If I read this correctly, you have a potential buyer but he does not qualify for a mortgage and you want to know what to do? If you definitely want to sell this house to this buyer, one option is called a lease-purchase. The buyer gives you a large deposit, which would be used toward the downpayment at the time the sale actually goes through, but it protects you in case of any damage that might occur while you still own the property. You would charge a rental fee to the buyer for a fixed amount of time and then complete the sale at the end of that time. So you might give the buyer 2 years to rent at a fixed rental price with a pre-determined sales price. This would all be written into an agreement and a deposit of $5,000 or more would be held by you in escrow. There are more legal details, but this would give the buyer 2 years (or more) to clean up his credit and if he can not buy the house at the end of that time, he would have to move out and you could sell it to someone else.
I would be glad to help you explore this more, and talk with you in more detail about your plans. Just give me a call at 703-966-4463 and we can set up some time to discuss this in person.
Thank you, Ann