V: If you have been claiming the rent as income on your tax return, we can utilize that as income.
I have yet to find a borrower who does claim the rental income, so it is easy to say 'no'.
There are other ways to stretch your income utilizing various first time homebuyer programs in the Alameda and Contra Costa counties. These include first time homebuyer programs with down payment assistance and mortgage credit certificates that will credit you 15% of your future mortgage interest as income. With a $400k loan, that would give you about $220 more per month in income.
Hope this helps!