Their income documentation problem: they may have left the company (between roles, taking a break, starting something new), their current W-2 may be modest (still in the transition), or their compensation has shifted to largely equity-based in ways that conventional qualification doesn’t capture well. Yet the brokerage account telling their financial story runs to 8 figures.
Asset utilization uses the assets directly. $5.2M vested equity in brokerage ÷ 84 = $61,905/month. Close.
Tech Executive? Your Vested Equity Qualifies You — Not Just Your Salary.
Vested RSUs · 401k · ESPP shares · Assets ÷ 84 = income
Mbanc NMLS #38232 | Equal Housing Opportunity Lender
How RSUs, ESPP, and 401k Work in Asset Utilization
Restricted Stock Units (RSUs) — vested:
Once vested, RSUs become ordinary brokerage stock held in a company equity account (usually at E*TRADE, Morgan Stanley, or Schwab). These vested shares at current market value are eligible at 100% for asset utilization.
RSUs that are NOT yet vested:
Unvested RSUs have no guaranteed value — they’re subject to ongoing employment, vesting schedules, and stock price. They do not qualify.
ESPP shares (Employee Stock Purchase Plan):
ESPP shares that have been transferred to a personal brokerage account (post holding period, if applicable) qualify at 100% of current market value.
401k:
The vested balance of the employer-sponsored 401k qualifies at 70%. If you’re still employed: use the current vested balance from the most recent plan statement. If you’ve left the company: the rolled-over balance in an IRA qualifies at 70%.
Company stock that is restricted or subject to lockup:
Does not qualify. The “restricted” in restricted stock means it cannot be freely sold — it lacks the liquidity that asset utilization requires.
The Tech Executive Transition: When Asset Utilization Is Most Valuable
Just left a major tech company:
After 10–15 years at Google, the senior engineer decides to take 6 months off before their next role. They have $6.5M in vested Google stock (transferred to brokerage) and $2.1M in 401k. No current W-2. Asset utilization: ($6.5M + $2.1M × 70%) = $8.47M. Net after deductions: $8.15M ÷ 84 = $97,024/month. Mortgage approved while on sabbatical.
Consulting/advisory between roles:
Former VP of Product at a FAANG company, now doing occasional advisory for startups ($50K/year in consulting). The consulting income is minimal and inconsistent. Brokerage: $4.2M. 401k rolled to IRA: $1.5M × 70% = $1.05M. Total: $5.25M ÷ 84 = $62,500/month. Full qualification on assets alone.
Founding a startup:
Former Director at Microsoft now working on a pre-revenue startup. Salary: $0 from the startup. Personal assets: $3.8M vested Microsoft RSUs + $1.2M in rollover IRA. $3.8M + $840K = $4.64M. Net: $4.3M ÷ 84 = $51,190/month. Qualifies while building the company.
The Unvested RSU Problem and How to Navigate It
The most common disappointment for tech executives: they have $3M in vested stock AND $4M in unvested RSUs scheduled to vest over 4 years. Only the $3M vested equity qualifies.
The implication: If the $3M vested equity (÷ 84 = $35,714/month) doesn’t qualify for the target loan amount, waiting for additional vesting may improve the qualifying position.
The optimization: If you have $1.5M that vests next month, waiting 30 days to apply captures that additional equity in the calculation.
The 12-month vesting tranche strategy:
If you’re due to receive $600,000 in RSU vests over the next 12 months (currently unvested), timing the application 12 months later captures the full vesting. $600,000 × 90% = $540,000 more eligible assets → ÷ 84 = $6,429/month more qualifying income → approximately $855,000 more qualifying loan amount.
For tech executives in active vesting periods, application timing strategy can meaningfully change the qualifying loan amount.
Three Complete Tech Executive Transactions
Transaction 1 — Google Engineer on Sabbatical:
Vested GOOG shares in brokerage: $6.5M. Rollover IRA: $2.1M × 70% = $1.47M. Total: $7.97M. Net after 15% down on $2.8M ($420K) + closing ($56K) + reserves ($162K): $7.332M ÷ 84 = $87,286/month.
Target: $2.8M Los Altos primary. CA overlay: $2M max. 85% LTV ($2.38M) — over CA cap. 20% down ($560K) to reach $2.24M loan. PITIA: $17,200/month. DTI: 25.5%. Credit: 724. Close: 27 days.
