Amy Fontinelle is a freelance writer, researcher and editor who brings a journalistic approach to personal finance content. Since 2004, she has worked with lenders, real estate agents, consultants, financial advisors, family offices, wealth managers.
Amy Fontinelle Personal Finance ExpertAmy Fontinelle is a freelance writer, researcher and editor who brings a journalistic approach to personal finance content. Since 2004, she has worked with lenders, real estate agents, consultants, financial advisors, family offices, wealth managers.
Written By Amy Fontinelle Personal Finance ExpertAmy Fontinelle is a freelance writer, researcher and editor who brings a journalistic approach to personal finance content. Since 2004, she has worked with lenders, real estate agents, consultants, financial advisors, family offices, wealth managers.
Amy Fontinelle Personal Finance ExpertAmy Fontinelle is a freelance writer, researcher and editor who brings a journalistic approach to personal finance content. Since 2004, she has worked with lenders, real estate agents, consultants, financial advisors, family offices, wealth managers.
Personal Finance Expert Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
| Loans & Mortgages Editor
Updated: Sep 9, 2022, 12:24pm
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The U.S. Department of Housing and Urban Development (HUD) has created a variety of standardized forms for use in certain mortgage transactions and HUD programs. One common HUD form is the HUD-1 settlement statement, which was previously utilized for a few types of mortgage products but is now used only for reverse mortgages.
If you’re wondering what a HUD-1 settlement statement is and what it means, here’s what you should know.
A HUD-1 form (also called a HUD-1 settlement statement) lists all of the costs you pay and credits you receive when you close on a loan, including how much the lender is charging you to issue your loan, how much you paid to have your home appraised and more. While this form was once used for mortgages applied for on or before Oct. 3, 2015, it’s now limited to reverse mortgage transactions.
If you’re taking out a home equity conversion mortgage (HECM)—the most common type of reverse mortgage that’s backed by the Federal Housing Administration (FHA)—your HUD-1 will contain information on the home’s sale price, the real estate agent’s sales commission, any property taxes due and any earnest money you deposited. The form will also show how your final settlement expenses compare with the estimated costs your lender gave you on the good faith estimate (GFE) form when you applied for your reverse mortgage.
Note that for transactions that don’t include a seller (like mortgage refinancing), your lender might use a HUD-1A form instead. This is simply a shortened version of the HUD-1 that omits the sections related to selling costs.
A HUD-1 settlement statement is a three-page form. Here’s what you’ll find on each page:
This page contains your personal information, property information and a detailed list of both the buyer’s and seller’s costs if real estate is changing hands.
This page includes the real estate broker’s fees (if applicable) and a detailed list of all your closing costs. While it’s rare to see a HUD-1 form in a purchase-and-sale transaction, here are some of the loan fees that the form might cover, broken down by section.
This page includes a summary of how the GFE form compares to the closing costs your lender is asking you to pay to finalize the loan as well as key details about your loan terms.
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The law requires your lender to give you the HUD-1 settlement statement no later than the business day before your loan closes—but only if you request it. If you don’t, the first time you see the form might be when you sign your closing documents. You also have the option to waive your right to see the settlement statement at closing and can instead have it delivered or mailed to you as soon as possible after the transaction settles. However, this likely isn’t a good idea. Instead, make sure to review what you’re being charged while you still have a chance to ask questions and resolve disputes before your loan closes—and while your lender still has an incentive to keep your business. Also note that your lender doesn’t have to show you the HUD-1 at or before closing if you don’t attend the settlement—so be sure not to skip it if you want to review all of your closing costs before you pay them.
If your loan hasn’t closed yet, you can get your HUD-1 from your lender. If you’ve already closed, you should be able to find your HUD-1 settlement statement with your closing documents.
A HUD-1 is a type of closing statement. However, outside of reverse mortgages and mortgages closed on or before Oct. 3, 2015, most real estate transactions now use a closing form called the closing disclosure that you’ll receive instead.
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Personal Finance ExpertAmy Fontinelle is a freelance writer, researcher and editor who brings a journalistic approach to personal finance content. Since 2004, she has worked with lenders, real estate agents, consultants, financial advisors, family offices, wealth managers, insurance companies, payment companies and leading personal finance websites. Amy also has extensive experience editing academic papers and articles by professional economists, including eight years as the production manager of an economics journal.
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