Form HUD-1 "Settlement Statement"

What Is Form HUD-1?

Form HUD-1, Settlement Statement, is a complex document developed for the purpose of listing all charges connected with a home purchase transaction. The application was required to be used in all transactions that include federal mortgage loans, however, now it is only being used for reverse mortgages. The purpose of the form is to give both sides of the transaction, a seller and a borrower, a complete list of their outgoing and incoming funds.

The HUD-1 Form was issued by the U.S. Department of Housing and Urban Development. Since the document is only being used for a certain type of mortgages, there are no recent developments in it.

How Do I Get a HUD-1 Settlement Statement?

Borrowers and sellers are supposed to get their Form HUD-1 from the settlement agent or a creditor one day prior to their settlement. The document is prepared after a borrower's loan is approved and a closing agent can put all the numbers in the form. HUD-1 Form contains very important information about the loan and its terms, that's why it's essential to pay a lot of attention to its content and the numbers.

A fillable HUD-1 Form is available for download below.

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HUD-1 Settlement Statement Instructions

HUD-1 Form is presented on three pages, where all the costs are listed one by one. The document consists of several sections, which include the following:

  • Type of the loan. In the first part of the application a filer must designate a type of loan, file number, loan number, and mortgage insurance case number;
  • Information about the parties involved in the settlement. Here an applicant must state names and addresses of a seller, a borrower, and a lender, the location of the property, settlement agent and settlement date, etc.;
  • Summary of the borrower's transaction. This section presents a list of lines which include the gross amount due from the borrower, adjustments for items paid by the seller in advance, the amount paid by the borrower, adjustments for items unpaid by seller, etc.;
  • Summary of the seller's transaction. By the analogy with the previous section, this column present information about the seller, such as gross amount due for the seller, adjustments for items paid by the seller in advance, reductions in the amount due to a seller, etc.;
  • The settlement charges. Individuals use this part of the document to designate total real estate broker fees, payable items in connection with the loan, title charges, government recording and transfer charges, items required by the lender to be paid in advance, etc.;
  • Loan Terms. In the last part of the application, filers must state the initial loan amount, loan term, initial interest rate. They must also designate if the initial interest rate can rise, if the loan has a prepayment penalty, etc.

The only HUD-1 tax deductions are real estate taxes and mortgage interest. If a buyer of real estate wants to figure out their HUD-1 tax deductions, they should use Form 1040 Schedule A, Itemized Deductions.

Who is Responsible for Preparing the HUD-1 Document?

Normally the HUD-1 Document is prepared by the settlement agent, closing agent, or a creditor. Even though agents are responsible for preparing the document, each side of the settlement is responsible for its content. Errors may occur often, since sometimes a filer receives all the data necessary to prepare the document in the last moment.

When Should I Receive the HUD Settlement Statement?

According to the Real Estate Settlement Procedures Act (RESPA), the Settlement Statement is supposed to be received by the parties one day before closing. However, in practice, a borrower can receive the document right before the settlement. It depends on when a loan was approved, when a settlement agent got the necessary information, how long it took to prepare the form, etc.

Which Type of Loan Will Use a HUD-1 in Place of a Closing Disclosure?

In 2015 RESPA integrated a HUD-1 Replacement, the Closing Disclosure form. It replaces the HUD-1 from use in real estate transactions, except for one situation - reverse mortgages. A reverse mortgage is a type of loan commonly used by the seniors (who are 62 or older), who can borrow from their home's equity without having to make mortgage payments on a monthly basis.

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Download Form HUD-1 "Settlement Statement"

