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…
A standard mortgage application requires a set of documents that most borrowers are familiar with: pay stubs, W-2s, tax returns, bank statements, and a few others. For private RSU borrowers, those same documents are still required, but additional items are…
When a borrower applies for a conventional mortgage, the lender's primary focus is on the borrower's income, credit, and assets. The employer matters, but mainly as a source of income verification. For a private RSU mortgage, the employer is a…
Employees at private companies often receive RSU grants that look similar on paper to those at public companies. There is a vesting schedule, typically over four years. Shares are credited at regular intervals. The grant shows up in offer letters…
When a borrower with private RSU income applies for a mortgage at most lenders, the income documentation shows RSU compensation that cannot be included in the qualifying calculation. Understanding why this happens makes it straightforward to identify the right type…
A Common Question With a Complicated Answer An employee at a large private company sits down with a loan officer to discuss buying a home. The base salary is solid. The equity compensation is substantial. On paper, the total compensation…
Introduction Restricted stock units (RSUs) are no longer a niche form of compensation. In the tech industry and beyond, RSUs have become a major part of how employees are paid. As more professionals rely on stock grants for income…
Introduction Not all income is created equal in the eyes of a mortgage lender. While salary is the most straightforward, many borrowers rely on restricted stock units (RSUs), bonuses, or commissions to boost their qualifying income. The challenge is…
Introduction Restricted stock units (RSUs) can be a powerful tool for qualifying for a mortgage, but only if they are used correctly. Many borrowers make mistakes that cause lenders to exclude their RSU income or reduce their buying power…
Introduction When it comes to qualifying for a mortgage, documentation is everything. This is especially true if a significant part of your income comes from restricted stock units (RSUs). Unlike salary or hourly wages, RSU income requires more detailed…
