HUD-1 Form

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HUD-1 Form

A HUD-1 (HUD-1 Settlement Statement) is a standardized real estate settlement document that itemizes all charges and credits for both buyer and seller in certain mortgage transactions. It shows the full breakdown of closing costs, loan fees, and amounts due at closing.

When a HUD-1 is used

  • Still used for reverse mortgages and many mortgage refinance transactions.
  • Replaced for most other real estate closings by the Closing Disclosure (effective Oct 3, 2015) under the Dodd-Frank/TILA-RESPA rules.
  • Transactions without a seller (for example, many refinances) may use the HUD-1A version of the form.

What the HUD-1 contains

  • Layout: The reverse (back) side is typically reviewed first and has two columns — left for the borrower’s charges, right for the seller’s charges. Totals are carried to the front page, which shows cash required from the borrower and amounts paid to the seller.
  • Common borrower charges:
  • Loan origination fee, discount points
  • Appraisal, credit report, flood certification fees
  • Prepaid interest, homeowner’s insurance, property taxes
  • Title insurance (owner’s and lender’s) and closing/settlement agent fees
  • Common seller charges:
  • Real estate commission
  • Contractual credits to the buyer
  • Mortgage payoff amounts
  • The HUD-1 lists line-by-line figures so buyers and sellers can verify each charge.

Timing and review requirements

  • For HUD-1 forms used in applicable transactions, federal rules require the borrower receive a copy at least one business day before settlement. Figures may still be updated or corrected up to the actual closing.
  • For transactions using the Closing Disclosure (most purchase loans since Oct 3, 2015), the borrower must receive it at least three business days before closing. The Closing Disclosure provides finalized costs, loan terms, and projected monthly payments.

Practical tips for borrowers and sellers

  • Review the HUD-1 (or Closing Disclosure) carefully and compare it to earlier loan estimates and contract terms.
  • Ask the settlement agent, lender, or attorney to explain any unclear items or discrepancies.
  • Understand that on the HUD-1 borrowers are often labeled “borrowers” even if there is no new loan involved.

Additional considerations

  • Reverse mortgages: A reverse mortgage lets homeowners age 62+ borrow against home equity and receive funds as a lump sum, monthly payments, or a line of credit; repayment is due when the homeowner dies, moves, or sells the property.
  • Consumer protections: Mortgage lending discrimination is illegal. If you suspect discrimination based on race, religion, sex, marital status, public assistance, national origin, disability, or age, you can report it to the Consumer Financial Protection Bureau or the U.S. Department of Housing and Urban Development (HUD).

Bottom line

The HUD-1 Settlement Statement provides a detailed, line-by-line accounting of closing costs for reverse mortgages and many refinances. For most purchase loans and other mortgage types, the Closing Disclosure now serves the same purpose with a longer mandatory review period. Always review settlement documents in advance and ask questions about any unexpected or unclear charges.

Sources: Consumer Financial Protection Bureau; Federal Trade Commission.