A Guide to the HUD-1 Form by wuxiangyu

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A Guide to the HUD-1 Form
The HUD-1 Form Explained                                               Section 100 Buyer Debits: Section 100 shows what the Buyer
For every federally related mortgage transaction, a HUD-1              owes, like the purchase price of the home. Line 103: Line 103 re-
Form must be filed. The HUD-1 Form lists a complete acc-               flects the settlement charges paid by the Buyer, which are itemized
ounting of the purchase transactions. Below you will find a            on Page 2 and carried over from Line 1400. Line 120: Line 120 is
                                                                       the total of what the Buyer owes.
complete explanation of the HUD-1 Form

The HUD-1 Settlement Statement is the financial picture of             Section 200 Buyer Credits: Section 200 shows what credits the
the closing. All money flowing into and out of settlement              Buyer has, such as the loan amount, the deposit made by the
                                                                       Buyer and any money owed to the Buyer by the Seller at time of
appears on the form. "Buyers" are referred to as "borrowers"
                                                                       closing, such as prorations for taxes and assessments.
on this form even though it may be used when there is no
loan involved, such as in a cash transaction. For our pur-             Section 300: Section 300 carries the totals down to the bottom of
poses, we will refer simply to "buyers" and "sellers."                 the page. Line 301 is the same as Line 120. Line 302 is the same
                                                                       as Line 220. Line 303 is the total "cash" due from the Buyer at
The Settlement Agent is responsible for preparing the HUD-1 and        closing.
closing the transaction in accordance with several documents.

The Contract or Escrow Agreement is the written agreement be-          Line 303: Generally, the buyer is asked to bring a cashiers check
tween Buyer and Seller which shows the purchase price of the           or other certified funds for this amount to closing.
home as well as the "who-pays-what" information relating to
closing costs.                                                         Sections J and K: Section K reflects the credits, debits and totals
                                                                       of the Seller and is broken down into Sections 400, 500 and 600.
The Loan Closing Instructions, provided by the Lender, show all
loan-related costs.                                                    Section 400 Seller Credits: Section 400 reflects the credits due the
                                                                       Seller at closing, such as the sales price of the home.
Title evidence, in the form of a title commitment, title report or other
document,reflects any existing mortgages or judgment liens that          Line 420: Line 420 shows the total credits due to the Seller at
must be satisfied or paid off at time of closing.                        closing.
It is the responsibility of the Settlement Agent to see that all
                                                                       Section 500 Sellers Credits: Section 500 reflects the charges or
charges on the HUD-1 are substantiated in writing and to see that
                                                                       debits of the Seller. Examples include the settlement charges paid
all deposits and disbursements are made in accordance with the
                                                                       by the Seller (Line 502), payoffs of existing loans and prorations
HUD-1. Let’s review the HUD-1 Settlement Statement section by
                                                                       of items such as taxes and assessments to be credited to the
section.
                                                                       Buyer at closing.
Sections A-I: The top portion shows the parties to the transaction
are: Buyers, Sellers, Lender and Settlement Company--along with        Line 520: Line 520 shows the total debits due from the Seller at
the property address and closing date.                                 closing.

Sections J and K: The bottom portion of page 1 is divided into two     Section 600: Section 600 carries the totals down to the bottom of
columns: Section J for Buyers and Section K for Sellers                the form. Line 601 is the same as Line 420. Line 602 is the same
                                                                       as Line 520.
J-scans Sections 100-300: Section J is further broken down into
the Buyer’s debits (section 100), credits (section 200) and totals     Section L - Highlighted: Page 2 of the settlement statement Buyer/
(section 300).                                                         Seller Columns contains Section L, "Settlement Charges," with
                                                                       separate Buyer and Seller columns.
Section L is further divided into Sections 700 through 1300, ending    A.     Settlement Statement                                                 U.S. Department of Housing                                             OMB Approval No. 2502-0265
                                                                                                                                                   and Urban Development
with Line 1400.
                                                                       B. Type of Loan
                                                                                                                               6 . F i l e N u m b e r:                     7. Loan Number:                8. Mortgage Insurance Case Number:
                                                                       1.      FHA     2.      FmHA     3.     Conv. Unins.
                                                                       4.      VA      5.      Conv. Ins.

