The Quick Read: It depends on how much of your wealth sits in company stock and how much cash you want left after closing. Less down keeps liquidity and lets vested shares stay invested, but it raises leverage and the cost of borrowing over time. More down lowers the balance and the stress on the file, but it pulls cash or shares out of your hands. Neither is automatically better, and lender rules vary on the same file.
The one-paragraph honest answer: a tech employee with a steady salary, a long vesting history, and a cushion outside company stock can often justify less down, because the cash stays flexible. A tech employee whose pay is mostly unvested grants, whose employer stock is a large share of net worth, or who is worried about layoffs is usually better served by more down. Less down is a bet on your income and your stock. More down is a bet on stability. Both are defensible.
Jumbo payment estimate
The starting figures are an example price in the jumbo range with ten percent down on a thirty-year fixed. Replace them with yours.
Editable benchmark: 7.40% as of October 15, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a jumbo loan quote.
Illustrative starting assumptions: a $1,000,000 price in the jumbo range, ten percent down on the top-leverage lane, 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 loan quote; jumbo rates are set by the lender and the lane at lock and differ from the conforming benchmark. An adjustable-rate scenario is shown at the benchmark for the whole term; the rate after the initial period is unknown. Reserve months and appraisal counts follow the lane sheet for the amount band; the automated finding may require more. Taxes, insurance and dues are editable estimates; closing costs are not included. On most lanes the conforming limit for the county decides whether a loan is jumbo at all; two lanes start at a stated dollar floor instead. Licensed in sixteen states for consumer mortgages.
This page is for buyers financing a home they will live in. Lendmire is a mortgage broker, and the figures below come from the wholesale jumbo lanes it places files with, subject to lender guidelines and full file review. None of it is a commitment to lend.
Side-by-Side
Here is the comparison at the level of structure, not price. Treat it as a map of tradeoffs.
| Factor | Less Down | More Down |
|---|---|---|
| Leverage | Higher, up to 90% on the headline lane | Lower, often 80% or below |
| Credit floor | Stricter on the high-leverage lanes | More lanes available |
| Mortgage insurance | May apply, depending on the lane | Less likely to be a factor |
| Occupancy | Primary residence is the cleanest fit | Primary, second home, and others at lane-specific leverage |
| Documentation | Heavier scrutiny of income and assets | Still full, but the balance is smaller |
| Cash after closing | More stays in your accounts | Less stays, unless you sell shares |
| Stock exposure | You keep more shares and more concentration | Selling shares to fund it reduces concentration |
What a Jumbo Loan Means for Tech Buyers
A jumbo loan is a mortgage above the conforming limit set by the FHFA, the agency that oversees Fannie Mae and Freddie Mac. The limit varies by county, so the same loan can be conforming in one place and jumbo in another. The test is the loan amount, not the price. Bigger down payments can pull a loan back under the limit, which is one reason this decision matters.
Across the wholesale programs placed through Lendmire, jumbo loan programs run on a few shared features. The headline lane starts at a 660 decision score and reaches 90% leverage. Several lanes top out at 89.99% combined leverage, and the rest stop at 80%. Loans reach $5,000,000 on the largest lanes. The ratio ceiling is 50% on the fixed lanes, 45% on the adjustable lane, and 43% on the interest-only lane. Reserves are counted in months of the full payment and rise with the loan amount. Two appraisals are required above a lane’s threshold amount. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Those ceilings are maximums, not promises. Reaching the top of the leverage range usually asks for the strongest credit, income, and reserves on the file.
How Lenders Count RSUs
RSU income is where tech files diverge from ordinary salaried files. The benchmark many lenders start from is the Fannie Mae Selling Guide. Under it, stock must be vested and delivered to you without restrictions to count. Sign-on grants paid in restricted stock do not count. Lenders look for a vesting schedule, proof the company is publicly traded, and a record of past distributions. Two years of history is the comfortable standard. A shorter history of at least 12 months can work when future vesting is at least equal to past vesting.
Jumbo loans are not sold to Fannie Mae or Freddie Mac. That means each lender sets its own overlays, and treatment of RSUs can be stricter or looser than the agency guide. Treat Fannie Mae as a reference point, not a jumbo rule.
The practical effect is this. Unvested shares generally do not add qualifying income. Pre-IPO equity often does not fit. A recent stock drop can move the figure gradually when income is averaged over time. If most of your pay is unvested or new, your qualifying income may be lower than your offer letter suggests, and a larger down payment may matter more to approval than it would for a salary-only borrower.
When Less Down Is the Better Fit
Less down tends to fit when liquidity is the thing you are short of, not income. Consider these profiles.
The tenured employee with a long vesting history. Picture a buyer with several years of documented, vested RSU deposits and a base salary that covers the payment on its own. Keeping cash and shares available costs this borrower little, and selling stock to add equity would trigger taxes and shrink flexibility.
The buyer who wants a cushion for the house itself. Furniture, repairs, and a move all draw on cash. The CFPB notes that money put into a home is hard to get back out and may not be available for other expenses. For a household whose wealth is mostly illiquid, that point carries weight.
The borrower who does not want to sell stock at a bad moment. If shares are down or you are near a long-term holding threshold, selling to fund a bigger down payment can be an expensive choice. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before selling investments to fund a down payment.
The flip point: less down becomes the wrong call when it relies on income that may not last. Higher leverage leaves less equity cushion, may bring mortgage insurance or different pricing depending on the lane, and generally costs more in interest and fees across the life of the loan. If a layoff or a falling share price would strain the payment, the cash you preserved may be needed sooner than you expect.
When More Down Is the Better Fit
More down tends to fit when stability is the thing you are short of.
