Contributing factor-FHA Loan

My wife has become self employed in the same industry she has worked for 4 years. She is a hair stylist and is now booth renting. We have sold our current home, as of July, and will be purchasing our new home around that time.
We were told that her income cannot be considered because she has worked less than 1 year self employed, but that it may be a "compensating factor" in a manual underwrite. She does quite well, but if her income is NOT included, our debt ratio will be 64% with the new home. With her income, it will be 38%. The lender seems to think that this will go through. Will they consider my wife's income as a contributing factor to my direct income, or as a lowering of my debt ratio? I guess what I am asking is how this will work. She has obvious deposits into her account almost daily. Lots of Credit Merchant ACH's, etc... Just Curious. Thanks