Applying for and receiving a mortgage insurance refund is possible under a limited range of circumstances. Depending on the terms of the coverage and when the premium was tendered, some homeowners may be able to receive the refund, as long as they meet certain criteria once the mortgage has been settled. While the exact procedures for requesting and receiving the mortgage insurance refund will vary, most require filing a specific form or request, along with providing supporting documentation to confirm that the homeowner is eligible for the refund.
In the United States, there are specific requirements set by the Federal Housing Administration or FHA that allow for some homeowners to receive a mortgage insurance refund. The Department of Housing and Urban Development, also known as HUD, follows the same basic guidelines. As a first step, the applicant must be able to demonstrate that he or she received the mortgage loan after 1 September 1983. Along with this qualification, documentation surrounding the granting of the mortgage must confirm that a mortgage insurance premium was paid at the time of closing. As a third requirement, the payment history on the mortgage must affirm that the homeowner did not default on the mortgage payments.
Additional requirements may apply to obtaining a mortgage insurance refund on a HUD or FHA mortgage, depending on the specific circumstances that apply to the mortgage loan. Both government agencies maintain websites that provide current information that includes frequently asked questions that have to do with applying for a mortgage insurance refund. Forms and checklists that aid in the process of submitting a formal request can also be obtained from the websites. In addition to the resources found on the FHA and HUD sites, a number of mortgage lenders also provide assistance to homeowners, helping them determine if they do qualify for the refund and even providing help with the actual filing.
Similar processes for researching and qualifying for mortgage insurance refunds are utilized in different countries around the world. In most cases, governmental regulations help to determine what type of documents must be provided along with a formal application, and supply instructions for submitting the completed request along with that supporting documentation. Today, submitting a request for a mortgage insurance fund can often be managed online, a benefit that can often help to expedite the processing and allow the qualified homeowner to receive the refund in a shorter period of time.