The Quick Read: Yes, when your shares have already vested, been delivered to you without restrictions, and the lender can document a steady history of them. Unvested grants do not count. A second home adds limits on occupancy and leverage. Terms depend on the lender and a full file review.
What Counts as RSU Income to a Jumbo Lender?
Only vested, delivered shares count. A restricted stock unit (RSU) is a promise of company stock. The promise turns into income for a lender only when the shares vest and land in your account with no strings attached.
Think of it in three stages:
- Granted: The employer promised you shares. The lender sees a plan, not income.
- Vested: You earned the shares on schedule. The lender sees a track record.
- Delivered: The shares sit in your brokerage account, free of restrictions. This is the stage that supports qualifying.
Jumbo loans sit above the county’s conforming limit. The Federal Housing Finance Agency sets that limit each year, and it differs by county. Because jumbo loans fall outside the standard agency purchase programs, each wholesale lender writes its own rules. Many borrow from agency guidelines. Some add conditions.
That is the part most borrowers miss. Two jumbo lenders can read the same RSU file differently.
Across the wholesale programs Lendmire places files with, RSU income is usually weighed alongside base pay and bonus, not alone. A strong base salary makes the RSU question smaller. A file that leans mostly on stock pay gets more scrutiny.
Two award types also matter. Time-based awards vest on a calendar. Performance-based awards vest when targets are met, so lenders tend to want a longer history before they trust them.
Lendmire’s jumbo cash-out refinance program is built around this kind of file. Program figures are subject to lender guidelines and full file review.
How Does a Lender Turn Vests Into a Monthly Number?
The lender averages your vests over a history period. It does not use your latest vest. A big recent vest only partly counts, and a shrinking one pulls the average down.
Here is a hypothetical, for illustration only. Say your vests over the history period were uneven. One was large, two were mid-sized, and the latest was smaller. The lender totals what was actually delivered, divides by the months in the period, and gets a monthly figure. That figure joins your base pay and bonus to form qualifying income.
For shares, the price matters too. Fannie Mae’s Selling Guide section on RSU income tells lenders to value share-based income using a 200-day average stock price. That smooths out a lucky spike. The same section also requires the following:
- Proof that the stock is publicly traded.
- The current vesting schedule, showing past and future vests.
- A brokerage or bank statement showing earlier shares were received.
- Either a completed Form 1005 or a recent paystub showing RSU income plus W-2s.
- A verbal verification of employment.
Many jumbo lenders use that checklist as a template. Some ask for more.
Then comes the ratio test, which compares your monthly debts to your qualifying income. Take a hypothetical borrower whose total debts, with the new loan included, use 46% of qualifying income. That fits under the 50% ceiling on the fixed jumbo lanes. It misses the 45% ceiling on the adjustable lanes. The 43% ceiling on the interest-only lanes is lower still. Same borrower, same income, different lane.
Lenders count RSU averages conservatively, so assume your number comes out lower than your W-2 suggests.
When Can RSU Income Support a Jumbo Cash-Out?
It can when the income is documented, the history is long enough, and the equity in the home leaves room. A cash-out refinance replaces your current mortgage with a larger one and hands you the difference in cash. Lenders judge it harder than a purchase.
Here is why. On a purchase, your down payment shows commitment. On a cash-out, the lender sets a lower maximum leverage than on a purchase. Leverage is the loan as a share of the home’s appraised value. The headline jumbo lane reaches 90% on a purchase. Cash-out runs lower, and the largest lanes add a cap on how much cash you can take. Loans on the largest lanes go up to $5,000,000, with a 660 decision score on the headline lane.
Three things follow from lower leverage:
1. You need more equity before a cash-out makes sense.
2. Reserves, which are months of your full payment held in liquid assets, rise with the loan amount.
3. Above a lane’s threshold amount, the lender orders two appraisals.
Agency rules show the pattern. Fannie Mae wants an existing first mortgage to have aged for a minimum period before it can be paid off in a cash-out. It also wants a borrower on title for a minimum period. Fannie’s cash-out rules name exceptions, such as delayed financing and inheritance. Jumbo lenders set their own clocks, but expect the same idea. A recent purchase or a freshly written loan can delay a cash-out.
