FHA Lead Paint Inspection and Repair Requirements
The Federal Housing Administration (FHA) has specific guidelines regarding lead paint inspections and repairs for homes financed with FHA loans. These requirements are designed to protect borrowers from potential health hazards associated with lead paint.
Lead Paint Inspection Period
For homes built before 1978, FHA borrowers are given a 10-day period before becoming obligated to purchase the home to conduct a lead-based paint inspection or risk assessment. This inspection allows borrowers to determine if the home contains lead-based paint and to assess the potential health risks.
Presumption of Lead Paint Contamination
FHA appraisal rules state that homes built before the lead paint ban went into effect in American housing (1978) are presumed to be contaminated with lead paint. This presumption is based on the widespread use of lead paint in homes constructed before the ban.
Peeling Paint Repair Requirements
If an FHA appraisal detects peeling paint in homes built before 1978, that paint is further presumed to be a lead-based health hazard. In such cases, the FHA requires that the peeling paint be repaired before the loan can be approved. This repair cannot be waived as it is considered a health and safety issue.
Cosmetic Peeling Paint Exemption
Homes built in 1978 or later may be exempt from the peeling paint repair requirement if the chipping is purely cosmetic and does not expose the subsurface to the elements. In these cases, the appraiser will determine if the peeling paint poses a health or safety hazard.
Waiver of Lead Paint Inspection Period
FHA allows borrowers to waive the 10-day period for a lead paint inspection on pre-1978 homes. However, this waiver should be done in consultation with professionals and carries certain risks. If lead paint is later discovered, the borrower cannot use it as a reason to withdraw from the purchase.
Sources
- FHA Down Payment Assistance Grants for 2024
- FHA Loan Appraisal Issues: Cosmetic or Health Hazard?
- Can You Waive the FHA Peeling Paint Repair Requirement?
FAQs
Does FHA require a lead paint inspection?
Yes, for homes built before 1978, FHA borrowers are given a 10-day period to conduct a lead-based paint inspection or risk assessment before becoming obligated to purchase the home.
Why does FHA require lead paint inspections?
Lead paint is a health hazard, especially for children. FHA inspections help to identify homes that may contain lead paint so that appropriate precautions can be taken.
What happens if a home built before 1978 has peeling paint?
FHA requires that peeling paint in homes built before 1978 be repaired before the loan can be approved. This is because peeling paint is presumed to be a lead-based health hazard.
Can I waive the lead paint inspection period?
Yes, but it is not recommended. If you waive the inspection period and lead paint is later discovered, you cannot use it as a reason to withdraw from the purchase.
What if the home I want to buy was built in 1978 or later and has peeling paint?
The appraiser will determine if the peeling paint poses a health or safety hazard. If it does not, the repair may not be required.
What are the consequences of not repairing lead paint hazards?
Lead paint hazards can cause serious health problems, especially for children. Unrepaired lead paint can also lead to FHA loan defaults and foreclosures.
How can I find a qualified lead paint inspector?
You can find a qualified lead paint inspector by contacting your local health department or by searching online for “lead paint inspection” in your area.