The Quick Read: Choose a lender by how it counts variable pay, not by how it advertises. Some count them in full, some discount them, and some leave them out. The right lender is the one that will tell you its method in writing before you spend money on an appraisal.
Key Takeaways
- Only vested, distributed RSUs and documented, steady bonuses are likely to count as qualifying income.
- Qualifying income is usually well below the total compensation number on your offer letter.
- Two jumbo lenders can give different answers on the same file. That is normal, not a red flag by itself.
- Ask for the income method, the history required, and the documents needed before an appraisal is ordered.
- Cash-out loans carry lower leverage than purchase loans, so the amount you can pull depends on appraised value as well as income.
What Does a Jumbo Lender Actually Count?
A jumbo lender counts income it can verify, document and expect to continue. For equity pay, that usually means shares that have vested and been delivered to you, plus bonuses with a steady track record. Unvested grants and one-time awards are the usual exclusions.
A jumbo loan is simply a loan above the county’s conforming limit, which the FHFA sets each year for loans Fannie Mae and Freddie Mac can buy. Because those two agencies don’t buy jumbo loans, no single rulebook binds the lender. That’s why one lender says yes and another says no.
The agency guidelines still give you a useful benchmark for what a documented, conservative approach looks like. Under the Fannie Mae Selling Guide section on RSUs, restricted stock must have vested and been distributed without restrictions. Sign-on awards paid as restricted stock that vests over time are not eligible. Many jumbo lenders borrow that logic, then add their own overlays. Some are stricter. A few are more flexible.
Across the wholesale programs Lendmire places files with, the pattern is consistent. The lender asks three questions: is the income received, is it documented, and will it continue.
How Is the Income Calculated, Step by Step?
Lenders convert variable pay into a single monthly figure by averaging it over a history window. The result is often lower than your last-year pay, especially if your stock moved or your bonus changed.
Step 1: Confirm the income is eligible. Vested and distributed shares can count. Unvested RSUs and stock options generally do not count as income under the agency benchmark.
Step 2: Gather the documents. The agency benchmark asks for a recent paystub showing RSU receipt plus two years of W-2s, or a completed Form 1005 from the employer. It also looks for evidence the stock is publicly traded, the vesting schedule showing past and future vesting, brokerage or bank statements showing prior distributions, and a verbal verification of employment.
Step 3: Check the history. For bonuses, a two-year history is recommended. A shorter history may work if other strong factors offset it. For RSUs, summaries from mortgage insurers describe a split: time-based awards generally need a shorter track record than performance-based awards. Those are secondary sources, so confirm any specific requirement with the lender.
Step 4: Average it. For a stable or rising bonus, the lender typically averages year-to-date plus prior-year earnings over the months covered. If the bonus is falling, the lender must confirm it has stabilized, or it may not be used. For RSUs paid in shares, the lender multiplies vested shares by a moving-average share price, then divides by the months in the history window.
Here is where lenders diverge. Fannie Mae’s RSU section uses a 200-day average. Freddie Mac uses a different averaging window, and a mortgage-insurer job aid shows the same RSU history producing different monthly figures under each method. A jumbo lender may pick either, blend them, or apply a haircut.
Step 5: Size the loan. Qualifying income feeds your debt-to-income ratio. Appraised value and the lender’s leverage cap set the other ceiling. Whichever limit you hit first decides the cash-out amount.
Why Does a Jumbo Cash-Out Get a Harder Look Than a Purchase?
A cash-out refinance replaces your whole first mortgage with a larger one and hands you the difference. Lenders price that as higher risk than a purchase, so leverage is lower and scrutiny of income is tighter.
In the wholesale jumbo lanes Lendmire works with, purchase leverage reaches up to 90% on the headline lane, and several lanes go to 89.99% combined loan-to-value. Cash-out runs at lower leverage than purchase, and the largest lanes add a cash cap. Loans go up to $5,000,000 on the largest lanes. Reserves, measured in months of the full payment, rise with the loan amount. Two appraisals are required above a lane’s threshold amount.
