What Is A HUD-1 Settlement Statement? | Smart Change: Personal Finance | poststar.com – The Post Star

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.

What Is a HUD-1 Form?

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.

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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.

What Does a HUD-1 Settlement Statement Look Like?

A HUD-1 settlement statement is a three-page form. Here’s what you’ll find on each page:

Page 1

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.

Page 2

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.

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