Who we help
Mortgage for a Startup Founder
You have $1.2M of vested stock. Your last K-1 shows $40K of distributions because the company is still pre-profitability. The W-2 you draw from your own company is whatever the board approved, which is "enough to pay the mortgage you don't yet have." And the conventional lender concluded you couldn't afford a house.
By Sunrise Lending
Why this fits you
Founders are the exact profile conventional underwriting rejects because their wealth lives outside the boxes a 1040 has. Sunrise's asset-depletion program calculates qualifying income from your liquid assets — vested public stock, retirement accounts, brokerage holdings, sometimes restricted stock with documented liquidity. For founders whose business deposits flow through a personal account or a defensibly-personal flow, bank statement programs may also apply.
The matcher walks you through five questions about how your equity, salary, and K-1 income are structured. A licensed MLO reviews the recommended path. If asset depletion fits, we'll tell you the math on how that income is calculated and what documentation makes it work.
Common income structures we see
- Vested public stock + brokerage holdings (asset depletion math)
- Retirement-account balances qualifying via depletion factor
- K-1 distributions when company is profitable
- Founder W-2 + personal-account deposits when defensible
- Pre-IPO restricted stock with documented liquidity path
Best-fit loan programs
How Sunrise analyzes your income
The problem isn't that founders don't have money. The problem is that the money is in the wrong shape for a mortgage lender who was built for W-2 earners. Your wealth is in equity stakes, vested stock, a brokerage account that has grown every year, and maybe a 401(k) that you've been thoughtfully funding. Your taxable income on paper is whatever your board approved as a reasonable W-2, which is probably $75K–$150K, because you're a founder and you think in equity, not salary. Conventional underwriting opens your 1040, sees $120K of income, divides by twelve, and tells you that you can't afford the house you've been saving toward for three years.
Sunrise runs a completely different calculation. For founders, the right starting point is almost always asset depletion — a program that converts your liquid assets into a monthly qualifying income. The math: take your eligible liquid assets (brokerage accounts, cash, vested public stock), divide by the depletion factor (typically 60 months for taxable accounts), and that's your monthly qualifying income. A $1.8M brokerage becomes $30,000/month in qualifying income. Your W-2 salary stacks on top of it, not instead of it.
When pre-IPO restricted stock comes into the picture, the answer depends on documented liquidity. If you have a definitive IPO timeline or a secondary market letter, some lenders count a haircut portion of the restricted value. If the IPO is speculative, we set it aside and work with what's liquid — brokerage, cash, and retirement balances that are either post-59½ or accessible via a structured distribution (72(t) election or 401(k) loan).
For founders who are also running meaningful business deposits — perhaps the company pays you through a personal account, or you're in a revenue-sharing structure — a bank statement program may add qualifying income on top of the asset-depletion base. The matcher runs both configurations and surfaces the path that produces the strongest qualifying income.
What documentation actually looks like.
Scenario examples
Pre-IPO SaaS founder, Austin TX
A founder had $2.4M in vested public stock (post-IPO) and $380K in a rollover IRA. Her W-2 was $90K. At 60 months depletion on the taxable brokerage: $40,000/month. The IRA had a 25% haircut, leaving $285K eligible — at 84 months: $3,393/month. W-2: $7,500/month. Total qualifying income: $50,893/month. She purchased a $2.2M primary in Austin at 65% LTV.
- Brokerage depletion
- $40,000/mo
- IRA depletion (with haircut)
- $3,393/mo
- W-2 income
- $7,500/mo
- Total qualifying
- $50,893/mo
Illustrative scenario. Not a commitment to lend.
Growth-stage B2B founder, New York NY
A founder was 3 years into building a B2B software company with $4M ARR. The company wasn't distributing K-1 income; he paid himself $140K W-2. His personal brokerage had $1.1M from a prior startup exit. He also had $220K in a SEP-IRA. Asset depletion on the taxable portion: $18,333/month. W-2: $11,667/month. Total: $30,000/month. He purchased a $1.4M condo with 20% down.
- Brokerage depletion
- $18,333/mo
- W-2 income
- $11,667/mo
- Total qualifying
- $30,000/mo
- Purchase price
- $1.4M
Illustrative scenario. Not a commitment to lend.
Common questions
Common questions
- How does a startup founder qualify for a mortgage?
- Most founders qualify via asset depletion — dividing liquid assets (brokerage, cash, vested stock) by a depletion factor (typically 60 months for taxable accounts) to produce a monthly qualifying income. W-2 salary stacks on top. The combination often produces a qualifying income far exceeding what the tax return shows.
- Does pre-IPO restricted stock count toward asset depletion?
- Sometimes. If there's a documented liquidity path (a definitive IPO timeline, secondary market letter, or tender offer), some lenders apply a haircut and count a portion. If the IPO is speculative with no concrete timeline, restricted stock is typically excluded and the file works with liquid assets only.
- What if my company doesn't distribute K-1 income?
- Common for pre-profitability or reinvestment-stage companies. If the company isn't distributing, we work with asset depletion on personal liquid holdings, the W-2 salary, and any personal-account deposits that are defensibly personal income.
- What liquid assets qualify for the depletion calculation?
- Cash and checking, taxable brokerage accounts, vested public stock, IRA (with haircut if pre-59½), 401(k) (with haircut if pre-59½). Excluded: business equity, unvested/restricted stock without a liquidity path, real estate equity, and crypto.
- Can I use both asset depletion and bank statements?
- Yes — if your company deposits flow into a personal account or you receive distributions, a hybrid file can stack bank statement income on top of asset depletion income. The matcher runs both configurations and identifies the higher-qualifying path.
- What if my business had a loss year because we invested heavily in growth?
- A strategic investment year that shows a tax loss is the exact scenario asset depletion is designed for. The depletion calculation ignores the P&L entirely and uses your liquid asset balance. The lender never looks at your business performance to calculate depletion income.
Related resources
Tell us how you earn.
Five quick questions. No tax returns. No credit pull. The matcher narrows you to the right starting point; a licensed mortgage officer reviews before anything moves.
Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.