Folsom Mortgage Guide: Using RSU & Stock Income
If you work in tech, healthcare leadership, or finance and you're looking at homes in Folsom, there's a decent chance part of your pay comes as restricted stock units instead of straight salary. That's great for your net worth. It's also one of the most misunderstood pieces of income when it comes to qualifying for a mortgage.
I see this a lot with Folsom buyers. Someone has a strong total comp package on paper, but their base salary alone doesn't support the loan amount they want. The stock is real money, it shows up on their W-2, but their lender either doesn't know how to use it or counts it wrong. Either way, the buyer gets a pre-approval number that's lower than it should be, or a denial that shouldn't have happened.
How lenders generally treat RSU and stock income
Conventional guidelines (Fannie Mae and Freddie Mac) typically want to see:
A two-year history of actually receiving vested stock as income, shown on your W-2 or a vesting schedule from your employer.
Reasonable evidence the income is likely to continue, generally for at least the next few years. Underwriters look at your vesting schedule, not just past history.
An average of what you've actually received and sold or vested over that two-year period, not the total value of everything currently sitting unvested in your account.
Unvested shares don't count. Only vested, received income counts. This trips people up constantly. A big unvested grant looks great on your net worth statement, but it isn't income until it vests.
I'm giving you the general framework here. The exact math, and whether your specific documentation clears underwriting, depends on your lender's overlays and the automated underwriting findings on your file. Have your loan officer run your actual pay stubs and vesting schedule before you assume a number.
Why this matters more right now in Folsom
Folsom's job base has a meaningful concentration of tech and corporate employers, and 2025-2026 has been a volatile stretch for tech employment locally, with layoffs and restructuring in the news for more than one major employer in the area. That's not a reason to avoid RSU income. It's a reason your lender may ask more questions about continuance, especially if your grant is tied to a company going through change. Bring documentation. Don't assume the underwriter will take your word for it.
What to do before you go house hunting
Pull your actual vesting schedule for the next 2-3 years, not just your offer letter. Get your last two years of W-2s and paystubs showing vested stock as income. Ask your loan officer to run the numbers with and without the stock income so you know your real range. If your base salary alone qualifies you for a home in your target Folsom neighborhood, the stock income is just extra room. If you need the stock income to qualify, get it documented and verified early, before you're in a 17-day contingency clock on a house you love.
FAQ
Does unvested stock count toward my mortgage income? No. Only stock that has already vested and been received counts as income for qualifying.
Do I need two years of RSU income to use it? Generally yes, under standard Fannie Mae and Freddie Mac guidelines. Some lenders may have different overlays, so ask directly.
Can I use RSU income with a new employer if I just started? It's harder. Lenders want continuance and a track record. Talk to a loan officer about your specific situation, since exceptions and alternative documentation paths do exist.
Is this different for VA or FHA loans? The general concept of vested, documented, likely-to-continue income applies broadly, but program-specific rules can vary. Confirm with your loan officer for the specific program you're using.
This is general educational information, not a guarantee of loan approval or a specific outcome. Every file is underwritten individually. If you're buying in Folsom and stock compensation is part of your income, let's run your numbers early so you know exactly where you stand.