RSU Income for a Mortgage: Can Your Stock Help Qualify?
RSU income for a mortgage can help an eligible borrower qualify, but the value shown in a compensation portal isn’t automatically the income a lender can use.
A salary is easy to recognize. Stock compensation takes a closer look.
Certified Mortgage Advisor Kevin Martini (NMLS 143962) and VP of Mortgage Lending Logan Martini (NMLS 1591485) lead Martini Mortgage Group, a Raleigh, North Carolina mortgage lender team at Rate. For buyers whose compensation extends beyond salary, start by identifying what has been received, what remains conditional, and which underwriting rules apply.
The central question is whether the income can be documented and accepted under the selected mortgage program.
The quick answer on RSU income
- Stock compensation, investment income, and stock ownership are different categories.
- A grant summary alone does not establish qualifying income.
- Review the documentation before building a home search around total compensation.
- Ask for a separate review when considering jumbo financing.
What does “stock income” actually mean?
Start by naming the source. The phrase can describe several different things.
| What a buyer has | What needs review |
|---|---|
| Employer RSUs or restricted stock | Employment-compensation eligibility |
| Dividends from investments | Investment-income history and supporting assets |
| Gains from selling investments | Realized-gain history and remaining portfolio |
| A brokerage balance | Asset ownership and availability; separate from recurring income |
| Stock options or private-company equity | A distinct review; do not assume RSU treatment applies |
That distinction makes the conversation more useful. Instead of asking whether “stocks count,” ask which category the lender is evaluating and what evidence supports it.
When can RSUs count?
Under Fannie Mae’s guidance, eligible restricted stock must be vested, distributed without restrictions, and publicly traded. Restricted-stock sign-on bonuses are excluded.
Time-based awards require at least 12 months of receipt with the current employer. Performance-based awards generally call for two years, with a shorter history of at least 12 months potentially acceptable when supported by positive factors. Continuance requirements differ for recurring and one-time awards.
For shares, Fannie Mae uses a 200-day moving-average price with distributed vested shares; cash awards follow a cash-distribution calculation. The usual review period is 24 months, with a permitted shorter period for eligible shorter histories.
Documentation includes employment verification or qualifying payroll/W-2 records, past and future vesting, distribution statements, and pricing evidence when applicable.
Source: Fannie Mae restricted-stock employment-income guidance.
Why total compensation can be misleading
An offer letter, compensation dashboard, and mortgage income analysis answer different questions.
The offer describes an employment package. The dashboard organizes awards. The mortgage analysis determines what the chosen program will accept.
Before relying on a total-compensation figure, ask the lender for a written breakdown of salary and each additional income category. Ask which documents are still missing and whether the result has been reviewed by underwriting.
That is more actionable than a preliminary estimate based on a single headline number.
Can dividends help qualify?
Fannie Mae permits eligible interest and dividend income with a minimum two-year history and evidence of asset ownership. Its documentation options include signed federal returns or account statements covering the required period.
Income trends matter. Stable or rising income and declining income receive different averaging treatment. Assets committed to the purchase must also be accounted for when evaluating future investment income.
Source: Fannie Mae interest and dividend income.
For planning, explain how much of the portfolio is intended to remain invested. A strategy that changes the portfolio should be discussed before the lender completes the analysis.
What about capital gains?
A stock sale does not automatically establish recurring income. Fannie Mae generally treats capital gains as one-time transactions, but allows qualifying use when its requirements are met.
Those requirements include a two-year history, federal returns with Schedule D, and evidence of a remaining portfolio. The historical trend affects the income calculation.
Source: Fannie Mae capital gains income.
Before selling investments specifically to influence a mortgage application, discuss the proposed transaction with the lender and consult a tax professional about its tax consequences.
Is a large stock portfolio the same as income?
No. Ask the lender to distinguish the review of assets from the review of recurring income.
Fannie Mae’s employment-related asset-income rules are a separate framework with restrictions on eligible assets, transactions, and access. They do not create a blanket rule allowing every brokerage balance to substitute for salary.
