Contract assignment to FHA buyer?

[Ivan Vargas]

Has anyone ever assigned a contract to an FHA retail buyer? Does FHA allow it and will they be able to close on the property or will the escrow be lost since its a cash offer?

Although there is a $5k markup on the purchase price, I'm really just doing it as a favor for a friend. Specifically, I have a friend who wants to buy this home as a primary residence, however the seller is not interested in FHA buyers and won't even consider offers contingent on FHA financing. I plan to make a cash offer with my POF for just $5k below asking and assign the contract to my friend for the $5k. (I'd do it for free but hey an extra $5k won't hurt.)

However, I am not familiar with FHA guidelines and I don't know if they will accept that purchase agreement under my company name with an assignment of contract from my company to the FHA end buyer. I don't want her to lose the escrow deposit I will be making with my offer simply because she can't get financing and the agreement is clearly not contingent.

Anyone on here have experience with this type of situation? Any suggestions or advice would be appreciated...