Line 700: Section 700 reflects the amount of commission to be          C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked “(p.o.c.)” were
                                                                                paid outside the closing; they are shown here for informational purposes and are not included in the totals.


paid to the real estate brokers.                                       D. Name & Address of Borrower:                              E. Name & Address of Seller:                                    F. Name & Address of Lender:




Section 800: Section 800 discloses loan-related charges such as        G. Property Location:                                                                   H. Settlement Agent:


                                                                                                                                                               Place of Settlement:                                       I. Settlement Date:

origination fees and discount points.
                                                                       J. Summary of Borrower's Transaction                                                         K. Summary of Seller's Transaction
                                                                       100. Gross Amount Due From Borrower                                                          400. Gross Amount Due To Seller


"POC" Example: Any fee the Lender requires to be paid "up front"       101. Contract sales price
                                                                       102. Personal property
                                                                       103. Settlement charges to borrower (line 1400)
                                                                                                                                                                    401. Contract sales price
                                                                                                                                                                    402. Personal property
                                                                                                                                                                    403.

(at time of loan application), such as a credit report fee, will be    104.
                                                                       105.
                                                                       Adjustments for items paid by seller in advance
                                                                                                                                                                    404.
                                                                                                                                                                    405.
                                                                                                                                                                    Adjustments for items paid by seller in advance

shown on the HUD-1 with the notation "POC" for "Paid Outside           106. City/town taxes
                                                                       107. County taxes
                                                                                                               to
                                                                                                               to
                                                                                                                                                                    406. City/town taxes
                                                                                                                                                                    407. County taxes
                                                                                                                                                                                                               to
                                                                                                                                                                                                               to
                                                                       108. Assessments                        to                                                   408. Assessments                           to

Closing".                                                              109.
                                                                       110.
                                                                                                                                                                    409.
                                                                                                                                                                    410.
                                                                       111.                                                                                         411.
                                                                       112.                                                                                         412.



Section 900 Prepaids: Section 900 reflects any prepaid items the       120. Gross Amount Due From Borrower
                                                                       200. Amounts Paid By Or In Behalf Of Borrower
                                                                       201. Deposit or earnest money
                                                                                                                                                                    420. Gross Amount Due To Seller
                                                                                                                                                                    500. Reductions In Amount Due To Seller
                                                                                                                                                                    501. Excess deposit (see instructions)

Lender requires be paid in advance, such as preliminary interest       202. Principal amount of new loan(s) 502.
                                                                       203. Existing loan(s) taken subject to 503.
                                                                       204.
                                                                                                                                                                    Settlement charges to seller (line 1400)
                                                                                                                                                                    Existing loan(s) taken subject to
                                                                                                                                                                    504. Payoff of first mortgage loan

or the first year’s hazard insurance premium.                          205.
                                                                       206.
                                                                                                                                                                    505. Payoff of second mortgage loan
                                                                                                                                                                    506.
                                                                       207.                                                                                         507.
                                                                       208.                                                                                         508.
                                                                       209.                                                                                         509.


Section 1000 Escrows: Section 1000 reflects escrow items, such
                                                                       Adjustments for items unpaid by seller                                                       Adjustments for items unpaid by seller
                                                                       210. City/town taxes                    to                                                   510. City/town taxes                       to
                                                                       211. County taxes                       to                                                   511. County taxes                          to


as deposits for taxes and insurance, which the Lender collects         212. Assessments
                                                                       213.
                                                                       214.
                                                                                                               to                                                   512. Assessments
                                                                                                                                                                    513.
                                                                                                                                                                    514.
                                                                                                                                                                                                               to




and holds for payment of future bills.                                 215.
                                                                       216.
                                                                       217.
                                                                                                                                                                    515.
                                                                                                                                                                    516.
                                                                                                                                                                    517.
                                                                       218.                                                                                         518.
                                                                       219.                                                                                         519.