On the income side, the fixed lanes carry a 50% ratio ceiling, the adjustable lanes 45%, and the interest-only lanes 43%. The headline lane uses a 660 decision score. All of this is subject to lender guidelines and full file review, and none of it is a commitment to lend.
This matters for RSU and bonus earners in a specific way. A conservative income calculation raises your ratio. A lower leverage cap on cash-out trims the proceeds. The two effects stack. A borrower who comfortably qualified for a purchase can find a cash-out is tighter.
What Types of Lenders Handle Variable Income?
Lender type shapes flexibility more than any single marketing claim. A comparison helps:
| Lender type | RSU/bonus flexibility | Transparency | Best fit |
|---|---|---|---|
| Large retail bank | Varies; often fixed internal method | Moderate | Existing clients, simple files |
| Portfolio lender | Often discretionary | Varies by loan officer | Complex files, relationship borrowers |
| Mortgage broker with wholesale access | Multiple lenders, multiple methods | High if the broker explains each | Mixed RSU and bonus pay |
| Single-investor correspondent | One method, applied uniformly | Moderate | Borrowers who match its box |
The tradeoff is real. A single lender may offer a smooth process if your income fits its method exactly. A broker can show the same file to several wholesale lenders, which helps when one lender discounts RSUs heavily and another doesn’t. The cost is that you rely on the broker’s judgment about which lane fits. Lendmire is a mortgage broker, not a lender, so the lender still makes the final decision.
What Should You Ask Before You Apply?
Ask for the method before you spend money. A lender that can answer these clearly is usually the one that won’t surprise you later.
| Question | Why it matters | Good answer | Warning sign |
|---|---|---|---|
| How do you count RSUs: 200-day average, 52-week average, or a haircut? | Sets your qualifying income | A named method | “It depends” with no detail |
| What vesting history and remaining vesting do you need? | Determines eligibility | Specific requirements | Vague reassurance |
| How do you treat a declining bonus? | Bonus trend changes the math | Clear rule | Silence |
| Do RSU proceeds in my brokerage account count as assets? | May help reserves | Yes or no, with conditions | Never addressed |
| Can you review my income before the appraisal is ordered? | Saves appraisal cost | Written pre-review | Pushes you to order first |
| Will you give me the income worksheet in writing? | Prevents later reversals | Yes | Refusal |
Watch for the lender that issues a warm pre-approval without reading your vesting schedule. If the real income review happens only in underwriting, a reversal can come late. A pre-approval that rests on a written income calculation is worth more than a fast, friendly one.
Where Does the General Rule Break?
The rules above bend in several named situations.
New employer or job change. A recent change requires the lender to assess how it affects future bonus eligibility. A new employer may have no history to average.
Private company or recent IPO. The agency benchmark requires evidence the stock is publicly traded. A recently listed company may lack a full 200-day average, and a lender may still apply its minimum history.
Sign-on RSUs. These are not eligible as qualifying income under the agency benchmark.
A falling stock price. Moving averages smooth out volatility, but a sharp decline can pull the figure down. Lenders also worry about layoffs at stock-heavy employers.
RSU proceeds already sold. Cash from sold shares may count as assets or reserves even when the RSU income itself does not count as income. Whether a jumbo lender accepts that is lender-specific.
Mixed RSU and bonus. A strong RSU stream can offset a weak bonus, or the reverse. Each is usually evaluated on its own history, then combined. Ask how the lender blends them.
Occupancy. This article covers a primary residence. Occupancy changes the leverage a lane allows, and a second home carries its own limits.
One more caution: many older articles cite outdated Fannie Mae section numbers. Fannie Mae restructured its income chapter in an announcement, moving this material to new sections. Use current guidance as your benchmark.
What Does a Borrower’s Decision Look Like in Practice?
