Tech Employee Home Loans
Maximize your buying power with RSU income, stock options, and equity compensation. Specialized mortgage guidance for tech professionals.
Quick Answer
Tech employees can use RSU vesting schedules, stock options, and equity compensation as qualifying income for mortgage approval. Lenders typically require a 2-year vesting history and current grant documentation. Joshua Donion specializes in helping tech professionals maximize their buying power.
How Tech Compensation Works for Mortgage Qualifying
Tech compensation packages are fundamentally different from traditional salary-based pay. A typical tech employee at a major company receives a base salary plus a significant portion of total compensation in equity: restricted stock units (RSUs), stock options, or other equity instruments. This equity component can represent 30-60% or more of total compensation.
The challenge is that most mortgage lenders do not know how to properly underwrite equity compensation. Standard underwriting guidelines require a two-year history of receiving the same type of income, and the way RSU income appears on tax returns and pay stubs varies significantly between companies and vesting schedules.
Joshua Donion has extensive experience working with tech employees and understands how to document and present equity compensation to maximize your qualifying income. This expertise can mean the difference between qualifying for a $600,000 loan and a $1.2 million loan.
Tech Compensation Types & How They Qualify
Each type of equity compensation is evaluated differently by mortgage underwriters.
Restricted Stock Units (RSUs)
RSUs are the most common equity compensation in tech. Lenders count RSU income by averaging the vested amounts shown on your W-2 or pay stubs over the most recent two years. The key is documenting a consistent vesting history and current grant schedule to show continuance.
Stock Options (ISO & NSO)
Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NSOs) can be used as qualifying income if you have a two-year history of exercising and selling. Unrealized gains from unexercised options are not counted. The income is calculated from the actual proceeds shown on tax returns.
ESPP (Employee Stock Purchase Plan)
Income from selling shares purchased through an ESPP can be documented as recurring income if you have a two-year history of participation and sales. The discount received on ESPP shares is treated as ordinary income on your W-2.
Signing Bonuses
One-time signing bonuses are generally not counted as qualifying income because they are not recurring. However, a signing bonus can be used as funds for the down payment and closing costs. If your company provides recurring annual bonuses, those may qualify with a two-year history.
Annual Cash Bonuses
Performance-based cash bonuses can be included in qualifying income with a two-year history. Lenders average the most recent two years of bonus income. If the most recent year is significantly lower, the lower amount may be used. Documentation includes pay stubs and W-2s.
Equity Refresh Grants
Annual refresh grants that add to your existing RSU or option pool demonstrate income continuance. While lenders primarily use historical vesting data, current grant documentation showing future vesting strengthens the case for using equity income.
How Lenders Evaluate Tech Income
Understanding the underwriting methodology helps you prepare the right documentation and set realistic expectations for your qualifying income.
Two-Year Vesting History
Lenders require a minimum two-year history of receiving equity compensation. This is documented through W-2s, tax returns, and pay stubs showing RSU or stock option income over the prior 24 months.
Current Grant Documentation
Your current equity award agreement or grant schedule demonstrates that equity income will continue. Lenders look for active grants with remaining vesting dates to establish income continuance.
Averaging Methodology
Most lenders average your equity income over the most recent two years. If your most recent year is lower than the prior year, some lenders use the lower year. If it is trending up, the two-year average is used. Proper presentation of this data is critical.
Stock Price Volatility
Lenders may apply additional scrutiny if the company's stock price has been volatile. A significant drop in stock price between the vesting date and application date could affect the income calculation. Timing your application strategically can help.
Company Stability
Publicly traded companies with established stock programs are straightforward. Pre-IPO companies or startups with private stock require additional documentation and may be treated differently depending on the lender.
Markets & Companies We Serve
Joshua Donion works with tech professionals across the country, with deep expertise in major tech hubs.
Seattle / Bellevue
Amazon, Microsoft, Meta, Google, and the broader Puget Sound tech ecosystem. Deep experience with Amazon RSU vesting schedules (5/15/40/40) and Microsoft equity programs.
San Francisco / Bay Area
Apple, Google, Meta, Salesforce, and Silicon Valley startups. Familiar with Bay Area jumbo loan requirements and high-cost area conforming limits.
Austin, TX
Tesla, Apple, Google, Meta, Oracle, and the growing Austin tech scene. Texas-specific lending requirements and no state income tax considerations.
Nationwide Remote Workers
Remote tech employees purchasing in any state. If you work for a major tech company and receive equity compensation, Joshua can help regardless of your location.
Pre-IPO & Startup Employees
Employees at late-stage startups with ISO or NSO grants. While pre-IPO equity cannot be used as qualifying income, Joshua can help structure your application using base salary, cash bonuses, and other documented income.
Tech Executives & Leadership
Directors, VPs, and C-suite executives with complex compensation including deferred comp, performance shares, and large equity packages. Jumbo and super-jumbo loan programs available.
Frequently Asked Questions
Can I use my RSU income to qualify for a mortgage?
Yes, if you have a two-year history of RSU vesting and can document current grants that show the income will continue. Lenders will average your RSU income over the most recent two years using your W-2s, tax returns, and current grant documentation. Joshua specializes in presenting RSU income to maximize your qualifying amount.
How does Amazon's back-loaded vesting schedule affect my mortgage?
Amazon RSUs vest on a 5/15/40/40 schedule over four years. In your first two years, the vesting amounts are lower, which means your two-year average for mortgage qualifying will be lower. If you are in year three or four, your recent vesting is much higher and the two-year average works in your favor. Timing your application strategically can significantly impact your buying power.
What if I just started a new job with a large equity package?
If you do not have a two-year history of equity income at your current employer, lenders may still count equity income if you had similar compensation at a previous employer. The key is demonstrating a two-year continuity of receiving equity-based income, even if the employer changed. Joshua can help determine what income can be counted based on your specific history.
Can I use unvested RSUs or unexercised options for my down payment?
No. Only vested and liquidated equity can be used for down payment and closing costs. You need the funds in a bank or brokerage account. If you plan to sell shares for your down payment, allow time for settlement (typically T+1 for stocks) and transfer to your bank account. Lenders will need to document the source of the funds.
Do I need to sell my stock to use it as income for qualifying?
Not necessarily. For RSUs, the income is counted when they vest, regardless of whether you sell the shares. The vesting event creates W-2 income that lenders can use. However, for stock options, you typically need to have exercised and sold to create documentable income. The distinction between RSU vesting income and option exercise proceeds is important for underwriting.
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