RSU stands for Restricted Stock Unit. This is mostly used in the Tech Industry. It is stock from a company, typically issued as a bonus that gets paid out gradually over time (think of vesting).
A new tech hire gets $30k per yr in RSU
but this money has to season…
Year 1 - you may only have access to 25%
Year 2 - two an additional 25%,
Year 3 - three 25%
Year 4 - fourth 100% access to that first year's RSU.
This incentivizes the tech hire to stay with the company and allows the company to pay with stock instead of capital.
Assuming this example gets $30,000 every year in Restricted Stock Units, after an extended amount of time you are pulling in massive bonuses in the form of RSU.
Most Seattle mortgage lenders do not want to use this, but there are a couple that will. We work with those couple.
They require strong credit and at least 10% down payment.
It can be used on jumbo as well as conforming loan limit
This is typically used only for primary residences but can also be used on a case by case basis for second homes.
This is a non QM product, meaning it does not need to conform to RESPA guidelines so it can get creative (think private money).
These usally close in 30 days or less, depending on which company issued the RSU.
RSU's are typically taken at 75% face value.
Seattle's Mortgage Broker has helped hundreds of technology workers get their dream home using their Restricted Stock Units and we can do the same for you.
Seattle's Mortgage Broker - Joe Tafolla