RSUs can count as mortgage income once they have vested and been paid out to you. Under Fannie Mae's current rules, time-based RSUs need at least a 12-month history with your current employer, the income is averaged over the last 24 months using the stock's 200-day moving average price, and unvested shares and sign-on grants do not count.
I have spent more than 25 years closing loans around Puget Sound, and qualifying RSU income for Amazon, Microsoft, Google, Meta, and other tech employees is a big part of what I do as a loan officer at Fairway Independent Mortgage. Here is exactly how it works, so you can estimate your own qualifying income before you talk to a lender.
How RSUs Impact Your Mortgage Approval
A lender qualifies you on a monthly income figure, and RSUs can raise that figure substantially. For many Seattle and Eastside tech households, counting RSU income is the difference between a conforming loan and a jumbo loan, or between Kirkland and a longer commute. The catch is that only income that meets the program's rules can be counted, and the math is different from what most people expect.
Fannie Mae's RSU Income Rules (2026)
These rules come from Fannie Mae's Selling Guide section B3-3.3-07, updated March 4, 2026. They apply to conventional loans sold to Fannie Mae; jumbo lenders set their own versions, often similar.
| Rule | What it means for you |
|---|---|
| Vested and distributed | Only shares that have vested and been paid to you count. Unvested RSUs do not. |
| No sign-on grants | RSUs received as a sign-on bonus cannot be used as qualifying income, however long they vest. |
| History: time-based awards | At least 12 months of RSU income from your current employer. |
| History: performance-based awards | Two years recommended; 12 months can work with offsetting strengths, such as continuing future vesting. |
| Continuance | For a one-time time-based award, the vesting schedule must show income continuing at least three years after closing. Recurring awards generally do not need this. |
| Publicly traded stock | The lender must document that the shares are publicly traded, so pre-IPO RSUs generally do not count. |
How Lenders Calculate RSU Income
For RSUs paid in shares, the formula is:
(200-day moving average share price × vested shares received in the last 24 months, pre-tax) ÷ 24 months
If you have between 12 and 24 months of history, the lender can divide by the actual number of months instead of 24. For RSUs paid in cash, it is the pre-tax cash received over the last 24 months divided by 24.
As an illustrative example: an engineer received 600 vested shares over the past 24 months, and the stock's 200-day moving average is $180. That is 600 × $180 = $108,000, divided by 24, or $4,500 a month added to qualifying income. This example is illustrative only; your figure depends on your actual vesting history and the share price at application.
Two things surprise people. The lender uses the 200-day average, not today's price, so a recent spike or dip has less effect than you might expect. And the calculation looks back at what actually vested, not at the size of your next grant.
What Documents You Will Need
- A Verification of Employment showing RSU distributions, or your most recent paystub showing RSU income plus two years of W-2s
- Your current vesting schedule showing past and future vesting
- Brokerage statements showing the shares you received and how many vested
- Evidence the stock is publicly traded and its 200-day moving average price (your lender pulls this)
- A verbal verification of employment shortly before closing
Pulling vesting history from Fidelity, Morgan Stanley at Work, Schwab, or E*TRADE before you apply saves days in underwriting.
RSUs as Down Payment and Reserves
Vested shares sitting in your brokerage account are assets, separate from income. They can help meet reserve requirements, which matters most on jumbo loans. If you plan to use shares for the down payment or closing costs, lenders typically need to see the sale and the cash landing in your account before closing.
Taxes affect the timing. RSUs are generally taxed as ordinary income when they vest, and selling later can create a capital gain or loss on the change in price since vesting. This is not tax advice, so talk to a tax professional before you sell shares to fund a purchase.
Common RSU Mistakes When Buying a Home
- Counting unvested grants. Your offer letter's four-year grant does not count until shares actually vest and pay out.
- Relying on a sign-on grant. Sign-on RSUs are not eligible income under Fannie Mae's rules.
- Changing jobs mid-process. A new employer usually resets your RSU history, even at a similar company.
- Selling shares without a paper trail. Large deposits need documentation, so sell early and keep the brokerage confirmations.
- Assuming every lender calculates the same way. Jumbo programs especially vary, so the same file can qualify for different amounts.
RSUs and Jumbo Loans on the Eastside
In Bellevue, Redmond, Kirkland, and Sammamish, RSU income often decides whether a purchase fits under the $1,063,750 conforming limit for 2026 or needs a jumbo loan. Jumbo lenders write their own RSU rules, and some are more conservative on history or price. See my guides to jumbo home loans in Washington and 10% down jumbo loans, plus the Bellevue, Redmond, and Kirkland mortgage guides.
How RSUs Impact Mortgage Approval: FAQs
Can RSUs be used as income for a mortgage?
Yes, once they have vested and been distributed to you. Under Fannie Mae's rules, time-based RSUs need at least 12 months of history with your current employer, and the shares must be publicly traded. Unvested RSUs and sign-on grants do not count.
How do lenders calculate RSU income?
For RSUs paid in shares, Fannie Mae multiplies the vested shares you received over the last 24 months by the stock's 200-day moving average price, then divides by 24. With 12 to 24 months of history, the lender can divide by the actual number of months.
Do I need two years of RSU history to qualify?
Not always. For time-based awards, Fannie Mae requires at least 12 months of RSU income from your current employer. Performance-based awards have a two-year recommendation, with 12 months possible when there are offsetting strengths.
Do unvested RSUs or sign-on grants count?
No. Only vested, distributed shares count as income, and RSUs received as a sign-on bonus are not eligible as qualifying income under Fannie Mae's rules, regardless of how they vest.
Can I use RSU shares for my down payment?
Yes. Vested shares are assets you can sell for the down payment or keep as reserves. Lenders typically want to see the sale and the cash in your account before closing. Selling can have tax consequences, so check with a tax professional first.
What happens to RSU income if I change jobs?
A new employer usually means a new RSU history, because time-based awards require 12 months from your current employer. If you are planning a move and a home purchase, talk to your lender before you change jobs.
More reading: RSU income and mortgage qualification in Seattle, the mortgage loan process, and conventional home loans.
Let's connect. Call or text (206) 601-3426, email keith@mortgagereel.com, start your application, or book a time to talk. Send me your vesting schedule and I will calculate your qualifying RSU income, pressure-free.
