The Pollifrone Team
October 2026 · 7 min read
In Silicon Valley, much of the money behind a down payment comes from equity, not salary. Restricted stock units (RSUs), employee stock purchase plans, and IPO payouts make it possible for many buyers to purchase in Willow Glen, Los Gatos, and Cupertino. Equity also adds complications that a regular paycheck doesn't. Here's what to know before you start touring homes.
1. Know what's actually yours
Unvested RSUs aren't money yet. A lender will only count shares that have vested and that you can sell. Before you set a budget, log into your brokerage account (Schwab, E*Trade, Fidelity, Morgan Stanley) and separate:
Vested shares — You can sell and use now.
Unvested shares — Future income — may help you qualify if you have a history of receiving them.
Shares under lockup — Common after an IPO. You cannot touch these yet.
2. Plan for the tax bill
RSUs are taxed as ordinary income when they vest. Your employer withholds tax, but the standard federal supplemental rate is often lower than what high earners actually owe. Many tech employees find out in April that they owe a large balance. If you spend your vested shares on a down payment and then owe the IRS, cash gets tight right after you've moved in.
Tip: Meet with your CPA before you sell shares. Ask how much to set aside for taxes, and whether to sell shares you've held long-term or ones that just vested.
3. Sell early and let it settle
Lenders want to see where your down payment came from. If you sell stock the week before closing, expect requests for brokerage statements, trade confirmations, and transfer records. The simplest approach:
Sell the shares you'll need 30–60 days before you plan to write offers.
Move the proceeds into your checking or savings account.
Keep every statement that shows the money moving from brokerage to bank.
This also protects you from a drop in the stock price in the middle of escrow. Stock prices can move a lot in a few days. Your purchase price won't change.
4. Can RSU income help you qualify?
Often, yes — but lenders handle it differently. Many will count RSU income if you have a track record of receiving it (often about two years) and your vesting schedule shows it will continue. Others won't count it, or will count only part of it. That's why your choice of lender matters as much as your choice of house.
Look for a local lender who works with tech compensation regularly. We're happy to introduce you to the ones our clients have used.
5. Competing with an equity-funded offer
In Silicon Valley's best neighborhoods, a strong offer usually means:
20–30%+
Down payment, often more
In the bank
Proof of funds — not still in a brokerage account
Few or none
Contingencies, when financing is solid
Quick close
Speed signals confidence to sellers
Buyers who have already turned their equity into cash have a real advantage here.
6. Should you sell, or borrow against your shares?
Some buyers keep their stock and take a securities-backed loan or use a bridge strategy instead. This can make sense if you think the stock will keep rising or you want to avoid a large tax bill this year. It also carries real risk if the stock falls. Talk to your financial advisor before choosing this route.
The bottom line
Equity can get you into the right home sooner, but it rewards planning. Sell early, set aside money for taxes, choose a lender who understands tech pay, and write your offer with the cash already in the bank.
Thinking about buying with RSUs or IPO money?
The Pollifrone Team has helped Silicon Valley buyers since 1985. Schedule a consultation and we'll help you plan your purchase around your vesting schedule.
Schedule a ConsultationThis article is general information, not tax, legal, or financial advice. Consult your CPA and lender about your situation.