Mortgages for executives and finance professionals in California.
Lenders generally count a bonus after there is a history of receiving it, often about two years, and work from an average of those years. For many executives and people who work in finance, the salary is the smaller part of the year. The rest arrives as a bonus, deferred compensation, carried interest or stock. Sam Batayneh works with executives and finance professionals across California, and explains how lenders read each part.
What makes executive pay different.
Much of the year’s pay may not be in the paycheck.
Bonuses
An annual bonus can be larger than the salary. Lenders generally count a bonus after a history of receiving it, and work from an average, not from the best year.
Deferred compensation
Pay that is set aside to be paid in later years. Lenders generally count it only once payments have begun and the plan shows they will continue.
Carried interest and restricted stock
Carried interest is a share of a fund’s profits, paid when investments are sold, so it is uneven. Restricted stock vests on a schedule.
How lenders generally look at bonus and deferred pay.
Each lender sets its own rules. These are the questions most of them ask.
A history, then an average
Lenders often look back about two years at bonus income and average it. A bonus that fell in the latest year may be counted at the lower figure.
Whether it will continue
Lenders want a sign that pay which varies is likely to continue: a letter from your employer, a plan document or a payment schedule.
Carried interest
It is usually reported on a K-1 and read from tax returns over time. Because payments are uneven, many lenders count it cautiously or not at all.
Restricted stock
Lenders ask for the vesting schedule and a history of vested shares, as they do for RSUs. The page for tech professionals covers RSU income in more detail.
Savings and investments
On larger loans, lenders often look closely at what you will have left after closing. Investment accounts count; money you cannot yet draw on generally does not.
What to have on hand.
You don’t need all of this for a first conversation. It makes applying quicker, and your list may differ.
- Pay. Recent pay stubs, and W-2s for the last two years.
- Bonuses. Statements or a letter showing the last two years’ bonuses.
- Plans. Your deferred compensation plan and payment schedule, and any award agreements and vesting schedules.
- K-1s and tax returns. If you receive carried interest or own part of the firm.
- Accounts. Recent statements for bank and investment accounts.
Programs to ask Sam about.
Salary, bonus and stock income is usually documented with pay stubs, W-2s and tax returns. The loan amount decides whether the loan is conventional or jumbo.
Program names are OriginPoint’s. Which one fits depends on your own file, and naming a program here is not a promise that a loan will be approved.
Plain answers.
How do lenders count bonus income?
Can deferred compensation be counted as income?
How is carried interest treated on a home loan application?
How is restricted stock counted?
My bonus is paid once a year. Does the timing of a purchase matter?
General education only. Each lender sets its own rules, and they change. Nothing here is a promise that a loan will be approved or of any terms. This is not tax, legal or investment advice: for those questions, ask your own CPA, attorney or business manager.
Limits where you’re buying.
Each page has the county’s 2026 limit and what is different there.
Paid mostly in bonus?
Tell Sam how your pay is made up. Sam will explain how lenders are likely to read each part.