Picture a homeowner whose pay is mostly vested RSUs with a steady annual bonus, two years in the same role. A lender that averages both over their history will likely produce a usable income figure. Because cash-out leverage is lower than purchase, the question becomes whether the appraisal supports the amount wanted.
Now picture a homeowner who changed employers recently, with sign-on RSUs and one bonus cycle. Under a conservative approach, that income may barely count. The better move is usually to wait for more history or to ask lenders whether they’ll consider a shorter track record with offsetting strengths, such as low leverage and strong reserves.
A third profile is a borrower whose bonus fell last year. The lender will want proof it has stabilized. A short explanation letter and employer documentation can help, though the lender decides.
Timing matters too. Income and employment are re-verified late in the process. A vest or bonus that lands, or fails to land, mid-loan can change the file. Apply with your vest and bonus dates in mind, and tell your loan officer about upcoming events.
If one lender says no, that isn’t final. Different lenders use different averaging methods and overlays. Asking a broker to place the file with another wholesale lender is a legitimate next step. If no lender counts enough income, the honest alternatives are a smaller cash-out, waiting for more history, or paying down other debt first.
One more point on purpose. Federal research notes that using a cash-out to pay off unsecured debt, such as credit cards, turns it into debt secured by your home, which can raise the stakes if income dips. A cash-out also replaces your entire first mortgage, so the new terms apply to the full balance.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Key Terms Defined
Vested and distributed: Shares that you now own outright and that have been delivered to your account without restrictions.
Variable income: Pay that changes from year to year, such as bonuses and stock awards.
Moving-average price: The average share price over a set window, used to turn vested shares into a monthly dollar figure.
Haircut: A percentage reduction a lender applies to income it considers less certain.
Combined loan-to-value (CLTV): All loans secured by the home, divided by its appraised value.
Where Should You Start?
Start by building your document package: recent paystubs, two years of W-2s, vesting schedule, brokerage statements and bonus history. Then ask each lender the questions in the table above, and request the income method in writing. Lendmire’s jumbo cash-out refinance program page lays out the structures available through its wholesale lenders.
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.
Frequently Asked Questions
Can unvested RSUs count toward a jumbo cash-out?
Generally no. The agency benchmark counts only shares that have vested and been distributed, and unvested RSUs and options are not counted as employment-related asset income. A jumbo lender may be stricter but rarely looser. Your unvested grant can still help the file indirectly by showing continued employment and stability.
How long a history do I need for bonus income?
A two-year history is the usual recommendation, and a shorter one may work if other factors offset it. The trend matters as much as the length. A rising or steady bonus is treated better than a falling one. Each jumbo lender sets its own requirement.
Does the 43% debt-to-income figure cap what I can qualify for?
Not as a federal rule. The CFPB lists a 43% cap under the ability-to-repay rule as a misconception. Lenders must still make a good-faith determination that you can repay. In the programs Lendmire places, ratio ceilings are lane-specific: 50% on fixed lanes, 45% on adjustable, 43% on interest-only.
Why would one lender approve my income and another decline it?
Because jumbo lenders set their own overlays on averaging method, history and haircuts. Federal rules don’t dictate one underwriting model, so two reasonable lenders can reach different conclusions on identical documents. Comparing methods up front is the practical fix.
Can I use RSU proceeds from sold shares?
Possibly as assets or reserves, even if the RSU income itself doesn’t count. Whether a jumbo lender accepts that varies by lender. Ask directly, and keep the brokerage statements showing the sale.
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 current guidelines, see jumbo loan programs.
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References
1. FHFA – 2026 conforming loan limit announcement
2. Fannie Mae Selling Guide B3-3.3-07
3. Fannie Mae SEL-2026-02 announcement
5. CFPB – fact versus fiction on mortgage rules
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: Fixed vs ARM for a Homeowner With RSUs: Jumbo Cash-Out Timing · How Much Cash a Jumbo Cash-Out Allows on RSU and Bonus Income · How to Sequence a Jumbo Cash-Out and Second Home on W-2 Income
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.