Let me know what happens. Fact is, it can't be done. Again, I am quite aware of this fact. In determining this income level, the lender considers tax liabilities as well, which means that the MITD comes into play directly in this calculation. And the fact that the loan is made on a house which is one's principle residence.
People constantly lower the price of their home to sell it.
Here, people almost always have to drop their asking price, just as occurs in a Dutch auction. This is nonsense on its face. Now you're trying to change those assumptions by claiming that there are other advantages for cash buyers over those who have loans. You originally argued that there was no difference. I think you need to look closely at my arguement and realize that they are entirely logically consistent and recognize how the MITD influences the market price separate from other factors that may be in play.