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For many high-earning executives in tech, finance, or startup sectors, traditional income documentation doesn’t reflect their real compensation. A significant portion of executive pay often comes in the form of Restricted Stock Units (RSUs)—a type of equity compensation that can complicate mortgage qualification, especially for jumbo loans ranging from $3 million to $5 million.
This guide will walk you through how RSUs can be used to qualify for luxury or executive-level home financing, what lenders look for, and how to optimize your chances of approval.
What Are RSUs and Why Do They Matter for Mortgage Approval?
Restricted Stock Units (RSUs) are company shares granted to employees as part of a compensation package. These shares typically vest over time, meaning the recipient doesn’t have access to their full value immediately. Once vested, RSUs are taxed as income and can be sold for cash, making them a powerful form of compensation.
However, for mortgage lenders, RSUs can be a gray area—especially at higher loan amounts. Many executives find themselves “asset rich” but “income poor” on paper.
Can You Use RSUs to Qualify for a Jumbo Mortgage?
Yes—but only under certain conditions. Lenders want to ensure that RSUs represent a reliable and consistent income stream. Here’s what they typically look for:
1. Vesting History
Lenders will usually require at least two years of RSU vesting history. The more consistent the vesting schedule, the better.
2. Future Vesting Schedule
They’ll also look at your future vesting schedule to ensure continued income. Some lenders will use projected vesting as part of the qualifying income.
3. Stock Performance
The underlying company’s stock value must be stable or appreciating. Lenders are wary of volatile or downward-trending stocks.
4. Liquidity Access
Some lenders require proof that you’ve previously sold RSUs or that you can easily do so. This might mean showing past transactions or a brokerage account statement.
Strategies for Using RSUs to Qualify for $3–5M Mortgages
If you’re an executive looking to purchase a luxury property with RSU income, consider these best practices:
1. Work with a Mortgage Lender That Specializes in Executive Loans
Not all lenders are experienced in evaluating RSUs. Partner with one who specializes in high-net-worth individuals and understands executive compensation packages.
Explore our Executive Mortgage Solutions for High-Income Borrowers
2. Prepare Thorough Documentation
Include:
- 2+ years of vesting schedules
- W-2s and tax returns
- Employment verification letters
- Future vesting schedules and company stock plans
- RSU transaction history (if applicable)
3. Leverage RSUs as Supplemental Income
In many cases, RSUs won’t replace base salary but can be counted as supplemental income to boost your borrowing power.
Common Challenges with RSU-Based Mortgage Qualification
Even with high compensation, RSUs can complicate underwriting:
- RSU Cliffs or Gaps in vesting reduce predictability.
- Volatile stock prices make lenders hesitant to assign reliable value.
- Insufficient documentation can stall or kill loan applications.
Pro tip: Start the process early—up to 60–90 days before you plan to buy—to give your mortgage advisor time to structure your file.
Benefits of Executive Jumbo Loans Using RSUs
- Higher Borrowing Power: Qualify for up to $5M+ with the right structure.
- Custom Underwriting: Executive-focused lenders may offer exceptions and custom products.
- Asset Utilization: Allows you to leverage stock-based compensation without needing to liquidate early.
Ready to see how your RSUs can help you qualify for a luxury mortgage?
Contact our Executive Lending Team for a confidential mortgage consultation.
FAQs About Using RSUs for Executive Home Loans
Can I use unvested RSUs to qualify for a mortgage?
Typically, no. Most lenders only consider vested or scheduled-to-vest RSUs. However, some private banks may make exceptions depending on your company and position.
How much of my RSU income can be used to qualify?
It varies by lender. Generally, lenders will average the RSU income over 24 months, then apply a discount for stock volatility or vesting uncertainty.
Are there specific lenders who work with RSUs?
Yes. Private banks and non-QM lenders are most familiar with RSU income structures. Look for ones with experience in tech or startup markets.
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Final Thoughts
RSUs are a powerful wealth-building tool—and when structured correctly, they can also unlock premium real estate opportunities. For executives looking to buy in high-cost markets, understanding how RSUs are underwritten can mean the difference between approval and denial.
Get started today with a customized loan strategy based on your RSU compensation.
Speak with a Mortgage Advisor Who Understands Executive 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.
