Loan to purchase a rental house by 2 married couples. The Underwriter states the approval is based on the Debt Service Coverage Ratio, but also notes that couple one's DTI is 10% and couple two's DTI is 11% and they can apply an additional $54,582 in cash flow to the DSC before their DTIs reach 40%.

Sounds like income and DTI were a factor but not sure if I should report since final decision was based on DSC. If I should report, then how since the incomes and DTIs were considered separately. Any thoughts?

I'm not sure how you could successfully argue the individual incomes were not used in the loan decision since it is clearly documented in the loan write-up.

If the individuals' combined income is $100,000 then that is what you report for the income used.