I couldn’t use RSU income due to not having 2 years at company. Is it - 2 years from join date (late 2024) - 2 years from initial grant (late 2024) - 2 W2 incomes with a vest (Jan 2025) - 2 years from first vest (late 2025) Lender couldn’t answer and said to try again on my 2 year anniversary 🤷🏼♂️ 170 base 380 total Looking at financing 1.1m
Depends on the lender. My experience was that most needed that you should have atleast one vest. Whatever is vested in a year will be considered. They also require that you have got an additional grant after the initial grant on joining
I have initial grant Promo Grant Annual Grant. One vest 2023, and several in 2024. So sounds like I need to find different lender
Lenders are looking at the prior two years at the time you apply for the loan. You need vesting to have occurred in that window for them to consider RSUs. Typically, the lenders discount them ~80%. If you need to sell RSUs to cover living expenses or mortgage payments, then you can’t afford the home.
It is 2 years from first vest. They don’t care when you joined. They just care about when the stock vesting started. I’m in a similar situation but I found a lender who has a higher DTI, so RSU timeline doesn’t matter much.
170 isn’t enough to qualify for much in Seattle. I can do down payment but a big one (300k) would take another 2 years. In that time houses will probably be up 15-20%
Google RSU and Fannie May guidance
2 years from the grant. So you get a $400 k four year grant then when you hit the 200k vested you should qualify. Most big banks like Wells Fargo accept this. DM if you want a lender referral
Most lenders I inquired told me that they could use if I have received the RSU from my "current" company in last 2 calendar years. They will take the minimum in last 2 calendar years and use that for qualification. Then apply some ratio(50% or 75% etc) to treat it as income. This ratio is used as stock values fluctuate. But this is very subjective and varies largely by lender.
You probably mean UNVESTED RSU. Obvi you cant use it.
You can use unvested RSU after 2 years in DTI calcs . Trying to date that requirement
This is highly specific to the lender. Usually they go by the actual vest date shown on your vesting schedule.