Once drywall absorbs moisture, it will expand. Do not use this stuff. With expansion from moisture you will risk walls that are wavy or uneven. The fact that you kids may have mold sensitivity is more reason to discard it. Drywall is cheap compared to the aggravation and expense you may incur later. LJ, with all respects, I understand you are trying to help, however why would you want to recommend using this stuff based on guesswork?