Mortgage Qualification Question

[Cheyenne Davis]

I have someone wanting to purchase one of our houses and they have a previous foreclosure. Can any of the mortgage experts on here tell me if it's realistic that they get financing? Here's their situation... Fell behind on their mortgage 5 or 6 yrs ago during market crash. LP was filed about 4 yrs ago. They filed a chapter 7 BK which was discharged approx 3 yrs ago. To date, they're still living in the house which is being foreclosed, but the debt was discharged in the 7. Can they qualify for a Fannie mortgage or any attractive mortgage? They have plenty of income and good DTI, but don't have a full 20% down payment.