A straight answer
Can I refinance if my income includes RSUs and bonuses?
The direct answer
Often, yes. A refinance is qualified on the income a lender can count today, not on the file behind your current loan. I start with what changed since you bought: employer, grants, bonus, vesting dates. I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente.
I arrange loans with lenders and put the financing together. A refinance replaces your first mortgage with a new loan, and the written income rules read your pay as it is now, so a larger base salary with a smaller stock award is a different file from the one you had. Text or call me with what you are trying to accomplish, the property state and how your pay is made up today, and I will tell you what I need to review. I work with homeowners in California, Utah, Oregon and Arizona.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-16
Refinancing on stock and bonus income? Text me what changed since you bought, the property state, and how your pay is made up today.
No credit pull happens from a text or a call. Texts and calls go to Zach's cell.
What happens after you text me?
Texts go straight to my cell, and I answer them myself when I'm free. I'll ask for the few details that actually matter, tell you whether the structure looks worth pursuing, and explain the next step. If I don't think the loan fits, I'll tell you that too.
A text or phone conversation does not pull your credit.
What does a lender look at when I refinance with stock income?
The same income review a purchase gets. The CFPB defines a refinance as taking out a new loan to pay off and replace your old loan (CFPB, mortgages key terms), and the new loan is underwritten from scratch. Under Fannie Mae's restricted stock topic, the stock must have vested and been distributed to you without restrictions, a time-based award needs a twelve-month history from the current employer, a performance-based award carries a recommended two-year history, and the income is calculated from the distributed vested shares at a 200-day moving average price over the most recent twenty-four months, or from the cash paid out over the same period (Fannie Mae Selling Guide B3-3.3-07).
That is a rule for loans sold to Fannie Mae, not a rule for every lender. The RSU income page covers the history, continuance and documentation rules in full, including what the FHA and VA handbooks do and do not say. Requirements vary by program and lender, and I confirm which rulebook applies to your loan before anything is counted.
My base salary went up but my RSUs went down. How will a lender calculate my income?
Separately, and then together. Base salary counts as documented. Stock income is averaged over the lookback period, so a smaller recent grant lowers the average rather than erasing it, and the lender reads the vesting schedule for continuance: for a one-time time-based award, Fannie Mae requires documentation that income on the schedule is expected to continue for at least three years from the application date, while for recurring and performance-based awards the lender need not verify continuance unless it has reason to believe the income may not continue.
Two Fannie Mae rules decide the hard cases. When the lender is notified that you are transitioning to a lower pay structure, for example a new job, it must use the lower income amount in qualifying (B3-3.1-01). And when bonus or commission income is decreasing, the lender must confirm the level has stabilized after the decline, or the income is not eligible for qualifying at all (B3-3.3-02). So a shrinking bonus can count lower or not at all, and the question becomes whether base salary and the stock history carry the payment on their own. Often they do, and that is the first thing I check.
Can I refinance after changing employers?
Usually, once the new job has pay stubs. Fannie Mae's employment-offer topic has an option that qualifies a borrower on a signed offer before the first pay stub, but that option covers only a purchase of a one-unit principal residence qualified on fixed-base income, so a refinance waits for a pay stub from the new job before the loan is delivered (B3-3.3-03). Changing jobs is not a problem by itself: the guide treats borrowers who change jobs but still earn consistent and predictable income as having a reliable flow of income.
The stock clock is the part people miss. A time-based award needs a twelve-month history from the current employer under Fannie Mae's rule, so a new employer can reset that history even when the new package includes stock, and a sign-on grant that vests over time is not eligible as qualifying income under that topic. Read your old award agreement too, because unvested shares are often forfeited when you leave. Tell me the dates before you accept, and I will say what the move does to the refinance.
Should I refinance, pay down and recast, or leave the first mortgage alone?
It depends on what you are trying to accomplish, and I would rather compare the three than sell one. A refinance replaces the loan: under Fannie Mae's rules a limited cash-out refinance changes the rate or term and pays off the existing first mortgage with little or no cash back, and a cash-out refinance can also take equity out of the property for any purpose, subject to its own minimum ownership and loan-age conditions (B2-1.3-03). Either one is qualified on today's income.
