Can a borrower have an option to receive an UFMIP refund in cash if refinancing to a new FHA loan?

If the borrower is refinancing their current FHA-insured mortgage to another FHA-insured mortgage within 3 years, a refund credit is applied to reduce the amount of the Upfront Mortgage Insurance Premium (UFMIP) paid on the refinanced mortgage, according to the refund schedule shown in the Upfront Mortgage Insurance Refund table in Handbook 4000.1 II.A.8.d.iv.  

Handbook 4000.1 is available at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04553