Two salaries, RSU vesting, and Fannie Mae DTI limits — see what you can afford on the Peninsula before you talk to a lender.
Enter both incomes, any RSU vesting you expect a lender to count, your down payment, and existing monthly debts. The planner shows your estimated purchase power at Fannie Mae's 43%, 45%, and 50% back-end DTI thresholds (per Selling Guide Section B3-6-02).
RSU income can count, but lenders require it to be documented and likely to continue. Under Fannie Mae Selling Guide B3-3.1-09, stock income including RSU vesting requires a two-year history of receipt and a determination that it is likely to continue for at least three years. If you have been at the same employer less than two years, or if your grant schedule is expiring, lenders may reduce or exclude the RSU income from qualifying income. Peninsula lenders who specialize in tech compensation are experienced with RSU underwriting and can advise how much of your vesting schedule qualifies. Always verify with your specific lender before writing an offer.
Under Fannie Mae Selling Guide Section B3-6-02 (Debt-to-Income Ratios), the maximum back-end DTI for manually underwritten loans is 45%. With Desktop Underwriter (DU) approval, the limit can reach 50% when the borrower has compensating factors such as significant reserves, high credit scores, or lower loan-to-value ratios. The 43% threshold is relevant as the Qualified Mortgage definition boundary and as a practical target for borrowers who want the widest lender competition. On Peninsula jumbo loans, lenders often apply their own overlays below Fannie's published maximums — 43% or 45% is a more realistic ceiling for many jumbo programs regardless of DU findings.
For a dual-income household, lenders add both borrowers' qualifying income. Each income stream is evaluated separately: W-2 base salary typically qualifies in full; bonus income requires a two-year average if used; RSU vesting requires a two-year history and continued vesting schedule per Fannie Mae B3-3.1-09. Monthly qualifying income is the sum of all qualifying annual amounts divided by 12. Monthly back-end DTI is total recurring monthly obligations including the proposed housing payment, divided by monthly qualifying income. This planner uses the two base salaries plus your designated RSU vesting as the starting point — adjust for any income the lender may exclude or any income not entered here.
Back-end DTI includes all recurring monthly obligations: the proposed housing payment (principal, interest, taxes, insurance, and HOA); student loans at the credit-report payment or 1% of the balance if in deferment (Fannie Mae guidelines); car loans and leases; minimum credit card payments; any installment or revolving debt on the credit report; and child support or alimony. Non-recurring expenses — utilities, groceries, subscriptions, phone bills — are not counted in DTI. Enter your total recurring monthly debts (excluding the future housing payment) in the planner's debt field.
Understanding your DTI and RSU qualification before you start searching means you negotiate from a position of strength. Lisa will walk you through the full buyer picture.
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