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What is a HUD-1 Settlement Statement and Other FAQs

what is the hud 1 settlement statement

A HUD-1 Settlement Statement is a document you get one day before closing on your mortgage.  The document lists all of the charges and credits which occur when you buy, sell, or refinance a property.  And if you’re getting this document, it is because your transaction is a:

  • Reverse mortgage
  • Home equity lines of credit (HELOC)
  • Mortgage on manufactured homes that aren’t attached to real estate

This is because the federal government stopped using HUD-1 as it is confusing in 2015 with these three exceptions. 

This form is confusing and you likely have questions.  If your closing agent or lender are not available to answer them, below you’ll find the most frequent ones we get from people who have already gone through the same process you are. 

Why was the HUD-1 replaced?

The HUD-1 was replaced due to confusion borrowers had with the multiple forms that were required to close.  The Dodd-Frank Wall Street Reform and Consumer Protection Act integrated all of these forms into one easy-to-understand document known as the closing disclosure.

What is the main difference between the HUD-1 and a Closing Disclosure?

The main difference between the HUD-1 and a Closing Disclosure is that the HUD-1 is one form for both buyers and sellers, and the Closing Disclosure is a separate document for the buyer and seller.

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

The difference between a HUD-1 and the HUD-1A is that the HUD-1A form is only given to you when you refinance your mortgage.  

What is included in the borrower’s list on the HUD-1?

A borrower’s list on the HUD-1 includes:

  • loan origination fees
  • points
  • credit report fees
  • appraisal fees
  • prepaid interest charges 
  • homeowner’s insurance fees 
  • property taxes
  • owner’s and lender’s title insurance
  • closing agent’s fees.

What is included in the seller’s list on the HUD-1?

The seller’s list on the HUD-1 includes:

  • the real estate agent’s commission
  • any credits to the buyer
  • mortgage pay-off information

Who provides the HUD-1 settlement statement?

The settlement agent provides the HUD-1 settlement statement. 

The HUD-1 settlement statement was replaced because it is confusing and does not apply to every transaction.  And if you’re getting one, don’t worry, it is common practice for three types of standard real estate transactions.

About Brad Chandler

About Brad Chandler

Brad Chandler has played a pivotal role at Express Homebuyers since co-founding the company in 2003, transforming it into a customer-focused real estate firm. With a passion for real estate sparked in the 9th grade, Brad, as CEO, steers the company with strong ethical principles and takes pride in cultivating a dedicated team of professional homebuyers.

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