The husband accepted this lien from Veterans Affairs while being ill-equipped to do so due to his severe PTSD.

Yes, accepting this family seems reasonable if their financial stability checks out.

Anyways, assuming she accepts, does any of this make sense? 

Offer to let her out of the lease without penalty and hope that she accepts the offer.

Accepting this deal aligns with your goals of scaling sustainably.

Quote from @Jonathan Taylor Smith: So much for "Guaranteed Rent" by accepting Section 8 Vouchers...

@Loren Becker You didn't notify the seller of the assignment until after the offer was accepted ?

If they are married/related yes, combining incomes to reach the goal is generally acceptable. 

What loan terms will the seller accept?

Since then she’s hired a lawyer because she felt that it’s unfair that shes only getting 30 days notice. she supposed to move out on the 26th of November she wants him to use the security deposit as last month rent but my friend runs the risk of the place being trashed if he does accept this will he still be able to fight for more money if the place does end up trashed and is there anything he can do to fight her to get the last months rent