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Restricted Stock Units (RSUs) are becoming a crucial component of compensation packages in the tech and startup world, especially in high-income regions where jumbo loans are common. As homebuyers seek to qualify for larger loans, understanding how RSUs are treated in underwriting has become essential. This guide dives into the 2025 jumbo loan underwriting rules and how your RSUs can help—or hurt—your mortgage approval.
What Are RSUs?
Restricted Stock Units (RSUs) are a form of equity compensation offered by employers. Employees receive company shares as part of their compensation, which vest over time. Once vested, RSUs are considered income and can sometimes be used to qualify for a mortgage.
Key points about RSUs:
- RSUs are taxed as ordinary income once vested.
- Lenders treat RSU income as variable and potentially volatile.
- Documentation and consistency are key in underwriting.
2025 Jumbo Loan Underwriting: What Changed?
In 2025, several lending institutions updated their jumbo loan underwriting guidelines to reflect more nuanced approaches to RSU income. Here are the most critical updates:
1. Length and Stability of RSU History
Most lenders now require a minimum two-year vesting history to count RSU income toward qualifying. Some lenders may consider one year if you’re at the same company and can document continued RSU grants.
Tip: Keep detailed documentation of grant letters, vesting schedules, and payout history.
2. Projected Future Income Requirements
Lenders evaluate whether RSUs will continue vesting for at least 12-36 months. Short-term or cliff-vesting RSUs may not be counted at all.
- You may need a letter from your employer verifying ongoing grant practices.
- RSUs must be non-discretionary and part of your normal compensation package.
3. Income Averaging for Qualification
Lenders typically average your RSU income over the past two years and may apply a haircut (e.g., 70-80% of that average) to account for market volatility.
- If your RSU income has declined, underwriters may disregard it altogether.
- Rising RSU income? That’s a plus—but it must still be consistent.
How to Use RSUs to Qualify for a Jumbo Loan
To include RSUs in your income calculations:
- Maintain a documented RSU history: Grant letters, paystubs showing vesting income, and W-2s or tax returns.
- Get an employer letter: Verifying that RSU grants are part of your regular compensation.
- Work with a mortgage advisor: Especially one experienced in jumbo loans and equity compensation strategies.
Ready to leverage your RSUs for your home purchase? Schedule a free consultation with one of our mortgage specialists.
RSUs and Debt-to-Income (DTI) Ratio
When RSU income is approved, it becomes part of your gross monthly income, which affects your DTI ratio—a key metric in jumbo loan qualification.
- Lower DTI = better loan terms
- RSUs can help reduce your DTI if counted correctly
Want to see how your RSUs impact your DTI? Use our free RSU mortgage calculator.
Challenges and Limitations
Even with updated 2025 rules, RSUs come with risks:
- Volatility: Value may fluctuate with stock performance.
- Employer policy changes: If your company reduces or pauses RSU grants, lenders may reassess.
- Short tenure: New hires may struggle to use RSU income without a solid vesting track record.
Facing RSU documentation issues? Talk to a mortgage expert now to navigate underwriting smoothly.
FAQ: RSUs & Jumbo Loans
Can I use RSUs as a down payment?
Yes, if they are vested and liquidated. You’ll need to show proof of sale and deposit.
What if my RSUs vest annually instead of monthly or quarterly?
Annual vesting is harder to use unless it’s a multi-year history and shows consistency.
Do all lenders accept RSU income?
No. Each lender has its own guidelines. Some are more flexible than others, especially non-bank lenders.
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Final Thoughts
Navigating jumbo loans with RSU income in 2025 is more feasible than ever—but still complex. With updated underwriting rules, it’s critical to plan ahead, maintain thorough documentation, and work with experienced professionals who understand equity-based compensation.
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
