FHA Home Loan Appraisals - Environmental Issues

Lead based paint: 

For all properties built before January 1, 1978, the FHA appraiser must inspect all interior and exterior surfaces, such as walls, stairs, deck, porch, eaves, windows, doors, fences, etc. for defective paint surfaces (i.e. chipping, peeling or flaking paint).  

If the paint is cracking, scaling, peeling, or loosening on any interior or exterior surfaces, the affected areas must be thoroughly washed, sanded, scraped or wire-brushed to remove all of the defective paint (machine sanding or use of a blow torch is not acceptable).  A ground cloth should be used to catch particles of paint and surface removed and a thorough clean up should be accomplished after the surface has been prepared for painting.  All materials cleaned up should be removed from the possibility of ingestion by humans.  The treated surface must be repainted by a paint that closely matches the existing color, using a minimum of two coats of paint unless the affected areas are covered, when appropriate, by a material such as plywood, plaster or other suitable material.  

Radon:  HUD does not require radon testing of homes to be insured by FHA financing.

Asbestos:  Asbestos used as roof shingles or siding on a house does not pose a danger.  When used as a wrap for hot water pipes, it is usually covered and poses no danger.  When the material is deteriorating into a fine powder and can be inhaled, it may pose a danger to one's health.  Asbestos should be removed by an expert only in those cases where the deterioration poses a serious health threat; otherwise the appraiser may condition for repair of the puncture or other damage.