Who is eligible for an FHA PMI refund?

If your FHA loan is paid off within the first 36 months, then FHA will refund a prorated refund of the premium. The check will be issued to all the names that were on the mortgage.. to see the chart to figure out how much your refund might be, go to Google and search for "Mortgagee Letter 2005-03" I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

If your FHA mortgage is paid off in the first 36 months, either by a refinance or straight payoff, you are entitled to a pro-rata refund. Follow this link http://www.loansa2z.org/FHA-MIP-Refund-Chart.pdf to determine the percentage of the original premium you are entitled to. In the case of an FHA to FHA Streamline refinance, the rebate is credited as part of the new loan closing transaction. After 36 months, there is no rebate to refund. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

From HUD 4155.2 7.2.iEffective for those mortgages endorsed for insurance on or after December 8, 2004, Section 223 of the Consolidated Appropriations Act 2005 amended Section 203(c)(2)(A) of the National Housing Act to eliminate refunds of the FHA's UFMIP except when the borrower refinances to another mortgage to be insured by FHA. http://activerain.com/image_store/uploads/3/0/4/3/0/ar129453621103403.gifThe refund schedule for those borrowers who refinance to another FHAinsured mortgage is modified to a 3-year time period, as shown in the table below.MIP REFUND FACTORS* Month of Year Year 1 2 3 4 5 6 7 8 9 10 11 12 1 80.00 78.00 76.00 74.00 72.00 70.00 68.00 66.00 64.00 62.00 60.00 58.002 56.00 54.00 52.00 50.00 48.00 46.00 44.00 42.00 40.00 38.00 36.00 34.003 32.00 30.00 28.00 26.00 24.00 22.00 20.00 18.00 16.00 14.00 12.00 10.00

If you refinance to another FHA loan you will get a partial credit against the cost of the new mortgage insurance.

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.Answers to variations on this at the HUD/FHA website: http://www.hud.gov/offices/hsg/comp/refunds/fhafact.cfm