One more point. A federal ability-to-repay rule applies to jumbo loans too. Lenders must verify income with reliable third-party records. “Jumbo” does not mean looser.
Which “Second Home” Do You Mean?
The title can mean two different loans, and the rules change with each. Know which one you are asking about.
| Item | Cash-out ON the second home | Cash-out from the primary to BUY one |
|---|---|---|
| Subject property | The vacation home | Your main residence |
| Occupancy treatment | Second-home rules | Primary-residence rules |
| Leverage | Lower, set by lane | Usually higher than second-home |
| New payment hits ratios | Yes, on that loan | Yes, then again on the purchase |
The first case is a cash-out on a home you already own and use part of the year. The second is pulling equity from where you live to fund the next purchase. Occupancy decides leverage on the jumbo lanes. A primary residence typically reaches higher leverage than a second home, and the lane sets each limit.
Lenders also define “second home” tightly. Fannie Mae’s occupancy rules say you occupy it part of the year, it is a one-unit home suitable for year-round living, and you control it. It cannot be a timeshare or sit in a rental pool run by a management firm. Rental income cannot be used to qualify.
So the vacation home’s possible rent will not help your income. Plan on qualifying with your own pay. A home that fails the tests may be classed differently, and that changes the loan entirely.
For a second home, jumbo second-home cash-out generally carries less leverage than a primary residence, so the equity bar is higher. The matrix Fannie publishes shows the same pattern: its eligibility matrix caps second-home cash-out below the cap for a second-home purchase. Jumbo programs set their own limits.
Should You Pull Cash First or Buy First?
It depends on your equity and your ratios. The order changes which loan sees your RSU income at its thinnest.
| Path | What happens | Main tradeoff |
|---|---|---|
| Cash-out on primary, then buy | Equity funds the purchase | Higher primary loan, then a new second-home loan |
| Buy first, cash-out later | Use savings or other funds | Cash-out waits on title and loan age clocks |
| Cash-out on the second home | Pull equity from the vacation home | Lower leverage, so more equity needed |
Each new payment lands in your ratio. In the first path, the larger primary payment sits in your debts when the second-home loan is reviewed. In the second, you may qualify cleanly on the purchase, but a later cash-out starts the clocks over. Vest dates matter in both. If you plan around a vest, confirm it has posted to your brokerage account and shows on a paystub before you apply.
What Does the Ratio and Reserves Test Look Like With Stock-Heavy Pay?
Both tests get harder when most of your wealth is company stock. The ratio test uses your averaged income. The reserves test asks for liquid assets, and lenders may discount shares in volatile positions.
On the ratio side, the lane’s ceiling is the limit: 50% on the fixed lanes, 45% on the adjustable, 43% on the interest-only. Your ratio includes the new loan, your other debts, and the primary payment if the new loan is on a second home. Under the federal rule, lenders need to consider either a ratio or residual income. It sets no single bright-line cap, so lane ceilings come from the lender’s own program.
On reserves, the requirement is measured in months of the full payment and rises with the loan amount. Fannie’s cash-out rules also let lenders require extra reserves when the ratio runs high. A borrower holding mostly shares should ask how the lender values them and whether a haircut applies.
Now the honest part. Borrowing against a single-employer position adds risk. If the stock falls between application and closing, the income average or reserve value can shift. If you leave your job, the vesting schedule may stop. This is not advice to borrow or hold. It is a reminder to stress-test your own plan before you sign.
Also consider how base pay and bonus fit. A lender may count your base fully, average the bonus over its history, and discount the RSUs further.
What Documents Should You Gather?
Gather these before you apply. Each one answers a specific question the lender will ask.
| Document | What it proves | Common snag |
|---|---|---|
| Vesting schedule | Past and future vests | Out-of-date schedule |
| Recent paystubs | RSU income is current | Vest not yet posted |
| W-2s | Earnings history | Stock income reported differently |
| Brokerage statements | Shares were delivered | Gaps between accounts |
| Grant agreements | Award type and terms | Performance terms unclear |
| Employer verification | Job is active | Job change mid-file |
For a cash-out, add property-side items. These include your current mortgage statement, proof of insurance, and any evidence on the home’s title and occupancy. A letter of explanation helps when your share count dropped but the dollar value held. Underwriters sometimes read fewer shares as falling income, so be ready to show the grant is set in dollars.
