Rohan is a high-tech entrepreneur who develops semiconductor testing equipment to major Silicon Valley blue chip. He had plans to move to a Palo Alto neighborhood which had a better school district than his current home. Rohan’s plans were to keep his departing residence as a rental home (for tax purposes), which means he would have to qualify for two housing payments (current home and future Palo Alto Home).
Like most entrepreneur’s, he wanted to demonstrate his commitment and belief in the company, so he decided to receive a significant portion of his salary in Restricted Stock Units (RSU’s). Typically, under conventional guidelines you will not be able to use RSU’s as part of your income which may limit your purchase price. After pre-qualifying Rohan and saw that he had a high FICO score, we reached out to a handful of lenders and found one who would count RSU’s as part of his income stream. Rohan was happy to close escrow on time and be able to use the first home as a rental property.