Interesting read. Thanks for sharing, RedmondStash.
"In order for the money to be counted, you can't be using these assets for current income, not even the dividends or interest from the investments."
This is a head scratcher. So in order to count income from investments, you cannot have a current verifiable income stream from those investments. Huh??? I have to believe this has a specific application like keeping a borrower from double dipping. What I mean is that if I have 1040 income from the investments, I cannot also use this calculation to "create more income from the same money".
The trick would be how the hell does the underwriter tell if interest or dividends are used as "real" income or are just part of your accumulation phase of investing. That would put the underwriter in a tough spot which may mean they go the safe route and frustrate borrowers.