@Joel Braver l/o = rto.

he was open to Lo.

It looks like you haven't dug into it enough that you actually have a specific question. 45 minutes on the phone with a good LO will save you about six months of internet research.

In any case, obviously this LO is scrambling to make something happen, perhaps the square footage of the house is larger than was assumed upfront at preapproval (family of 2 spouses and 2 kids buying a 5 br / 4 bath, f. ex, could cause this).

Please be sure to work with a rockstar LO who is looking out for your best interests and getting you into the right product. 

Once you know what you can make then make your LO offer work for what you can make plus a spread you are comfortable with.

I have a pre-approval for a Lo-Doc, non-owner occupied loan up to $500,000, 25% down, 6.25 interest, 30 years -- and my loan stipulates whatever property(s) I choose, the 30 day market rents have to cover the total payment (including any HOA). 

Also, on youtube.com searching on "subject to" has A-L-O-T of great videos. 

Remember with some lenders you can use 75% of rental income (even potential with some LO's) to help your debt to income ratio.

Picking a CPA is not really like choosing between Lo Mein or Fried Rice at the buffet line!