Don’t know anyway or any program for a 520 borrower to buy a home. Co-borrower sounds fine, depth of credit usually not an issue if there’s enough for credit scores and automated underwriting approval. Obviously, income is a limiting factor, but depending on the price range you’re looking at, ought to at least be possible to buy a relatively modest home. Sounds like both need to establish some credit, probably have to do a secured credit card for 520 score borrower….hope that helps you.
Have the borrower call their bank or credit union to request opening a small secured loan. The borrower will place a sum in a savings account and the bank or credit union will freeze the funds and the borrower will make small monthly payments at a low interest rate until the loan is paid in full. This program works best if the payments are spread out in 12 monthly payments. In many cases, the borrower can set up an automatic payment from their checking account to ensure that they don’t miss a payment date. First, have the borrower check to make sure that the bank or credit union reports secured loans and/or secured credit cards to Experian, Equifax and TransUnion.