The new hire or recent grantee. If a large part of your pay is unvested, a lender may give it little weight. A larger down payment lowers the loan balance and the payment you must qualify for, which can matter more than the stock itself. Some lanes also open up at lower leverage, so more down may widen your options.
The borrower with heavy employer-stock concentration. If your job and your net worth both depend on one company, selling some vested shares to put more down trims that exposure. You swap an uncertain asset for home equity. That is a real diversification benefit, though it is not a reason on its own to sell if taxes are steep.
The borrower who wants a simpler file. At 80% leverage or below, several lanes are available, and mortgage insurance is less of a question. The CFPB says savings are greatest at 20% or more, and lenders usually price in 5-point steps, so coming up “almost” to a tier rarely helps.
The flip point: more down becomes the wrong call when it drains the cash you would need if a vest is skipped. A house with no reserves behind it is fragile. Reserves are measured in months of the full payment, and they grow with the loan size. Money that goes to the down payment cannot also count as a reserve.
Sell Shares, Hold Shares, or Both
A middle path exists. Many buyers sell part of their vested shares, keep part, and borrow the rest. The mechanics matter more than the split.
If vested shares fund the down payment, lenders want a paper trail: proof of the sale and the deposit. Sourcing and seasoning rules differ by lender, so ask early. Selling after you apply can complicate the file, since the money has to be traced. Lender treatment of unsold vested shares as assets or reserves also varies. Some count them, some haircut them, some ignore them. Ask before you assume.
The tax cost of selling belongs with a tax professional. The IRS covers compensation paid in property in Publication 525, which is a starting point, not advice.
Stress Testing the Stock Price
Think through two scenarios before choosing. The share price drops sharply, or vesting stops after closing.
With less down, your balance is larger and your cash buffer may be bigger. If income holds, you are fine. If income falls, you carry more debt with less equity beneath it. With more down, your balance is smaller and the payment is easier to carry, but your cash and stock are lower. A skipped vest hurts less because the debt is lighter.
Notice what that implies. Less down is more sensitive to income loss. More down is more sensitive to a liquidity squeeze. Which risk worries you more is the real deciding variable. Lenders also recheck employment before closing, so a layoff between application and closing can change the file under either structure.
Which Approach Fits Which Tech Employee
| Profile | Often leans toward |
|---|---|
| Tenured, long vesting history, steady salary | Less down |
| New hire, mostly unvested grants | More down |
| Heavy employer-stock concentration | More down, funded by selling some shares |
| Layoff concern in the next year or two | More down |
| Plans to move within a few years | Depends on equity and selling costs |
| Strong cash outside company stock | Either; less down keeps flexibility |
This is a starting point. A borrower can sit between two rows. Honestly, the profile that surprises people most is the long-tenured employee who still leans toward more down, because concentration risk matters to them more than the cost of borrowing.
Key Terms Defined
LTV (loan-to-value): The loan amount divided by the lower of the appraised value or the purchase price.
Conforming limit: The yearly maximum loan size Fannie Mae and Freddie Mac will buy, set by the FHFA and varying by county. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Vested: Shares you own outright and can sell, as opposed to shares still waiting on a schedule.
Reserves: Funds left after closing, counted in months of your full payment.
Overlay: A lender’s own rule stricter or different from the agency baseline.
Common Mistakes
- Assuming unvested RSUs count as income.
- Selling shares too late and leaving a gap in the paper trail.
- Reaching for the top leverage tier without checking reserves.
- Treating the agency RSU guide as a jumbo rule.
- Forgetting that a larger down payment does not replace income verification. Lenders still verify income, assets, and debts.
Balanced Verdict
Less down is usually the better fit for a stable, tenured earner who values liquidity. More down is usually the better fit for a newer, more concentrated, or more cautious borrower. The deciding questions are how much of your pay is vested and documented, how much cash sits outside company stock, and which risk you can live with. If you are buying a home and want to see whether a jumbo loan fits your file, Lendmire can help you compare the options and what each one asks of the file.
Frequently Asked Questions
Do I have to sell RSUs to get a jumbo loan?
No. Selling is not required to qualify. Vested, delivered shares can support income if the file documents them, and shares you keep can stay invested. You only need to sell if you want cash for the down payment or reserves, and then the sale and deposit need a clear paper trail.
Can unvested RSUs count toward qualifying?
Generally not. Under the Fannie Mae benchmark, only vested and distributed stock counts, and sign-on restricted stock does not. Jumbo lenders set their own rules, so some may treat grants differently, but a borrower with mostly unvested pay should not count on it.
Is 20% down required on a jumbo loan?
No federal rule requires it. Several wholesale lanes reach 90% leverage, and others stop at 80%. Less than 20% may bring mortgage insurance or different terms depending on the lane, and the strongest credit and reserves are usually needed at the top of the range.
What if my stock drops before closing?
It depends on how the lender counts your income. Averaging methods move gradually, so a short dip may not change much. A sharp drop can reduce usable income or the value of shares you planned to sell, which is why lenders look at the file again before closing.
Does mortgage insurance go away on a jumbo loan?
Only where the loan carries borrower-paid mortgage insurance. In that case federal law lets many borrowers request cancellation at 80% of the original value and requires automatic termination at 78%. Not every jumbo program uses it, so ask which structure applies.
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.
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References
1. Fannie Mae Selling Guide B3-3.3-07
2. CFPB – Determine your down payment
This article is part of Lendmire’s jumbo loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Match a Jumbo File to the Lane With the Most Leverage · How to Qualify for a Jumbo Loan by Paying Off Debts at Closing · Jumbo Cash-Out Lanes for a Homeowner With RSUs or Deferred Comp
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.