She should attempt to improve her credit score first. Sounds like she has some ideas running around in her head, but no real plan or info. She MUST get a copy of her credit report and start working on it. I recommend that she go to a service like CCCS if she cannot afford a credit counselor. There are lots of things to do to fix your credit, first she needs to know if there is anything on there that does not belong to her. Sometimes other socials appear on credit reports and bring the score down, you can have these removed. Many people that hold debts will allow settlement for pennies on the dollar if the charge is old and they just want to make money back. After 7 years of something being on your report, you may have it removed, but REMEMBER that the ONLY THING that needs to be done to keep that debt "fresh" is for you to inquire about it, or for the company you owe money to to re-report it- THIS is something you'll need the help of a credit counselor for... they know how to read this off a credit report, and she probably doesn't. The final option is to start paying things back (if they are new debts, not close to that 7 year mark). You should ALWAYS be paying off whatever has the HIGHEST INTEREST RATE FIRST.
AFTER all this, IF she can re-fi for a decent rate, be sure NOT to get an adjustable rate mortgage!!