What is Form HUD-1?

Form HUD-1,Settlement Statement,is a form that summarizes all the fees that a buyer has to pay to a vendor on the day of the settlement. It contains the “terms and conditions” of a settlement.

When availing of a mortgage loan, you sometimes become unsure whether you would like to continue with the purchase. Some people are afraid that they might not be able to keep up with the loan payments. For this reason, the state has made mandatory the provision of standard real estate settlement forms to ensure that people who avail of mortgage loans understand the terms and conditions of the loan.

One of the forms used as a standard real estate settlement form is the Form HUD-1 or the Settlement Statement Form.

How to fill out Form HUD-1?

The form contains 3 pages. Before filling out the form, be sure to read through the form carefully. This is to ensure that you will provide all the necessary information that the borrower has to know.

PAGE 1
Section A. Name of Form.

Section B. Type of Loan
In this section, indicate the type of loan you are availing.

1. FHA: this refers to the mortgages insured by the Federal Housing Administration.
2. VA: this refers to mortgages insured by the US Depertment of Veterans Affairs and is provided to service members, veterans, and eligible surviving spouses.
3. RHS: this refers to mortgage loans issued by the Department of Agriculture Rural Housing Service and is provided to eligible low-income residents in rural areas.
4. Conv. Ins.: this refers to conventional loans. This type of loan is not insured by the government and is instead provided by private lenders.
5. Conv. Unins.: this refers to conventional uninsured loan wherein you’ll be required to pay a 20% downpayment.

You will also be asked to provide details about the loan you have availed.

1. File Number
2. Loan Number
3. Mortgage Insurance Case Number

Section C.
Section C contains what you need to know about the form. There is nothing you have to fill out here, but please remember to read this section of the form.

Section D. Name and Address of Borrower
Provide here the name and address of the borrower.

Section E. Name and Address of Seller
Provide here the name and address of the seller.

Section F. Name and Address of Lender
Provide here the name and address of the lender.

Section G. Property Location
provide here the address of the location the borrower intends to purchase.

Section H. Settlement Agent; Place of Settlement
Provide here the name of the settlement agent or the loan officer and the address where the settlement has been made.

Section I. Settlement Date
Provide here the date of the settlement.

PAGE 2
Section J. Summary of Borrower’s Transaction
In this section, you will be providing the gross amount that the borrower has to pay in the whole loan period. Provide all that is applicable to the transaction.

Section K. Summary of Seller’s Transaction
In this section, you will be providing the gross amount that the seller has to pay in the whole loan period. Provide all that is applicable to the transaction.

Section L. Settlement Charges
This section contains more subsections, but these are generally divided into 3 columns: the first column contains the type of charge, the second column indicates the amount paid from the borrower’s funds at the settlement, and the third column indicates the amount paid from the seller’s at the settlement.

It is important that you provide accurate information in this section. This serves as transparency for both the borrower and the seller. It would also indicate if there are any charges the borrower has to pay the seller. Indicate the information needed in these items.

• Subsection 700.Total real estate broker fees.
• Subsection 800. Items payable in connection with the loan.
• Subsection 900. Items required by the lender to be paid in advance
• Subsection 1000. Reserves deposited with the lender.
• Subsection 1100. Title charges.
• Subsection 1200. Government recording and transfer charges.
• Subsection 1300. Additional settlement charges.
• Subsection 1400. Total settlement charges.

PAGE 3
For a mortgage loan buyer, Page 3 of the form serves as additional information on the terms and conditions of the mortgage loan. Indicate here the information needed.

• Comparison of Good Faith Estimate (GFE) and HUD-1 Charges.
• Charges that can Change
• Loan Terms

This section provides the borrower with more information about your lending company’s terms and conditions for the mortgage loan. This would contain information such as the initial loan amount, loan term, interest rate, prepayment penalty, balloon payment, and more. Please indicate here all the information needed so as to provide the borrower with an accurate picture of the loan payment.

Frequently Asked Questions About Form HUD-1

What is Form HUD-1 now called?

Form HUD-1, Settlement Statement, is now called a Closing Disclosure.

However, it is still used to settle a real estate purchase and sale. It documents the closing costs or fees on both sides of the transaction that are split evenly between the parties involved in the transaction.

Form HUD-1 alerts either party to any additional closing costs they may be responsible for. It can be obtained one day prior to the settlement date of the transaction, usually on the closing day.

Form HUD-1 is usually used for reverse mortgages and mortgage refinance transactions.

