The Quick Read: Only vested, documented stock income and deferred comp already being paid out count as qualifying income on a jumbo cash-out. Unvested grants and plan balances generally do not. Each jumbo lender sets its own rules, so treatment varies from lender to lender. Across the wholesale programs Lendmire places files with, the strongest files show a clear vesting history, steady payouts, and an organized document package.
If your pay comes as base salary plus stock grants plus a deferred compensation plan, this loan is underwritten differently from a plain salaried one. This walkthrough covers what the loan is, how the file gets built step by step, where the rules break, and how to decide.
What Is a Jumbo Cash-Out Refinance?
A jumbo cash-out refinance replaces your current mortgage with a larger one and hands you the difference in cash. It is “jumbo” because the new loan lands above your county’s conforming limit. That limit is set each year by the Federal Housing Finance Agency and adjusts with average U.S. home prices. Higher-cost counties get higher limits, so the county you live in decides where “jumbo” starts. A jumbo loan begins one dollar above that line.
In the wholesale jumbo programs Lendmire works with, the headline lane starts at a 660 decision score. Leverage reaches 90% on the strongest lanes, and loans run up to $5,000,000 on the largest ones. Cash-out sits at lower leverage than a purchase, and the largest lanes put a cap on the cash you can take. Everything here 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. Lendmire is a mortgage broker. It arranges these loans through wholesale lenders and does not lend itself.
Key Terms Defined
RSU (restricted stock unit): A grant of company shares that you receive only after a vesting schedule is met.
Vested: The shares are yours outright and have been delivered to you without restrictions.
Deferred compensation: Pay you earn now but receive later under a plan, often after you leave or retire.
Qualifying income: The income a lender agrees to count when it decides whether you can repay.
Reserves: Liquid money left over after closing, measured in months of your full housing payment.
Cash-out refinance: A new, larger mortgage that pays off the old one and gives you the difference.
How Does a Lender Count RSU Income?
A lender counts RSU income only when the stock has vested and been delivered to you, and only after averaging it over time. Fannie Mae’s announcement SEL-2023-11 added RSUs as an eligible income source. It requires the stock to have vested and been distributed without restrictions, plus two years of your W-2s. Jumbo lenders write their own rules, but this is the closest public benchmark.
Here is how that plays out in practice:
- Vested only. A grant worth a fortune on paper counts for nothing until the shares vest.
- History matters. Mortgage-insurer training aids built on agency guides, such as those from Radian, point to roughly 24 months of history for performance-based awards. They allow 12 to 24 months when offsetting factors exist, such as future vesting at least equal to past vesting.
- Averaging. Lenders typically average vested income over time. Your qualifying figure can sit below last year’s big vest.
- Cash or shares. Income paid in cash is calculated differently from income paid in shares.
- Continuance. The lender wants to see that future vesting will continue.
Public company stock is the norm. RSUs from a private company usually cannot be counted.
How Is Deferred Comp Treated?
Deferred comp counts as income only when it is already being paid to you, is documented by the plan administrator, and is expected to continue. A balance still sitting in the plan generally does not count as income. Future scheduled payouts are not usually counted either. Underwriters judge this case by case, and treatment is lender-specific.
No public agency rule treats non-qualified deferred compensation like a paycheck. The closest benchmark is how Fannie Mae handles retirement-type distributions. A fixed distribution needs no minimum history. A variable distribution needs 12 months of history. The income must continue for at least three years from the note date. That section covers retirement accounts, not deferred comp plans, so treat it as a rough guide to how underwriters think.
Why the caution? Deferred comp is often a promise to pay from the employer, not money set aside in your name. Lenders prefer income they can see arriving.
The Application, Step by Step
Step 1: Confirm it is a cash-out. A refinance that returns real cash is a cash-out. The CFPB’s research defines it as a new loan more than 5% larger than the old loan and liens combined. A “limited” cash-out allows only minimal cash back and gets better leverage. Take real cash and you are in the cash-out lane, with lower leverage than a purchase.
Step 2: Map your income. List every pay source: base, bonus, vested RSUs, and any deferred comp already paying out. Mark what is vested, what is paid, and what is only promised.
Step 3: Pull your documents. Typical items include:
- W-2s for the most recent two years
- Recent pay stubs showing RSU receipt
- Vesting schedules and grant agreements
- Brokerage statements showing delivered shares
- A verification of employment
- Plan statements and payout letters from your deferred comp administrator
Step 4: Choose the structure. The wholesale lanes include fixed, adjustable, and interest-only structures. The ratio ceiling is 50% on the fixed lanes, 45% on the adjustable lanes, and 43% on the interest-only lanes. The ratio compares your monthly debts to your qualifying income, so how much income gets counted matters a great deal.
Step 5: Appraisal sets the ceiling. The maximum loan equals appraised value times the lane’s cash-out leverage cap. A low appraisal cuts the loan dollar for dollar. Above a lane’s threshold amount, two full appraisals are required.
Step 6: Show your reserves. Jumbo lanes require documented liquid reserves, measured in months of the full payment. The requirement rises with the loan amount. This is where vested stock in a brokerage account helps, while an unvested grant does not.
Step 7: Underwriting and disclosures. The lender must make a good-faith determination that you can repay. The CFPB’s ability-to-repay rule requires documentation of income, assets, employment, credit history, and monthly expenses. It applies to jumbo loans too. Expect a Loan Estimate and a Closing Disclosure along the way.
