To get an FHA refund or share, there are certain eligibility criteria. You may be eligible for a refund of a portion of the insurance premium if the loan was acquired after September 1, 1983, you paid an upfront mortgage insurance premium at closing and did not commit any default on payments. To check if you have paid an upfront premium you may review the settlement papers or contact your mortgage company.
The FHA Commissioner determines how much of the upfront premium will be refunded if the loan is terminated. The refund is based on the number of months the loan is insured. When an FHA-insured loan is assumed, the seller does not receive a FHA refund. The owner of the property at the time the insurance is terminated is entitled to any refund.
