The Quick Read: The cash-out amount is set by the tighter of two limits: what the home’s value allows and what your verified income supports. RSU and bonus pay only count once the lender can document it, average it, and expect it to continue. Because that averaged figure is usually smaller than your current pay, the income test often binds before the equity test does.
Key takeaways:
- Cash-out is the lowest result of several tests: value, income ratio, reserves, and on the largest lanes a cash cap.
- Only vested, distributed stock counts as RSU income. Unvested grants do not.
- Lenders average variable pay over a history, usually 12 to 24 months. They do not use today’s share price times next quarter’s vest.
- Jumbo income rules are set lender by lender, so the same file can size differently in different programs.
- The appraisal settles the equity side. The cash-out number is not final until it comes in.
What Makes a Cash-Out “Jumbo”?
A loan is jumbo when it starts one dollar above the county’s conforming limit. FHFA sets that limit each year, and it is higher in high-cost counties. So the same loan can be conforming in one county and jumbo in the next.
Jumbo loans are not sold to Fannie Mae or Freddie Mac on standard terms. That means no single rulebook governs them. Each wholesale lender sets its own income, leverage and reserve rules. Across the jumbo programs Lendmire places files with, the envelope looks like this, subject to lender guidelines and full file review:
- A 660 decision score on the headline lane.
- Leverage up to 90% on the headline lane. Several lanes reach 89.99% combined LTV, and the rest stop at 80%.
- Loans up to $5,000,000 on the largest lanes.
- A 50% ratio ceiling on the fixed lanes, 45% on the adjustable lanes, and 43% on the interest-only lanes. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Cash-out sits at lower leverage than a purchase. The largest lanes also carry a cash cap. Those are the ceilings you size against. Lendmire’s jumbo cash-out refinance program page lays out the lane structure.
How Is the Loan Sized, Step by Step?
The loan amount is the lower of the value limit and the income limit. Work both, then see which one is tighter. Here is the sequence a processor runs on these files.
1. Convert pay to qualifying monthly income. Base salary first. Then bonus and RSU income, each averaged over its documented history.
2. Find the allowed payment. Take qualifying monthly income and apply the lane’s ratio ceiling. Subtract your other monthly debts. What remains is the room for the new housing payment.
3. Find the loan that payment supports. The structure matters. A fixed lane, an adjustable lane and an interest-only lane carry different ratio ceilings, so the same income supports different loan sizes.
4. Apply the value limit. Take the appraised value times the lane’s maximum cash-out leverage. That is the most the lane will lend against the home. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
5. Take the lower of steps 3 and 4. Then subtract the payoff of your current mortgage and the closing costs. What is left is your cash.
6. Test reserves. Reserves are counted in months of the full payment and rise with the loan amount. Cash you take out does not automatically count toward them.
That last point surprises people. A borrower can size the loan correctly and still stall on reserves documentation.
How Do Lenders Count RSU Income?
Lenders count RSUs only after they vest and are distributed to you without restrictions. Many jumbo programs borrow the benchmark in the Fannie Mae Selling Guide on restricted stock units, which is the common reference point. Treat it as the benchmark many programs mirror, not as jumbo law.
What the benchmark asks for:
- Vested and distributed stock. Unvested grants are not income.
- Evidence that the stock is publicly traded.
- The current vesting schedule, showing past and future vesting.
- A recent paystub plus two years of W-2s, or a completed Form 1005 from the employer.
- A brokerage or bank statement showing receipt of the prior year’s distribution.
- A verbal verification of employment.
Sign-on bonuses paid as restricted stock are excluded even when they vest over time.
The math is where borrowers get caught. For stock paid in shares, the benchmark averages the vested pre-tax shares over the past 24 months and prices them at a 200-day moving average share price. It does not use today’s quote. When you have 12 to 24 months of history, lenders may use the actual duration instead. The result can sit well below your current share price times your next vest. Test your budget against that smaller figure, not the grant value.
How Do Lenders Count Bonus Income?
Bonus income needs a track record. The current Selling Guide section on bonus income recommends a two-year history. Less can work, but no less than 12 months, and only if other strengths in the file offset the short history. Fannie Mae moved this content during a reorganization of its income assessment chapter, so older guides may point to a superseded page.
The calculation depends on the trend:
- Stable or rising bonus: the lender averages year-to-date and prior-year earnings, covering at least 12 months.
- Falling bonus: the lender must confirm the current level has stabilized after the decline. Often that means using the lower recent figure.
Documentation is the same family of paper: a paystub and two years of W-2s, or the Form 1005, plus a verbal verification of employment.
Which Limit Binds? A Decision Table
| Your situation | Likely binding limit | What to do |
|---|---|---|
| Large equity, short RSU history | Income | Wait for more history or take a smaller draw |
| Strong income, thin equity | Value | Take less cash or skip it |
| Bonus fell last year | Income | Expect the lower recent figure |
| Large loan on a top lane | Cash cap or reserves | Check the lane’s cap and reserve months |
Worked Scenarios
Bonus-heavy household. Say base pay is modest and bonus is more than a third of total comp. The bonus has run two years and is rising. The lender averages it, and the income test passes. The appraisal comes in at a value where the leverage cap leaves less room than the income would support. Value binds. The fix is a smaller cash draw, not more documents.
