Besides the good advice you have already received I would counsel you to continue to look for a better qualified buyer that can consummate a more conventional deal, and let your current buyer know that you are not in a position to accept his offer because the board will not approve it.
Putting that pressure on the current buyer may actually make him decide to go a more conventional route himself. Sometimes, buyers think that while they can afford to put a greater percentage down they shouldn't do so. He may have a much better financial position than you think he does. My selling client's last condo buyer who wanted to do FHA at 3.5% down turned out to be a NYC attorney who was planning on keeping his NY place too as an investment. A simple google of the buyers affiliation revealed more than what he was telling us and he wound up closing with 20% down. Good luck to you. - Mon Nov 23 2009, 19:18