My wife and are hoping to buy a house this summer once she gets her 'grown-up' job, but I am on unemployment and we are concerned that it will not count as income when applying for a mortgage.
It is income I will be receiving until I find work that pays more, so I could see an argument that it is more 'fixed' and 'stable' then a paycheck is.
Short answer: No. Unemployment insurance is not income. It will not be counted towards your mortgage. It is definitely not seen as "more fixed and stable" than a paycheck - it is an indication of employment stress, and prevents the banks from working up projected earnings for you going forward.
It's great your wife is getting a job later in the year. Employment, however, is not the only factor taken into account by the banks, and unless your wife has a high-earning capacity degree in a stable field - such as medicine - you'll likely need other things on your side to swing a mortgage quickly after she starts working.
