Getting around Sched. E to use rental income to boost DTI

[Brian Collins]

Hello BP,

I have recently been trying to pre-qualify for a mortgage on a second home. I want to find a way to get around the requirement of having rental income on Schedule E for 2 years in order to use it as income to boost DTI. I am looking to keep my principle residence and convert it into an investment property. I have heard that I am able to use 75% of the monthly rent as income so long as the equity in the home is at least 30%. This strategy is all that I have been able to dig up to get around reporting on Schedule E for 2 years.

Is this true and if so, can any brokers be recommended that can close a loan in Indiana without the use of the Schedule E? 

I am certain my principle residence has more than 30% equity, but the home has only had 1 year of Schedule E reporting. It was on my Schedule E in 2015 but not in 2016. Does even a previous year two years back help in qualifying?