A recast, where your servicer offers one, applies a lump-sum paydown and recomputes the payment without a new loan; the terms are the servicer's, and I would read your note and ask the servicer rather than assume. Leaving the first mortgage alone and adding a home equity line keeps your current rate and is qualified on the line program's own income rules. The keep-your-mortgage page covers that route. If you expect to move or change employers soon, say so, because a refinance has costs that take time to recover and a job change can change the income the lender counts.
Can my vested shares count as reserves without selling them?
Under Fannie Mae's rules, yes. Vested stocks, bonds and mutual funds are acceptable sources of funds for the down payment, closing costs and reserves when their value can be verified and your ownership is documented, and liquidation is not required when they are used for reserves (B3-4.3-01). The reserve topic lists non-vested stock options, non-vested restricted stock and stock held in an unlisted corporation among the sources that cannot be counted (B3-4.1-01). A jumbo program sets its own reserve rules, and the jumbo page covers that case.
What should I have ready before I ask?
- Your current mortgage statement, and what you want the refinance to do: a different rate or term, cash out, or a payment you can carry more easily.
- Your most recent pay stubs and your W-2s for the last two years, from every employer in that window.
- Award agreements and the current vesting schedule, and brokerage statements showing the shares or cash distributed in each of the last two years.
- Your bonus or commission plan, and what it paid in each of the last two years.
- Which state the home is in, whether you live there, and your monthly debts.
Send documents through the secure process I give you when we talk, not by ordinary text. A conversation does not pull your credit.
The stock compensation hub routes the rest of a salary, bonus and stock file to the right page, and the hard-to-qualify hub lists the other income situations I can review.
Questions people ask next
Do I have to sell my RSUs to refinance?
No, not to count the income. Fannie Mae's calculation uses the distributed vested shares and an average price, not a sale. Whether to sell any shares is a question about funds and taxes for you and your tax professional, not a condition I would set.
My bonus was cut this year. Can I still refinance?
Possibly, on base salary and the stock history alone. Under Fannie Mae's rule, decreasing bonus income counts only once the lender can confirm it has stabilized, so the first thing I check is whether the rest of your income carries the new payment without it.
Does an FHA or VA refinance count RSUs?
Neither handbook has a restricted stock provision. HUD Handbook 4000.1 defines employment income as income received as an employee reported on a W-2 and requires effective income to be reasonably likely to continue for three years, and the VA handbook asks for a history of receipt and three-year continuance. How a lender treats vested stock on your W-2 is that lender's reading of those rules, and I read the written reason before suggesting a different route.
Can I refinance a jumbo loan with stock income?
Often, and each program sets its own rule. A jumbo loan is not sold to Fannie Mae or Freddie Mac, so the calculation above does not automatically apply. I read the particular program's guideline, run its calculation on your statements and tell you the result before you decide.
Would a HELOC be simpler than refinancing?
Sometimes. If you want to keep your first mortgage and only need cash, a home equity line leaves the first loan alone and is qualified on the line program's own income rules. I look at both before suggesting either.
Will asking about this affect my credit score?
No. A text or a call does not pull your credit. An application is a separate step, and I tell you before it happens.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
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Sources and checked dates
Sources: Consumer Financial Protection Bureau, Mortgages key terms (checked 2026-10-16) · Fannie Mae Selling Guide, B3-3.3-07, Restricted Stock Units and Restricted Stock Employment Income (checked 2026-10-16) · Fannie Mae Selling Guide, B3-3.1-01, General Income Information (checked 2026-10-16) · Fannie Mae selling guide, B3-3.1-01, general income information (checked 2026-09-28) · Fannie Mae Selling Guide B3-3.3-02, Bonus, Commission, Overtime, and Tip Income (checked 2026-09-12) · Fannie Mae Selling Guide, B3-3.3-03, Employment Offers or Contracts (checked 2026-10-16) · Fannie Mae selling guide, B3-3.2-02, standards for employment-related income (checked 2026-09-28) · Fannie Mae Selling Guide, B2-1.3-02, Limited Cash-Out Refinance Transactions (checked 2026-10-16) · Fannie Mae Selling Guide, B2-1.3-03, Cash-Out Refinance Transactions (checked 2026-10-16) · Fannie Mae Selling Guide, B3-4.3-01, Stocks, Stock Options, Bonds, and Mutual Funds (checked 2026-10-16) · Fannie Mae Selling Guide, B3-4.1-01, Minimum Reserve Requirements (checked 2026-10-16) · HUD Handbook 4000.1, Update 18 (last revised August 12, 2026), II.A.4.c Income Requirements (checked 2026-10-16) · VA Lenders Handbook, VA Pamphlet 26-7, Chapter 4, Credit Underwriting (checked 2026-10-16).
