Ever had an FHA Mortgage? Finding Unclaimed Funds is Legitimate

HUD refund FHA mortgage insurance

You may be owed hundreds in leftover mortgage insurance premiums

Ever had an FHA Mortgage?  You actually may have unclaimed FHA mortgage insurance money sitting with the Federal Housing Authority (FHA) right now left from your mortgage insurance premiums that you paid on a previous home.  I thought all those blog posts about finding a missing refund due to you by the government were totally false, but this is not some kind of scheme to get your personal information, it is simply leftover mortgage insurance premiums that are kept by the FHA until they are claimed.  If you have never had an FHA mortgage you will not find money owed to you on HUD’s website.  However, if you ever had an FHA insured mortgage chances are you have money ranging from a few dollars to hundred of dollars just waiting to be claimed.   These premiums are often not forwarded to the seller’s new home and instead are just kept until claimed by the rightful owner.

Check for unclaimed FHA mortgage insurance premiums

When a seller moves to a new home there can be a partial mortgage insurance premium refund due from their previous home.  If the insurance premium is not retrieved after closing by the payee, it is held by HUD.  You do not have to pay anyone nor should you to claim your refund, simply go to the HUD refund site to search for your name or look it up by case number if you still have the paperwork from an old FHA mortgage (you don’t have to have it to search or make a claim, last name is suitable).

What is FHA Mortgage Insurance?

FHA mortgage insurance provides a lender with protection against the loss from a homeowner defaulting on their mortgage loan.  Lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner’s default.  Since FHA mortgages start at 96.5% loan to value (LTV), historical mortgage insurance covered the lender’s loss until the mortgage was paid to below 80% LTV.  Since the housing crisis in recent years FHA loans require mortgage insurance to continue for the life of the loan.  This single fact may cause a potential home buyer to reconsider obtaining an FHA Loan if they have other options.  an FHA loan must meet certain requirements established by FHA to qualify for mortgage insurance.

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