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FHA Homeowners Fact Sheet

Search for a Refund

Who may be eligible for an FHA refund or 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.

Exceptions:

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?

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.

How are refunds processed?

  • If you are eligible for a refund, HUD will either request that the Department of the Treasury (Treasury) issue a check directly to you or send you an Application for Premium Refund or Distributive Share Payment (form HUD-27050-B) so that you can provide HUD with additional information about your case.
  • If you receive a form HUD-27050-B, please read and complete the application carefully, sign it, have it notarized, and return it to HUD along with proof that you were the owner of the property at the time that the insurance was terminated.
    • For FHA refunds of $2,000 or less per case, a notarized form is not required.
  • After HUD receives your completed form HUD-27050-B and the necessary supporting documentation, this information will be carefully reviewed. Upon completion of this review, HUD will either request that Treasury issue a check directly to you or request additional information from you.

Documents required for homeowner refunds:

Proof of Identity: The claimant must present one (1) of the following from the list below to evidence their identity. 

  • State issued driver's license or other state issued identification card
  • US Birth Certificate
  • US Passport or Passport Card
  • Lawful Permanent Residence Card (AKA "Green Card")
  • Medicare or Medicaid Card
  • US Military ID or dependent ID card with photo
  • Military discharge/separation papers (DD-214)
  • Marriage or Civil Union Certificate (certified copy issued by town/city)
  • State or Federal Employee Identification
  • Employment Authorization Card (AKA work permit)
  • Veteran Health Identification Card (VHIC)
  • Certificate of Naturalization
  • Certificate of US Citizenship

Proof of Social Security Number: The claimant must present one (1) of the following documents to evidence their Social Security Number:

  • Social Security Card
  • W-2 form (issued within 5 years)
  • 1099 (issued within 5 years)
  • DD-214

Proof of EIN (if applicable)

The claimant must present (1) of the following documents to evidence their Employer Identification Number:

  • Copy of IRS LTR 147C (EIN Verification Letter)
  • Copy of IRS payment coupon
  • Copy of IRS EIN Issuance Notice

Proof of Current Address:

The claimant must present one (1) of the following documents to evidence their current residential address. The documents must show the claimant's name and residential address, be dated within 90 days (unless stated otherwise below), and be computer generated (typed):

  • Bill from mortgage company, utility company, or credit card company
  • Pay stub showing claimant's employer's name and address
  • Property tax bill
  • Annual benefits statement from Social Security Administration, any state agency administering federal or local benefits or other pension or retirement account dated within the previous 12 months
  • Medicaid or Medicare benefit statement
  • Billing statement or policy jacket from homeowners or renters insurance policy dated within 12 months
  • Motor vehicle insurance card or policy jacket dated within 12 months
  • State motor vehicle registration
  • State driver's license / State Issued ID reflecting issuing office's record of claimant address
  • Motor vehicle loan statement for a motor vehicle registered in claimant's name
  • Residential mortgage or similar loan statement, or valid lease or rental contract showing signatures from all parties, dated within 12 months
  • State voter registration card
  • Change-of-address confirmation from the United States Postal Service showing their prior and current address (Form CNL107)

How to follow-up:

If you do not receive a check or an application within 45 days after you have paid off your loan, check with your mortgage company to confirm that they have sent HUD a request to terminate the mortgage insurance on your loan. If they confirm that the correct termination information was sent, contact HUD. If you do not receive a refund or any other documentation from HUD within 120 days after the date you mailed your application, contact HUD immediately.

How to contact HUD:

  • Phone: (800) 697-6967, 8:30 a.m. to 5:00 p.m. Eastern Standard Time, Monday through Friday.
  • E-mail, FAX, Upload or Mail: In response to the Coronavirus (COVID-19) National Emergency, the U.S. Department of Housing and Urban Development’s Federal Housing Administration (FHA) is permitting homeowners to submit all documentation related to their application for a mortgage insurance premium refund to sf.premiums@hud.gov, by faxing it to (301) 572-8079 or by uploading documents through the Premium Refund Application Upload webpage. These options will eliminate the need to use traditional means such as the U.S. Postal Service and will allow FHA to continue to process homeowner refunds in an effective and safe environment.

In the event of fraud detection, the potentially incriminating information should be immediately referred to the HUD OIG hotline via email at hotline@hudoig.gov or telephone at 1-800-347-3735.

Please Note - All inquiries should include your name, your FHA case number, the property address, and your phone number.

 


Si usted habla español y tiene dificultad leyendo o hablando ingles, por favor,
llame usted a este numero telefonico (800) 697-6967.


 

IMPORTANT: The rules governing eligibility for premium refunds and distributive share payments are based on the financial status of the FHA insurance fund and are subject to change.