Tech Income and Mortgages: RSUs and Bonuses

If you work in tech, your compensation package probably looks very different than a traditional 9-to-5 paycheck. Between base salary, signing bonuses, performance bonuses, and Restricted Stock Units (RSUs), your total income can swing a lot from month to month.

That structure can be great for building wealth, but it can make the mortgage process feel confusing. Lenders view variable income (bonuses and stock compensation) differently than guaranteed base salary. Some lenders will count RSUs and bonuses as qualifying income, while others will not. And even among those who do, the calculation can vary.

If you are thinking about buying a home, the key is knowing how to “translate” your tech income into something an underwriter can confidently approve.

The Big Picture: What Underwriters Are Looking For

No matter the loan type, underwriting usually comes back to three questions:

Is the income verifiable in documents the lender can use?
Has it been stable and consistent over time?
Is it likely to continue after you close?

Base salary is usually straightforward because it is fixed and easy to document. Variable income like bonuses and RSUs requires more work because it demands a history, an explanation, and solid documentation.

The main goal is to prove that the income is not a one time spike. Underwriters want to see a pattern.

RSUs: It Is All About Time and Continuity

RSUs are a major part of many tech compensation packages, especially in high cost markets where buyers are trying to qualify for a larger purchase. But you generally cannot show a lender your unvested grant balance and call it income.

1) Only vested RSUs count

In most cases, lenders will only consider RSU income that has actually vested and been received by you. Unvested RSUs are a future promise, not usable income today.

Once RSUs vest, they can help in two ways:

As income (if there is enough history and documentation)
As assets (for down payment funds and reserves)

2) The vesting schedule matters

Lenders typically want to see a pattern of RSUs vesting and a reasonable expectation that vesting will continue after closing. That usually means you will be asked for some combination of:

RSU grant agreement and vesting schedule
Paystubs showing vesting events and year to date totals
W2s showing stock compensation reported as income
Brokerage statements showing the shares were received (and possibly sold)

This is why tech buyers sometimes feel surprised. Your total comp might be obvious to you, but the lender needs a paper trail that clearly ties vesting to actual received income.

3) The “stability” rule and how long history matters

Many lenders prefer seeing up to two years of RSU vesting history before they count it as qualifying income. Some will accept a shorter history in strong files, especially if the RSUs are time based and the documentation is clean. Other lenders will be stricter.

Also, it is common for lenders to want to see some evidence that vesting will continue after closing. Some may look for a meaningful runway in the vesting schedule, while others are satisfied with proof that your employer regularly grants refreshers or additional awards.

The point is not to make it complicated. The point is to show continuity, both past and future.

4) How lenders calculate RSU income

Even if your shares are worth a lot today, lenders often take a conservative approach because stock prices move. Common approaches include:

Averaging the RSU income over 12 to 24 months
Using a conservative stock value rather than assuming today’s price will stay the same
Smoothing out big vest months so the qualifying number is more stable

Example: If you had $120,000 worth of RSUs vest over 24 months, a lender might treat that as $5,000 per month ($120,000 divided by 24) instead of giving full weight to a single large vest event.

Practical RSU takeaway

If you have a strong, consistent RSU vesting history, it can meaningfully increase your buying power. If you are newer to RSUs or the vesting has been irregular, your RSUs may be more valuable as assets (down payment and reserves) than as qualifying income. Either way, they can help. The strategy just changes.

Bonuses: The Two Year Rule (and Why Trends Matter)

Bonuses are another common tech income source that can boost qualifying power, but they are treated as variable income.

1) Two year history is the common standard

Many lenders typically want to see a two year history of receiving bonus income before counting it. If you earned a large bonus last year but did not receive one the year before, the underwriter may treat it as unreliable and exclude it.

Some scenarios can get exceptions, especially if the overall file is strong, the borrower is in a stable role, and the bonus structure is clearly documented. Still, planning around a two year history is the safest assumption.

2) Bonus income is usually averaged

Even with a solid history, bonus income is typically averaged over the time period being evaluated.

Example: If you received $20,000 last year and $30,000 this year, a lender might average it over 24 months and count roughly $2,083 per month.

3) Declining bonuses are treated conservatively

Trends matter. If bonuses are declining year over year, many underwriters will use the lower, most recent amount rather than a higher average. This is one of the most common “surprises” for high earners who assume last year’s strong bonus will automatically carry their qualifying.

Practical bonus takeaway

If your bonus is a major part of your affordability, talk about it early in the pre approval process. A good lender will tell you whether it will count, how it will be calculated, and what documentation is needed.

Financing Type: Why the Rules Can Change

Not all mortgages are underwritten the same way. The rules for counting tech income can change depending on the financing type and the lender’s overlays.