How Different Income Types Get Treated
| Income type | What lenders want to see | Common risk |
|---|---|---|
| Base salary | Pay stubs, W-2s, employment verification | Few |
| Bonus | Multi-year history | Declining trend |
| Vested RSUs | Vesting history, delivered shares | Short history |
| Performance-based RSUs | Longer history, future vesting | Strictest test |
| Unvested RSUs | Not counted as income | Overestimating borrowing power |
| Deferred comp payouts | Administrator letter, payout history | Lender-specific |
| Deferred comp balance | Not income; asset treatment varies | May be excluded |
Where the General Rule Breaks
Some jumbo lenders exclude RSUs entirely. Agency rules are a baseline, not a promise. Some lenders list restricted stock as ineligible income. Others accept it with conditions. This is why one lender can approve a file that another declines.
A new job resets the clock. The history test usually looks at your current employer. Move jobs and the vesting count may start over.
Short history. A first-time grant, or a plan that only recently started paying, may not meet the history test.
Recent purchase. Some lenders base leverage on the lesser of purchase price or appraised value for a home bought within the last several months. They may also require title seasoning before a cash-out.
Occupancy. Primary, second-home, and investment occupancy carry different leverage on each lane. This article is about the home you live in.
Condos. Two lanes accept non-warrantable condominiums. Others do not.
Special state rules. Texas, for example, has its own cash-out rules for homestead property. A Texas borrower should ask about these up front.
Listed homes. A home currently listed for sale is generally ineligible.
Common Misconceptions
- “My grant total is my income.” Only vested, delivered shares count.
- “Last year’s big vest is my income.” Averaging usually brings it down.
- “One rule fits every jumbo.” Each lender sets its own.
- “Deferred comp works like a 401(k).” Agency retirement rules do not address it.
- “Jumbo loans skip federal rules.” The ability-to-repay rule applies.
What Does the Decision Look Like in Practice?
Picture a household with a solid base salary, five years of steady RSU vesting at a public company, and a deferred comp plan that has not started paying. The vested stock income, averaged, is counted. The plan balance is not income, though a lender may look at it as an asset, depending on access and its own policy. That household may qualify for a smaller loan than its total compensation suggests.
The RSU history may not meet the test at some lenders. Waiting for more vesting history, or using a lender that accepts shorter history with offsetting factors, can change the outcome.
Weigh the tradeoffs as well. The CFPB notes that a cash-out refinance can lengthen your payoff time and may raise your monthly payment, because a larger loan replaces the current one. No option lets you convert 100% of your equity into cash. Taking cash-out also means keeping stock you might otherwise sell, so a drop in share price after you borrow still matters to your budget.
Questions worth asking any lender up front:
1. Do you count RSU income, and with how much history?
2. Is deferred comp counted only once it is paying?
3. How do you treat vested shares as reserves?
4. What is the cash cap and the appraisal threshold on the lane I would use?
Lendmire has seen that files with labeled exhibits, one for each income source, tend to move through review with fewer follow-up requests. Put your vesting schedule beside your brokerage statements, and the plan administrator’s letter beside your payout history.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Why Do These Files Stall?
- Unvested grants counted too early. The fix is to lead with vested income only.
- Missing payout proof for deferred comp. Get the administrator’s letter.
- Declining income trend. Expect lower averaging, and show offsetting factors.
- Thin reserves. Document brokerage balances in full.
- Appraisal shortfall. Ask what leverage cap applies before ordering.
- Wrong lender for the income. A lender that excludes RSUs cannot be talked into counting them.
Frequently Asked Questions
Do I have to sell my shares for RSU income to count?
Usually no. The shares need to be vested and delivered to you, not sold. Lenders look at the vesting record and your brokerage statements. Some lenders also check that shares are held in an account you control.
Can unvested RSUs help me qualify?
Generally not as income. Lenders typically count only vested, delivered stock. Unvested grants may support a lender’s view that vesting will continue, but the grant total itself does not raise your qualifying income.
Does deferred comp count if I have not started receiving it?
Generally no. A balance still in the plan is not usually treated as income. Payouts that are already arriving, documented by the plan administrator, and expected to continue are more likely to be considered. Treatment is lender-specific.
How much does a cash-out change my leverage?
Cash-out sits at lower leverage than a purchase. The headline wholesale lane reaches 90% on its strongest scenarios, while cash-out is capped lower, and the largest lanes also cap the cash you can take. Exact limits depend on the lane, occupancy, and full file review.
Do jumbo loans follow different federal rules?
No. The CFPB’s ability-to-repay rule applies to most residential mortgages, jumbo included. What differs is that each jumbo lender sets its own income rules rather than following agency guides.
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 more on paperwork, see Lendmire’s piece How to Document Vested RSUs and Deferred Comp on a Jumbo Cash-Out, and on how a jumbo cash-out lender counts rsus and deferred comp as reserves.
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.
For the program’s current guidelines, see jumbo loan programs.
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References
1. FHFA – 2026 conforming loan limit release
2. Fannie Mae – Announcement SEL-2023-11
3. Radian
4. Fannie Mae Selling Guide B3-3.4-03
5. CFPB Office of Research blog – cash-out refinances 2013–2023
6. CFPB – What is the ability-to-repay rule?
7. CFPB – Using home equity 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 Do a Jumbo Cash-Out When Both Spouses Are on the Mortgage · How to Close a Jumbo Cash-Out When the Trust Is Irrevocable · Can a Trust With a Co-Trustee Get a Jumbo Cash-Out?
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.