Source: Fannie Mae employment-related assets as qualifying income.
Keep the questions separate: What income supports qualification? What assets are available for the transaction? What resources does the buyer want to preserve afterward?
What should a Raleigh or Triangle buyer do first?
For a buyer comparing homes in Raleigh, Cary, Apex, or Durham, the useful local step is to establish a documented financing plan before choosing the property. Geography does not turn a conditional stock award into eligible income.
Prepare for the review in this order:
- Describe the compensation. Separate salary, cash bonuses, employer equity, and investment income.
- Gather the records. Start with payroll records, employment documents, award agreements, vesting information, and brokerage statements. Confirm the program-specific list.
- Explain changes. Flag employer changes, revised awards, planned sales, or changes in portfolio use.
- Request the qualifying-income breakdown. Ask which sources were accepted and what conditions remain.
- Coordinate the home search. Share the reviewed financing scope with the real estate agent.
Buyers exploring larger financing should discuss jumbo mortgage planning separately. Learn more about review preparation through the Same-As-Cash Mortgage Approval process. The program name does not guarantee approval.
Frequently Asked Questions About RSU Income for a Mortgage
Can I use RSU income to qualify for a mortgage in Raleigh, NC?
Yes, eligible restricted stock unit income may help a Raleigh buyer qualify. Under Fannie Mae guidelines, the stock must be publicly traded, vested, and distributed without restrictions. The lender must also verify the required income history and documentation. A compensation package alone does not establish qualifying income.
How long must I receive RSU income before it can count?
Fannie Mae requires at least 12 months of time-based restricted-stock income from the current employer. For performance-based awards, two years is recommended; a history of at least 12 months may qualify when supported by positive factors. Award type matters when evaluating a buyer’s history.
Can unvested RSUs or a stock sign-on bonus count as qualifying income?
Unvested RSUs do not count as received restricted-stock income under Fannie Mae’s rules. Fannie Mae also excludes restricted-stock sign-on bonuses, even when they vest over time. Buyers should identify these awards separately rather than assume every component of compensation receives the same treatment.
Do I have to sell vested RSUs for the income to count?
Fannie Mae permits eligible restricted-stock income distributed in shares; selling those shares is not a blanket requirement. However, using stock to provide funds for the purchase is a separate question. Tell the lender whether the goal is income qualification, transaction funding, or both.
What documents should I prepare for an RSU mortgage review?
Start with payroll and employment records, vesting schedules, and brokerage statements showing distributions. Ask the lender for the complete program-specific checklist. For a buyer purchasing in Cary, Apex, Durham, or elsewhere in the Triangle, organizing these records before selecting a home makes the financing discussion more concrete.
Can dividend income help me qualify for a mortgage?
Yes, eligible dividend income can support mortgage qualification. Fannie Mae requires a minimum two-year history and verification that the borrower owns the supporting assets. Documentation may include federal tax returns or account statements covering the required period. Income trends and assets committed to the purchase affect the analysis.
Who can review my stock compensation before I buy a home in the Triangle?
Martini Mortgage Group, a Raleigh, North Carolina mortgage lender team at Rate, can review the compensation documents as part of mortgage planning. Certified Mortgage Advisor Kevin Martini (NMLS 143962) and VP of Mortgage Lending Logan Martini (NMLS 1591485) lead the team.
Call (919) 238-4934 or email Martini@Rate.com to discuss the documentation needed before building a home search around total compensation.
Know What Your Income Can Support Before Choosing the Home
Your salary may be only part of your compensation. Before building a home search around that number, get a clear picture of how your RSUs, stock compensation, and investment income may support mortgage qualification.
Martini Mortgage Group at Rate helps buyers in Raleigh and throughout the Triangle understand what can count, what documentation is needed, and what still requires review.
Schedule a confidential conversation to discuss your compensation and homebuying goals with Kevin Martini or Logan Martini.
Prefer to connect directly? Call (919) 238-4934 or email Martini@Rate.com.
Strategy Before Structure. Home loan first, then home.