Is Form HUD-1 the same as a Closing Statement?

No, Form HUD-1 is not the same as a Closing Statement or Closing Disclosure. A Closing Statement is a document that details the closing costs associated with a real estate purchase and sale.

Form HUD-1, Settlement Statement, shared characteristics with a Closing Disclosure but compared to the latter, it is shorter and is usually used in reverse mortgages and mortgage refinance transactions. It has three pages, page one of which provides information on the buyer, seller, and loan officer. The second page details the settlement charges of the home’s purchase, while the third serves as a receipt for both parties.

A Closing Disclosure is five pages and is used in mortgage loans and other real estate transactions. The five pages contain information on both the seller and buyer, closing costs of the transaction, income information needed for settlement, escrow account details, and a final receipt. It is usually issued three business days before the closing date of the transaction.

What is a reverse mortgage?

A reverse mortgage is a type of home loan that enables senior citizens to borrow money against the equity they have built in their house. The borrowed funds are paid to the borrower on an agreed schedule or can be accessed on-demand. There are no monthly installment payments associated with this loan because the amount is due, incidentally, when either the borrower dies, sells the house or moves out of it permanently. Borrowers do not have to repay the loan until these conditions are met.

A reverse mortgage is usually insured by a government agency because, as with any mortgage loan, there is a possibility that a senior will default on his or her repayment obligation and thus lose their home. It is readily available and is popular with seniors because it allows them to live in and enjoy their homes for as long as they want without having to make mortgage installment payments.

The reverse mortgage gets its name from the fact that unlike a conventional home loan, where the borrower must make repayments, reverse mortgages allow borrowers to access their equity in the home, which is different from a loan.

The amount of money available through reverse mortgages depends on the age of the borrower and current interest rates. Some lenders may add an administrative fee for administering this type of loan. In addition to that, fees are also payable when accessing or re-financing cash-out options.

What is a Settlement Form?

Form HUD-1 is usually called a Settlement Form. It can be used in many instances that would require settlement, but this form is usually filed by lending institutions and is issued to borrowers. Some of the instances in which you will encounter settlement statements are the following: debt settlement, legal settlement, insurance settlement, banking, trading, and business transactions.

Form HUD-1, however, is specifically used for mortgage loans. This form is issued as part of a loan closing (also known as settlement) package, or the final step in the purchase of a mortgage loan.

The Form HUD-1 provides you an overview of the necessary payments you have to make to fulfill the loan. This is to give clarity as soon as possible and to avoid possible misunderstandings about the loan in the future.

This would also serve as proof that you are liable to any missed payments or unfulfilled conditions of the loan.

After signing documents that are part of the “settlement”, you become responsible for the loan.

Can I use Form HUD1 for a mortgage refinance?

Yes, Form HUD1 can be used for a mortgage refinance. This form captures all the necessary information from two parties involved in a real estate transaction, so it is one of the most important documents required to purchase a house. It not only summarizes closing costs but also provides a detailed list for each party's reference.

To qualify for a mortgage refinance, borrowers must have satisfactory credit history and have at least 20% equity in the property.

The Federal Housing Administration (FHA) refinance loans are not available if the borrower has less than 10% of home equity. Mortgage lenders usually provide borrowers with closing costs at rates that are discounted compared to other options on the market, which is why it becomes necessary for borrowers to deliver a detailed cost breakdown through Form HUD1.

What does "HUD" in Form HUD-1 stand for?

The "HUD" in HUD 1 Form stands for "Housing and Urban Development," a United States government agency. The Department of Housing and Urban Development is a federal agency that is responsible for matters related to housing and city planning.

How do I know if Form HUD-1 can be used as evidence in case of settlement default?

Since HUD-1 is used for all settlements of real estate transactions, it can be used as evidence in case of settlement defaults. The form used to record the settlement charges on your house purchase or sale serves as proof that these charges were assessed, and you will thus not have any issues with lenders requesting additional funds because they are oversighted on Form HUD-1.

What type of loan is Form HUD 1 used for?

Form HUD-1 is used to document the closing costs or fees of reverse mortgage and mortgage refinance transactions.

How many pages is Form HUD 1?

Form HUD-1 has three pages. The first page contains the name of the buyer, seller, and loan officer, as well as other information relating to transaction details, such as settlement date and location. The second page shows how much money both parties are paying for the settlement, the fees associated with this transaction. The last page is a receipt for both parties to acknowledge that they have received funds for their transactions.

Can you get form HUD-1 before closing?

