Who may be eligible for an FHA premium refund or distributive share?
Premium Refund: You may be eligible for a refund of a portion of the insurance premium if you:
- acquired your loan after September 1, 1983
- 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
- paid on your loan for more than seven years and
- had your FHA insurance terminated before November 5, 1990.
What are valid reasons for a refund?
- Penalty adjustment
- Payment remitted for wrong case
- Case is canceled (not endorsed)
- Payment made on sold or transferred case
- Payment made on non-Periodic case
- Payment made on invalid case
- Payment made on terminated case
- Other reasons approved by HUD