Anyone have knowledge on this type of loan?

My brother married a lady with a house earlier this year. He was a renter before this. Her name is on the title and the loan of the house they live in.

They want to take advantage of this mortgage type and get him to purchase a home at the lower rate 3% down for first time buyers, rather than the 10% down for "2nd home" purchasers. If he's not on the title or mortgage, is this possible?

I believe he has to occupy it as his primary home within 60 days and the lender can get in a lot of trouble if they knowingly lend on it with him never intending to live there. I'm not sure what his risk is, probably some kind of recourse the purchaser of his loan can take against him if he gets caught not living there.

This might be Texas specific though I assume that's where he is.