Show each claim on this page, what it depends on, and the date it was checked (13)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| The CFPB's mortgage key terms glossary (page last modified December 28, 2022), entry "Mortgage refinance": "Mortgage refinance is when you take out a new loan to pay off and replace your old loan. Common reasons to refinance are to lower the monthly interest rate, lower the mortgage payment, or to borrow additional money. When you refinance, you usually have to pay closing costs and fees. If you refinance and get a lower monthly payment, make sure you understand how much of the reduction is from a lower interest rate and how much is because your loan term is longer." | Consumer Financial Protection Bureau, Mortgages key terms | 2026-10-16 |
| Fannie Mae Selling Guide B3-3.3-07, Restricted Stock Units and Restricted Stock Employment Income (10/07/2026): restricted stock units and restricted stock "are granted by an employer to its employees as a form of compensation based on either performance or time" and "can be awarded as either stock or an equivalent cash value." Eligibility: "Restricted stock must have vested and been distributed to the borrower without restrictions." "Sign-on bonuses received in the form of restricted stock that vest over any length of time are not eligible to be used as qualifying income." Income history: "Performance-based awards: A minimum two-year history is recommended; however, income received for a shorter period, but no less than 12 months, may be considered acceptable if there are positive factors to reasonably offset the shorter income history, such as future vesting equal or greater than previous vesting and that will continue for at least 24 months; or restricted stock income received for the previous 5 years from any employer." "Time-based awards: A minimum 12-month history from the current employer is required." Continuance: for performance-based awards and recurring time-based awards "The lender is not required to verify continuance unless they have reason to believe the income may not continue"; for one-time time-based awards "The lender must document that income on the vesting schedule is expected to continue for at least three years from the application date." Qualifying income, paid in shares: "(200-day moving average of share price x total number of distributed vested shares (pre-tax) in most recent 24 months) / 24 months"; paid in cash: "The cash distributed (pre-tax) equal to the total value of vested shares in the most recent 24 months / 24 months"; "When the borrower has a history of income ranging from 12-24 months, the lender may use the actual number of months the borrower has received the income rather than 24 months." Documentation: a completed Form 1005 showing restricted stock distributions, or the most recent paystub showing restricted stock income and two years' W-2s; "evidence stock is publicly traded; current vesting schedule reflecting past and future vesting; 200-day moving average stock price (for income paid in shares); and brokerage or bank statement showing receipt of previous year(s) distribution of restricted stock and, at a minimum, the number of vested shares or cash equivalent"; and a verbal verification of employment. | Fannie Mae Selling Guide, B3-3.3-07, Restricted Stock Units and Restricted Stock Employment Income | 2026-10-16 |
| Fannie Mae Selling Guide B3-3.1-01, General Income Information (10/07/2026): "A stable and predictable flow of income is a foundational element in loan underwriting. The lender must document income is stable, has a documented history of receipt, and is reasonably expected to continue." "If the income does not have a defined expiration date and the applicable history of receipt of the income is documented (per the specific income type), the lender may conclude that the income is likely to continue and the lender is not expected to obtain additional documentation, unless there is information to the contrary. If the income source does have a defined expiration date or is dependent on the depletion of an asset account or other limited benefit, the lender must document that the income is expected to continue for at least three years from the application date." | Fannie Mae Selling Guide, B3-3.1-01, General Income Information | 2026-10-16 |
| Fannie Mae’s general income section says: “If the lender is notified that the borrower is transitioning to a lower pay structure, for example due to pending retirement or a new job, the lender must use the lower income amount in qualifying, and must determine that the lower amount is stable and predictable.” | Fannie Mae selling guide, B3-3.1-01, general income information | 2026-09-28 |
