The Quick Read: Vested shares sitting in a brokerage account can carry a mortgage in one of two ways: they can cover the whole loan outright on the asset qualifier path, or they can be converted into monthly qualifying income on the asset depletion path, while unvested grants count for neither. Rental purchases usually move to a DSCR loan instead.
- Only vested shares that have been delivered to an account count. Unvested restricted stock units are a promise, not an asset.
- On the asset qualifier path, no employment or income is documented. The assets themselves are.
- On the asset depletion path, usable assets divided by 60 months become qualifying income, and that income runs through a debt-to-income test.
- A borrower is qualified on one path at a time. The two tables never blend.
- Buying a rental? A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
“Tennessee tech” can mean workers at Nashville, Franklin or Brentwood tech employers, or staff at a university with that name. The mechanics are the same either way. What matters is how you are paid and where the shares sit. The figures below are ceilings and floors from select programs in Lendmire’s network, subject to underwriting. They are not offers.
Why Stock Pay Trips Up a Standard Mortgage
Stock-heavy pay makes income lumpy, and a standard income-based file struggles to count it. Underwriters of agency-style loans want a vesting history, a forward schedule and proof the grants continue. Blueprint’s underwriting explainer notes that only vested units count and that value is set at vesting, not at today’s price.
That leaves a gap. A senior engineer may hold a large brokerage balance and show a modest base salary. A recent hire may hold a big grant with no history at all. An income-based file reads both as weak, even when the balance sheet is strong.
Asset-based lending fixes this by reading the balance sheet instead. The same shares that are awkward as income are ordinary securities once they sit in an account.
Vested vs. Unvested: The Line That Decides Everything
Unvested RSUs do not count toward assets, closing funds or reserves. IRS Publication 525 treats stock that is subject to a substantial risk of forfeiture as unvested until it becomes substantially vested. Lenders draw the same line.
Once shares vest and are delivered to a brokerage account, they are securities. Account statements document them. On both asset paths below, non-vested restricted stock units are not eligible, and stock options are not eligible on the depletion path.
Practical point for the Tennessee borrower: a large grant that has not vested yet does nothing for this file. Wait for delivery, then document it.
Two Paths, Side by Side
Across the wholesale network, asset-based mortgage programs come in two shapes. Both are consumer mortgages for a principal residence or second home. Investment property is available only on the depletion path.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How it works | Assets cover the entire loan | Assets divided by 60 months become income |
| Income documented | None | Derived income, run through DTI |
| Purchase leverage | Up to 80% LTV | Up to 80% on a primary or second home |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
Cash-out proceeds never count as qualifying assets on the depletion path. Whether the qualifier path allows cash-out is set by the lender and is not published, so plan as if it does not.
Route 1: The Asset Qualifier Path
This path suits a borrower whose eligible assets, after the credit percentages, equal or exceed the entire loan amount. No employment or income is documented. The lender’s review rests on the assets.
Here is how the balances count on this path:
- Brokerage accounts, certificates of deposit, money market and savings: 100% of the balance.
- 401(k) and IRA balances: 90% under age 59½, 100% at 59½ or older.
- Accounts combine.
Here is an illustrative example. Say a borrower seeks an $800,000 loan. Brokerage accounts hold $330,000 (counted at 100%, so $330,000). A 401(k) under 59½ holds $300,000 (counted at 90%, so $270,000). Savings hold $200,000 (counted at 100%, so $200,000). Usable assets come to $800,000, so the borrower is reviewed on assets alone. The lender’s own calculation governs.
For a tech employee, the brokerage line is where vested RSU shares live. Plan around the risk, because the program counts the account balance as the statements show it. The lender reviews what is in the account on the statement date. If your employer’s stock drops, the balance drops with it.
Seasoning is the usual friction. Expect 60 days of seasoning and two months of statements for each qualifying account. Reserves are not required at or below 75% LTV. Above that, the lender sets them. Credit floors at 600, and the housing history is generally 0x30x12.
A fresh vest-and-sell is where files stall. Shares sold last month and wired to a new account have no seasoning. The lender needs a traceable path from the brokerage account to the receiving account. Keep the vest records, the sale confirmation and the statements that show the proceeds landing.
Route 2: The Asset Depletion Path
Use this path when assets alone do not cover the loan but they are large enough to throw off income on paper. Usable assets divided by 60 months become a monthly qualifying income. That income must carry the full housing payment and other debts through the debt-to-income test.
Haircuts differ from the qualifier path:
- Cash accounts and certificates of deposit: 100%.
- Securities: 80%.
- Private stock: 75%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
The illustrative math looks like this. A borrower holds $1,500,000 in securities, counted at 80%, so $1,200,000. Add $300,000 in cash, counted at 100%, so $300,000. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Minimums are real. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when asset depletion is the only income source. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Statements must be at least 120 days old at application, plus one statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning. Credit follows the lender’s matrix. A first-time investor on this path needs a 700 score. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning.
Leverage is tighter on investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out. Principal residences and second homes get up to 80% and 60% on the same transactions.
Where the Rules Break
Several assets that tech employees hold do not fit neatly.
- Private-company stock. It counts at 75% on the depletion path. Valuation is the hurdle, because there is no ready market. It is a weak reserve asset on any program.
- Stock options. Not eligible on the depletion path.
- Deferred compensation. Not eligible on the depletion path.
