Will FHA make exception for 2-year work requirement for stay at home mom???

[goodygoody]

Hi there - I'm confused about FHA and whether my husband and I can apply yet.  We both have scores around 700, so I'm pretty sure we're good in terms of credit, but I don't understand whether I can be considered for an FHA mortgage or not.  I was a stay at home mom for about 5 years, then went back to work about a year and a half ago.  I've been with the same employer since then.  I'll have 2 years in September. 

A while back, I saw a post here where someone said that if one spouse was working and the other spouse was at home with small children and returned to work, FHA can make an exception to the two years of employment rule and count the income of the previously at-home spouse.  On another post some time later, however, someone said this is a solid requirement and can't be overridden. 

So, my question is, which is correct?  We would love to apply for a mortgage and start looking in late spring/early summer, but we'd definitely have more options if my income were included, so I guess we might have to wait till September if that's the case.  We have 3 kids - 2 are school-aged, so we're hoping to avoid switching school districts during a school year. 

[203bravo]

From HUD document 4155

To be eligible for a mortgage, FHA does not require a minimum length of
time that a borrower must have held a position of employment. However, the
lender must verify the borrower’s employment for the most recent two full
years, and the borrower must
 explain any gaps in employment that span one or more months, and
 indicate if he/she was in school or the military during the most recent two
full years, providing evidence supporting this claim, such as
 college transcripts, or
 discharge papers.
Allowances can be made for seasonal employment, typical for the building
trades and agriculture, if documented by the lender.

If you have had a long gap in employment, and are just returning to work, you may be required to establish a 6 month work history for qualification. This is often the case where a parent has taken time off to raise a child and is now returning to the workforce.

[goodygoody]

So if I have a year and a half, it sounds like I may be good??

[203bravo]

I would think so.. would just need a LOE stating that you returned to the work force after being a stay at home parent