FHA MIP
Any one who has paid off an FHA mortgage loan may be entitled to a refund of a portion of the mortgage insurance premium (MIP) that was paid by the borrower upfront when the loan was taken out.
The MIP is the mortgage insurance that is paid upfront when a borrower takes out an FHA loan. In 2009 the MIP amounts to 1.75% of the loan amount. Prior to 2009, the MIP was 1.5% of the mortgage loan. The insurance premiums can be large. For example, on a $200,000 loan taken out in 2008, a borrower was charged $3,000 in upfront premiums. This upfront premium is in addition to the monthly mortgage insurance premium that is paid with each month’s mortgage payment. A borrower may be unaware that the MIP was paid since it is not due in cash, but rather is added to your original loan amount.
Who Is Entitled To A Refund?
When an FHA loan is paid off through a refinance or sale, your mortgage company notifies HUD of the termination of the FHA mortgage insurance and any refund due should thereafter be automatically sent to the borrower. Although this process usually works well, mistakes can happen. If you have paid off an FHA loan either through a refinance or sale of your home and have not received an MIP refund, here’s an easy way to check if you are entitled to a refund.
If you had an FHA-insured mortgage, you may be eligible for a refund from HUD/FHA.
Search our database to find out if you are due a refund
- Enter your last name or
- Enter your FHA case number (first 3 digits, a dash and the next 6 digits, example, 051-456789).
You do not need to pay another person or firm to assist you in collecting your refund or share payment. If you need help with this form, call our support center at 1-800-697-6967 or email us at sf_premiums@hud.gov:
The above calculator is on the HUD website and can be accessed by clicking this HUD link. It is a quick and easy way to find out if you are owed an MIP refund.
Some Basic MIP Refund Facts
The amount of a potential MIP HUD refund from a paid off FHA loan will vary based on the loan amount, the date the loan was taken and how many months that mortgage payments were made on the loan. Restrictions have increased over the years on the amount of the refund due. For example, for FHA insured loans closed on or after January 1, 2001, no refund is due after the fifth year of insurance. For loans closed after December 8, 2004, no refund is due the homeowner unless the homeowner refinanced to a new FHA insured loan and no refund is due after three years of insurance.
Since HUD makes public the information on MIP refunds that remain unpaid, you may be contacted by a commercial organization offering to obtain your refund for a fee. There is absolutely no reason to pay anyone for this service, since the refund can easily be obtained by contacting HUD.