If you ever had a mortgage backed by the Federal Housing Administration (FHA), you could be missing out on hundreds – maybe even thousands – of dollars in refunds if you never ended up using the mortgage insurance premium. An FHA MIP refund is a refund of this mortgage insurance premium you paid upfront. Millions of Americans finance their home purchase with FHA loans, but most of them aren’t aware that they could be owed HUD refunds.
To get an FHA mortgage insurance refund, you’ll need to meet a few qualifying criteria and submit a request to the right place. Learn how you can check to see if you have a refund waiting for you and how you can claim it below.
You could be owed a mortgage insurance premium (MIP) refund and not even know it. Right now, the U.S. has millions of dollars in unclaimed refunds just waiting for people to claim. Don’t you want to know if the government is holding your money?
When you originated your FHA-backed loan, you were required to pay an up-front mortgage insurance premium (UFMIP). Mortgage insurance helps protect the lender in case you stop making your mortgage payments.
Wondering if you qualify for an FHA refund? To get a full refund, you just need to meet these three criteria:
- Your loan must have originated after September 1, 1983.
- You must have paid an UFMIP.
- You must not have defaulted (stopped making payments) on your loan.
Don’t meet these criteria? Don’t worry. You still might be able to get a partial FHA MIP refund if you meet one of the following requirements:
- Your loan originated on or after January 1, 2001 and you were paying off or refinancing your loan within five years.
- Your loan originated on or after January 1, 1994 but before January 1, 2001 and you were paying off or refinancing your loan within seven years.
Did your loan originate on or after December 8, 2004? If so, you may still qualify for a HUD mortgage insurance refund if you refinanced to another type of FHA loan within three years. Instead of a cash refund, though, you’ll get a partial refund credit. You can use this to lower the cost of the UFMIP on your new loan!