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Peeling Paint In The Winter

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tropikchiken

Freshman Member
Joined
Dec 7, 2017
Professional Status
General Public
State
Maine
Hi all-
I'm sure you guys/gals have come across this before...

I am trying to have my old 1875 house refinanced through an FHA loan (currently is seller financed).

Had appraiser out and she said the paint on the attached barn/garage needs to be taken care of it.
Trouble is, it is already too cold in Maine to get it painted.
I intended on having the whole house painted in the spring anyway.

So, I have a few questions-

A) Can this work be deferred until spring? Maybe with an escrow account holding the estimated cost?

B) If the paint is not lead, would it need to be done? From what I understand, FHA loans don't require peeling paint to be fixed in post-1978 homes due to lack of lead. I don't know how old the paint is on the barn, but it certainly is possible it is newer than 1978.

C) Two sides of the barn are painted, but one is the original bare wood siding. It's not in great condition, but the appraiser didn't mention it. Can I leave this unpainted?

Thanks for any input or advice on this situation. I really need to get this loan taken care of before spring because the balloon payment on my current mortgage is due in February.
 
D

Deleted member 130081

Guest
First, it is not unheard of that the paint condition can be held until spring - just ask your lender about that. Peeling paint on any exterior structure is considered something that needs to be done to preserve the components subject to rot, so unless the surface is the new PVC or similar type, which I am sure it is not, the paint serves to protect the wood and it will need to be done for FHA. As far as lead, we must assume any paint on a structure built 1978 or before has lead in it. Maybe you could get a lead test to clear the issue, but the default position of FHA (and pretty much any party in the real estate business) is that it has lead and anything defective (peeling, chipping) needs to be fixed, both interior and exterior. So, peeling on the exterior is a rot thing no matter the age of the structure, and peeling anywhere on a structure 1978 or before is a lead thing.
 

tropikchiken

Freshman Member
Joined
Dec 7, 2017
Professional Status
General Public
State
Maine
To add onto this- I spoke with my lender and they said they are going to look into a "203(k) Rehab Mortgage Insurance" loan. A quick peak at those rules though it seems that the required repairs must be at least $5,000, which painting my barn certainly would not cost.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I suppose you could tent the whole house and blow hot air in it, then it would cost $5,000.. :) . The Direct Endorsement Underwriter may be able to delay that until spring. Ask the lender
 

tropikchiken

Freshman Member
Joined
Dec 7, 2017
Professional Status
General Public
State
Maine
I suppose you could tent the whole house and blow hot air in it, then it would cost $5,000.. :) . The Direct Endorsement Underwriter may be able to delay that until spring. Ask the lender
Ya, that's about right. One painter quoted me $6,000 to tent it, heat it and paint it (just the barn, not the house) - and he said he still wouldn't warranty the work. Ugh, no way that is in the budget.
 
D

Deleted member 130081

Guest
To add onto this- I spoke with my lender and they said they are going to look into a "203(k) Rehab Mortgage Insurance" loan. A quick peak at those rules though it seems that the required repairs must be at least $5,000, which painting my barn certainly would not cost.

I am sure you could look around and find $5k worth of things needing repair.
 
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