Am I eligible for HUD mortgage insurance refund?


A HUD mortgage insurance refund is partially available to certain individuals depending on the date the FHA insured loan was issued, there were no late payments, and mortgage insurance was paid upfront.

Since FHA loans are assumable, the seller will not be eligible for HUD mortgage insurance refund; however, the buyer will be entitled to a refund when HUD insurance is terminated.

If an FHA loan is refinanced to another FHA loan, any refund will be applied towards the new mortgage insurance.

How is the HUD mortgage insurance refund received?

Your lender will notify HUD when your FHA insurance expires. If you are eligible for a refund, you will either receive a check from HUD, or will have to fill in form HUD-27050-B to explain your case. Your HUD mortgage insurance refund application will be reviewed and you will receive a check, or required to provide further information.

You should contact HUD if you do not receive a check or a form to fill in within two months after your loan was paid.

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