FHA UFMIP Refund Chart 2026: Streamline Refinance Schedule & Timing

The 30-second answer

A borrower closing an FHA Streamline Refinance in month 7 of their original loan captures a 68% refund of the upfront mortgage insurance premium (UFMIP) paid at the first closing. That’s the practical ceiling. HUD’s published schedule starts at 80% in month 1 and drops 2 percentage points each month, but FHA seasoning rules block any streamline from closing before roughly month 7. By month 37, the refund’s zero. And there’s no proration past the 36-month wall.

The refund isn’t a check. HUD applies it at closing as a credit against the new UFMIP on the streamline loan, which the FHA still charges at 1.75% of the new loan amount. So the net effect is a smaller financed UFMIP, sometimes by thousands of dollars depending on month of refi and original loan size.

The full FHA UFMIP refund chart

The schedule below mirrors HUD Handbook 4000.1, Appendix 1.0. Months 1 through 6 are listed for completeness (no FHA Streamline can close inside that window).

The formula is simple. Eighty percent in month 1, minus 2 percentage points for each completed month since the original closing date. Mortgage Insurance Premium (MIP) here refers specifically to the upfront premium HUD collected on the first loan, not the annual MIP added to monthly payments.

What the refund is worth in dollars

Original UFMIP equals 1.75% of the original loan amount. And the refund equals that figure multiplied by the scheduled percentage for the month of refinancing.

$250,000 original FHA loan. Original UFMIP at closing: $250,000 x 1.75% = $4,375. A month-11 streamline captures a 60% refund, or $2,625. A month-24 streamline captures 34%, or $1,487.50. A month-36 streamline captures 10%, or $437.50. Past month 36, the credit’s $0.

$400,000 original FHA loan. Original UFMIP at closing: $400,000 x 1.75% = $7,000. A month-7 streamline captures a 68% refund, or $4,760. A month-18 streamline captures 46%, or $3,220. A month-30 streamline captures 22%, or $1,540.

$600,000 original FHA loan. Original UFMIP at closing: $600,000 x 1.75% = $10,500. A month-7 streamline captures a 68% refund, or $7,140. A month-24 streamline captures 34%, or $3,570. A month-36 streamline captures 10%, or $1,050.

Worth knowing: the 1.75% UFMIP rate has held for years and remains the current 2026 figure under HUD Mortgagee Letter guidance. The 30 basis point cut HUD announced in March 2023 reduced the annual MIP only, not UFMIP.

How the credit applies at the new closing

The refund offsets the new UFMIP, which is itself 1.75% of the new streamline loan amount. So on a $400,000 original loan refinanced at month 11 into a $396,000 streamline balance, the new UFMIP equals $396,000 x 1.75% = $6,930. The 60% refund of the original $7,000 UFMIP is $4,200. Net UFMIP financed into the new loan: $6,930 minus $4,200, or $2,730.

That smaller financed UFMIP is the only place the credit shows up. It doesn’t arrive as cash. The $500 streamline cash-back limit still applies to other items at closing, but the UFMIP credit isn’t counted against that limit (because it offsets a fee rather than refunding cash).

On the Loan Estimate and the Closing Disclosure, the refund appears as a negative line item or credit reducing the gross UFMIP in the fees section. Lender presentation varies wildly. Anyone running break-even math should ask the loan officer to point to the specific line where the credit lands–the negative entry that quietly subtracts from the gross UFMIP–and factor the refund into your break-even math against the new note rate.

Why month 7 is the floor

Three FHA seasoning rules stack, and all of them must be satisfied on the date the new FHA case number is assigned: at least 6 payments made on the existing FHA loan, at least 6 full months elapsed since the first payment due date, and at least 210 days since the original closing date.

The 210-day rule works out to roughly 7 months and is usually the binding constraint, which is why the earliest realistic streamline closes during month 7. So a borrower hoping to capture the 80% figure printed on month 1 of the chart can’t reach it. Month 7’s 68% is the real ceiling.

Payment history requirements stack on top. No payment in the last 6 months can have been more than 30 days late, and no more than one late payment is allowed in the last 12 months. A borrower who misses these gates loses streamline eligibility, refund and all.

Why month 36 is a wall

The refund schedule terminates the month the loan turns three years old. A streamline closed in month 36 captures a 10% credit. But a streamline closed in month 37 captures nothing. HUD doesn’t prorate, taper or grant a grace period.

