Can lead-based paint stabilization be included in a 203(k)?

The Standard 203(k) Rehabilitation Mortgage Insurance Program and the Limited 203(k) may be used to cover lead-based paint stabilization costs if the structure was built before 1978.   

Paint mitigation must be in compliance with the HUD’s lead-based paint rule (24 CFR 200.810(c)) and the Environmental Protection Agency’s (EPA) Renovation, Repair, and Painting Rule (40 CFR 745).  Some states may require more specific treatment. 

The mortgagee may release funds for lead-based paint stabilization only when a state- or EPA-certified lead-based paint inspector, certified risk assessor or sampling technician, independent of the firm that performed the stabilization, performs the clearance examination and clearance is obtained. 

For additional information see Handbook 4000.1; II.A.8.a.xviii.(C)(1); II.A.9.e.9 at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04799