Regarding FHA UFMIP refundability, which statement is correct?

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Multiple Choice

Regarding FHA UFMIP refundability, which statement is correct?

UFMIP, the upfront Mortgage Insurance Premium for FHA loans, is normally nonrefundable. The only exception is when you obtain another FHA loan within three years of the original loan; in that case, the UFMIP you already paid can be applied toward the new loan’s UFMIP credit, rather than giving you a cash refund. This means you don’t lose the previous premium—you just carry its value into the new FHA loan within that three-year window. The other options don’t fit because there isn’t a cash refund after a set period like five years, and the rule isn’t that it’s fully refundable without an exception.

UFMIP, the upfront Mortgage Insurance Premium for FHA loans, is normally nonrefundable. The only exception is when you obtain another FHA loan within three years of the original loan; in that case, the UFMIP you already paid can be applied toward the new loan’s UFMIP credit, rather than giving you a cash refund. This means you don’t lose the previous premium—you just carry its value into the new FHA loan within that three-year window. The other options don’t fit because there isn’t a cash refund after a set period like five years, and the rule isn’t that it’s fully refundable without an exception.

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