Transaction 2 — Microsoft Director, Startup Founder:
Vested MSFT brokerage: $3.8M. Rollover IRA: $1.2M × 70% = $840K. Total: $4.64M. Net: $4.3M ÷ 84 = $51,190/month. No W-2 (startup). Target: $1.4M Bellevue, WA. (Note: WA is not in Mbanc’s current primary residence footprint; illustration uses TX equivalent.) For Palo Alto CA: CA $2M overlay applies. 80% LTV ($1.12M): PITIA $8,600/month. DTI: 22.6%.
Transaction 3 — Amazon VP, Consulting Between Roles:
Vested AMZN shares: $4.2M. 401k at Amazon (still there, transitioning): $1.5M × 70% = $1.05M. Total: $5.25M. Net: $4.9M ÷ 84 = $58,333/month. Consulting income $4,200/month (documented). Combined: $62,533/month. Target: $1.85M Menlo Park CA. CA overlay (80%): $1.48M loan. PITIA: $11,400/month. DTI: 22.4%.
The ESPP Holding Period and Asset Utilization Timing
Many tech employees participate in ESPP programs — purchasing company stock at a discount (typically 15%) during offering periods. ESPP shares may be subject to holding periods for favorable tax treatment (qualifying dispositions). The holding period doesn’t affect asset utilization eligibility once the shares are in a brokerage account that the employee controls — but tax consequences of selling are separate from mortgage qualification.
Asset utilization qualifying income is based on the current market value of the shares — not cost basis, not purchase price. An ESPP purchase at $100 that is now worth $180 qualifies at $180 per share.
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The Vesting Calendar as a Mortgage Planning Tool
Tech executives who know their vesting schedules in advance can use the asset utilization program optimally by timing their mortgage application to maximum qualifying position.
Vesting event planning:
Vest $500,000 in RSUs in Q1. Apply for mortgage in Q2. Those RSUs are now fully vested brokerage assets: $500,000 × 100% ÷ 84 = $5,952/month additional qualifying income.
The rule: Apply after a significant vesting event, not before. Unvested equity doesn’t count. Vested equity transferred to brokerage counts at 100%.
For tech executives with large vesting events scheduled in the next 6–12 months: modeling the qualifying income at both current and post-vest levels often reveals that waiting produces a significantly higher qualifying loan amount.
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Stock Concentration Risk and Asset Utilization
Tech executives with concentrated positions in a single company (employer stock) face a specific risk: if the stock drops significantly after the mortgage closes, the assets that qualified the loan may be worth substantially less. Asset utilization does NOT penalize for concentration — it uses current market value at application. Managing the diversification of concentrated equity positions is a wealth management decision separate from mortgage qualification. However, borrowers with highly concentrated single-stock positions should discuss concentration risk management with their financial advisor.
Not a commitment to lend. Mbanc NMLS #38232 | FL #MLD1287 | CA DBO #60DBO45280 | TX SML | NC #L-183446 | IL #MB.6761396 | GA #48090 | TN #178934 | Equal Housing Opportunity Lender | Asset utilization: eligible liquid assets ÷ 84 = monthly qualifying income | Minimum 640 credit | Maximum DTI 50% | No PMI | Programs and rates subject to change
Concentrated Stock and Diversification: The Mortgage Timing Decision
Tech executives with large concentrated positions (all assets in employer stock) face a tension between mortgage timing and diversification. Asset utilization uses current market value — which may be at a peak, a trough, or anywhere in between.
The strategic question: Should you diversify before applying for the mortgage (to reduce concentration risk and potentially more stable qualifying income) or apply now while the value is high?
The answer: Asset utilization qualifying income is calculated at application. If the stock is worth $5M today: $5M ÷ 84 = $59,524/month qualifying. If it drops 40% before you apply: $3M ÷ 84 = $35,714/month. The qualifying loan amount changes significantly.
For tech executives with concentrated positions who know they want to purchase a home in the next 12 months: consider whether diversifying early (before the mortgage application) provides a more stable asset base for qualification, even if it means accepting today’s price on some shares.
Equity Compensation and the “Retire Early” Transition
Many tech executives who use asset utilization for the mortgage aren’t actually retired — they’re between major roles, taking a sabbatical, or founding a startup. The asset utilization program serves all of these scenarios equally. There’s no requirement that the borrower be retired or never work again. The program qualifies on current assets.
A tech executive taking 18 months off between a large company and their next venture: qualifies on assets today. If they subsequently take a new W-2 role, refinancing to conventional becomes an option when 2 years of new employment is documented.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender