Lead-based paint on HUD homes built before 1978: what HUD stabilizes, what you sign, and the 10-day right

Denver’s bungalows, ranches and split-levels are mostly pre-1978, and so is most of the metro’s HUD inventory. Lead-based paint is assumed in any of them. HUD handles it more carefully than a private seller does, and you sign more paper.

What HUD does before you close

• HUD orders a lead-based paint inspection on pre-1978 homes as part of its property review. The report is in the listing documents.
• On homes sold with FHA financing, HUD stabilizes defective paint surfaces (scraping, priming, repainting the peeling areas) before closing, using a certified contractor, and provides a clearance report. This is the most common reason a HUD closing waits on HUD, and HUD-caused delay means a free extension. Ask for it.
• On cash and non-FHA sales, HUD discloses but does not stabilize. The house is yours as-is.

What you sign

• The federal lead-based paint disclosure and the EPA pamphlet “Protect Your Family From Lead in Your Home.”
• HUD’s lead-based paint addendum, which records the inspection results and either the stabilization HUD will do or your acknowledgment that it will not.

Your 10-day right

Federal law gives every buyer of a pre-1978 home a 10-day window to hire a certified lead risk assessor. On a HUD home that window runs inside the 15-day inspection period. A risk assessment costs $300 to $600 in the Denver area. If it finds hazards HUD did not, HUD will not do more than the addendum says. An owner-occupant who cancels for the finding forfeits half the deposit, unless the lender denies the loan because of it. The refund rules.

If you have children under six

Take the 10 days. Pay for the assessment. Windows, doors and porches are where the dust is. Stabilization makes a house safe to occupy; it does not remove the lead. Budget for window replacement if the sashes test positive and you have small kids.

Renovating later

Any contractor disturbing paint in a pre-1978 home must be EPA RRP certified and follow lead-safe practices. If you are doing a 203(k) or a HomeStyle, the contractor bid should say so. Renovation loans.

A plain-English example

A 1954 ranch in Englewood, FHA buyer. HUD’s inspection found defective paint on the exterior window trim and the garage door. HUD’s contractor stabilized both in week three and delivered a clearance report. The buyer’s own risk assessor found dust on the interior sills, which the buyer cleaned and later replaced. HUD granted a 12-day no-fee extension because the clearance ran past day 45.

Not sure which rule applies to the house you are looking at? Call or text 303-955-4220. A live person answers, and the answer is free.

Written and reviewed by

Brian Lee Burke, Colorado HUD home specialist and team leader

Licensed Colorado real estate professional since 2002 · REALTOR® · Team leader and licensed broker of the Kenna Real Estate Group at Keller Williams DTC, a HUD-registered group that regularly bids on HUD homes · Author of The Real Estate Playbook and Mastering Real Estate. Brian’s full HUD biography.

Last reviewed: September 17, 2026 · Sources: HUD Home Store (hudhomestore.gov) and HUD program guidance, HUD Handbook 4000.1, REcolorado MLS data via kennarealestate.com, and the Kenna Real Estate Group’s own HUD transaction files.

Contact: call or text 303-955-4220 or homes@kennarealestate.com. During office hours you reach a live local Kenna real estate professional, not a robot or a national call center. Brokerage: Kenna Real Estate Group at Keller Williams Realty DTC, LLC, 6300 S Syracuse Way, Suite 150, Centennial, CO 80111. Each Keller Williams office is independently owned and operated. The Kenna Real Estate Group is an independent real estate team and is not affiliated with or endorsed by HUD or any government agency; official property information comes from HUD Home Store. Equal Housing Opportunity.

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