Buying house, RSU income
Hey guys, I'm planning on buying a house in Seattle area. I've talked to a few lenders, they told me they will only look at my base salary, they don't count RSU(which is significant part of compensation) as regular income. I'm wondering if you guys found a lender can count RSU as income? Comment or PM me thanks!
The lender is doing the right thing. Rsus are volatile. The company can drop half its value in a year if something goes south. Trust the lender, use only your base to get a home loan. Use the vested rsus for downpayment or pay down later only. Recession starts when doing dumb decisions like giving loan off rsu income.
You could also get fired! All lending has risk. Discounting RSUs from public companies is dumb!
You need at least two years of tax income returns with RSU income on them for it to be counted.
Wells Fargo counts RSU as income. You can talk to Kelly Dodd @Wells Fargo at Bellevue
I would get the maximum loan based on your base salary.
That means pretty much no houses in seattle given amazon’s base.
1) have multiple years of data 2) put down 20% 3) I’ve gotten 4 loans and all accepted the RSU’s - but I had a long history to show and backup funds to use.
Irrespective of the lender, for your own good don't consider RSUs. If economy tanks, which could happen for any reason, you won't be able to pay your loan and might even default. Do not rely on the bank, from history, they've approved many bad loans and buyers paid the cost. I've seen this happen to a lot of people, even though they know the economy gets better they couldn't make payments at that moment because the RSUs are worth 90% less
But you could also get fired or laid off and lose your base salary, how are RSUs that different
@veronica. Based on what the OP described I believe it is easy to get the base salary in any case by finding a new job but RSUs are very volatile compared to Base salary so relying on them is bad. It is not guaranteed that in case of a job loss one could get similar amount of RSUs
Sell your vested RSUs and have that cash in your bank accounts for few months.. they can't ignore someone with huge bank balance..
Rsu are over 4 years, mortgage is 30. Banks want to see predictable income to justify the loan. When I shopped around they wanted 2 years worth of refreshers data to count it as recurring income
Salary is bimonthly - there is no guarantee , one would would be employed next month.
That is ridiculous! I think the lender needs to be educated in tech compensation. Can you imagine a banker only being evaluated on their base salary?
You mean lender?
Yep. Updated my response!