Section 1100 Title: Section 1100 reflects title charges payable to     220. Total Paid By/For Borrower
                                                                       300. Cash At Settlement From/To Borrower
                                                                                                                                                                    520. Total Reduction Amount Due Seller
                                                                                                                                                                    600. Cash At Settlement To/From Seller
                                                                       301. Gross Amount due from borrower (line 120)                                               601. Gross amount due to seller (line 420)

the title and/or settlement company. Such fees may include settle-     302. Less amounts paid by/for borrower (line 220)
                                                                                                             L. Settlement Charges
                                                                                                                                               (                  ) 602. Less reductions in amt. due seller (line 520)               (                 )



ment or closing fee, abstract or search fee, title examination fee,    303. Cash               From           To orrower
                                                                                                             700. BTotal Sales/Broker's Commission based onCash $
                                                                                                                                                      603. price

                                                                                                                     Division of Commission (line 700) as follows:
                                                                                                                                                                                              To        F
                                                                                                                                                                                                        @ rom Seller =
                                                                                                                                                                                                                  %
                                                                                                                                                                                                                                                           Paid From
                                                                                                                                                                                                                                                           Borrowers
                                                                                                                                                                                                                                                            Funds at
                                                                                                                                                                                                                                                                             Paid From
                                                                                                                                                                                                                                                                               Seller's
                                                                                                                                                                                                                                                                              Funds at
                                                                                                             701. $                                                         to

and title insurance premiums, among others.
                                                                                                                                                                                                                                                           Settlement        Settlement
                                                                                                             702. $                                             to
                                                                       Section 5 of the Real Estate Settlement Procedures Act (RESPA) requires the         charges imposed upon the borrower and seller. These are third party disclo-
                                                                                                             703. Information Booklet to help persons sures that are designed to provide the borrower with pertinent information
                                                                       following: • HUD must develop a SpecialCommission paid at Settlement
                                                                                                             704.
                                                                       borrowing money to finance the purchase of residential real estate to better        during the settlement process in order to be a better shopper.
                                                                                                             800. estate settlement services; Each
                                                                       understand the nature and costs of realItems Payable In Connection• With Loan Public Reporting Burden for this collection of information is estimated to
                                                                                                                                                           The
                                                                       lender must provide the booklet to all applicants from whom it receives or for      average one hour per response, including the time for reviewing instructions,
                                                                                                             80 to Loan Originat on Fee
                                                                       whom it prepares a written application 1. borrow moneyito finance the purchase           %
                                                                                                                                                           searching existing data sources, gathering and maintaining the data needed,

Section 1200 Recording: Section 1200 reflects county and/or state      of residential real estate; • Lenders must prepare iandunt
                                                                                                             802. Loan D sco distribute with the Booklet        %
                                                                                                                                                           and completing and reviewing the collection of information.
                                                                       a Good Faith Estimate of the settlement. costsrthat the borrower is likely to incur
                                                                                                             803 App aisal Fee
                                                                       in connection with the settlement. These disclosures are manadatory.
                                                                                                                                                                 o
                                                                                                                                                           This tagency may not collect this information, and you are not required to
                                                                                                             804. Credit Report                                 to
                                                                                                                                                           complete this form, unless it displays a currently valid OMB control number.
                                                                       Section 4(a) of RESPA mandates that HUD develop and prescribe this standard

recording fees for instruments such as the deed and mortgage.          form to be used at the time of loan805. Lender's provide fullFee
                                                                                                              settlement to Inspection disclosure of all
                                                                                                             806. Mortgage Insurance Application Fee to
                                                                                                             807. Assumption Fee
                                                                                                                                                           The information requested does not lend itself to confidentiality.


