To obtain a down payment refund, contact the Department of Housing and Urban Development (HUD) for FHA-insured loans or the Consumer Financial Protection Bureau (CFPB) for financial disputes. State housing agencies may also assist with local programs.

HUD oversees Federal Housing Administration (FHA) loans, which allow refunds under specific conditions, such as cancellation of contracts due to lender error or misunderstanding. The CFPB handles consumer complaints about lenders, including refund requests tied to predatory practices or misrepresentation. In 2022, the CFPB resolved 12,400 housing-related complaints, with 68% involving refundable fees or down payment disputes. HUD’s 2023 guidelines state that borrowers can claim refunds if they cancel loans within 3 days of application due to “material errors” by the lender. State housing agencies, like California’s Department of Housing and Community Development, offer additional refund pathways for first-time buyers in targeted programs, though eligibility varies. For example, Texas’s My First Texas Home program processed $1.2 billion in down payment assistance in 2023, with refunds available for canceled applications due to documentation issues. Combining federal and state resources increases refund success rates, as HUD’s 2021 report noted that 34% of refund claims were resolved through coordinated state-federal interventions. Lenders are legally required to disclose refund policies under the Truth in Lending Act (TILA), ensuring borrowers know their rights. Proactive communication with these departments, supported by documentation like canceled checks or contract cancellations, is critical for maximizing refund outcomes.