RSU-heavy household. Picture a borrower three years in at a public company, with RSUs making up most of pay. Vesting is documented, but the averaged-price method produces qualifying income well below what recent paychecks suggested. The ratio ceiling binds. Options: a lane with a higher ceiling, a co-borrower, or a smaller loan.
Declining bonus. Consider a borrower whose bonus dropped last year after a strong prior year. The lender needs proof it has stabilized. If it has not, the lower figure sets income. Equity may be ample, but income is the constraint.
Where Does the General Rule Break?
These are the edge cases that derail files most often.
- Recently public employer. The 200-day average needs a trading history. Until it exists, RSU income may not be usable at all.
- Private-company stock. The documentation list calls for evidence the stock is publicly traded. Private equity generally does not count as income.
- New job. RSU history must come from the current employer. A change in position can also affect whether a bonus continues.
- Freddie Mac differs from Fannie Mae. Freddie Mac’s guide bulletin treats recurring and nonrecurring awards differently and looks at how long vesting will continue. Lanes that follow one set will size you differently than lanes that follow the other.
- Share withholding at vest. Shares are often withheld for taxes. Lenders look at what you actually received and documented, so keep the brokerage statements that show it.
- Timing around vesting. A vest between application and closing can change the file. Income is re-verified before closing.
- Occupancy. Second-home and investment occupancy sit at lane-specific leverage. This article covers the home you live in.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit. RSU vesting creates taxable compensation, so a tax adviser is the right person for that side.
Do Held Shares Count as Reserves?
It depends on the lane and on how the lender treats the account. Shares in a brokerage account can be documented as assets, but lenders may discount them for price swings, and a given asset cannot be counted twice. If you plan to sell shares for reserves, document the account early. Unvested grants help as evidence of future vesting. They do not count as income and generally do not count as liquid reserves.
If the Number Comes in Too Small
You have options. None are promises.
- Take a smaller cash amount.
- Add a co-borrower with documented income.
- Wait for more RSU or bonus history.
- Compare a lane with a higher ratio ceiling.
- Compare a home equity loan or HELOC, which leaves your current first mortgage in place.
That last one matters. The CFPB notes that a cash-out replaces your first mortgage while a home equity loan or HELOC does not. A cash-out may also change your payment and terms and can extend how long it takes to pay off the loan.
Documents Checklist
- Two years of W-2s and your most recent paystub.
- Vesting schedule showing past and future vests.
- Brokerage statements showing receipt of distributions.
- Proof the stock is publicly traded.
- Employer verification, including a verbal check.
- Statements for any assets you plan to use as reserves.
Gathering these before you apply removes preventable gaps from the file.
Key Terms Defined
Qualifying income: The monthly figure a lender uses after averaging and documenting your pay.
Ratio ceiling: The highest share of monthly income a lane allows for total debt payments.
Reserves: Verified funds, measured in months of the full payment, left after closing.
Vested: Stock that has been released to you without restrictions.
200-day moving average: The average share price over roughly 200 trading days, used instead of today’s price.
Cash cap: A limit on how much cash you can take out, found on the largest lanes.
Frequently Asked Questions
Can unvested RSUs count toward my income?
No. Only vested and distributed stock counts under the benchmark many programs use. Unvested grants show future vesting, which helps the file, but they do not raise qualifying income.
How much bonus history do I need?
Two years is the recommended history. Between 12 and 24 months may work when other strengths in the file offset the shorter record. A bonus that has fallen needs proof it has stabilized.
Why is my qualifying income lower than my paychecks?
Lenders average variable pay over the documented history and price stock at a moving average, not today’s quote. That averaged number is usually smaller than a hot-quarter paycheck. Run your budget against the lower figure.
Does every lender treat RSUs the same way?
No. Jumbo loans have no single rulebook, and Fannie Mae and Freddie Mac differ on key points. Programs set their own terms, so a file that sizes poorly in one lane may size better in another, subject to lender guidelines and full file review.
Is a jumbo cash-out the same as a HELOC?
No. A cash-out replaces your first mortgage with a larger loan. A HELOC or home equity loan sits behind your existing first mortgage and leaves it intact.
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. Reach the team at 828-256-2183. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and home buyers in 16 states with FHA, VA, conventional and jumbo purchase and refinance loans arranged through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and the agency 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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References
1. FHFA – 2026 Conforming Loan Limit Values
2. Fannie Mae Selling Guide B3-3.3-07, restricted stock units
3. Fannie Mae Selling Guide B3-3.3-02, bonus income
4. Fannie Mae – Income assessment simplified
5. Freddie Mac’s guide bulletin
6. CFPB – A look at cash-out refinance mortgages
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 Qualify for a Jumbo Cash-Out on RSU and Bonus Income · How to Size a Jumbo Cash-Out Around Its Use and Payment · How to Sequence a Jumbo Cash-Out and Second Home With RSU Pay
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.