either path.
3. The vesting schedule. It must show past and future vesting.
4. A share-price average. For income paid in shares, the guide uses a 200-day moving average price.
5. Proof of receipt. A brokerage or bank statement showing prior distributions landed in your account.
6. A verbal employment check. Done close to closing.
Only vested, unrestricted stock counts. Fannie Mae’s announcement on restricted stock says it must have vested and been distributed to you without restrictions. Unvested units do not help your file.
Then comes continuance. For one-time-based awards, the guide asks the lender to document that the income is expected to continue at least three years. For recurring or performance-based awards, continuance generally needs checking only if there is reason to doubt it.
The calculation depends on whether you are paid in shares or cash and on how long you have received awards. In plain terms, the lender averages the value of what vested over a period, not your best quarter. Expect the number to land below the headline value of your grant.
What Decides the Outcome?
- Vested, documented RSU income with a clear history.
- The debt ratio, which counts the whole new mortgage payment, not only the cash you took out.
- Credit.
- Appraised value and the LTV cap.
- Reserves, which are measured in months of the full payment and rise with the loan amount.
Large jumbo loans also call for two appraisals above a lane’s threshold amount. A soft appraisal shrinks the cash available, because the cap is measured on appraised value, not what you paid or what an online estimate says. Fannie Mae’s Eligibility Matrix shows how agency leverage limits shift by transaction type, occupancy, and units. Jumbo lanes follow the same pattern, with their own caps.
A Worked Example in Ratios
Say you earn base pay plus RSUs. The lender counts base pay in full and RSU income at the averaged, vested amount. It adds the two. It then divides your total monthly obligations, including the new, larger mortgage payment, taxes, insurance, and existing debts, by that income.
If the result sits under the lane’s ceiling, which varies by whether the loan is fixed, adjustable, or interest-only, the income side works. Then the LTV test applies: the new loan divided by appraised value. The gap between that cap and your current balance is the most cash you can take, and a cash cap may trim it further on the largest lanes.
Here is the catch. Every dollar you pull out raises the payment that sets your ratio. Taking less cash can be the difference between a file that clears and one that does not. Sizing the loan to a payment you could carry with the business earning nothing is the safer test.
Where Do the Rules Break?
| Situation | What usually happens |
|---|---|
| Newly public employer | Short stock history may not meet the history test |
| Private-company equity | Often fails the publicly traded test; investor by investor |
| Sign-on RSU grants | Commonly excluded |
| Unvested grants | Do not count as income |
| RSUs are most of your pay | Documentation and continuance get closer review |
| Job change before closing | Employment is rechecked near closing |
If your employer just went public, the 200-day average cannot be built until the stock has traded long enough. Waiting can solve that file.
Occupancy also matters. A second home or investment property carries its own lane-specific leverage. This article assumes the home you live in.
What Does a Stock Drop Do to the Loan?
Your qualifying income is set at closing, but your payment is fixed on the larger balance. If the stock falls or vesting stops after you close, the loan does not shrink with it. Cash-out also lowers your equity cushion, so a falling market can leave you owing more than the home is worth. CFPB research on cash-out refinances notes that moving other debt into mortgage debt secured by your home can raise risk if payments become hard to sustain.
Run the stress test yourself: take RSUs out of the income side and see whether base pay alone carries the payment.
What Are the Alternatives?
| Option | Leaves first mortgage alone? | Main trade-off |
|---|---|---|
| Jumbo cash-out | No, replaces it | Whole balance reprices and resets |
| HELOC or second lien | Yes | Line can be frozen or reduced if values fall |
| Selling vested shares | Yes | Triggers taxes, no new debt |
The CFPB notes that a cash-out refinance may cost more or less than a HELOC depending on terms. If your current first mortgage is strong, keeping it may be the better move.
When Can You Use the Money?
Refinances on a primary home generally carry a three-business-day right to cancel. The CFPB explains the rescission window, including that Saturdays count and Sundays and holidays do not. Funds typically are not released until it ends, so build that into your spending plan. Canceling the new loan does not cancel your obligation on the old one.
Closing costs also apply on the whole new loan. Rolling them in reduces your net cash.
Key Terms Defined
Jumbo loan: A mortgage that starts above the conforming limit for your county.
Cash-out refinance: A new, larger mortgage that pays off the old one and gives you the difference.
Vested RSU: Company stock that has been released to you without restrictions.
Continuance: The lender’s check that your RSU income is likely to keep arriving.
CLTV: Combined loan-to-value, which counts all loans secured by the home.
Reserves: Liquid assets, measured in months of the full payment, that you keep after closing.
Pre-Application Checklist
- Two years of W-2s and recent paystubs.
- Your full vesting schedule, past and future.
- Brokerage statements showing prior vested shares received.
- Proof of your employer’s public trading status.
- Statements for the assets you will count as reserves.
- Your current mortgage payoff information.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Frequently Asked Questions
Can I use RSUs I have not vested yet to qualify?
No. Only vested, unrestricted stock counts as qualifying income. Unvested units are generally ignored, however large the grant looks on paper.
Does the lender look at my business plan?
No. Underwriting covers your personal income, assets, credit, and the home. Projected business revenue is not income for this loan.
Do I have to sell shares to qualify?
Not as a rule. Vested shares count as income when documented and expected to continue, and you generally do not have to sell them. Share sales are one alternative to borrowing, with their own tax consequences.
Do private-company RSUs count?
Often not. Agency rules require proof the stock is publicly traded, and a jumbo investor may differ. Treat it as investor-specific and ask before applying.
Is a HELOC a better way to fund a business?
Sometimes. It leaves your first mortgage in place, which helps if that loan is strong. The trade-off is that a lender can freeze or reduce the line if values fall.
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 broker licensed for consumer lending in 16 states. Lendmire arranges FHA, VA, conventional and jumbo purchase and refinance loans through wholesale lenders; every file is underwritten by the lender under the applicable program 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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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. FHFA – Conforming Loan Limit Values for 2026
2. CFPB – Ability-to-Repay Compliance Guide
3. Fannie Mae Selling Guide B3-3.3-07: RSU Income
4. Fannie Mae’s announcement on restricted stock
5. Fannie Mae Eligibility Matrix
6. CFPB research on cash-out refinances
7. CFPB – Loans similar to a HELOC
This article is part of Lendmire’s jumbo cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Jumbo Cash-Out Refinance Requirements to Fund the Next Down Payment · Can You Get Approved for a Jumbo Cash-Out Refinance in Six Months? · Jumbo Cash-Out Refinance Requirements for a Business Owner
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.