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The Facts

Who May Be Eligible for a Federal FHA Refund or Share?     (FHA=Federal Housing Administration)

Premium Refunds: You May Be Eligible For A Refund Or A Portion Of Your Insurance Premium If You:

  • Acquired your loan after September 1, 1983; and
  • Paid an up-front mortgage insurance premium at closing and did not default on your mortgage payments.

Review your settlement papers or check with your mortgage company to determine if you paid an up-front premium.

Distributive Share: You May Be Eligible For A Share Of Any Excess Earnings From The Mutual Mortgage Insurance Fund If You:

  • Originated your loan before September 1, 1983; and
  • Paid on your loan for more than 7 years and had your FHA insurance terminated before November 5, 1990.


Assumptions: When an FHA-insured loan is assumed, the insurance remains in force (the seller receives no refund). The owner(s) of the property at the time the insurance is terminated is entitled to any refund.

FHA to FHA Refinances: When an FHA loan is refinanced, the refund from the old premium may be applied toward the up-front premium required for the new loan.

Claims: When a mortgage company submits a claim to HUD for insurance benefits, no refund is due the homeowner.

Statute of Limitations: HUD is not liable for a distributive share that remains unclaimed 6 years from the date notification was first sent to the last known address of the mortgagor.

How Are Refunds Determined:

The FHA Commissioner determines how much of the up-front premium is refunded when loans are terminated. Refunds are based on the number of months the loan is insured. For any FHA-insured loans with a closing date prior to January 1, 2001, and endorsed before December 8, 2004, no refund is due the homeowner after the end of the seventh year of insurance. For any FHA-insured loans closed on or after January 1, 2001 and endorsed before December 8, 2004, no refund is due the homeowner after the fifth year of insurance. For FHA-insured loans endorsed on or after December 8, 2004, no refund is due the homeowner unless they refinanced to a new FHA-insured loan, and no refund is due these homeowners after the third year of insurance. Mortgagee Letter 2005-03 provides additional information on the recent policy changes regarding refunds of up-front mortgage insurance premiums.

State Unclaimed Property:

In addition to the Federal refunds, there are also many refunds held at the state level.  These are unclaimed property and could be from a bank account that was never closed or stock certificates that were never claimed.  We will help you locate any state refunds and will search each state that you tell us you lived in.