The Quick Read: Virginia Tech itself pays its staff in cash salary bands, so the borrowers this topic describes are Virginia residents whose pay comes largely as vested company shares. For them, an asset-based mortgage can look past thin paycheck income and rest the file on documented, seasoned holdings. Only shares that have vested and sit in a brokerage account count. Unvested restricted stock units and stock options do not.
- Asset qualifier path: eligible assets must cover the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test.
- Vested shares in a brokerage account count; unvested units never do.
- Statements are required on both paths. The loan is fully underwritten, with no traditional personal-income documentation, pay stubs or employment verification.
- Virginia borrowers use the same program figures as everyone else. State facts are context, not program terms.
First, a Correction on the Premise
Virginia Tech does not pay its employees in stock. The university’s Salary and Pay Structures page shows staff compensation set in cash bands that follow the Commonwealth’s pay structure. A professor, lab manager or facilities supervisor there earns a salary like any other public employee.
So who is this article for? It is for anyone in Virginia whose pay arrives mostly as equity. That includes engineers at public technology companies, contractors and defense-tech staff with large RSU grants, and people in the New River Valley or Northern Virginia whose employer vests shares every quarter. Some have a Virginia Tech connection through a spin-out or a faculty startup. Others simply search for it because the school anchors their region.
What they share is a lopsided financial picture. Their holdings are large. Their documented paycheck income often looks small or uneven, because stock vests in lumps and base salary may be modest. Conventional underwriting struggles with that mix. An asset-based approach is built for it.
What an Asset-Based Mortgage Actually Is
An asset-based mortgage qualifies the borrower on what they own instead of what they earn. Lendmire arranges these loans as a broker. Through its asset-based mortgage program, files are placed with select lenders, subject to underwriting. Consumer mortgage lending is available in 16 states, and Virginia is one of them.
The file is not undocumented. Credit is reviewed, the property is appraised, and every qualifying account is supported by statements. What disappears is the income paper trail: no traditional personal-income documentation, no pay stubs, no employment verification on the qualifier path.
Two paths exist, and a borrower is qualified on one path at a time. Mixing them is the most common planning error.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core idea | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
Figures are ceilings, subject to underwriting. They are not offers.
How Underwriting Treats Stock-Paid Borrowers, Step by Step
Start with the rule that decides everything: only vested shares delivered to your account count. Underwriters can verify a brokerage balance. They cannot verify a promise of future vesting.
Step 1: Get the shares into an account that shows a balance. When RSUs vest, your employer’s plan administrator usually deposits the shares, net of tax withholding, into a brokerage account. That balance is the asset. The grant agreement, the vesting schedule and the offer-letter total compensation figure are not assets.
Step 2: Season the account. On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Shares that vested last week have not yet built that history.
Step 3: Apply the credit percentages. Each asset type counts at a set share of its balance, and the shares differ by path. This is where stock holders feel the difference between the paths most.
Step 4: Run the path math. The qualifier path asks whether usable assets equal or exceed the entire loan. The depletion path divides usable assets by 60 months and asks whether that income carries the housing payment and other debts.
Step 5: Review credit and the property. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. Nothing here removes the credit review.
What Counts, and What Does Not
For a stock-paid borrower, the question is which holdings qualify. The table separates the paths, because the percentages differ.
| Holding | Qualifier path | Depletion path |
|---|---|---|
| Vested shares in brokerage | 100% | 80% (securities) |
| Privately held company stock | Not eligible | Not eligible |
| Cash, savings, money market | 100% | 100% (cash) |
| Certificates of deposit | 100% | 100% |
| 401(k) or IRA | 90% under 59½; 100% after | 70% at any age |
| Unvested RSUs | Not a balance | Not eligible |
| Stock options | Not a balance | Not eligible |
A few edge cases deserve a plain answer.
Unvested RSUs never help. They are not yours yet, so they are not an account balance. The depletion path lists non-vested restricted stock units and stock options as not eligible.
Privately held stock is not eligible on either path. If your employer is closely held, the route is a sale or buyout converted into a seasoned cash balance in a regulated account.
Sold shares become cash. If you sell vested stock and hold the proceeds in a regulated bank or brokerage account, the balance counts as cash at 100% on both paths, once it has seasoned. Selling can raise your usable percentage from 80% to 100% on the depletion path. It also has tax consequences, covered below.
Crypto, precious metals and collectibles are 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 do not count. Cash-out proceeds from a refinance never count as qualifying assets on the depletion path.
Two Worked Examples With Stock in the Mix
These examples are illustrative. The lender’s own calculation governs.
Qualifier path. Picture a Virginia borrower seeking an $800,000 loan. She holds $330,000 in a brokerage account of vested shares, which counts at 100% as $330,000. She has $300,000 in a 401(k) and is under 59½, so it counts at 90% as $270,000. She also has $200,000 in savings, which counts at 100%. Her usable assets total $800,000, which matches the loan. She is reviewed on assets alone, subject to underwriting, with no income documented. Her loan-to-value would need to fit within 80% on a purchase or 75% on a refinance.
Depletion path. Now consider a borrower living on his portfolio. He holds $1,500,000 in securities, which count at 80% as $1,200,000. He also holds $300,000 in cash, which counts at 100%. That is $1,500,000 of usable assets, divided by 60 months, for $25,000 of monthly qualifying income. That figure then has to carry the housing payment and his other debts through the debt-to-income test.
The depletion path also has asset minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never fall below $250,000 liquid when asset depletion is the only income source. If you have documented income as well, asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Where the General Rule Breaks
A concentrated position cuts both ways. Stock-paid borrowers often hold most of their wealth in one security. Brokerage balances count at full value on the qualifier path, so a concentrated holding is not penalized there. The depletion path takes 20% off securities. Share prices move, and the lender works from the statement balance, so a dip between statements changes the answer.
