How to Claim Your FHA Insurance Refunds: If you’ve ever taken out an FHA-insured mortgage, you could be owed money without even knowing it! Thousands of homeowners have unclaimed FHA mortgage insurance refunds waiting for them—but many don’t know how to check or claim them. In this comprehensive guide, we’ll walk you through everything you need to know about FHA insurance refunds, from checking if you’re eligible to submitting your claim hassle-free.
How to Claim Your FHA Insurance Refunds?
If you paid off an FHA loan early, you might have free money waiting for you! Many homeowners don’t know about these refunds, leaving millions of dollars unclaimed.
Take action today!
- Check the HUD refund search.
- Call HUD at 1-800-697-6967 if you have questions.
- Submit your claim and get your refund hassle-free!
Remember: You don’t need to pay anyone to claim your refund—HUD will help you for free!
| Aspect | Details |
|---|---|
| What is FHA Insurance? | A mandatory insurance for FHA-backed loans to protect lenders against defaults. |
| Refund Eligibility | Homeowners who paid an upfront mortgage insurance premium (UFMIP) and met specific criteria. |
| Total Unclaimed Refunds | $384.7 million in unclaimed refunds as of 2020 |
| How to Check | Use HUD’s Refund Search or call 1-800-697-6967. |
| Processing Time | 60 days after submitting the application. |
| Common Pitfalls | Scam alerts: Beware of third-party “tracer” companies that charge fees. |
What is an FHA Mortgage Insurance Refund?
When you take out an FHA-backed mortgage, you’re required to pay mortgage insurance premiums (MIP). These protect the lender if you default on your loan. There are two types of FHA mortgage insurance payments:
- Upfront Mortgage Insurance Premium (UFMIP) – Paid at closing (usually 1.75% of your loan amount).
- Annual Mortgage Insurance Premium (MIP) – Added to your monthly mortgage payments.
The good news? If you paid off or refinanced your FHA loan early, you might qualify for a refund of part of the UFMIP!
Who is Eligible for an FHA Insurance Refund?
You might be eligible for a refund if:
Your FHA loan was endorsed after September 1, 1983.
You paid UFMIP when closing your loan.
You refinanced into a non-FHA loan or paid off your FHA loan early.
Your loan wasn’t assumed by someone else.
You did not default on your loan.
You are NOT eligible if:
Your loan was foreclosed or defaulted.
The FHA paid a claim to your lender.
Your loan was assumed by another buyer.
Case Study Example:
Jane bought her first home in 2015 with an FHA loan of $250,000. She paid $4,375 in UFMIP. In 2021, she refinanced into a conventional loan. After checking HUD’s refund search, she found she was owed $1,200 back. She submitted her claim and received her check within 45 days!
How to Check If You’re Owed an FHA Refund
Step 1: Use HUD’s FHA Refund Search
Go to the HUD refund lookup tool.
Enter your last name or FHA case number.
Add your city and state for better accuracy.
If your name appears, take note of your FHA case number and refund amount.
Step 2: Contact HUD
Call HUD’s Refund Support Center at 1-800-697-6967.
Or email [email protected].
Tip: If your name doesn’t show up but you believe you’re owed a refund, still call HUD—they can manually verify your case.
How to Claim Your FHA Insurance Refunds?
Step 1: Complete the FHA Refund Application
If HUD confirms you qualify for a refund, they’ll send you Form HUD-27050-B (Application for Premium Refund).
- What You’ll Need:
- Proof of Identity – (Driver’s license, passport, etc.)
- Social Security Number Verification – (Social Security card, W-2, or tax form)
- Proof of Ownership – (Deed, mortgage documents, or final payment statement)
Step 2: Submit Your Application
- Mail your completed form and documents to the address specified by HUD.
- If your refund is over $2,000, it must be notarized.
Step 3: Wait for Processing
Processing Time: Up to 60 days. Once approved, you’ll receive your check in the mail within 10–14 days.
Beware of FHA Refund Scams!
Many companies offer to help you claim your refund for a fee. But HUD does not charge for this service!
Signs of a scam:
They ask for an upfront payment.
They claim to be an “official HUD partner”.
They pressure you to sign over your refund rights.
What to do if contacted by a scammer?
Ignore their calls.
Report them to HUD’s fraud department at 1-800-347-3735.
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Frequently Asked Questions (FAQs)
Q: How long do I have to claim my FHA refund?
You must claim it within six years of the loan termination date.
Q: How much money can I get back?
It varies, but refunds typically range from a few hundred to several thousand dollars.
Q: Are FHA refunds taxable?
No, FHA refunds are not taxable income.
Q: What if I moved? Can I still claim my refund?
Yes! You just need to provide proof of your past ownership and loan details.