                                                                                                                                                               Page 1 of 2
                                                                                                                                                                                                                                       form HUD-1 (3/86)
                                                                       Previous editions are obsolete                                                                                                                               ref Handbook 4305.2
                                                                                                             808.
                                                                                                             809.
                                                                                                             810.

Section 1300 (Additional): Section 1300 reflects any additional                                              811.
                                                                                                             900. Items Required By Lender To Be Paid In Advance


settlement charges, such as survey or pest inspection fees.
                                                                                                             901. Interest from                           to                @$                          /day
                                                                                                             902. Mortgage Insurance Premium for                                                        months to
                                                                                                             903. Hazard Insurance Premium for                                                          years to
                                                                                                             904.                                                                                       years to
                                                                                                             905.
                                                                                                             1000. Reserves Deposited With Lender

Line 1400: Line 1400 reflects the total of charges for the Buyer                                             1001. Hazard insurance
                                                                                                             1002. Mortgage insurance
                                                                                                                                                                       months@$
                                                                                                                                                                       months@$
                                                                                                                                                                                                        per month
                                                                                                                                                                                                        per month
                                                                                                             1003. City property taxes                                 months@$                         per month

and the Seller. Line 1400 carried to Buyer 103: The total due from                                           1004. County property taxes
                                                                                                             1005. Annual assessments
                                                                                                                                                                       months@$
                                                                                                                                                                       months@$
                                                                                                                                                                                                        per month
                                                                                                                                                                                                        per month
                                                                                                             1006.                                                     months@$                         per month

the Buyer is carried over to Page 1, Line 103. Line 1400 carried to                                          1007.
                                                                                                             1008.
                                                                                                                                                                       months@$
                                                                                                                                                                       months@$
                                                                                                                                                                                                        per month
                                                                                                                                                                                                        per month


Seller 502: The total due from the Seller is carried over to Page 1,                                         1100. Title Charges
                                                                                                             1101. Settlement or closing fee
                                                                                                             1102. Abstract or title search
                                                                                                                                                                       to
                                                                                                                                                                       to

Line 502.                                                                                                    1103. Title examination
                                                                                                             1104. Title insurance binder
                                                                                                             1105. Document preparation
                                                                                                                                                                       to
                                                                                                                                                                       to
                                                                                                                                                                       to
                                                                                                             1106. Notary fees                                         to
                                                                                                             1107. Attorney's fees                                     to
                                                                                                                     (includes above items numbers:                                                                                               )

Once you are satisfied that the information shown on the HUD-1                                               1108. Title insurance
                                                                                                                     (includes above items numbers:
                                                                                                                                                                       to
                                                                                                                                                                                                                                                  )


Settlement Statement is complete and accurate, you will be asked
                                                                                                             1109. Lender's coverage                                   $
                                                                                                             1110. Owner's coverage                                    $
                                                                                                             1111.


to sign the statement, indicating your approval for the disburse-                                            1112.
                                                                                                             1113.
                                                                                                             1200. Government Recording and Transfer Charges

ment of funds in connection with the transaction. The Settlement                                             1201. Recording fees: Deed $
                                                                                                             1202. City/county tax/stamps: Deed $
                                                                                                                                                                     ; Mortgage $
                                                                                                                                                                                 ; Mortgage $
                                                                                                                                                                                                    ; Releases $


                                                                                                             1203. State tax/stamps: Deed $                                      ; Mortgage $

Agent will also sign the HUD-1, certifying that the information                                              1204.
                                                                                                             1205.
                                                                                                             1300. Additional Settlement Charges

shown is accurate and that disbursement of the funds will be made                                            1301. Survey
                                                                                                             1302. Pest inspection to
                                                                                                                                          to



in accordance with the Statement.                                                                            1303.
                                                                                                             1304.
                                                                                                             1305.

                                                                                                             1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K)




                                                                                                                                                                                                                                                                           form HUD-1 (3/86)
                                                                                                             Previous editions are obsolete                                                             Page 2 of 2                                                     ref Handbook 4305.2

								
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