Homes Assumption Sells

That When your home is offered by assumption there’ll be no FHA refund. When the mortgage insurance premium has been eliminated, the new homeowners may become eligible for the refund.


You may qualify for a cash fund on the MIP if your FHA loan was opened after 2004.


You need to meet with a number of requirements. The requirements for an

FHA refund include:
How to Know If You Are Eligible for a Refund
Factors That Affect the Refunded Amount
FHA Refund Eligibility


The first step to getting a mortgage insurance premium refund is to refinance. However, is a mandatory seven-month period that must be met before you become eligible and can apply for an FHA streamline refinance. During that period at least six payments must have been created on the original loan since the loan closed, or it must be at least 210 times.
Homeowners have a six-year time to claim the FHA refund. After this period, you can no longer receive a refund.

  • No missed payments on your FHA loan
    The ones that do apply for the refund and receive approval, will get the refund from HUD. The department will mail a refund check shortly after the approval. It can take up to 45 days for the refund. If you haven’t received your refund contact with your mortgage provider.

Cash Refunds
MIP Decreases
Receiving Your FHA Refund


If the MIP has been decreased on the refinance you probably aren’t eligible for the refund. The purpose of the refund is to function as a discount for the MIP. There no need for the refund, if the MIP has been discounted.


Are you eligible for an FHA refund? FHA refunds are issued on mortgages that are FHA. Refunds are awarded when a individual refinances their FHA loan.


Checking on your refund eligibility is simple. All you have to do is go into the Department of Housing and Urban Development (HUD) website. HUD maintains. Keep in mind you may need your FHA case number for specific information. Additionally, there are third party companies that are hired by the Department of Housing and Urban Development to contact homeowners. These companies are known as tracers and they can charge a fee, which isn’t mandated. There is also a group of specialists at HUD that can assist homeowners in finding refund information.


Getting an FHA refund requires the timing and patience. A refund can save you thousands in the long run, although it may take a few months to get worked out.


How much you get in the form of a refund isn’t solely determined by the amount paid on the mortgage insurance premium. There are a number of factors that can affect the refund amount.


During a refinance the mortgage insurance premium (MIP) that was paid on the original loan becomes refundable. The MIP is an additional fee that’s rolled into monthly mortgage payments as additional security for the creditor. The MIP refund can be utilized to lower the expense of your refinance and housing costs.


Since you opened the FHA loan, how long it ‘s been if you within the three-year mark the clock starts ticking the moment you get your FHA loan that is original. For each month following the closing of the original loan, your FHA refund will be reduced by 0.2 percentage points.


Your loan has to have been opened over the last 3 years — when your FHA loan opened. Loans beyond the three-year mark are eligible for the refund. For those who have owned your home for less than three years it’s a fantastic idea to check the latest rates. If the rates are before a refinance could be cheaper and get you a MIP refund.