FHA / Peeling lead paint

[JSmith43]

The EPA rules are worthwhile to read. If the affected area of repair is less than 60 sf? then the area doesn't have to be enclosed to capture the dust, chips, etc, during the repair when done by a regulated contractor. The homeowner can snort the dust, if they want.

In order to have a prayer at accurately estimating cost of repairs on the report, consider the following: Small jobs are relatively cheap, while jobs bigger than 60 sf, the price will go up significantly. Also, if the affected area is hard to enclose, expect a much larger bill.

 

[Mike Garrett RAA]

Another fine reason....

REQUIREMENT: (Chipping and Peeling Paint) Properly prepare and paint the affected area(s) with two coats of paint consistent with the existing paint scheme. Note: Since this property was constructed prior to 1978 there may be a lead based paint issue; therefore, compliance with EPA lead based paint issues is required.

That should cover it.

 

[Duke 73]

The lender is telling me that even if we appraisers don't call for an EPA contractor that is certified to deal with lead paint, that the underwriter will call for that. If we as appraisers call out peeling paint on a house prior to 78, no matter what, the underwriter is going to want to see that it was repaired by an EPA contractor that is certified to fix peeling lead paint. This is the first I have heard of it, but this is what the lender is telling me. So it doesn't matter to the appraiser who fixes it, but it maters to the lender. He said this is a requirement on all USDA, FHA, and VA loans.

 

[residentialguy]

The lender is telling me that even if we appraisers don't call for an EPA contractor that is certified to deal with lead paint, that the underwriter will call for that. If we as appraisers call out peeling paint on a house prior to 78, no matter what, the underwriter is going to want to see that it was repaired by an EPA contractor that is certified to fix peeling lead paint. This is the first I have heard of it, but this is what the lender is telling me. So it doesn't matter to the appraiser who fixes it, but it maters to the lender. He said this is a requirement on all USDA, FHA, and VA loans.

Not true. There is no such FHA requirement of appraisers, and it would be fraudulent to lie for the lender. You know what the homeowner is going to do to you when he finds out that you lied and required him to shell out $$$ that was not required????

 

[Duke 73]

I know there is no requirement for appraisers. It is the LENDER that requires it from the homeowner. (so my client is telling me) It doesn't matter to us appraisers who fixes it. What he is saying is that the LENDER won't fund the loan unless the HOME OWNER provides a letter showing that the peeling paint was repaired by an EPA certified lead paint contractor. The lender said this is a lending requirement for FHA, VA, and USDA.....not an appraisal requirement.

But if the homeowner fixes the peeling paint themselves BEFORE the appraiser gets there, then the appraiser won't call for the peeling paint, then the lender never knows it was an issue in the first place, and therefore there will be no need for an EPA certified lead paint contractor. (this is all according to the lender)