If you had a Federal Housing Administration (FHA) insured mortgage, you may be eligible for a refund of part of your insurance premium and/or a share of any excess earnings from the FHA's Mutual Mortgage Insurance Fund.
What is a FHA Loan?
The FHA is a part of the Department of Housing and Urban Development (HUD). “FHA Loans” are mortgages insured by the FHA/HUD and work like any other mortgage loan, in which you borrow an amount of money from a lender and pay it back over an extended period (often 30+ years).
The main difference with a FHA loan is that you are charged both upfront and monthly mortgage insurance premiums, often for the life of the loan.
Many individuals unknowingly qualify for a refund on an unused portion of the upfront premium paid.
The rules vary, but in most cases you qualify for a refund if you:
- obtained your FHA loan after September 1st, 1983
- paid an upfront mortgage insurance at closing
- did not default on mortgage payments
In some cases you might even be eligible for a “distributive share” of excess earnings from the FHA’s Mutual Mortgage Insurance Fund if:
- your loan was obtained before September 1st, 1983
- your loan was paid for more than seven years
- FHA insurance was terminated before November 5th, 1990
Typically, the mortgage company notifies HUD of any refund due when your mortgage insurance is terminated, however many people move addresses or don’t realize a refund is actually due, which leaves millions of dollars in refunds unclaimed.
If you, or someone you know, obtained an FHA loan after September 1983, you can search the HUD database to find out if a refund is due.
Click here to visit the HUD website and search by last name or FHA case number to see if you qualify.
You can also call HUD directly at 1-800-697-6967 to see if you qualify and request that your refund be processed.