FHA & Peeling Paint

pealing paint
pealing paint

I thought that all real estate agents knew this and were passing the information along to their buyers and sellers but I was wrong.

FHA loans are very popular right now and many of the first time home buyers that I work with use FHA loans.

When financing is used to purchase a home that home must be appraised so that the lender knows how much it is worth.  With FHA loans part of the appraisal process includes an inspection.  The FHA inspector will require that repairs be made so that the home meets minimum FHA standards.  

Chipped or pealing paint is always called by the FHA inspector and the problem has to be corrected or FHA will not fund the loan. If you  are a seller you want to say yes to FHA financing.  You can fix the areas with peeling paint before you put your home on the market that way no one will have to pay the re-inspection fee after the appraiser says that the peeling paint has to be removed.  

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9 Replies to “FHA & Peeling Paint”

  1. I am an FHA appraiser and would like to add to your comments about peeling paint. The concern is about lead based paint which was banned in 1978. So houses built 1978 and before need to have all defective paint surfaces corrected. Defective paint surfaces on houses built after 1978 may affect value due to condition, but are OK by FHA lead based paint standards.

    1. Teresa Boardman says:

      Thanks and I knew it was about lead based paint. I work in the older neighborhoods and have sold very few homes built after the 1950’s and so I forget.

  2. Teresa – I just showed a home yesterday – 1955, with peeling paint on the exterior. Since my clients are using FHA financing, we had this same discussion. FHA isn’t as strict as they used to be, but there are still certain things the appraiser will call.

  3. Sucks that a house finished on 12/31/1977 with flaking paint will be rejected if it has peeling paint but a house that was finished on 1/1/1978 with flaking paint will be approved. I don’t have kids that will be chomping on the paint so it’s not a safety hazard.


    How can I meet FHA requirements with flaking paint as a buyer, cheaply and temporarily? I’m getting an FHA…203k, I think it’s called – (so even if a home doesn’t meet FHA reqs, a buyer can still buy it, but the repairs

    1. Teresa Boardman says:

      You just answered your own question the 203k FHA makes it possible to buy a home that doesn’t meet the FHA requirements or in this case needs repairs even if those repairs include pealing paint. Ask your lender. You should not need to ask random Realtors with blogs questions about financing. Your lender knows.

  4. arg, comment cut off….

    With an FHA203k the repairs to get it up to FHA standards is rolled into the loan amount. My question is, the house I want to buy has peeling paint. I want to do something with it, but I don’t know what yet. And I don’t want to have to roll and complete repainting of the house into my FHA if I’m only going to get it resided, or something.

    Is there a “quick-fix” for peeling paint, like a sealant or something, that would be acceptable for FHA?

    1. Teresa Boardman says:

      K – first ask your lender if the peeling paint will need to be fixed. My understanding is that the loan was to be used for repairs and that they would happen after the closing. Generally you don’t need to paint the entire house just remove the peeling paint and cover the bare area with paint. This only applies to structures built before 1978.

  5. Please help me! without making me feel stupid would be greatly appreciated. I’m having a hard time comprehending I guess. I’m looking at a beautiful turn of the century victorian that has been immaculately maintained except of course a few problems areas. It looks like there was some heavy leaking of the roof into the attic. plaster falling etc. Seller has just put a brand new roof on with a 50 yr warranty. does this mean the appraiser is going to look at the fallen plaster and bomb the whole thing? are they going to require the plaster be fixed? I mean, of course i want to fix it but I’d really like to just get in the door of the place! I know many were discussing chipped or peeling paint. The exterior of the home has wood siding that looks like it could use to be scraped and repainted. My question about that I suppose is…..does that follow the same rule of thumb as say, a roof. I guess the rule of thumb is the roof needs to have at least 2 years of life to be approved. so does siding follow the same rules? And if a structure was built before 1978 and meticulously scraped and painted every few years until recently, how does that work? is it the paint that they are interested in with the lead base? because i’m positive this place has been scraped and painted every so often up til current owner fell ill a few years ago. so then do i need to prove that the siding has been painted lets say in 2008? and that it’s not lead based? i dont even know what i’m asking. this is hopeless.

    1. Teresa Boardman says:

      I am guessing that you are waiting for the results of an FHA appraisal. If the ceiling has fallen in it is very possible that FHA will want some repairs. You can ask your lender these same questions and he or she should be able to give you some good answers. Also aks your lender about other types of financing. There are actually special loans for properties that need work.

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