RSUs can help you qualify when they are documented correctly.
Lenders need to see vesting history, continuance, stable valuation, and whether the RSUs are being used as income, assets, or both. The strategy is timing the file around the way your compensation actually works.
El Segundo is one of the densest concentrations of Fortune 500 RSU compensation in the country.
Between the aerospace cluster (SpaceX, Boeing, Northrop, Aerospace Corp, Raytheon), the entertainment companies (Mattel), AT&T’s LA headquarters operations, and the broader South Bay tech footprint, the buyers I work with regularly have 30 to 60% of their compensation tied up in vesting stock. That compensation behaves differently from base salary, so the file has to distinguish what can count as income from what can count as an asset.
The better question is not simply how much the RSUs add to qualification. It is how they should support the purchase without creating unnecessary concentration, tax, or liquidity pressure.
How RSU income is counted toward your mortgage.
Conventional underwriting rules distinguish between time-based and performance-based restricted stock, how it is paid, and whether it has vested and been distributed. The current Fannie Mae framework starts with these questions:
1. Is there an eligible history of vested, distributed restricted stock?
For time-based awards, Fannie Mae currently requires at least a 12-month history from the current employer. Documentation and calculation vary by award type and whether distributions are paid in shares or cash.
2. Do the award terms satisfy the applicable continuance rules?
A one-time time-based award generally must be expected to continue for at least three years from the note date. Recurring time-based and performance-based awards follow different continuance requirements.
For eligible income paid in shares, Fannie Mae uses a calculation based on the 200-day moving average and vested shares distributed over the applicable history. Income paid in cash uses distributed cash value. The exact file still depends on award type, history, documentation, and the selected loan program.
RSUs play two different roles in your loan file. Don’t confuse them.
Eligible vested and distributed restricted-stock income may increase qualifying income when the history, calculation, and continuance requirements are met.
Already-vested shares (held or sold) can fund your down payment, closing costs, and reserves once we document the source and any sale or transfer. Unvested future shares generally cannot, because you don’t own them yet.
Timing and structure are where the real tradeoffs appear.
Once we know the rules work in your favor, the real conversation begins:
- When to apply. If you have a large vest scheduled in the next 60 days, waiting can shift your 24-month income average meaningfully.
- Sell or hold vested shares. Selling strengthens your asset position for reserves and down payment. Holding bets on continued upside. Tax treatment varies. We model both.
- Loan structure for lumpy income. A standard 30-year fixed isn’t always the best fit for a buyer whose cash flow is highly variable across the year. Sometimes an ARM, an interest-only feature, or a recast strategy fits better.
- Lender selection. Not every lender treats RSU income the same way. The wrong lender choice can cut your qualifying income by 30% or more for the exact same file.
The three RSU mistakes I see again and again.
Treating RSUs as bonus income and discounting them heavily.
The file should use the current guideline calculation for the award type, payment method, history, and continuance—not a blanket bonus-income assumption.
Counting unvested future RSUs as assets.
You don’t own them yet. Underwriting will catch this and the file falls apart late in the process.
Ignoring the timing of vests and lockup windows.
If you can’t sell shares during a blackout window, your asset documentation has to account for that. Document this before the shares are needed for closing.
This page is for educational purposes. RSU income treatment varies by lender, loan program, employer, and the specifics of your grant and vesting documentation. Stock prices and tax implications are individual. Daryn Fillis NMLS #1988371. Branch NMLS #2733710. NEO Home Loans powered by Better Mortgage Corporation. Equal Housing Opportunity.