HUD Home Information - What effect does HUD’s Lead-Based Paint (LBP) guidelines have on my transaction? - www.cjharrington.com

Each house built before 1959 gets a LBP inspection and the results are disclosed in a LBP Addendum posted with the listing on our website. This is one of the addenda that must be signed and included in your complete and correct Contract Package. Each house built between 1960 and 1978, will have a LBP inspection report ordered only if the buyer chooses FHA financing. Disclosure of LBP conditions will be forthcoming usually within 2 weeks.
You must also check the box in paragraph #11 of the HUD-9548 Sales Contract to read, “Lead-based paint addendum X is attached.”
HUD is required by law to mitigate or stabilize the lead-based paint prior to closing in certain cases. This will most likely delay the closing of the transaction. The Buyers will not have to pay any extension fees. HUD will obtain a LBP Clearance Certificate and provide it to the Buyers. This requirement applies when the following conditions occur:
The house was built prior to 1960.
Lead based paint is present in unstable condition.
The house is sold to Owner-Occupant Buyers.
The Buyers are using FHA 203b financing.
If the Buyers are using FHA 203k financing, the renovations must include mitigation or stabilization of the LBP, and HUD will credit to the Buyers a certain amount toward the costs. See the listing for the specific amount. Maximum amount of the credit from HUD is 10% of sales price.