How to Get a FHA Refund

What is this FHA refund everyone is discussing? On many mortgages, the FHA required borrowers to purchase up front mortgage insurance at the time they signed loan papers. The FHA mortgages that are eligible for these refunds are those acquired after September 1, 1983 but before December 8, 2004. There are certain conditions you have to meet in order to qualify for the mortgage insurance refund however. Thousands do not know about this and may not realize that it exists. For some it can be a significant sum of money. Moreover, if you have a claim, you want to make it as soon as possible.

Do you qualify for a FHA refund? You need to meet a few guidelines. A few exceptions can stop the refund. First, you need to have opened the loan between September 1, 1983 and December 8, 2004. You must have paid the upfront mortgage interest upon closing. You also must not have defaulted on the loan. There are a few exceptions. If someone assumed the mortgage, the prior owner is not entitled to the refund. FHA refinancing may cause the premium on the first loan to apply to the refinance. A mortgage company can make a claim for that refund.

What steps do you need to take to get your FHA refund? Your lender will need to notify HUD of termination of the mortgage insurance. At that point, HUD will either have the Treasury issue you a direct refund or they will send you an application that you will need to fill out and return. The application comes when there may be a question of eligibility. After filling out the documentation, it goes back to HUD for approval. If HUD approves, they will have the Treasury issue the refund. If they do not, they have to provide documentation as to why they denied the refund.

What else do you need to know about these FHA refunds? If you do not receive any documentation from HUD within 45 days of the termination of insurance, contact them immediately. They will give you an update on the situation. It is also important to know that third parties are not necessary for getting these refunds. You can use their services, to help, but it will not expedite or make the situation go easier. Any mortgage opened after December 8, 2008 does not have refund eligibility. Do not hesitate to get your refund today.