Who may
be eligible for an FHA refund or share?
Premium Refund:
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.
Distributive Share:
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. |
Exceptions:
Assumptions: When an FHA-insured loan is assumed, the insurance remains in force (the seller receives no refund).
The owner(s) of the property at the time the insurance is terminated is entitled to any refund.
FHA to FHA Refinances: When an FHA loan is refinanced, the refund from the old premium may be applied
toward the up-front premium required for the new loan.
Claims: When a mortgage company submits a claim to HUD for insurance benefits, no refund is due the homeowner.
Statute of Limitations: HUD is not liable for a distributive share that remains unclaimed 6 years from
the date notification was first sent to the last known address of the mortgagor.
