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Literacy-challenged is probably not a good choice makes it sound like the person is retarded/mentally challenged which is not necessarily true. Many people are illiterate merely because they haven't had the opportunity to go to school and so their literacy level really isn't an accurate representation of their intellectual capabilities.
I've never heard anyone in the US say "detached home." No one here would know what that meant. Maybe they say that in Canada, but I know basically nothing about Canadian English.