1) Conventional Loans (Fannie Mae and Freddie Mac)

Conventional loans are often the best fit for tech buyers because they handle W2 income cleanly and can work well with documented variable compensation.

Typical approach:

Base salary: documented with paystubs and W2s
Bonuses and RSUs: can be counted with sufficient history, documentation, and likely continuance
Calculations: usually averaged and treated conservatively

Best for: Buyers with strong W2 income and at least a year or two of consistent variable pay patterns.

2) FHA Loans

FHA loans can be great for low down payment or more flexible credit profiles, but they often feel more strict on variable income.

Typical approach:

Base salary: straightforward
Bonus income: usually requires a strong history and a clear likelihood to continue
RSUs: often harder to count as income unless history and documentation are very strong

Best for: Buyers who qualify comfortably on base pay and want FHA benefits, with variable income acting as extra support rather than the core qualifier.

3) VA Loans

VA loans focus on stable, reliable income and overall ability to repay, including residual income considerations.

Typical approach:

Base salary: straightforward
Variable income: can be used, but lenders often take a conservative stance on stability and continuance
Strong overall file: can help, especially if the borrower has solid cash flow and reserves

Best for: Eligible buyers with strong base income and well documented variable income that is consistent.

4) Jumbo Loans

Jumbo loans vary by lender since there is no single universal rulebook. Many jumbo lenders are more conservative with variable income because the loan amounts are larger.

Typical approach:

More documentation
More emphasis on reserves
Often a stronger preference for two years of history on variable income
Some lenders will apply “haircuts” to variable income to account for volatility

Best for: Higher price point purchases where the borrower has a strong base salary, consistent variable income history, and significant post closing liquidity.

5) Portfolio and Non QM Loans

Portfolio and Non QM loans can offer more flexibility because the lender is not forced to follow the same guideline structure as agency or government loans.

Typical approach:

May consider shorter RSU history in strong profiles
May evaluate consistent deposits from stock vesting in a more practical way
May use assets and reserves more heavily in approval logic

Best for: Buyers with complex income timing, shorter RSU history, large assets, or scenarios where conventional and jumbo guidelines feel too restrictive.

Trade off: Flexibility often comes with higher rates, different terms, or bigger down payment requirements.

Common Mistakes Tech Buyers Can Avoid

1) Assuming your W2 tells the whole story

Your W2 may show a high number, but it may not clearly explain the pattern behind your bonuses and stock income. Underwriters still need the supporting documentation to use it.

2) Waiting until you are under contract to ask how RSUs and bonuses count

If RSUs or bonuses are needed to qualify for the home you want, you should confirm the rules before shopping seriously. This can prevent pricing yourself into a payment you cannot qualify for on paper.

3) Selling RSUs for down payment without a clean paper trail

Selling RSUs for down payment is common and acceptable, but lenders need documentation:

Proof of sale
Proof of proceeds landing in your brokerage or bank
Proof of transfer into the account used for closing

Avoid last minute moves and keep your statements and confirmations.

4) Changing jobs or compensation structure mid transaction

Tech buyers often switch roles. A job change can be fine, but it can also trigger extra verification or recalculations. If you are close to closing, it is worth talking through the timing with your lender.

Quick Checklist: What to Gather Before Pre Approval

Last 2 years W2s
Most recent 30 days paystubs
Bonus history (paystub breakdown and or year end summaries)
RSU grant documents and vesting schedule
Most recent 1 to 2 months brokerage statements
Offer letter if you recently started a new role

Having this ready helps your lender calculate a realistic qualifying number early, which makes the entire purchase smoother.

Bottom Line

Buying a home with a tech compensation package is absolutely doable, but you have to translate your income into terms a mortgage underwriter can understand and trust.

RSUs come down to vested history, documentation, and continuity. Lenders often average the income and apply conservative assumptions due to stock volatility.
Bonuses are typically treated with a two year history mindset and are commonly averaged, with declining trends often counted at a lower figure.
Loan type matters because conventional, FHA, VA, jumbo, and portfolio lenders can treat variable income differently.

The smartest move is to map out your qualifying scenario by financing type before you start house shopping. If you want, share a simple breakdown of your comp (base, bonus, RSU vest frequency, and how long you have received each), and I can help you outline how this usually plays out under conventional vs FHA vs VA vs jumbo, plus which documents will matter most.

This blog post is intended for general informational purposes only and should not be relied upon as financial, tax, or legal advice. Mortgage qualification depends on individual circumstances and a full underwriting review of income, assets, credit, and property details. Guidelines, programs, rates, and requirements vary by lender and may change without notice. Nothing in this post is a commitment to lend. Please consult a qualified tax or legal professional regarding your specific situation, and contact our team for a personalized mortgage review.