Mortgage Navigator • Conventional • Income

RSU & restricted stock income

Equity compensation can qualify—but unvested stock is not simply treated like salary.

Fannie eligibility

Fannie requires restricted stock used as qualifying income to have vested and been distributed without restrictions. Sign-on bonuses paid as restricted stock that vest over time are not eligible as qualifying income.

Fannie history

For time-based awards, Fannie requires at least a 12-month history from the current employer. Performance-based awards use a different historical analysis. The calculation differs depending on whether the borrower receives shares or cash.

Freddie

Freddie also recognizes restricted stock/RSU earnings and distinguishes performance-based awards from recurring time-based awards. Continuance and calculation must follow the Freddie Guide and LPA requirements.

Agency Difference: RSU files are exactly where a generic “average the last two years” explanation can be wrong. Vesting type, distribution method, history and calculation method matter.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Agency guide and AUS findings control over summaries. Lender overlays may be more restrictive.