| Fannie Mae’s Selling Guide topic B3-3.3-02, Bonus, Commission, Overtime, and Tip Income, states four things this page relies on. Documentation: the lender must obtain a completed Request for Verification of Employment (Form 1005), or the most recent paystub and two years’ W-2s, and a verbal verification of employment is required as well; for tip income not reported by the employer, two years’ personal tax returns with IRS Form 4137 may be provided in lieu of a W-2. Income history: "A minimum two-year history is recommended; however, income received for a shorter period, but no less than 12 months, may be considered as acceptable if there are positive factors to reasonably offset the shorter income history." Qualifying income where the trend is stable or increasing: "Calculate an average income amount using year-to-date and previous year’s earnings, divided by the number of months included in the year-to-date paystub and W-2s. The calculation must include a minimum of 12 months’ income." Qualifying income where the trend is decreasing: "The lender must confirm the current income level has stabilized after the decline; otherwise, the income is not eligible for qualifying. To calculate income, use the year-to-date income divided by months elapsed since the income stabilized." The topic also requires bonus income to be converted to a monthly amount for the trending analysis, giving an annual bonus divided by 12 as its example, and notes that where a documented, non-recurring event outside the borrower’s control temporarily prevented the borrower from earning income, the lender may exclude that period from the calculation. | Fannie Mae Selling Guide B3-3.3-02, Bonus, Commission, Overtime, and Tip Income | 2026-09-12 |
| Fannie Mae Selling Guide B3-3.3-03, Employment Offers or Contracts (10/07/2026): Option 2, "Paystub Not Obtained Prior to Delivery", "is limited to loans that meet the following criteria:" purchase transaction, principal residence, one-unit property, "the borrower must not be employed by a family member or by an interested party to the transaction, and" "the borrower is qualified using only fixed-base income." "The borrower's start date must be no earlier than 30 days prior to the note date OR no later than 90 days after the note date." Documentation: "The lender must obtain and review the borrower's fully executed and non-contingent offer or contract for future employment." Determination of qualifying income, both options: "The lender must use the monthly income amount in the offer letter as qualifying income." | Fannie Mae Selling Guide, B3-3.3-03, Employment Offers or Contracts | 2026-10-16 |
| Fannie Mae’s standards for employment-related income say: “Borrowers with employment gaps during the most recent 12 months may appear to have unstable employment. Lenders must carefully analyze the borrower’s current employment to ensure that it is likely to continue.” Under Job Changes, borrowers “who change jobs frequently, but who are nevertheless able to earn consistent and predictable income, are considered to have a reliable flow of income for qualifying purposes.” | Fannie Mae selling guide, B3-3.2-02, standards for employment-related income | 2026-09-28 |
| Fannie Mae Selling Guide B2-1.3-02, Limited Cash-Out Refinance Transactions (10/08/2025): the transaction "is being used to obtain a new first mortgage secured by the same property to" pay off an existing first mortgage (including an existing HELOC in first-lien position), among other listed purposes, and "Only subordinate liens used to purchase the property may be paid off and included in the new mortgage." Acceptable uses include "modifying the interest rate and/or term for existing mortgages;" "paying off the existing first mortgage;" "financing the payment of closing costs, points, and prepaid items;" "buying out a co-owner pursuant to an agreement;" and cash back to the borrower limited to a stated small amount. "At least one borrower on the new loan must be an owner (on title) of the subject property at the time of the initial application." "If the subject property was previously listed for sale, it must have been taken off the market on or before the disbursement date of the new loan." | Fannie Mae Selling Guide, B2-1.3-02, Limited Cash-Out Refinance Transactions | 2026-10-16 |
| Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions (12/10/2025): "The transaction must be used to pay off existing mortgage loans by obtaining a new first mortgage secured by the same property, or be a new mortgage on a property that does not have a mortgage lien against it." Acceptable uses include "paying off the UPB of the existing first mortgage," "paying off any outstanding subordinate mortgage liens of any age," and "taking equity out of the subject property that may be used for any purpose." An existing first mortgage being paid off must have been in place for a minimum period measured from note date to note date, and at least one borrower must have been on title for a minimum period before the disbursement date, with exceptions for inheritance, a legal award, and the delayed financing exception. "Properties that were listed for sale must have been taken off the market on or before the disbursement date of the new mortgage loan." | Fannie Mae Selling Guide, B2-1.3-03, Cash-Out Refinance Transactions | 2026-10-16 |
