FHA upfront MIP refunds can some what be confusing at times because there are certain dates involved. The refund process has changed about 3 to 4 times in the last 15 years. In part 1, FHA Mortgage Insurance Premium & Monthly Mortgage Insurance, I talked about the basics of the upfront charge and the monthly insurance. In this section, I will share with you the types of refunds that are allowed.
The different refunds and their dates:
- The old rule was that if you had paid your off either by selling your house or refinancing in 7 years or less, that you would receive a certain refund. But the date that this was applied to had to happen by January 1st of 2001. So as you can see, if you had a FHA mortgage prior to this date, that you will not get a FHA refund.
- For those FHA loans that were closed on or after January 1st, 2001 to December 7th, 2004, there is no refund after the 5th year.
- For those FHA loans closed on December 8th, 2004 until present, no refund is due after the 3rd year. Here is the chart to show you how much of a refund that you are due.
| Upfront Mortgage Insurance Premium Refund Percentages |
| Month of Year |
| YEAR | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 80 | 78 | 76 | 74 | 72 | 70 | 68 | 66 | 64 | 62 | 60 | 58 |
| 2 | 56 | 54 | 52 | 50 | 48 | 46 | 44 | 42 | 40 | 38 | 36 | 34 |
| 3 | 32 | 30 | 28 | 26 | 24 | 22 | 20 | 18 | 16 | 14 | 12 | 10 |
How to follow-up if you deserve a refund:
If you do not receive a check or an application within 45 days after you have paid off your loan, check with your mortgage company to confirm that they have sent HUD a request to terminate the mortgage insurance on your loan. If they confirm that the correct termination information was sent, contact HUD. If you do not receive a refund or any other documentation from HUD within 120 days after the date you mailed your application, contact HUD immediately.
How to contact HUD:
Phone: (800) 697-6967
Mail: U.S. Department of Housing and Urban Development, P.O. Box 23699, Washington, DC 20026-3699.
This is directly from HUD's web site :
Note: All inquiries should include your name, your FHA case number, the date that the mortgage was paid-in-full, the property address, and your daytime phone number.
HUD - Does HUD Owe You a Refund?
Series on FHA Upfront MIP & Monthly MIP :
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For more information on FHA cash out refinancing, please go to this link. The FHA Expert
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
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