On a $400,000 original loan, the gap between closing in month 36 and slipping into month 37 is $700 in lost credit. On a $600,000 loan, the gap’s $1,050. Borrowers approaching the three-year mark should mark the 36-month anniversary on a calendar and work backward from a target case-number assignment date with a 30 to 45 day cushion built in–enough room to absorb appraisal hiccups, title delays, and the inevitable last-minute documentation request that always arrives the week before closing.

UFMIP refund versus monthly MIP escrow refund

These are different mechanisms, and borrower forums conflate them constantly.

The UFMIP refund covered in this article is a HUD-scheduled capital credit applied at the closing of a new FHA Streamline. It comes off the new upfront premium and reduces the financed principal.

The monthly MIP escrow refund is the unused escrow balance returned by the servicer when a loan pays off. Escrow holds taxes, insurance and monthly MIP collected in advance. And any balance left over after the final disbursement comes back to the borrower as a separate check from the servicer, typically within 20 to 60 days after payoff under RESPA timelines.

So a streamline borrower will usually receive both: a UFMIP credit at the new closing and, separately, an escrow refund from the prior servicer after the original loan pays off.

When the refund disappears entirely

Refinancing out of FHA into a conventional loan forfeits the full UFMIP refund. The schedule applies only to FHA-to-FHA Streamline transactions. A borrower with enough equity to escape monthly MIP through a conventional refi may still come out ahead, but the lost UFMIP credit belongs in the break-even calculation, not on the cutting-room floor.

FHA cash-out refinances don’t qualify either. The refund is a streamline-only benefit. A borrower pulling cash from equity is pricing a separate product against the full FHA Streamline closing-cost picture for context.

And late payments inside the 6 and 12 month windows disqualify the streamline outright. Borrowers in that situation will need to wait, repair payment history and reassess where they fall on the refund schedule once eligible.

Timing decision framework

So what happens when a borrower sits between month 7 and month 11, watching the refund clock tick down while shopping for a better rate? Waiting from month 7 to month 11 costs 8 percentage points of refund. On a $400,000 original loan, that’s roughly $560 in lost credit. If holding off four months lets the borrower lock a note rate an eighth or a quarter point lower, savings on the new note typically exceed the lost refund. But if rates are flat or rising, waiting costs money on both sides.

The harder case sits between months 24 and 36. Over that span, the refund drops from 34% to 10% (a 24 percentage point swing). On a $400,000 original loan, that’s $1,680 of additional cost for waiting a year, which is real money that has to be made back somewhere–either on the note rate, or in points avoided, or in some other line of the closing. Borrowers should also weigh the refund against buying down rate with discount points, which lower the note rate at the cost of upfront cash.

Run the math with your own loan officer using the actual original UFMIP figure, the proposed new loan amount and the projected case-number assignment month. Case-number assignment date is what HUD uses to lock the refund percentage, not the closing date.

Requirements vary by lender. Confirm current thresholds and the exact refund credit with an FHA-approved lender before applying.

Frequently asked questions

Does FHA refund the upfront mortgage insurance premium?
Yes, on FHA-to-FHA Streamline Refinances closed inside 36 months of the original loan. The refund applies as a credit against the new UFMIP at closing, not paid as cash.

What is the maximum FHA UFMIP refund?
Eighty percent in month 1 on paper, but seasoning rules block any streamline before month 7. So the maximum reachable refund is 68%, captured by closing in month 7.

Does the FHA UFMIP refund come as cash to the borrower?
No. The refund offsets the new UFMIP on the streamline loan. The only borrower-visible effect is a smaller financed UFMIP at closing.

Can I get the UFMIP refund if I refinance into a conventional loan?
No. Moving out of FHA into any non-FHA product forfeits the full refund. The schedule applies only to FHA-to-FHA Streamline transactions.

What happens if I refinance more than 36 months after my original FHA closing?
The refund’s $0. There’s no proration, taper or grace period past month 36.

Is there a UFMIP refund on an FHA cash-out refinance?
No. The refund is streamline-only.

Does the UFMIP refund count against the $500 streamline cash-back limit?
No. The refund offsets a fee rather than returning cash, so it doesn’t consume the cash-back limit.

Is the UFMIP refund the same as my escrow refund at payoff?
No. The UFMIP refund is a capital credit applied at the new closing. The escrow refund is unused tax and insurance escrow returned by the prior servicer after the original loan pays off, usually within 20 to 60 days.