203k loan hold up (lead paint and asbestos)

[Christian Gwozdz-Silveira]

Hi Everyone,

I recently got a home under agreement. I am converting a dentist office into an apartment unit for myself to live in. There are also three other residential units in the building. I will be completing this with an FHA 203k loan. While I was in the property measuring the existing dentist office for plans of the rehab, I also used a home depot lead paint tester kit. I found that the entire rear staircase walls are painted with lead paint (three stories worth). I also found that in the basement in a room down there, there's some asbestos material on the ceiling.

What do I do? Should the owner treat the lead? Should I? Should we take care of it before the bank appraisal for the FHA loan? Does anyone have experience with a situation like this?