Reading the actual guideline text below — never a general AI guess

Here's what we're dealing with when paint is peeling: For homes built before 1978, peeling paint is treated as a serious safety issue because lead-based paint must be assumed to be present, and we have to require it to be fixed—cost is not an acceptable reason to skip this repair. For homes built in 1978 or later, peeling paint on the outside must be repaired if it exposes the underlying surface to weather, but interior peeling paint is typically just a cosmetic issue. When peeling paint does need fixing, both HUD/FHA and VA require that the surface be scraped clean to remove all the peeling material, then primed and painted with two coats of paint—and for pre-1978 homes, this work must be done by an EPA or state-certified lead-safe contractor using specific methods (no open flame or machine sanding). The excerpts shown here do not cover what Fannie Mae's complete position is on peeling paint repairs.

Straight from HUD/FHA Single Family Handbook 4000.1, VA Lenders Handbook (Pamphlet 26-7), and Fannie Mae Selling Guide — nothing added.

VA Minimum Property Requirements Change 46 effective May 1, 2026: Defective paint on post-1978 homes no longer a repair condition

Effective May 1, 2026, the VA removed the requirement for appraisers to call for repairs of defective paint on homes built after 1978, treating interior and non-weather-exposed exterior paint as cosmetic issues.

VA issues May 1, 2026 MPR rule changes eliminating paint requirement for post-1978 homes and outbuilding evaluation

Effective May 1, 2026, the VA modified two MPR standards: peeling paint on post-1978 homes no longer triggers a repair condition, and outbuildings are no longer subject to MPR compliance evaluation, benefiting veteran buyers in rural and older-home purchases.