Form HUD-1, Settlement Statement, is usually provided by the settlement agent who holds the closing of the transaction. It can be obtained on or before the settlement date of the transaction.

What is a mortgage refinance transaction?

A mortgage refinance is a second loan on an existing first loan, known as the "mortgage" or, more usually, the "first lien." The first lien holder will allow you to refinance your home so that you can get cash out of it. You can use this money for anything you wish, which includes renovating your home.

Is Form HUD-1 required?

Federal requirements by the Department of Housing and Urban Development state that when refinancing or getting a mortgage loan, Form HUD-1 must be used to report all settlement charges involved in the transaction, which makes Form HUD-1 required.

Without Form HUD-1, your lender will not know how much they are supposed to lend you for this purchase. Form HUD-1 specifies how much you are required to pay for the purchase of your home.

Is there a fee required when filing Form HUD-1?

There is no fee required when filing Form HUD-1. This document may be obtained by the buyer and the seller of the house, in person or through an agent. It summarizes the total charges for the settlement proceedings.

However, both parties may pay the settlement agent a fee for preparing Form HUD-1.

Is there a fee required when filing Form HUD-1?

There is no fee required when filing Form HUD-1. This document may be obtained by the buyer and the seller of the house, in person or through an agent. It summarizes the total charges for the settlement proceedings.

However, both parties may pay the settlement agent a fee for preparing Form HUD-1. In most cases, the buyer pays the fee for Form HUD-1, covering the cost of printing and assembling this document to be given to the parties involved in the real estate transaction.

How long does it take to receive Form HUD 1?

Form HUD-1, the Settlement Statement, is usually provided by settlement agents one or two days before closing.

Who uses Form HUD-1?

Form HUD-1 is used by both the buyer and seller in a real estate purchase and sale transaction. It is presented to them on closing day or settlement date when finalizing the transfer of ownership of property.

Usually, a settlement agent or escrow officer prepares HUD 1 Form.

Form HUD-1 will be sent to the buyer and seller either electronically or by mail. If this document is sent by mail, the buyer and seller may receive it one or two days before closing. If electronic delivery is used, both parties must have access to a computer so that they can view their Form HUD-1 online.

Both parties must review their Form HUD-1 for accuracy and have it corrected or initialed if necessary. They must initial their Form HUD-1 to indicate that they have read it thoroughly. They also sign this form upon closing to acknowledge receipt of funds for the purchase.

How many copies of Form HUD-1 are needed?

Typically, only one printed copy of Form HUD-1 is presented on settlement day unless corrections need to be made.

Is Form HUD-1 still used?

Yes, Form HUD-1 is still used.

Form HUD-1 is now called Closing Disclosure, but it is still used to show the settlement charges for real estate transactions, such as reverse mortgages and other loans that need not be RESPA-compliant.

Form HUD-1 is currently used as a settlement statement form, documenting all settlement charges for transfer of ownership and closing costs and fees associated with the loan or purchase of real estate property.

What replaced Form HUD-1 Settlement?

Form HUD-1 has been replaced by a Closing Disclosure. The Closing Disclosure is a document that outlines the final loan terms, including finance charges for the loan.

The creditor must provide the Closing Disclosure to the consumer at least three business days before closing. This form may be delivered to consumers electronically or by mail; if mailed, it will be sent no fewer than three days prior to closing. The creditor must also give consumers instructions on how to access the form online.

Form HUD-1 Settlement shows all of the settlement charges involved in a real estate transaction, but it does not show any loan fees. For loans that are not RESPA-compliant, a Closing Disclosure is used instead because it outlines finance charges associated with the loan. However, Closing Disclosure is also used for loans that are RESPA-compliant, but there are no settlement charges.

When the Closing Disclosure form is transferred to another party, it should be documented and kept on file with the current owner. This document remains a permanent record of the transaction and can be referred to later if necessary.

What is the difference between Form HUD-1 and Form HUD 1A?

Form HUD-1A is essentially the same as Form HUD-1 except that it does not have areas for a seller or refinance because these transactions do not exist in this type of real estate transaction.

Form HUD-1A is used by refinancers who are not required to provide the consumer with settlement charges for purchases of property. This form has two pages, but these correspond directly to the one-page version of Form HUD-1.

Is Form HUD-1 required for a cash sale?

Form HUD-1 is not required for a cash sale unless the transaction involves a real estate purchase and the buyer is obtaining a loan.

