DTI calculation

Asked by Nkusima, San Jose, CA Fri Dec 28, 2012

I have a quick question, when lender calculate DTI ratio, would they consider RSUs (restricted stocks)? I received $30-40k worth of stocks (not options) from my employer every year(in the last 6 years). It's showing in my pay stub as RSUs income. I'm currently at 48% DTI just from.straight salary and bonus as the stock is a big part of my compensation
Thank you

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Nkusima, Both Buyer And Seller, San Jose, CA
Sat Dec 29, 2012
Thanks Claudia. Although I don't like the answer I guess that's the reality.
One follow-up question, why would restricted stock be treated differently than bonus since they are the same in term of purposes (incentives).
In my case, both are granted once a year. Both are reflected in my pay stub once a year too
0 votes
Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Sat Dec 29, 2012
Restricted stocks cannot be counted as income.
In fact, restricted stock cannot be counted as reserves.

Because there is no ability to sell the stock, it is not considered liquid.

This is taken off of the FNMA guidelines.
0 votes
How can they not be considered income as they are taxed as income?
Flag Tue Jan 21, 2014
Thanks Claudia. Although I don't like the answer I guess that's the reality.
One follow-up question, why would restricted stock be treated differently than bonus since they are the same in term of purposes (incentives).
In my case, both are granted once a year. Both are reflected in my pay stub once a year too
Flag Sat Dec 29, 2012
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