FAQ: Can I Use Private RSU Income to Buy a House?

This post compiles the questions that private RSU employees ask most often when they start exploring mortgage options. Each answer is written to be direct and practical. For more depth on any topic, the earlier posts in this series cover each area in full.

Can I use my private RSU income to qualify for a mortgage?

It depends on the lender and the program. Under standard Fannie Mae and Freddie Mac guidelines, private RSU income generally cannot be counted because those guidelines require a publicly traded stock price to perform the income calculation. That price does not exist for a private company. However, portfolio lenders who hold their own loans are not bound by those guidelines and can evaluate private RSU income using a different framework. So the short answer is: not through a conventional lender, but options do exist through the right portfolio lender. Why Most Lenders Can’t Help: Conventional Loans Require Publicly Traded Stock

Why did my bank say my RSUs don’t count?

Most banks and retail mortgage lenders sell their loans to Fannie Mae or Freddie Mac after origination. To do that, they must follow agency income guidelines. Those guidelines require a publicly traded stock price to calculate RSU income, which does not exist for private company shares. The bank is not making a judgment about your employer or your financial strength. It is working within a system that was not designed to handle private equity compensation. The Problem: Why Private RSU Employees Are Told Their Income Doesn’t Count

Does my company have to be planning an IPO for me to qualify?

No. An IPO is not a requirement. What matters to portfolio lenders is that the company is financially stable, that the equity has genuine underlying value, and that some form of liquidity is realistic. Many of the qualifying companies, including SpaceX, have been private for many years with no announced IPO timeline and still meet the program criteria because of their scale, valuation, and track record of providing employee liquidity through tender offers.

What if I have never received a distribution from my RSUs?

Borrowers with no prior RSU distributions are not automatically disqualified. In many cases, base salary alone is sufficient to qualify for the loan amount needed. For borrowers who need the RSU component to reach their qualifying threshold, a portfolio lender whose program can accommodate the equity position without prior distributions may still be an option, depending on the employer profile and overall financial strength. Double-Trigger Vesting: Why There Is Often No Income on Paper Yet

Can I qualify on base salary alone and ignore the RSUs?

Yes, and for many private RSU borrowers this is the most straightforward path. If base salary covers the loan amount needed, a conventional loan through a standard lender is available. The RSU income does not need to factor in at all. The portfolio lender route is most relevant for borrowers who need the RSU component to qualify for a higher loan amount, or who want a lender who can evaluate their full compensation picture.

Does my company meet the $10 billion threshold?

The most reliable way to find out is to search for your company’s most recent funding round or valuation in the news. For most large private companies this information is publicly available. Stripe, SpaceX, Databricks, OpenAI, Anthropic, Revolut, Anduril, Scale AI, Canva, Chime, Fanatics, Klarna, Rippling, and Plaid are among the companies currently known to meet the threshold. If your company is not on that list, it may still qualify — the list is not exhaustive and valuations change. A quick conversation with Bridgepoint Funding can confirm eligibility based on current valuation data. Which Private Companies With $10 Billion-Plus Valuations May Qualify

My company’s valuation has changed since its last funding round. What counts?

Lenders use the most current available information. If your company has grown significantly since its last formal funding round, secondary market transaction data or press coverage of the updated valuation may be relevant. Conversely, if a company has experienced a down round, the more recent lower figure is the applicable one. The conversation with the lender is the right place to work through this.

I work at a private subsidiary of a publicly traded company. Which guidelines apply?

It depends on how the equity is structured. If your RSUs are grants from the publicly traded parent company, standard Fannie Mae and Freddie Mac guidelines likely apply and the calculation can proceed normally. If the RSUs are from the private subsidiary, the private RSU program framework is more relevant. A lender familiar with this type of structure can determine which guidelines apply based on the specifics of your grant.

What if my company is in the process of being acquired?

A pending acquisition can affect how a lender views the continuity of your income and your equity. In a cash acquisition, vested RSUs typically convert to a cash payout, which is documentable income. In a stock acquisition where the acquirer is publicly traded, private RSUs may convert to public shares. Either outcome is generally favorable from a documentation standpoint, but the timing of a home purchase relative to the acquisition closing is worth discussing with a lender before proceeding.

How does a lender calculate my RSU income if the stock is not public?

Portfolio lenders who offer private RSU programs use a different framework than the standard 200-day moving average calculation that Fannie Mae and Freddie Mac require. The analysis is more holistic and case-by-case, taking into account base salary, any documented distributions from tender offers or secondary sales, the company’s valuation and financial profile, and the vesting schedule. W-2 income from prior distributions is the most directly usable figure. What You Need to Apply: A Documentation Guide for Private RSU Borrowers

What is the most important document I can have for a private RSU mortgage?

