If you’re in the market for a home and considering a HUD-owned property, there are a few things you should know before making an offer. One of those things is the possibility of lead-based paint in the home. Lead-based paint was commonly used in homes built before 1978, and HUD homes are often older homes that may have been built during this time period. Because lead-based paint can pose health risks, HUD has regulations in place to ensure that buyers are aware of the potential risks and take necessary precautions. Here’s what you need to know about buying a HUD home with lead-based paint and an FHA loan.
Before we dive into the details of lead-based paint and FHA loans, let’s first define what a HUD home is. A HUD home is a property that was previously financed with an FHA-insured mortgage and then foreclosed upon. The property is then sold by HUD (the Department of Housing and Urban Development) in an effort to recover some of the money that was lost.
HUD homes are often sold at a discount compared to other homes on the market, making them an attractive option for many buyers. However, they may also come with some unique challenges. You can find a list of HUD properties for sale in your area at hudhomestore.com .
Lead-based paint is a type of paint that was commonly used in homes before it was banned in 1978. Lead is a toxic metal that can cause serious health problems, especially in young children and pregnant women. If lead-based paint is disturbed, it can create lead dust, which can be ingested or inhaled.
HUD has regulations in place to address the issue of lead-based paint in homes, including those being sold as HUD homes.
If you are using an FHA loan to purchase a HUD home, there are some additional requirements you should be aware of regarding lead-based paint.
First, the FHA requires that all homes built before 1978 be tested for lead-based paint. This is to ensure that buyers are aware of any potential risks and can take necessary precautions. Once HUD accepts your offer they will order a lead test for the home if you are using FHA financing.
If lead-based paint is found in the home, the FHA requires that the seller take certain steps to address the issue. These steps may include:
Lead Based Paint is a very real thing. The great thing about purchasing a HUD home with an FHA loan is that there are lots of options. Testing will occur to ensure the buyer has a lead safe home at the end of the transaction. As an added bonus HUD has special incentives to help make it all possible, such as $100 down payment option, credits towards remediation, and the ability to finance in the cost and have the work done after closing. If you are in the market for a HUD home don’t hesitate to reach out with questions. We are hear to help.
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