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OMB Approval No. 2502-0265
Settlement Statement (HUD-1)
A.
B. Type of Loan
8. Mortgage Insurance Case Number:
FHA
2.
RHS
3.
Conv. Unins.
6. File Number:
7. Loan Number:
1.
VA
Conv. Ins.
5.
4.
C. Note:
This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked
“(p.o.c.)” were paid outside the closing; they are shown here for informational purposes and are not included in the totals.
E. Name & Address of Seller:
F. Name & Address of Lender:
D. Name & Address of Borrower:
I. Settlement Date:
G. Property Location:
H. Settlement Agent:
Place of Settlement:
J. Summary of Borrower’s Transaction
K. Summary of Seller’s Transaction
100. Gross Amount Due from Borrower
400. Gross Amount Due to Seller
101. Contract sales price
401. Contract sales price
102. Personal property
402. Personal property
103. Settlement charges to borrower (line 1400)
403.
104.
404.
105.
405.
Adjustment for items paid by seller in advance
Adjustment for items paid by seller in advance
106. City/town taxes
to
406. City/town taxes
to
107. County taxes
to
407. County taxes
to
108. Assessments
to
408. Assessments
to
109.
409.
110.
410.
111.
411.
112.
412.
120. Gross Amount Due from Borrower
420. Gross Amount Due to Seller
200. Amount Paid by or in Behalf of Borrower
500. Reductions In Amount Due to seller
201. Deposit or earnest money
501. Excess deposit (see instructions)
202. Principal amount of new loan(s)
502. Settlement charges to seller (line 1400)
203. Existing loan(s) taken subject to
503. Existing loan(s) taken subject to
204.
504. Payoff of first mortgage loan
205.
505. Payoff of second mortgage loan
206.
506.
207.
507.
208.
508.
209.
509.
Adjustments for items unpaid by seller
Adjustments for items unpaid by seller
to
510. City/town taxes
210. City/town taxes
to
211. County taxes
511. County taxes
to
to
212. Assessments
512. Assessments
to
to
213.
513.
214.
514.
215.
515.
216.
516.
217.
517.
218.
518.
219.
519.
220. Total Paid by/for Borrower
520. Total Reduction Amount Due Seller
300. Cash at Settlement from/to Borrower
600. Cash at Settlement to/from Seller
301. Gross amount due from borrower (line 120)
601. Gross amount due to seller (line 420)
302. Less amounts paid by/for borrower (line 220)
(
)
(
)
602. Less reductions in amounts due seller (line 520)
303. Cash
From
To Borrower
603. Cash
To
From Seller
The Public Reporting Burden for this collection of information is estimated at 35 minutes per response for collecting, reviewing, and reporting the data. This agency may not
collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. No confidentiality is assured; this disclosure
is mandatory. This is designed to provide the parties to a RESPA covered transaction with information during the settlement process.
Previous edition are obsolete
Page 1 of 3
HUD-1
OMB Approval No. 2502-0265
Settlement Statement (HUD-1)
A.
B. Type of Loan
8. Mortgage Insurance Case Number:
FHA
2.
RHS
3.
Conv. Unins.
6. File Number:
7. Loan Number:
1.
VA
Conv. Ins.
5.
4.
C. Note:
This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked
“(p.o.c.)” were paid outside the closing; they are shown here for informational purposes and are not included in the totals.
E. Name & Address of Seller:
F. Name & Address of Lender:
D. Name & Address of Borrower:
I. Settlement Date:
G. Property Location:
H. Settlement Agent:
Place of Settlement:
J. Summary of Borrower’s Transaction
K. Summary of Seller’s Transaction
100. Gross Amount Due from Borrower
400. Gross Amount Due to Seller
101. Contract sales price
401. Contract sales price
102. Personal property
402. Personal property
103. Settlement charges to borrower (line 1400)
403.
104.
404.
105.
405.
Adjustment for items paid by seller in advance
Adjustment for items paid by seller in advance
106. City/town taxes
to
406. City/town taxes
to
107. County taxes
to
407. County taxes
to
108. Assessments
to
408. Assessments
to
109.
409.
110.
410.
111.
411.
112.
412.
120. Gross Amount Due from Borrower
420. Gross Amount Due to Seller
200. Amount Paid by or in Behalf of Borrower
500. Reductions In Amount Due to seller
201. Deposit or earnest money
501. Excess deposit (see instructions)
202. Principal amount of new loan(s)
502. Settlement charges to seller (line 1400)
203. Existing loan(s) taken subject to
503. Existing loan(s) taken subject to
204.
504. Payoff of first mortgage loan
205.
505. Payoff of second mortgage loan
206.
506.
207.
507.
208.
508.
209.
509.
Adjustments for items unpaid by seller
Adjustments for items unpaid by seller
to
510. City/town taxes
210. City/town taxes
to
211. County taxes
511. County taxes
to
to
212. Assessments
512. Assessments
to
to
213.
513.
214.
514.
215.
515.
216.
516.
217.
517.
218.
518.
219.
519.
220. Total Paid by/for Borrower
520. Total Reduction Amount Due Seller
300. Cash at Settlement from/to Borrower
600. Cash at Settlement to/from Seller
301. Gross amount due from borrower (line 120)
601. Gross amount due to seller (line 420)
