Last Updated: April 2026 | Reading Time: ~8 minutes
If you work in Seattle’s tech industry — at Amazon, Microsoft, Google, Meta, Salesforce, or any of the hundreds of other companies with offices in the region — there’s a good chance a significant portion of your compensation comes in the form of Restricted Stock Units (RSUs). And there’s an equally good chance that when you started thinking about buying a home, you ran into a frustrating reality: many lenders either don’t know how to handle RSU income, or simply don’t count it at all.
The good news: yes, RSU income can be used to qualify for a mortgage. The catch: there are specific rules, documentation requirements, and lender nuances that determine how much of it counts — and choosing the wrong lender can cost you real buying power.
This guide breaks down exactly how lenders treat RSU income, what you need to qualify, and how to make the most of your full compensation package when buying a home in Seattle.
What Are RSUs and Why Do Lenders Treat Them Differently?
Restricted Stock Units are a form of equity compensation granted by employers. When they vest — meaning you’ve met the time-based or performance-based conditions — the shares are transferred to you and their fair market value is reported as ordinary wages on your W-2.
Lenders treat RSU income differently from base salary for a simple reason: it’s variable. Your base salary is predictable. RSU income depends on your company’s stock price, your continued employment, and your vesting schedule — all of which can change. Lenders classify RSU income similarly to bonuses or commission income: it can count, but only under specific conditions that demonstrate it’s stable, recurring, and likely to continue.
Unvested RSUs — shares you’ve been granted but haven’t yet received — are not income. They’re a future promise. Until they vest and appear on your W-2, they generally cannot be used for mortgage qualification.
The Core Requirements to Use RSU Income
Most lenders and loan programs have consistent core requirements for counting RSU income toward mortgage qualification:
1. Two-Year Vesting History You must have at least two consecutive years of RSU income from your current employer — meaning RSUs have been both granted and vested, and the income appears on your W-2s and tax returns. Lenders need to see this history to treat the income as stable and recurring.
2. Publicly Traded Company The company issuing your RSUs must be publicly traded on a major stock exchange. If you work for a private startup — even a well-funded, high-valuation one — your unvested or unexercised equity typically cannot be counted as qualifying income. Publicly traded status gives lenders the ability to verify the stock price and assess the income’s value objectively.
3. RSU Income Cannot Exceed 35% of Total Qualifying Income Lenders cap RSU income at no more than 35% of your total qualifying income. This means if your base salary is $200,000, the maximum RSU income that can be counted is roughly $107,000 — for a total qualifying income of $307,000. If your RSU grants are large relative to your salary, this cap can limit how much income your lender will recognize.
4. Three-Year Continuance Requirement Lenders want evidence that your RSU income will continue. Your vesting schedule must show that RSU awards will continue for at least three years at a level consistent with what they’re counting toward your qualification. If your grants are front-loaded or tapering off, this can affect how much income a lender will use.
5. Documented With Supporting Paperwork RSU income requires more documentation than W-2 wages alone. More on this below.
How Lenders Calculate RSU Income
This is where it gets technical — and where choosing the right lender really matters.
The Standard Method: Two-Year W-2 Average Most conventional lenders add up your RSU income from the last two years of W-2s and divide by two to get an annualized figure. If your RSU income was $60,000 in Year 1 and $80,000 in Year 2, your qualifying RSU income would be $70,000/year, or approximately $5,833/month.
If Income Is Declining: If your RSU income is trending downward year-over-year — say $90,000 in Year 1 and $70,000 in Year 2 — many lenders will use the lower figure rather than the average, to be conservative.
Stock Price Valuation Methods: For projecting future RSU income from unvested shares, lenders typically use one of two approaches:
- 52-week average stock price: The total number of shares scheduled to vest is multiplied by your company’s average stock price over the past 52 weeks
- 75% of current closing price: Some lenders apply a 25% haircut to the most recent closing price to account for potential stock price volatility
Neither method uses current stock price at face value, which is why a tech employee watching their company’s stock surge won’t necessarily see that reflected in their qualifying income.
What Documentation Do You Need?
Applying for a mortgage with RSU income means gathering more paperwork than the average borrower. Here’s what lenders typically require:
- Two years of W-2s (showing RSU income in addition to base salary)
- Two years of federal tax returns (all pages and schedules)
- Recent pay stubs reflecting any recent RSU vesting events
- RSU Award Agreement / Restricted Stock Unit Agreement — the document outlining your grant terms, vesting schedule, and conditions
- Vesting schedule for the next three years — typically obtained from your HR department or equity compensation portal (Fidelity, E*Trade, Morgan Stanley, or your employer’s equity platform)
- Written Verification of Employment (WVOE) from your employer confirming your RSU compensation history and ongoing grant schedule
- Current account statement showing the balance of both vested and unvested shares
Your company’s HR or total compensation team should be able to provide most of this. If you have trouble pulling the vesting schedule, your equity compensation portal (wherever you manage your RSU account) will also have it.
