I believe you would qualify for a "hardship exclusion". 

If they are serious ask them to get pre-approved with a lender to see if they are even qualified before worrying about realtors and paperwork etc.

To qualify as an accredited investor, one of the ways is to show a $1M assets other than the primary residence. 

If one could qualify for a solo IRA do you think this is s better vehicle to use?

As with any other form of Tenant occupancy - SCREENING and QUALIFYING will be the key to a happy situation for both You & Tenants. 

@Jay Hinrichs I was thinking it couldn't qualify for an FHA loan if he isn't work, and just in school.

@Cameron Knight Hi Cameron, hard money is one way to go, but if the property qualifies conventional then that's the way to go.

@Jessica Freese , Lucky you, this actually can be very beneficial for your taxes.1) If you husband makes less than roughly 100k,  the loss from rental can offset 25k of husbands' W-2 Income.2) Even if he makes more than 100k, Since you dont have a W-2 Job, with careful planning, you can qualify for RE professional status, that will help you use the entire loss from rentals against husbands' W-2 Income 3) You can convert some of your personal expenses into business expenses with the home office deductions, transportation expense ( mileage, depreciating computers, furniture, and other assets used for the rentals, and few more. 4) You can hire your kids and funnel money within the house if planned carefully. 

If you've got the skills, time, and a little discretionary income, these are great seeds to sow.

Did you use personal or Business income to qualify?