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I have a question for Shane or someone familar with FHA loans. I recently refied with an FHA loan to an FHA 203 k and just closed. Thie original loan closed in 9/30/09 and I paid $4,352.60 upfront. I looked at the chart on the FHA website and if I looked at it correctly, this would be year 2, month 4 which would entitle me to an refund of approx $2,176 correct? But for some reason WF only is giving me a refund of $1,004. So something seems off.
Am I doing this wrong? Any input would be appreciated
Often times they use some of this money to cover loan costs. That is where alot of zero out o fpocket FHA refis come from if the loan is in early stages. Not sure if that is the case here, but it is possible.
You should have a bigger refund if you paid $4,352 in September. I'd ask Wells Fargo for their FHA Connection printout that shows how much of a refund you'd get if the loan closes in X month vs. X month, etc. It's something that every lender gets on an FHA to FHA refinance (whether it's a streamline transction or a full credit qualifying refinance like you did on the 203k).
$1,004 is only 23% of $4,352... which is the amount of refund you'd have if the loan was being refinanced into a new FHA mortgage between the 5th & 6th month of the 3rd year of the mortgage term (not 5th & 6th month of the 2nd year, like it should be). To me it seems like they put in a closing date 12 months after they should have. That FHA Connection printout is the only thing that matters though, so ask your processor to send you a copy or at least bring it up in their system so they can see the amount of FHA refund listed.
Shane, thanks. They did say they made an error. We could have drawn up new documents but I didn't want to delay the closing anymore since we started the process in December. I was told that when Wells receives the MIP refund, they will catch the error and hopefully send me back the $1000. I have called the national center to confimr the amount, but was told it get's sent directly to Wells. I am hoping that it doesnt just vanish
Welcome. Just be in touch with Wells Fargo every couple weeks to make sure they aren't sitting on it.