RSU Income by Loan Type
Not all loan programs treat RSU income the same way, and this is one of the most important things to understand before you start shopping for a mortgage:
| Loan Type | RSU Income Accepted? | Notes |
|---|---|---|
| Conventional (Fannie/Freddie) | ? Yes | Most reliable path; clear guidelines |
| Jumbo | ? Yes | Often most flexible; common for high-income tech buyers |
| FHA | ?? Sometimes | Depends heavily on lender interpretation |
| VA | ?? Sometimes | Lender-dependent; not always counted |
| USDA | ? Rarely | Limited guidance; few lenders accept it |
For most Seattle tech buyers, conventional or jumbo loans are the most reliable path for using RSU income. Given King County’s 2026 conforming loan limit of $1,063,750, many buyers with significant RSU income will find themselves in jumbo territory — and many jumbo programs are actually more flexible with non-traditional income than standard conforming guidelines.
RSU Income as a Down Payment Source
RSU income doesn’t just help you qualify — vested shares are also a common and fully legitimate source of down payment funds. Many Seattle tech employees sell a portion of their vested shares to cover the down payment, which is perfectly acceptable to lenders as long as it’s properly documented.
Here’s how it works:
- You sell vested RSU shares through your brokerage account
- The proceeds land in your bank or investment account
- You provide a statement showing the origin of the funds (the share sale)
- The lender documents it as an asset available for the down payment
A few things to keep in mind:
- Seasoning: Funds should be in your account for at least 60 days before closing if possible, to avoid extra documentation requirements
- Tax implications: Selling RSU shares triggers a taxable event — coordinate with your CPA or financial advisor to understand the timing
- Unvested RSUs cannot be used: Only vested, liquidated shares count as an available asset
The Seattle Tech Buyer Scenario
Let’s look at how this might play out for a typical Seattle tech employee:
Profile: Software engineer at a major Seattle-area tech company
- Base salary: $175,000/year
- RSU vesting: $90,000/year (averaged over last two years)
- Company: Publicly traded
How the lender calculates income:
- Base salary: $175,000 ? Full amount counted
- RSU income cap check: 35% of $265,000 total = $92,750 max ? $90,000 passes ?
- Total qualifying income: $265,000/year ($22,083/month)
Compare that to only counting base salary: at $175,000/year ($14,583/month), the buying power difference is substantial — potentially $200,000–$400,000 more in purchase price depending on other factors.
This is exactly why working with a lender who understands RSU income isn’t just a convenience — it directly affects how much home you can buy.
Common RSU Mortgage Pitfalls to Avoid
Applying with a lender who doesn’t understand RSU income. Many large banks and national lenders either don’t count RSU income at all, or severely undercount it due to unfamiliarity with the income type. Always ask a lender directly: “How do you calculate RSU income?” If they seem uncertain or dismissive, find a different lender.
Assuming your full RSU value counts. The 35% cap, two-year history requirement, and stock price valuation haircuts all mean the number on your offer letter or brokerage statement isn’t what a lender will use.
Forgetting about the continuance requirement. If your RSU grants are ending or decreasing significantly in the next three years, lenders may reduce how much they count — or not count it at all.
Making large RSU sales right before applying. Moving large sums of money around, including selling RSU shares, right before a mortgage application can create documentation questions. Plan any significant stock sales with your mortgage professional before executing them.
Ignoring the tax timing. RSUs vest and are taxed as ordinary income. If you had an unusually high vesting year followed by a lower one, your two-year average may not reflect your ongoing income. Timing matters — coordinate with a CPA.
What About Stock Options?
If you have stock options (ISOs or NSOs) rather than RSUs, the rules are different — and much less favorable. Stock options generally cannot be counted as qualifying income for mortgage purposes. Unlike RSUs which have inherent value at vesting regardless of when you purchased them, stock options only have value if the current stock price exceeds your strike price, and you must exercise them to realize that value. That uncertainty makes them unacceptable as a stable income source under standard lending guidelines.
If you have a mix of RSUs and options, only the RSU component will typically count.
Bottom Line: RSU Income Can Significantly Expand Your Buying Power in Seattle
For Seattle’s tech workforce, RSU income represents a major portion of total compensation — and ignoring it when applying for a mortgage means leaving real borrowing power on the table. The right lender, with the right guidelines and experience underwriting RSU income, can make the difference between qualifying for a $900,000 home versus a $1.2M home.
The keys to success:
- Have at least two years of RSU vesting history at a publicly traded company
- Gather your documentation early (vesting schedule, RSU agreement, WVOE)
- Work with a mortgage professional who is experienced with equity compensation income
- Plan any RSU liquidations for down payment funds in advance
We work with Seattle tech buyers regularly and understand exactly how to structure mortgage files with RSU income, bonus income, and other forms of equity compensation. Let’s look at your full compensation picture and find out exactly what you qualify for.
Disclaimer: RSU income guidelines vary by lender, loan program, and individual circumstances. The information in this article reflects general industry guidelines as of April 2026. Always consult with a licensed mortgage professional for advice specific to your financial situation. This is not tax advice — consult a qualified CPA for guidance on the tax implications of RSU income and share sales.
Key Takeaways
- Yes, you can use RSU income to qualify for a mortgage, but specific documentation and lender requirements apply.
- Lenders view RSU income as variable, similar to bonuses, which requires a two-year history and stable vesting.
- Most lenders only accept RSU income from publicly traded companies and cap it at 35% of your total qualifying income.
- Gather necessary documentation, including W-2s, tax returns, and RSU agreements, to support your application.
- Choosing the right lender is crucial; ensure they understand RSU income to maximize your buying power.