Understanding the Structure of Tech Compensation

In California’s booming tech industry, homebuyers face a unique challenge: traditional mortgage guidelines weren’t built with tech compensation in mind. If you work in tech, your income likely includes not just a base salary, but also equity—such as RSUs (Restricted Stock Units) and stock options. These compensation tools can be powerful wealth builders, but they also complicate the mortgage process.

At LBC Mortgage, we help tech professionals across California translate their full compensation package into mortgage-ready profiles. Whether you’re buying in Silicon Valley, San Diego, Los Angeles, or beyond, we know how to make your salary and stock-based income work to your advantage.

Base Salary

Your base salary is the most straightforward part of your compensation. It provides predictable income and is easily recognized by mortgage lenders. A solid tech salary can serve as the foundation for mortgage approval, especially when it meets debt-to-income (DTI) ratio requirements.

RSUs (Restricted Stock Units)

RSUs are shares of company stock granted to you, which vest over time. Once vested, they become taxable income and can be sold or held. Many major tech employers—such as Google, Apple, and Meta—offer RSUs as part of their compensation packages. If your RSUs come from a publicly traded company and you have a history of vesting over the past two years, lenders may count them as part of your qualifying income.

Stock Options

Stock options give you the right to purchase company shares at a set price, often called a strike price. If the company’s value increases, exercising these options could result in significant gains. However, because they rely on future performance and market conditions, lenders rarely count unexercised stock options toward qualifying income.

Understanding how each of these compensation types is viewed by lenders is crucial when applying for a mortgage. We help you navigate that process and avoid costly mistakes.

How Lenders Evaluate Tech Compensation

Base Salary and Stability

Lenders prefer income that is consistent and predictable. A full-time tech salary meets these criteria and is easy to document. If you’ve worked at your current company for at least two years, or within the same industry with consistent earnings, your salary will likely be fully counted in your mortgage application.

RSUs as Qualifying Income

RSUs can help boost your qualifying income, but they must meet specific criteria. Most lenders want to see:

  • A two-year history of RSU vesting
  • A consistent vesting schedule moving forward
  • Documentation of shares received and sold
  • Proof that your company is publicly traded (to confirm market value)

Even then, lenders may only count 50% to 75% of the average RSU value when calculating income. We help you prepare the right documents, from vesting schedules to tax statements, so that your RSUs are clearly understood and properly counted.

Stock Options and Risk Assessment

Unexercised stock options are generally not considered income because their value is speculative. If you’ve already exercised options and sold shares, the proceeds can be counted as assets. In some cases, if this income appears regularly on your tax returns, it might contribute to your income calculation.

If you have significant stock options, we work with you to determine if selling or exercising makes sense from both a mortgage and tax perspective. We also collaborate with lenders who understand the nuances of equity-based income.

The Importance of Tax Strategy in California

California has one of the highest tax rates in the country, especially for high earners. When your RSUs vest, they are taxed as ordinary income. Depending on the size and timing of the vesting, this can push you into a higher tax bracket, affecting your take-home income and how lenders view your financial profile.

Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NSOs) are taxed differently, and timing your sale or exercise can have a major impact on your finances. We advise clients to consult with a tax professional before making moves related to equity compensation. At the same time, we help you structure your mortgage application so that your reported income aligns with tax documents and lender guidelines.

Preparing to Qualify for a California Mortgage

Documentation is Key

The biggest challenge for tech workers is not a lack of income—it’s proving that income is consistent and stable. To count RSUs and other equity as income, lenders require detailed documentation, including:

  • Two years of W-2 forms
  • Pay stubs showing RSU vesting
  • Brokerage statements from equity compensation accounts
  • Employment verification confirming ongoing RSU or option grants

We walk you through every step of the process to ensure you have what’s needed.

Balancing Income Types

If too much of your income comes from RSUs or stock options, some lenders may hesitate. Many have internal limits—such as capping non-salary income at 30% to 40% of the total qualifying income. That’s why it’s helpful to present a well-rounded income profile. At LBC Mortgage, we position your application to emphasize your most dependable income sources first while using equity as a supplement when appropriate.

Navigating High-Cost Markets

Home prices in California, particularly in tech hubs, can easily exceed $1 million. That means jumbo loans or creative mortgage solutions may be necessary. We specialize in finding lenders who work with high-income earners in high-cost areas and understand how to use your full compensation package to meet qualification requirements.

We also know how to address unique underwriting guidelines for RSUs, such as requiring that shares be from a publicly traded company, or setting a time frame for future vesting. These details matter, and we stay on top of lender policies so you don’t run into delays or denials.

Why Tech Professionals Choose LBC Mortgage

If you’re in the tech field, you need a mortgage partner who understands the difference between a W-2 income and a vesting RSU schedule. We’ve worked with engineers, developers, executives, and startup employees throughout California. Our team knows how to translate equity-based compensation into real-world borrowing power.

Here’s what sets us apart:

  • We know how to present RSUs and stock options to lenders
  • We work with a broad range of lenders who specialize in complex income profiles
  • We help you maximize your qualifying income while staying compliant
  • We understand California’s housing market and tax environment
  • We communicate directly with underwriters to ensure smooth approvals

Our goal is to help you buy the home you want without sacrificing time, clarity, or confidence.