A W-2 showing RSU distributions from a company-sponsored tender offer or secondary sale. That document shows income that was actually received, reported, and taxed, which is what lenders can work with most directly. Two or more years of W-2 history showing recurring distributions puts a borrower in the strongest documentation position. If no distributions have been received, the equity grant agreement and current vesting schedule are the most relevant documents to have ready.

Do I need to document the company’s valuation myself?

In most cases, no. Lenders who work with private RSU programs are familiar with the major qualifying companies and can confirm valuation through publicly available information. For less widely known companies, the lender will guide you through what additional documentation is needed. The most an employee typically needs to provide is a link to a recent press article confirming the funding round, or a letter from HR if the company is not widely covered.

How far back does my income history need to go?

Two years of documented income history is generally the strongest position. For RSU income specifically, two years of W-2s showing distributions establishes a pattern that lenders can evaluate. Twelve months is typically the minimum. For borrowers with less than twelve months of RSU distribution history, the file will rely more heavily on base salary. How Fannie Mae and Freddie Mac Treat RSU Income in 2025

Can any mortgage broker access the private RSU program?

No. Access to portfolio lenders who offer private RSU programs is not universal. Most retail banks and direct lenders do not offer these programs. Working with a mortgage broker who has established relationships with the right portfolio lenders is important. Bridgepoint Funding has direct access to portfolio lenders with programs designed for this borrower profile, which is part of what makes this type of loan possible for qualifying borrowers.

How is this different from a jumbo loan?

A jumbo loan is any loan that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac. Jumbo loans can be conventional in structure, and many jumbo lenders still follow agency-style income guidelines that require publicly traded stock for RSU income. A private RSU portfolio program is a specific product designed to evaluate private equity compensation, which is a different issue from loan size. A borrower may need both a jumbo loan and a portfolio RSU program, or they may need one but not the other, depending on their situation.

How long does the process take compared to a standard mortgage?

A private RSU mortgage through a portfolio lender typically takes somewhat longer than a conventional loan because the underwriting is more manual. The additional time is generally in the underwriting review stage rather than in processing or closing. Having a well-organized file ready at the time of application is the most effective way to keep the process moving efficiently.

Should I wait for an IPO before buying?

That depends on your timeline, the loan amount you need, and when the IPO is realistically expected. Waiting for an IPO opens up conventional loan options and may provide more competitive terms. But an IPO that is a year or more away means a significant delay. For borrowers whose base salary is sufficient to qualify today, or who qualify through a portfolio lender program, waiting may not be necessary. The conversation with a lender can help you model both scenarios before making a decision. Tender Offers, Liquidity Events, and Timing Your Home Purchase

What does the process look like with Bridgepoint Funding?

The starting point is a conversation about your employer, your compensation structure, and your home purchase goals. Bridgepoint Funding assesses whether the employer and borrower profile meet the criteria for a portfolio lender program and identifies the most appropriate lender based on the specifics of the file. From there, the process follows the standard mortgage application path, with additional documentation gathered for the RSU income side of the file.

What information should I have ready for an initial conversation?

Company name and approximate current valuation. Your base salary and a general sense of your RSU grant size and vesting schedule. Whether you have received any distributions from tender offers or secondary sales, and if so, the approximate amounts and the years in which they were received. The loan amount you are looking for and a general sense of your target purchase price. That is enough to have a productive initial conversation about what may be possible.

Bridgepoint Funding works with private RSU borrowers at large private companies and has direct access to the portfolio lender programs designed for this type of compensation. If you have questions that were not answered here or want to understand what your specific situation looks like, reach out at (925) 478-8630 or at bpfund.com. That conversation is the right starting point.

• Using RSUs to Qualify for a Mortgage: The Complete Guide for 2025
• How Fannie Mae and Freddie Mac Treat RSU Income in 2025
• Top 7 RSU Mortgage Mistakes to Avoid in 2025
• Documentation Checklist: Proving RSU Income for Mortgage Approval
• The Future of RSUs in Mortgage Lending: What Borrowers Should Expect

Mike Trejo is the Broker/Owner of Bridgepoint Funding, a residential mortgage brokerage based in Pleasant Hill, California. With more than 20 years of experience in the mortgage industry, Mike has helped thousands of borrowers navigate the home loan process, including many healthcare professionals and travel nurses with non-traditional income profiles.

Mike founded Bridgepoint Funding in 2006 and is consistently ranked among the Top 1% of Mortgage Loan Originators nationwide. Reach out at (925) 478-8630 or visit bpfund.com.