Where Do RSU Files Go Wrong?
Most problems come from short history, shrinking vests, or a vesting schedule that is about to run out. Here are the common ones and the fix for each.
- A short history. A new job or recent public offering leaves little to average. Time before the stock went public does not count. Fix: wait, or lean on base pay and other income.
- A falling trend. Performance-based awards may be accepted with a shorter history only if future vesting is at or above past vesting. Fix: show a refresh grant that restores the schedule.
- Vesting that runs out. If too little schedule remains, a lender may reject the income even with a strong history. Fix: a new grant or refresher extends it.
- Sign-on RSUs. Restricted stock paid as a sign-on bonus does not count at all.
- A job change mid-process. Employment is re-verified before closing. A move can break the file. Fix: tell your loan officer before you give notice.
- Thin price data. A recent listing leaves a short window for the 200-day average.
Not ideal, but fixable. The cure is usually time, paperwork, or a different income mix.
Cash-Out, Second Lien, or Sell Shares?
Each route has tradeoffs, and the right one depends on your goals.
| Option | Upside | Tradeoff |
|---|---|---|
| Jumbo cash-out | One new loan, cash in hand | Replaces your current loan; leverage limits |
| Second lien | Keeps your first loan | Separate loan, own terms |
| Sell shares | No new debt | Possible tax cost; gives up the position |
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Will Your File Work? A Quick Self-Check
Run through this list. Each “no” points to something to fix first.
1. Are the shares you plan to count vested and delivered?
2. Do you have a documented history, with statements showing receipt?
3. Does the vesting schedule extend far enough ahead?
4. Is the home you want to buy or refinance a true second home?
5. Does the ratio hold with the new payment included?
6. Do you have enough equity for the lower cash-out leverage?
7. Do you have reserves in liquid form?
Three or more “no” answers suggest a conversation about timing, a smaller loan, or a different income mix.
Key Terms Defined
RSU (restricted stock unit): A promise of company shares that you receive after a vesting schedule is met.
Vesting: The point where you earn the shares and they become yours.
Debt-to-income ratio: Your monthly debts, including the new loan, divided by your qualifying monthly income.
Reserves: Liquid savings, measured in months of your full payment, held after closing.
Leverage: The loan amount as a share of the home’s appraised value.
Second home: A one-unit home you occupy part of the year, control, and do not rent through a pool or management firm.
Frequently Asked Questions
Do unvested RSUs count?
No. Only shares that have vested and been delivered without restrictions count as qualifying income. Unvested grants may help a lender see your future pay, but they do not go into the calculation.
How long a history do lenders want?
It depends on the award and the lender. Performance-based awards tend to need a longer record than time-based ones. A shorter record may work with offsetting strengths. Lenders also check that vesting will continue.
What if my stock drops before closing?
The averaged income and any share-based reserves can change. The 200-day average price softens a short dip, but a sharp fall can shrink the number. Ask early how your lender values shares so a move does not surprise you.
Can I use a cash-out to buy another second home?
Possibly. Cash out of your primary home and use it toward the purchase, or take it from the first second home. Each path carries different leverage and occupancy rules, and the new payment counts in your ratios.
Does a job change break the file?
A job change can affect the file. Employment is re-verified before closing, and a new employer restarts the history. Talk to your loan officer before you give notice.
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. Lendmire arranges these loans through wholesale lenders and does not lend directly. Nothing here is a commitment to lend.
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 Conforming Loan Limit Announcement
2. Fannie Mae Selling Guide B3-3.3-07: Restricted Stock Units and Restricted Stock Employment Income
3. Fannie Mae Selling Guide B2-1.3-03: Cash-Out Refinance Transactions
4. Fannie Mae Selling Guide B2-1.1-01: Occupancy Types
5. Fannie Mae Eligibility Matrix
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 Get a Jumbo Cash-Out on an Inherited Home After Probate · How to Sequence a Jumbo Cash-Out and Second Home With RSU Pay · How Much Cash a Jumbo Cash-Out Allows on RSU and Bonus Income
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.