- Employee stock purchase plan shares. Once delivered to a regular brokerage account, they are securities like any other, subject to lender review.
- Crypto, precious metals, collectibles. Not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
- Pledged or borrowed funds. Borrowing against your stock to build a down payment is not published as eligible. Do not count on it.
- Custodial accounts, escrow accounts and foreign funds. Not eligible on the depletion path.
Concentration is its own risk. A borrower with most of their wealth in one employer’s stock should think about what the balance looks like on closing day, not only at application.
Which Path Fits Which Borrower
| Borrower profile | Likely fit |
|---|---|
| Large vested brokerage plus savings, covers the loan | Asset qualifier |
| Big portfolio, low documented income, loan exceeds assets | Asset depletion |
| New hire, large unvested grant only | Not yet |
| Mostly private-company equity | Depletion, at 75% |
| Buying a rental, rents cover the payment | DSCR |
Qualifier is simpler when the math allows it. Depletion adds a debt-to-income test, but it works when the balance sheet is large and the loan is larger than the usable assets.
Buying a Rental: The Practical Pivot to DSCR
An asset-based mortgage on an investment property is possible on the depletion path, but it is tight at 65% and 60% leverage. Most pure rental purchases belong in a different product. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage, as Regulation Z’s business-purpose exemption frames it.
For a stock-paid tech employee, that changes the question. The file is no longer about how your W-2 reads. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, leverage and liquid assets still matter. DSCR is not no-doc.
Programs below 1.00 coverage are available through select lenders in the network, with leverage and terms adjusted. Most DSCR files want documented cash for down payment and reserves. That is where vested shares come in: sell, season and document the proceeds, or hold them in an account the lender can review. The complete DSCR loans guide walks through coverage ratios, leverage and documents in more detail.
Scaling is the real draw. It does depend on credit and cash.
The Tennessee Angle
Nashville shows how stock-heavy pay can concentrate in one metro. Fortune reports that Oracle aims to bring 8,500 jobs to its Nashville headquarters at an average salary near $110,000. That is a hiring target, not a result. Franklin and Brentwood draw tech and healthcare-tech workers, and Memphis has its own corporate base.
Equity packages in these roles often include RSUs. Program figures do not change by state, so a Tennessee borrower faces the same percentages as anyone else. State facts are context, not program parameters. Tennessee is among the 16 states where Lendmire’s consumer lending is licensed.
Documents to Gather
Think of this as a lookup list before the file goes in.
- Two months of statements for each qualifying account (qualifier path), or statements 120 days old plus one within 45 days (depletion path).
- Vest confirmations and sale confirmations that tie proceeds to the receiving account.
- Source documents for any large recent deposit.
- Grant or plan records, so the lender can see which shares are vested and delivered.
- Entity documents, if the property will be held in an LLC, subject to lender program eligibility.
- Credit authorization and housing history.
Tax treatment varies; consult a qualified professional before selling shares to fund a purchase.
Key Terms Defined
RSU (restricted stock unit): A grant of company shares that you receive only after a vesting schedule is met.
Vested: The point at which shares are yours and delivered to your account.
Asset qualifier path: A program path where eligible assets, after credit percentages, cover the entire loan and no income is documented.
Asset depletion path: A program path where usable assets divided by 60 months become monthly qualifying income.
Seasoning: The time funds have sat in an account before the lender counts them.
DSCR: Debt service coverage ratio, meaning property rent compared with the monthly housing obligation.
Frequently Asked Questions
Do unvested RSUs count toward a mortgage on assets?
No. Unvested grants are not eligible on either path, and non-vested restricted stock units are specifically excluded on the depletion path. Wait until shares vest and are delivered to a brokerage account, then document them with statements.
Do I have to sell my stock to qualify?
Not necessarily. On the qualifier path, brokerage balances count at 100% as they stand on the statements. On the depletion path, securities count at 80%. A large balance can stay invested, subject to underwriting and to the account staying seasoned and documented.
Can I use these programs to buy a rental?
Investment property is available on the asset depletion path only, at lower leverage. Most pure rental purchases fit a DSCR loan better, since it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
What if my employer is private?
Private stock counts at 75% on the depletion path, but valuation is harder, so it is not a reliable reserve asset. Converting to a seasoned cash balance in a regulated account is the more dependable route.
Does a job change or layoff reset the file?
Not on the asset paths, because employment is not documented on the qualifier path and the depletion path rests on assets. A layoff matters if it forces you to sell stock or if the balance falls. Your account balance is what the lender reads.
If You Are Qualifying on Assets
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare asset-based mortgage options based on your statements, the property, credit profile, leverage, and your goals. Reach the team at 828-256-2183 or request a quote. Lendmire is a broker, and loans are placed through select lenders in its network, subject to underwriting.
Whatever the employer, the borrowers who do best are the ones who let vested shares season in an account before they start shopping.
Lendmire’s asset-based mortgage in Tennessee page presents the program for Tennessee borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of traditional personal-income documentation, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Blueprint: RSU income underwriting explainer
4. Fortune: Oracle Nashville headquarters
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can a Georgia Widow Qualify for a Mortgage on Life Insurance and Retirement Assets? · Can a California Trust Beneficiary Qualify for a Mortgage on Trust Assets? · Can a California Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals?
Guides: Asset-Based Mortgage in Tennessee
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.