Qualification · May 2026
Check your strongest financing paths before you shop. The 4-step tool below screens your goal, income type, and credit range against May 2026 lender guidelines — and tells you which programs fit.
Step 1 of 4
What lenders assess
Credit score
720+ for conventional. 580+ for FHA. 760+ for best jumbo pricing.
Debt-to-income (DTI)
Target <43% total DTI. May 2026 guidelines allow up to 50% for strong files.
Down payment
3–5% for first-time buyers on conventional. 10–20% for jumbo. 15–25% for investors.
Reserves
Jumbo and investment loans require 6–12 months of PITI in liquid assets.
Reviewed by
Adriano Tori
Founder & Designated Broker · RexMont Real Estate
Speak directly with Adriano →Tech employee eligibility
Restricted Stock Units are one of the most misunderstood income sources in mortgage underwriting. Most national lenders flag them as variable compensation and exclude them entirely — which can push Eastside buyers out of the loan amount they realistically qualify for.
Lenders experienced with tech compensation treat RSUs differently. If your vesting schedule has been consistent for at least 24 months and you have a reasonable expectation of continued employment, vested RSU income can be averaged into your qualifying base — often adding six figures to your annual qualifying income.
The documentation required: 2 years of W-2s showing RSU income, current award agreements showing future vesting, and a letter of continued employment. The lender then averages the last 24 months of vested RSU income and adds it to your salary for DTI purposes.
RSU qualification checklist
Common mistake
Applying to a lender unfamiliar with tech income before consulting one who is. A denial — even a soft one — can delay your timeline and affect seller perception of your offer. Start with a lender who works with Eastside tech buyers daily.
King County loan thresholds
King County is designated a high-cost area by FHFA, so its conforming limit is above the national baseline. Knowing where your loan amount falls changes your required down payment, credit bar, and rate.
| Loan type | 2026 King County limit | Min. down | Min. credit | Notes |
|---|---|---|---|---|
| Conforming (conventional)Most common | Up to $1,209,750 | 3–5% | 620+ | King County high-cost limit · best rates · PMI exits at 20% equity |
| FHA | Up to $1,149,825 | 3.5% | 580+ | Includes upfront & annual MIP · King County FHA limit |
| VA | No limit (eligible borrowers) | 0% | No VA minimum | For veterans & active-duty · no PMI · funding fee applies |
| Jumbo | Above $1,209,750 | 10–20% | 720–760+ | Requires reserves · 0.2–0.5% rate premium · common in Bellevue & Mercer Island |
| DSCR / investor | Varies by lender | 20–25% | 660+ | No personal income docs · qualification based on property cash flow |
Loan limits are 2026 estimates for King County (high-cost designation). Verify current limits with your lender before committing to a loan structure. FHA and VA limits set by HUD and FHFA respectively.
Staying conforming saves money
If your loan amount is near the conforming threshold, adjusting your down payment by a small amount to stay below $1,209,750 can meaningfully reduce your rate and speed up underwriting. Ask your lender to model both scenarios.
Jumbo isn't a penalty — it's a different process
Bellevue, Medina, and Mercer Island buyers routinely use jumbo financing. The requirements are stricter, but the right lender makes it manageable. Reserves, credit, and employment stability matter more than on conforming files.
Selling in 2026 and buying your next home?
Your eligibility for the next purchase depends on your current equity position. See what you have to work with before you list.
FAQ
The most common eligibility questions from Seattle and Bellevue buyers — answered against May 2026 guidelines.
For a conventional loan, lenders look for 620 at minimum — but 720+ gives you access to better pricing and more program options. For FHA, 580 qualifies for the 3.5% down option. Jumbo loans (above the King County conforming limit) typically require 720–740+, with some lenders requiring 760 for best-tier rates.
Yes — if properly documented. RSUs that have been vesting consistently for at least 2 years can be counted as qualifying income by most conventional lenders. The key is working with a lender experienced in tech compensation structures. They know how to document vesting schedules, determine sustainability, and factor them into your DTI. Lenders unfamiliar with RSU income often decline files that experienced ones approve.
King County is designated a high-cost area, meaning its conforming limit is above the national baseline. For 2026, the limit is approximately $1,209,750 — verify the current figure with your lender before committing to a loan structure. Loans above this threshold are classified as jumbo and carry different underwriting requirements.
On a conventional loan, first-time buyers can put as little as 3% down. FHA allows 3.5% with a 580+ credit score. The Washington State Housing Finance Commission's Home Advantage program can layer down payment assistance on top of either. Some buyers combine seller concessions with DPA to cover both the down payment and closing costs.
Yes, though the documentation process is different. Standard approval requires 2 years of tax returns showing consistent self-employment income. If your taxable income on paper is lower than your actual deposits (common for business owners), bank statement loans use 12–24 months of deposits instead. Rates run slightly higher, but these programs are increasingly common in the Seattle market for consultants, contractors, and founders.
Most conventional lenders target a back-end DTI below 43–45%. In May 2026, some lenders are stretching to 50% for well-qualified borrowers with compensating factors — strong credit, significant reserves, or a large down payment. FHA technically allows up to 57% in some cases, though individual lenders apply their own overlays.
The eligibility assessment is based on general May 2026 conventional, FHA, VA, and jumbo underwriting guidelines for King County, WA. It is educational and does not constitute a loan application, pre-approval, or lender commitment. Actual eligibility depends on full lender review of income documentation, asset verification, property appraisal, and individual lender overlays. Loan limits sourced from FHFA and HUD estimates for 2026 — verify current figures with your lender.