Trying to buy a house in Seattle, but my base is only $200k. Current bank, BECU, calculates my DTI on base, so I’d either have to put an insane amount down ($450k+) or essentially be priced out of single family homes in most central neighborhoods. Current TC is around mid 500s and would be fine if banks even valued stock at 50%. Trying to move fairly quickly as house prices seem like they’ve been steadily rising and I’m slowly being priced out.
Vested RSUs should be considered, unvested RSUs are not.
Chase considered my stocks just fine.
Did they apply a discount?
It’s part of the comp summary and your w2, so should be usable. My first mortgage was with BOA, and I had used them as additional income source.
Did something change recently?
Don't RSU's take a few years to vest? I'm not at a faang company, but at Nasdaq I don't get my RSU's for 3 years once they're awarded. Is amazon similar? In the eyes of taxes, once they vest, its income. Any additional profit you may make off them from that point to sell will be capital gains. Too, why use a bank for a mortgage, why not a mortgage broker? I've had better luck with mortgage brokers than banks. They're a lot more personal imo. Maybe they would understand your situation and see vested rsu as income (as i think they should, or at least consider it additional income) . Despite your income, you should always try to shoot for 20% down to avoid pmi. Are you trying to buy a 2.25 mil home on a 200k income? General rule is to keep your mortgage payment 28% or less of your monthly income.
At current interest rates with insurance and property tax, 55% DTI is around $9200/mo. Just working backwards from that, at 20% down, that maxes out at a $1.5m house, which doesn’t really buy a decent house that doesn’t need work in the neighborhoods (QA, Magnolia, Cap Hill, Wallingford, Montlake, Madrona, etc) I’m currently interested in, unfortunately.
Don’t just work with a single bank / credit union. BECU has pretty good rates but if you work with a broker they can almost certainly beat it. BECU is also notoriously slow to close.
Actually one of the things that turned me onto them was how quickly they’d be able to close. All offers are pre underwritten, so our offers usually aim to close within 21 days.
House prices going to decrease a lot. It’s a ticking bomb for sure.
While that’s a nice sentiment, there’s virtually no reason for that to be true in Seattle. Housing markets are regional. Inventory is abysmally low, most good houses are off the market in days, 1/3 offers are cash, etc. I’ve lost out on a few of homes already and all have had 3+ offers. There’s always going to be someone ready to buy here.
That’s how it starts. Wait and watch
US bank, Key Bank
Just went through this - DM me if interested in Mortgage Broker that can help
Find coworker who used had good luck borrowing against RSU recently