New vesters lack seasoning. An employee whose first large vest landed last month has a balance but no history. The 60-day and 120-day windows are real hurdles, and the usual fix is patience.
Investment property is only on the depletion path. The qualifier path covers a principal residence or second home. If you want to buy a rental with stock-derived assets, the depletion path allows up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor on that path needs a 700 credit score. Because the purpose is business, that loan is reviewed differently from an owner-occupied mortgage. The CFPB’s Regulation Z provision leaves the primary-purpose determination to the lender’s case-by-case review. A property you partly live in does not qualify as an investment. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Cash-out leverage is lower than purchase leverage. On the depletion path, a principal residence or second home allows 60% on a cash-out refinance. Whether the qualifier path allows cash-out, and at what leverage, is set by the lender and is not published. Do not plan around a figure that has not been published.
Housing events need time. A housing event needs 4 years of seasoning on the depletion path. Multiple bankruptcies are not eligible.
Rent-driven financing is a different product. If your plan is a rental purchase where the property’s income carries the loan, business-purpose rental financing may fit better, and it has its own rules. That is a separate decision from qualifying on assets.
Which Path Fits You?
Pick the path by looking at what you hold and what you want to buy.
| Your situation | Likely fit |
|---|---|
| Assets exceed the full loan | Qualifier path |
| Large holdings, modest documented income | Depletion path |
| Buying a rental | Depletion path (investment) |
| Mostly unvested RSUs | Neither yet |
| Just sold shares, cash is new | Wait for seasoning |
The qualifier path suits borrowers who can cover the whole loan from eligible balances. It is the cleaner file, with no debt-to-income test and no reserves required at or below 75% loan-to-value. Above that, the lender sets reserves. The depletion path suits borrowers whose assets are large but fall short of the full loan, or who want an investment property. It runs through the debt-to-income test, so existing debts matter. Exact terms depend on lender guidelines, credit profile, reserves, and property review.
Decide which path you are on before you gather statements. Start by asking which of your accounts qualify and at what percentage. Moving settled proceeds into a seasoned cash account can change the math more than a larger balance would, because cash counts at 100% on both paths.
Down Payment, Reserves and Selling Shares
For many stock-paid borrowers the real question is whether to sell. Under the qualifier path, you might not need to. A vested brokerage balance counts at 100%, so shares can stay invested while serving as the qualifying asset. You still need funds for the down payment and closing costs, and those usually come from cash or sold shares. Documented sale proceeds need statements showing where they landed.
Selling vested shares can create a taxable gain. Tax treatment varies; consult a qualified professional before choosing which shares to sell.
A practical point: use the same accounts consistently. Moving balances between institutions mid-file creates new seasoning questions. Keep statements for every account you plan to count, even if one looks small.
Key Terms Defined
RSU (restricted stock unit): A grant of company shares that vests over time and is delivered to your account only after it vests.
Vested: Shares that have fully become yours, with no remaining forfeiture risk.
Seasoning: The period funds must sit in an account before they count toward qualifying.
Asset depletion: A method that divides usable assets by 60 months to create qualifying income.
Asset qualifier: A method where eligible assets must equal or exceed the entire loan.
Haircut: The share of an asset’s balance that does not count, such as the 20% taken off securities on the depletion path.
Common Mistakes
- Counting offer-letter compensation as assets. Only delivered, vested shares with a statement balance count.
- Mixing the two paths. A borrower is qualified on one path at a time, so the tables do not blend.
- Assuming a 401(k) counts the same way on both paths. It counts at 90% under 59½ on the qualifier path and 70% on the depletion path.
- Timing a large sale too late. Fresh cash needs seasoning before it counts.
- Believing the loan has no documentation. Assets are documented with statements, and credit and the property are reviewed.
Frequently Asked Questions
Do unvested RSUs count toward an asset-based mortgage?
No. Unvested units are not an account balance, and the depletion path lists non-vested restricted stock units as not eligible. Once they vest and sit in a brokerage account, they can count, after the seasoning period and subject to underwriting.
Do I have to sell my stock to qualify?
Not on the qualifier path, where a vested brokerage balance counts at 100%. On the depletion path, securities count at 80%, while sold proceeds held as cash count at 100%. You will still need cash for the down payment and closing costs, and selling can have tax consequences worth discussing with a qualified professional.
Does private company stock count?
No. Privately held stock is not eligible on either path. The documented route is a sale or buyout that turns the shares into a seasoned cash balance in a regulated account, which then counts as cash.
Can I use this to buy a rental property in Virginia?
Yes, through the depletion path only, which allows investment property up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor needs a 700 credit score. The qualifier path is limited to a principal residence or second home. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Does the program change if I live near Blacksburg versus Northern Virginia?
No. The figures, paths and percentages are the same across Virginia. Local prices and insurance costs affect how much house your assets support, but they are not program parameters.
Reading the File Before You Apply
A stock-paid borrower in Virginia is not stuck with a paycheck-only picture. The test is whether your vested holdings, after the credit percentages, either cover the loan outright or convert into enough monthly income. 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. Programs change and every file is underwritten individually, so nothing here is a commitment to lend.
The cleanest files come from borrowers who gather two months of statements first, sort vested holdings from unvested grants, and choose a path before talking to anyone about price.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Virginia Tech Human Resources: Salary and Pay Structures
2. CFPB: Regulation Z, Section 1026.3 Exemptions
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 an Indiana Divorce Settlement Count as Assets for a Mortgage? · How Michigan Tech Employees Paid in Stock Get a Mortgage on Assets · How Tennessee Tech Employees Paid in Stock Get a Mortgage on Assets
Guides: Asset-Based Mortgage in Virginia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.