January 5, 2015
A reader asks, “I like to know why FHA MIP don’t send any refund after pay off of my FHA loan pay off 4 months ago.”
FHA borrowers may or may not be eligible for a mortgage insurance premium refund depending on circumstances, but assuming the reader is eligible for a refund, consider the advice found on the FHA official site at www.FHA.gov:
“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.”
Who might be eligible for an FHA Mortgage Insurance Premium refund? According to FHA.gov money back to certain eligible borrowers could come in the form of a refund or something called a distributed share.
” You may be eligible for a refund of a portion of the insurance premium if you:
– acquired your loan after September 1, 1983
– paid an up-front mortgage insurance premium at closing and
– did not default on your mortgage payments.
Review your settlement papers or check with your mortgage company to determine if you paid an up-front premium.”
Those who might be eligible for a distributed share should know the following:
“You may be eligible for a share of any excess earnings from the Mutual Mortgage Insurance Fund if you:
– originated your loan before September 1, 1983
– paid on your loan for more than seven years and
– had your FHA insurance terminated before November 5, 1990.”
There are exceptions to this policy which we will cover in another blog post.
Do you have questions about FHA home loans? Ask us in the comments section. You can also follow us on Facebook.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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