Your guide to the HUD-1 settlement statement

Read the missing manual to the 3-page form you receive when you buy, sell or refinance.

By Marcie Geffner of

A pile of paperwork thuds onto the table at the closing of any home sale or refinance. One of the key documents is the HUD-1 (PDF), a government-mandated settlement statement that dissects the costs of the deal. It also assures borrowers that they are receiving the loan upon which they agreed.

The form’s name refers to the Department of Housing and Urban Development, which introduced its current version in January 2010. (Bing: What is a Federal Housing Administration loan?)

Depending on local customs, buyers, sellers and borrowers might receive more than one HUD-1 before closing so they can track new information and changes as the loan progresses. The final HUD-1 might not be issued until the transaction is closed and recorded and all of the charges and prepaid interest are known, says Phyllis Yanagihara, a certified senior escrow officer at Master Escrow in Glendale, Calif.

Here’s a look at the form’s main sections.

Basic information about the loan
Sections B through I of the settlement statement describe transaction’s parameters, including the name and address of the buyer, seller and lender; the property address; the name of the settlement company; and the closing date.

Borrowers should pay attention to the loan type, says Kimberly Green, operations director at Quicken Loans in Detroit.

“If you’re signing up for (a Federal Housing Administration-insured) loan, you want to make sure that first box that’s checked is ‘FHA,'” she says, “whereas if you think you’re getting a conventional loan and the FHA box is checked, definitely question it.”

On our blog, ‘Listed’: 1,099-page rule seeks to simplify mortgage forms

Summaries of borrower’s and seller’s transactions
Section J summarizes the buyer’s or borrower’s costs. The figures in fields 100 to 120 are sums due from the buyer or borrower, with line 120 being the total. The figures in fields 200 to 200 are amounts credited to the buyer or borrower, with line 220 including the total. Figures in fields 300 to 303 pull the totals from line 120 and 220 to calculate line 303, the total amount due to or from the buyer or borrower at closing.

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