Own Luxury Homes®
HENRY Down Payment Strategy: Unlocking Assets for Your First Luxury Home
The HENRY down payment is rarely a savings problem — it’s an unlocking problem. $250K in home equity via HELOC, $90K via SBLOC against brokerage, $60K–$100K from RSU vest timing. The $230K down payment for a $1M home is often already there, just not in checking. Own Luxury Homes® verifies specialists through the 12-Point Agent Integrity Audit™.
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HENRY Down Payment Strategy: Unlocking Assets for Your First Luxury Home
86%
Of HENRY homeowners who own already bought before age 30 — high earners move fast when the financing is right
35%
Maximum RSU income as a share of total qualifying income most lenders will count — sequence and documentation matter
12
Point Integrity Audit dimensions Own Luxury Homes® verifies before any specialist introduction
0.25–0.50%
Rate savings a verified specialist’s jumbo lender relationships deliver vs retail banking at $1M+
HENRYs rarely need to save their way to the down payment. They need to unlock what’s already there — in a tax-efficient, lender-compatible way.
Own Luxury Homes® NAMED CONCEPT
Own Luxury Homes® 12-Point Agent Integrity Audit™
The Own Luxury Homes® standard: a specialist whose expertise with HENRY buyers at the $600K–$1.5M entry tier — jumbo qualification, RSU income, student debt strategy, and first luxury transaction knowledge — is verified through documented transaction history before any introduction. Verified through the 12-Point Integrity Audit and 5% Performance Audit™.
Own Luxury Homes® Market Intelligence.
The Four HENRY Down Payment Sources
(1) HELOC on the existing home: if you own a home worth $600K with a $300K mortgage, you have $300K in equity. A HELOC (Home Equity Line of Credit) lets you borrow up to 80–85% of combined LTV: ($600K x 0.80) – $300K = $180K available. HELOC rate: typically prime + 0.25–0.75% — currently in the 7.75–8.25% range. Used as: down payment bridge while the existing home is sold. (2) SBLOC against brokerage/RSU holdings: borrow against vested RSU shares or other investment securities without selling. Avoids capital gains tax on appreciated shares. Rate: typically SOFR + 0.75–2.00% — often below standard jumbo rates. On $180K in vested stock at 50% LTV: $90K available immediately. Full SBLOC guide ›. (3) Bridge loan: if you’re selling your current home and buying simultaneously, a bridge loan uses existing home equity to fund the purchase before the sale closes. Cost: 8–10% interest-only for 6 months on the bridge amount. Bridge loan guide ›. (4) RSU vest timing: if RSUs are scheduled to vest within 60–90 days, time the offer and closing to align with the vest. Vested RSU proceeds (net of withholding) go directly to the down payment. Requires coordination with the agent on offer timing and closing date selection.
HENRY Down Payment by Scenario
| Scenario | Assets Available | Best Strategy | Timeline |
|---|---|---|---|
| Existing homeowner, $250K equity | $180K via HELOC | HELOC + bridge loan for overlap period | 2–3 weeks |
| Investor, $200K in brokerage | $100K via SBLOC | SBLOC against securities | 5–10 business days |
| RSUs vesting in 60 days | $60K–$100K net proceeds | Delay offer to post-vest | Align timing |
| Multiple: home equity + RSU | $200K combined | HELOC + RSU timing | 2–4 weeks |
| 401K only, no other assets | $20K–$50K (loan, not withdrawal) | 401K loan + save aggressively | Not ideal — consider waiting |
401K withdrawal is the least preferred option: 10% penalty + income tax at marginal rate. SBLOC and HELOC preserve the asset base while providing the capital.
What Lenders Count as Down Payment
Lenders verify the source of every dollar of the down payment. What counts: (1) Checking and savings accounts — all funds, seasoned for 2+ months. (2) Brokerage account proceeds after liquidation — with documentation of sale. (3) HELOC proceeds — must be properly disclosed as a borrowed down payment (increases DTI). (4) Gift funds — with a gift letter from the donor confirming no repayment required. (5) RSU proceeds after vest — with brokerage statement showing the transaction. What doesn’t count: (1) Unseasoned deposits (large cash deposits with no documentation). (2) 401K balances (only 401K loan proceeds, post-disbursement, in the bank account). (3) Unvested RSU value (future vests don’t exist yet in lender underwriting). The specialist agent who has processed 20+ HENRY buyer transactions knows exactly how to document each source before the application is submitted — preventing last-minute lender condition requests.
Timing the Capital Assembly
The down payment assembly timeline for a HENRY buyer: 3–6 months before purchase: Open HELOC on existing home now. HELOCs take 2–6 weeks to establish and won’t affect credit adversely once open. Review RSU vesting schedule and identify the best vest event to align with purchase. Pay down revolving credit card balances to improve DTI and credit score. 60–90 days before purchase: Confirm liquid assets available: checking, brokerage proceeds if selling, HELOC availability. Pre-approval with the specialist’s lender: get the full qualifying income picture including RSU and bonus. 30 days before offer: Consolidate down payment funds into a single bank account. Large transfers need to be in place before application to satisfy 2-month seasoning for those dollars. Related: Down payment strategy › — Luxury mortgage hub ›.
Ryan Brown, Principal Broker & CEO Own Luxury Homes®
"Every HENRY down payment situation I’ve seen is solvable. The mistake is going to the mortgage lender first and letting them tell you what you can’t afford based on your checking account. The right sequence: talk to the specialist agent first. They model the full asset picture — the HELOC, the SBLOC, the RSU timing — and connect you with the lender after the capital strategy is already designed. The lender gets a complete application, not a confused one."
Related Own Luxury Homes® Buyer Guides
HENRY Buyer Guides: Mortgage — RSU Income — Down Payment — Student Debt — When to Upgrade — First Luxury Home — Tech HENRY — HENRY Couple
Frequently Asked Questions
How do I get a 20% down payment for a $1M home?
HENRY strategies: HELOC on existing home (up to 80% CLTV minus existing mortgage), SBLOC against brokerage/RSU holdings (50-70% of market value), bridge loan using existing home equity, or timing the purchase after RSU vest events. Rarely requires saving from scratch.
Can I use my HELOC as a down payment?
Yes. HELOC proceeds are an acceptable down payment source. The HELOC balance is included in your DTI calculation. The specialist agent coordinates HELOC timing and lender disclosure to ensure proper underwriting treatment.
Can I use my 401K for a down payment?
Withdrawal: 10% penalty plus income tax at your marginal rate. Rarely the optimal strategy. 401K loan: borrow up to 50% or $50K (whichever is less), repaid through payroll deductions. Included in DTI. Better alternatives: HELOC, SBLOC, or RSU timing typically preserve more capital.
How long before closing should I transfer down payment funds?
2 months is the standard seasoning requirement. Large transfers made less than 60 days before application require source documentation. Consolidate down payment funds to a single account 60-90 days before anticipated closing.
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)