| Fannie Mae Selling Guide B3-4.3-01, Stocks, Stock Options, Bonds, and Mutual Funds (06/30/2015): "Vested assets in the form of stocks, government bonds, and mutual funds are acceptable sources of funds for the down payment, closing costs, and reserves provided their value can be verified. The lender must verify the borrower's ownership of the account or asset." The value of vested stock options is documented from the option count, option price and current stock price; "Non-vested stock options are not an acceptable source of funds for the down payment, closing costs, or reserves." When used for reserves, the full value of the assets as so determined may be considered, "and liquidation is not required." | Fannie Mae Selling Guide, B3-4.3-01, Stocks, Stock Options, Bonds, and Mutual Funds | 2026-10-16 |
| Fannie Mae Selling Guide B3-4.1-01, Minimum Reserve Requirements (08/07/2024): "Liquid financial reserves are those liquid or near liquid assets that are available to a borrower after the mortgage closes. Liquid financial reserves include cash and other assets that are easily converted to cash by the borrower by" drafting or withdrawing funds from an account, selling an asset, redeeming vested funds, or obtaining a loan secured by assets from a fund administrator or an insurance company. "Reserves are measured by the number of months of the qualifying payment amount for the subject mortgage (based on PITIA) that a borrower could pay using their financial assets." "Funds to close are subtracted from available assets when considering sufficient assets for reserves." Acceptable sources include "readily available funds in" checking or savings accounts; "investments in stocks, bonds, mutual funds, certificates of deposit, money market funds, and trust accounts;" "the amount vested in a retirement savings account;" and "the cash value of a vested life insurance policy." Unacceptable sources include "funds that have not been vested;" "stock held in an unlisted corporation;" "non-vested stock options and non-vested restricted stock;" "personal unsecured loans;" and "cash proceeds from a cash-out refinance transaction on the subject property." | Fannie Mae Selling Guide, B3-4.1-01, Minimum Reserve Requirements | 2026-10-16 |
| HUD Handbook 4000.1 (Update 18, issued August 12, 2026; page footers "Last Revised: 8/12/2026"), II.A.4.c Income Requirements (TOTAL): "Effective Income refers to income that may be used to qualify a Borrower for a Mortgage"; "Effective Income must be reasonably likely to continue through at least the first three years of the Mortgage, and meet the specific requirements described below"; "Employment Income refers to income received as an employee of a business that is reported on IRS Form W-2"; and "The Mortgagee may use Employment related Income as Effective Income in accordance with the standards provided for each type of Employment related Income." The section lists primary, part-time, overtime, bonus or tip, seasonal, commission and self-employment income and eighteen other sources, including investment income ("interest and dividend income received from assets such as ... stocks") and capital gains. A full-text search of the handbook on 2026-10-16 for "restricted stock" and "RSU" found no provision on restricted stock income, and the section has no catch-all paragraph for income types it does not list. | HUD Handbook 4000.1, Update 18 (last revised August 12, 2026), II.A.4.c Income Requirements | 2026-10-16 |
| VA Lenders Handbook (VA Pamphlet 26-7), Chapter 4, Credit Underwriting, Topic 2, Income: "Income is considered effective when it is determined to be verifiable, stable and reliable, and anticipated to continue for the foreseeable future. Income analysis is not an exact science." "Only verified income can be considered in the repayment calculation." Under Other Types of Income: "While not all types of income can be listed, documentation of income must support the history of receipt and the likelihood or continuance of the income for at least 3 years from the anticipated closing date to include in effective income." Its list of other income types names pension or retirement benefits, disability income, dividends from stocks, interest, royalties, notes receivable and trusts. A search of the chapter on 2026-10-16 for "restricted stock" and "RSU" found no provision on restricted stock income, and no provision on using asset balances as income. | VA Lenders Handbook, VA Pamphlet 26-7, Chapter 4, Credit Underwriting | 2026-10-16 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-16.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.