Less buying power due to rise in interest rate. Any lenders who consider RSUs for mortgage limit??
My banker just told me I can only afford up to $3.4M purchase price, down from $3.75M a month ago. Perfect example of reduced affordability which could be a headwind to house prices. This is primarily since interest rates have gone up and I have reached the 43% debt limit (based on my base and bonus). Does any major bank consider invested RSUs as income to determine mortgage limit? More than half of my salary is in RSUs.
What’s your Total comp tho?
US bank did consider Total comp, including RSU and dividends
Total household comp is 800k in current market conditions.
Why do you want to bid more than $3M + with that TC. Wouldn’t it be a stretch
Yes but only if vested. Otherwise it’s like telling the bank “yeah one day I’ll be rich, just wait” It’s not guaranteed income
I meant unvested rsus. Vested rsus are just the same as stock holdings (subject to some level of insider trading restrictions).
At that price point what is an extra $350k gonna do?
I missed bidding on a reasonably good house in Palo Alto which I know went for 3.7. Maybe for my own good though.
What’s your tc breakdowns
If your affordability has been reducing with price increases maybe you’re overstretching? I’ve been reducing my purchase/offer price as well with rise in rates but that’s because I don’t want to cross a certain monthly payment threshold but not because my bank says I no longer qualify at my initial max price.
@OP: eBay pays 800k?!
many lender have RSU programs that allow counting of this income ..most require verification that its been received for 2 yrs and also that it can be verfified to continue for 3 more yrs
Wells Fargo and Key Bank?