Paying Off FHA and VA Loans

FHA loan payoff instructions:

  • If your FHA loan began before January 21, 2015, we'll accept your prepayment in full on the first day of any month during the mortgage term and interest will be collected up to that date. If we receive your prepayment on any day after the first of the month, interest up to the first day of the following month will be collected. Try to have your prepayment reach us on or before the first business day of the month to avoid extra interest charges.
  • If your FHA loan began on or after January 21, 2015, the final payoff total, including interest, will be calculated on a daily basis. You'll receive a refund for any additional payoff amount after the payoff is processed.
  • If your FHA loan began before January 1, 1990, you can deduct your escrow balance from the total payoff amount. However, if you are refinancing with Citi, don't deduct your escrow balance from the payoff amount since that balance will be transferred to your new account. Remember that escrow expenses occur up to the payoff date and will affect your escrow balance amount, so you'll need to cover any payoff shortages from these expenses. You'll receive a refund of any remaining escrow balance after payoff.
  • Under section 203 of the National Housing Act, you could receive a partial refund of the Upfront Mortgage Insurance Premium that you paid when your loan closed. When we receive your full payment, we'll file a cancelation notice with the Department of Housing and Urban Development (HUD). If you have any questions about your refund, please contact the HUD office at:

Department of Housing and Urban Development
451 7th Street SW
Washington, DC 20410-3415
Phone: 1-800-697-6967
(Mon-Fri: 8:30 AM to 8:30 PM ET)

VA home loan payoff instructions:

If your VA loan began before May 1, 1995, you can deduct your escrow balance from the total payoff amount. However, if you are refinancing with Citi, don't deduct your escrow balance from the payoff amount since that balance will be transferred to your new account.

Remember that escrow expenses occur up to the payoff date and will affect your escrow balance amount, so you'll need to cover any payoff shortages from these expenses. You'll receive a refund of any remaining escrow balance after payoff.

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