Have you ever had an FHA loan? If so, you may be eligible for a refund of part of the upfront mortgage insurance you paid. The FHA has hundreds of thousands of unclaimed dollars that some of which could be yours. How do you know if HUD owes you money? Keep reading to find out.
First, you must have had an FHA loan dated after September 1, 1983. You must also have paid your upfront mortgage insurance at the closing. Finally, you must not have missed your mortgage payments. If you did not receive a refund for the funds the FHA didn’t use and you no longer have the loan, you may have an unclaimed refund.
How to Tell if HUD Owes you Money
If you think you had an FHA loan at some point, it’s worth checking out HUD’s interactive tool to see if you have unclaimed money. All you need is your last name or your FHA case number. If you have the information about the city and state the home was located, that will help too, but it’s not required.
If you find your name on the list, you can call HUD at 1-800-697-6967. This will start the refund process. In fact, HUD recommends that you call the number even if your name doesn’t show up on the list. You may be eligible for a refund and not be in the system. If you know you had an FHA loan that you didn’t default on, it’s worth the call.
If you are eligible, contact HUD immediately to start the refund process.
How to Get Your Refund
HUD issues refunds of the unused portionof the upfront mortgage insurance. The lender must tell HUD that the upfront mortgage insurance is canceled after you pay off the loan. HUD then determines if you are owed money. If you are, HUD will either initiate a check or send you an Application for Premium Refund, if they need more information.
If you receive the application, complete it as soon as possible with all the required information. You will need to sign the application as well as get it notarized. You must then include documentation proving that you were the owner of the property when the insurance was canceled. If HUD determines you are eligible for a refund, they will issue the check after reviewing the file.
FHA Rules Today
Any FHA loan written after December 8, 2004, won’t get the same treatment. The only borrowers that get an upfront MIP refund after this date are those that use the FHA streamline refinance program. But only those borrowers that use the streamline refinance option within three years of taking out the FHA loan will qualify. HUD prorates the amount of the refund based on the time you’ve had the loan. The refund goes toward the new upfront MIP that you must pay on your new FHA loan.
If you had an FHA loan at any time in the past, it’s worth the quick phone call or search online to see if you are eligible for a refund. Some people have thousands of dollars waiting out there for them. All it takes is a few minutes to find out if you are one of them.