302. Less amounts paid by/for borrower (line 220)
(
)
(
)
602. Less reductions in amounts due seller (line 520)
303. Cash
From
To Borrower
603. Cash
To
From Seller
The Public Reporting Burden for this collection of information is estimated at 35 minutes per response for collecting, reviewing, and reporting the data. This agency may not
collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. No confidentiality is assured; this disclosure
is mandatory. This is designed to provide the parties to a RESPA covered transaction with information during the settlement process.
Previous edition are obsolete
Page 1 of 3
HUD-1
L. Settlement Charges
700. Total Real Estate Broker Fees
Paid From
Paid From
Borrower’s
Seller’s
Division of commission (line 700) as follows :
Funds at
Funds at
701. $
to
Settlement
Settlement
to
702. $
703. Commission paid at settlement
704.
800. Items Payable in Connection with Loan
801. Our origination charge
$
(from GFE #1)
802. Your credit or charge (points) for the specific interest rate chosen
(from GFE #2)
$
803. Your adjusted origination charges
(from GFE #A)
804. Appraisal fee to
(from GFE #3)
805. Credit report to
(from GFE #3)
806. Tax service to
(from GFE #3)
807. Flood certification to
(from GFE #3)
808.
809.
810.
811.
900. Items Required by Lender to be Paid in Advance
901. Daily interest charges from
to
@ $
/day
(from GFE #10)
902. Mortgage insurance premium for
months to
(from GFE #3)
903. Homeowner’s insurance for
years to
(from GFE #11)
904.
1000. Reserves Deposited with Lender
1001. Initial deposit for your escrow account
(from GFE #9)
1002. Homeowner’s insurance
months @ $
per month
$
1003. Mortgage insurance
months @ $
per month
$
1004. Property Taxes
months @ $
per month
$
1005.
months @ $
per month
$
1006.
months @ $
per month
$
1007. Aggregate Adjustment
-$
1100. Title Charges
1101. Title services and lender’s title insurance
(from GFE #4)
$
1102. Settlement or closing fee
1103. Owner’s title insurance
(from GFE #5)
1104. Lender’s title insurance
$
1105. Lender’s title policy limit $
1106. Owner’s title policy limit $
$
1107. Agent’s portion of the total title insurance premium to
$
1108. Underwriter’s portion of the total title insurance premium to
1109.
1110.
1111.
1200. Government Recording and Transfer Charges
1201. Government recording charges
(from GFE #7)
1202. Deed $
Mortgage $
Release $
1203. Transfer taxes
(from GFE #8)
1204. City/County tax/stamps
Deed $
Mortgage $
1205. State tax/stamps
Deed $
Mortgage $
1206.
1300. Additional Settlement Charges
(from GFE #6)
1301. Required services that you can shop for
$
1302.
$
1303.
1304.
1305.
1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K)
Previous edition are obsolete
Page 2 of 3
HUD-1
Comparison of Good Faith Estimate (GFE) and HUD-1 Charrges
Good Faith Estimate
HUD-1
Charges That Cannot Increase
HUD-1 Line Number
# 801
Our origination charge
# 802
Your credit or charge (points) for the specific interest rate chosen
# 803
Your adjusted origination charges
# 1203
Transfer taxes
Charges That In Total Cannot Increase More Than 10%
Good Faith Estimate
HUD-1
Government recording charges
# 1201
#
#
#
#
#
#
#
Total
Increase between GFE and HUD-1 Charges
or
$
%
Charges That Can Change
Good Faith Estimate
HUD-1
Initial deposit for your escrow account
# 1001
Daily interest charges
$
/day
# 901
Homeowner’s insurance
# 903
#
#
#
Loan Terms
Your initial loan amount is
$
years
Your loan term is
%
Your initial interest rate is
Your initial monthly amount owed for principal, interest, and any
includes
$
mortgage insurance is
Principal
Interest
Mortgage Insurance
Can your interest rate rise?
No
Yes, it can rise to a maximum of
%. The first change will be on
and can change again every
after
. Every change date, your
interest rate can increase or decrease by
%. Over the life of the loan, your interest rate is
guaranteed to never be lower than
% or higher than
%.
Even if you make payments on time, can your loan balance rise?
Yes, it can rise to a maximum of $
No
Yes, the first increase can be on
and the monthly amount
No
Even if you make payments on time, can your monthly
owed can rise to $
. The maximum it can ever rise to is $
.
amount owed for principal, interest, and mortgage insurance rise?
No
Yes, your maximum prepayment penalty is $
Does your loan have a prepayment penalty?
Does your loan have a balloon payment?
No
Yes, you have a balloon payment of $
due in
years
on
.
Total monthly amount owed including escrow account payments
You do not have a monthly escrow payment for items, such as property taxes and
homeowner’s insurance. You must pay these items directly yourself.
You have an additional monthly escrow payment of $
that results in a total initial monthly amount owed of $
. This includes
principal, interest, any mortagage insurance and any items checked below:
Property taxes
Homeowner’s insurance
Flood insurance
Note: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender.
Previous edition are obsolete
Page 3 of 3
HUD-1
Page of 3