I know this is not primary focus of your post but its important to understand why this seller is willing to offer you the terms they are offering.

I offer a buyer's commission of 2.5% of the PP that comes out of my assignment fee.

Some credit providers charge $50, some charge $200 and you don't have control over this unfortunately.Title fees: since you are purchasing, you probably didn't choose the title company, however this can be negotiated when you submit your offer.

Some lenders do not offer this option for that reason.

I am making an offer on a multi-family home that has two units.

If You did get it under contract, would you offer it to someone else with no money ?  

With the right lender, it only takes a couple weeks.Here’s the link for more info: https://www.va.gov/housing-assistance/home-loans/loan-types/...Your current lender may offer this, but check around.I used the VA IRRRL in 2018.I wish you all the best.

Also, what are the seller financing terms being offered?

They are offering to rent the property then sublease it for me. 

Once the property passes inspection you submit your lease and the Section 8 agreement and you are in business offering government housing.