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How to Use RSU as income?

by Bananloans670 from Santa Ana, California. Mar 18th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Unfortunately, there are no standard guidelines for how lenders account for Restricted Stock Units when applying for a mortgage. Depending on your vesting, it can be used for reserves or for cash down payment, but for income.. there is no set guidelines to where it can be used,,, and lenders will most always take the most conservative approach... which means it wont be considered.. However, if you are 100% vested, and you transferred those shares into a brokerage account, then there are guidelines in place which will allow you to use those funds as income.. It's called "Depleted Asset" income.. Basically, take your account balance and divide it by 360 months.. The down side to this is that once you exercise your stock options, it now becomes income, and you would owe taxes on it..I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 19th 2018
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