Using rental income for FHA loan

[Wesly Aldrich]

To make a long story short, I am using my rental income to purchase a new home that we will be living in and was prequalified with no issues (mortgage company hired third party firm to look at my rental income and returns to qualify my income, I gave them every document on earth, leases, taxes, insurance, mortgages, etc...) and then underwriting says no due to the fact that the last 2 years of tax returns (2017, 2018) I reinvested all my money into my rentals and they are deducting all that out of my income, ie. depreciation, capital improvements, supplies, repairs, utilities, maintenance etc...  They are basically saying it doesn't matter how much comes in this year or any year, it's all about how I filed my taxes over the last 2 years.  I invested heavy because I had a day job and needed write offs etc.  Does this sound right?  I do not have a day job currently however my cash flow from rentals well covers me for this loan.