In the case of a cash sale, a settlement statement is usually presented to both parties by a title company or closing agent. This form documents how much was paid and who gets the money from that transaction, but it does not have items such as lender fees or prepaid interest that are included on Form HUD-1.

Instead of using Form HUD-1, a cash sale settlement statement is used to document the transaction and how much is paid.

Are HUD-1 forms public records?

No, HUD-1 forms are not public records.

The closing agent is in charge of coordinating the gathering of settlement charges, including Form HUD-1. This form contains legally sensitive information that can be used to defraud or identify personal details about the parties involved in the real estate transaction. Therefore, Form HUD-1 is not considered a public record because its contents are not available for public consumption.

Who is eligible to file Form HUD-1?

Anyone who has a real estate settlement process must file Form HUD-1.

Form HUD-1 is required for any transaction involving a transfer of ownership from one person or entity to another, but it does not have to be related to a purchase. For example, Form HUD-1 can also be used when there is an assumption of an existing loan.

Form HUD-1 is also used when a loan or service is provided in exchange for something other than real estate, such as when a property is personal rather than real estate. It can be used in cases of refinancing, assumption, and foreclosure as well.

How do I get my old Form HUD-1 Settlement Statement?

If you need a copy of your old Form HUD-1, you can contact the lender and ask for it.

If you do not know who the lender is, contact your real estate agent to ask for help with getting a copy of Form HUD-1 since it must be kept on file with the current owner of the property and can be referenced in case questions arise about the transaction later on.

Can you waive Form HUD 1?

Yes, Form HUD-1 can be waived.

All parties involved in a real estate transaction must go through the settlement process and use Form HUD-1, but they also have the option of waiving their rights to this form. It is usually done for convenience or because there is no risk of any complications arising from the transaction. Form HUD 1 can be waived if both parties agree to it.

The borrower may waive Form HUD-1 if all of the following statements are true:

• the lender is not required to provide this form;
• there are no charges imposed by the lender that are related to the transaction;
• the borrower has reviewed the settlement statement for this transaction and all of its charges; or
• there are no additional costs associated with this transaction.

The seller may waive Form HUD 1 if he or she has a reason to believe the buyer is not obtaining a loan and all of the following statements are true:

Form HUD-1 does not apply to their transaction;

• the seller has reviewed the settlement statement for this transaction and any charges related to it; or
• there are no additional costs imposed by the lender that are part of their settlement process.

The borrower may waive his or her right to delivery of the completed Form HUD-1 before settlement by signing a written waiver at or before the settlement date.

What are the qualifications for a Form HUD-1 loan?

A Form HUD-1 loan has certain qualifications that must be met in order to receive the benefits of this type of financing.

The borrower must use a rate deduction clause, which is usually used with mortgages and enables the lender to automatically deduct any fees, such as property taxes or homeowners insurance, resulting from this transaction.

The initial interest rate on a Form HUD-1 loan is typically lower than other types of loans because lenders must abide by the Truth in Lending Act (TILA), which states that loans must have a single interest rate.

The borrower may be able to reduce the risk of paying too much for an insurance policy if he or she qualifies for a mortgage insurance premium deduction clause. This clause allows the borrower to choose a preferred insurance provider and have their premium deducted from the loan.

What are some steps I can take to ensure that myForm HUD-1 is accurate?

It is important to conduct thorough research before settling on a transaction, especially if it involves real estate, in order to minimize any mistakes.

You must have a clear understanding of the transaction before you sign Form HUD-1 or any documents. It includes knowing exactly what your satisfaction of mortgage statement says and what all of the numbers on Form HUD-1 indicate. Also, understand that certain costs might be added to your final settlement total.

The best way to ensure that your Form HUD-1 is accurate is to have a trusted representative, such as a real estate agent, review it for inaccuracies.

You can also ask the lender or someone involved in your transaction to explain any numbers you do not understand on the form and their significance.

If I’m availing of a mortgage loan, do I have to fill out Form HUD-1?

If you are the buyer of the mortgage loan, you don’t have to worry about filling out this form. This would simply be issued to you. This form is filled out by loan officers who work for the lending company you are availing the mortgage loan from.

If you happen to be the loan officer in charge of issuing a Form HUD-1, do remember to provide all the necessary information in this form. Avoid leaving any necessary sections unfilled, so as to provide an accurate view of the payment to be made by a borrower.

I have finished filling out Form HUD-1. What’s next?

Provide the borrower your accomplished Form HUD-1. Keep copies of your and your company’s references.