Same Salary, Different House: How RSUs Change Your Mortgage

In Bellevue and Redmond, your RSU grant is often the difference between the house you want and the one you settle for — but most tech buyers don't know their stock can count toward their mortgage at all. The catch: lenders only count the portion of that stock income they can verify is ongoing, and the rules vary by lender. Here's what determines whether yours help you qualify, and exactly what to gather before you apply.

The two mistakes I see most

When a first-time buyer in Bellevue, Kirkland, or Redmond sits down with me, the conversation usually starts with one of two wrong assumptions.

The first is that RSUs don't count at all. If you're under the impression that only your base salary matters, you might be shopping for far less house than your income actually supports — and that can be a costly miss in this market.

The second is the opposite: that all of it counts. Someone hands me a grant amount and assumes the full number lands on their income line, then gets a surprise at underwriting when the lender counts only a portion.

The truth sits between the two, and it's worth understanding before you look at a single listing.

How lenders generally look at RSU income

A restricted stock unit pays out shares once it vests, usually in scheduled chunks over a few years. Because that income rides a stock price, lenders don't simply take your grant letter and call it a day.

Three things generally matter most: a history of actually receiving this income consistently, not a one-time award; evidence more shares are still coming, via a vesting schedule and grant agreement; and how the income averages over time, since a single year's payout tells little.

How lenders combine those pieces varies by loan program and by lender — one may count a large share of your stock income, another far less. The number that matters isn't what a coworker's lender said; it's what your lender will say about your specific situation. That's why a conversation before you shop beats guessing.

If you've wondered whether taxes on RSUs complicate this, they can — but that's a conversation for your tax professional, not me.

Income versus assets: know the difference

There's a meaningful line between stock that counts as ongoing income and stock that counts as money in hand. Once RSUs have vested and you've sold the shares, they stop being "income" in the lender's eyes — but the cash in your bank account can still help.

That money may support your down payment and your reserves, the savings a lender likes to see you hold after closing. Vested-and-sold stock (and employee stock purchase plan, or ESPP, shares you've already bought) can work the same way as liquid funds you can point to.

So don't assume that just because a chunk of stock income doesn't qualify as pay, it's useless. In a strong offer situation on the Eastside, having solid funds available is often what separates a buyer who can move from one who's stuck watching homes go.

Once you've grasped the income-versus-assets split below, this table is the quick reference that ties it together — which treatment fits you and why.

What to gather before you apply

Walk into your first mortgage conversation with these five things, and you'll save yourself a round of back-and-forth:

• Vesting schedule — shows when your remaining shares pay out.

• Grant agreements — the documents that spell out what you were awarded.

• Recent pay stubs — a few months' worth that show stock compensation arriving.

• W-2s — past years' forms that document a history of this income.

• Brokerage statements — to show the cash from shares you've already sold.

Having these ready doesn't just speed things up. It gives your lender the full picture of your compensation, which is the best shot at having it counted fairly.

A story you might recognize

A first-time buyer came to me convinced she topped out at $1,000,000 — the most her base salary alone could support. But her stock income had a solid history, with more shares still vesting. Once we counted it, she qualified for about $1,200,000.

She didn't max out. But she chose a home that fit her life better than the one she'd planned around.

Buydowns still apply

Here's a useful piece to carry with you: qualifying with stock income and getting a competitive rate are two separate questions. Buyers who qualify with RSUs can still negotiate a seller-paid buydown to lower their rate — a separate step that runs alongside qualification.

If you've been watching rates and wondering whether there's room to make a payment more manageable, a seller-paid buydown is worth asking your lender about when you get to that point.

Ready to find out how your compensation counts?

I'm Tami Bill, a mortgage advisor with 20-plus years of local experience. I work with buyers across Seattle, the Eastside, and Kitsap County — and I've arranged conventional and jumbo loans for Eastside tech buyers, plus FHA and VA loans for buyers across the region, including Kitsap County. If you'd like a free review of how your stock compensation would be counted, reach out for a rate consultation or pre-approval.

Has your stock compensation ever come up when you talked to a lender? Did it help, or did it cause a headache? Tell me in the comments — I read every one.

Know a coworker thinking about buying? Send them this before they talk to a lender.

Tami Bill, Mortgage Advisor — NMLS# 4038

Cornerstone First Mortgage, LLC (Future First powered by Cornerstone First Mortgage, LLC) — NMLS# 173855

Interest rates and loan terms are subject to change without notice. This article is for educational purposes only and is not a commitment to lend, an offer of credit, or a guarantee of approval. Income eligibility, including stock-based compensation, varies by loan program, lender, and borrower. This article is not tax advice; consult a tax professional about your situation.