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Fillable Form HUD-1 Settlement Statement

HUD 1 form is used by the Department of Housing and Urban Development. This form is known as a Settlement Statement or Closing Sheet. It will be used when a party is purchasing or refinancing a real estate.

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When availing of a mortgage loan, you sometimes become unsure whether you would like to continue with the purchase. Some people are afraid that they might not be able to keep up with the loan payments. For this reason, the state has made mandatory the provision of standard real estate settlement forms to ensure that people who avail of mortgage loans understand the terms and conditions of the loan.

One of the forms used as a standard real estate settlement form is the Form HUD-1 or the Settlement Statement Form.

What is Form HUD-1?

Form HUD-1 or the Settlement Statement Form is a form that summarizes all the fees that a buyer has to pay to a vendor on the day of the settlement. It contains the “terms and conditions” of a settlement

What is a Settlement Form?

It can be used in many instances that would require settlement, but this form is usually filed by lending institutions and is issued to borrowers. Some of the instances in which you will encounter settlement statements are the following: debt settlement, legal settlement, insurance settlement, banking, trading, and business transactions.

Form HUD-1, however, is specifically used for mortgage loans. This form is issued as part of a loan closing (also known as settlement) package, or the final step in the purchase of a mortgage loan.

The Form HUD-1 provides you an overview of the necessary payments you have to make to fulfill the loan. This is to give clarity as soon as possible and to avoid possible misunderstandings about the loan in the future.

This would also serve as proof that you are liable to any missed payments or unfulfilled conditions of the loan.

After signing documents that are part of the “settlement”, you become responsible for the loan.

If I’m availing a mortgage loan, do I have to fill out Form HUD-1?

If you are the buyer of the mortgage loan, you don’t have to worry about filling out this form. This would simply be issued to you. This form is filled out by loan officers who work for the lending company you are availing the mortgage loan from.

If you happen to be the loan officer in charge of issuing a Form HUD-1, do remember to provide all the necessary information in this form. Avoid leaving any necessary sections unfilled, so as to provide an accurate view of the payment to be made by a borrower.

How to fill out Form HUD-1?

The form contains 3 pages. Before filling out the form, be sure to read through the form carefully. This is to ensure that you will provide all the necessary information that the borrower has to know.

PAGE 1
Section A. Name of Form.

Section B. Type of Loan
In this section, indicate the type of loan you are availing.

  1. FHA: this refers to the mortgages insured by the Federal Housing Administration.
  2. VA: this refers to mortgages insured by the US Depertment of Veterans Affairs and is provided to service members, veterans, and eligible surviving spouses.
  3. RHS: this refers to mortgage loans issued by the Department of Agriculture Rural Housing Service and is provided to eligible low-income residents in rural areas.
  4. Conv. Ins.: this refers to conventional loans. This type of loan is not insured by the government and is instead provided by private lenders.
  5. Conv. Unins.: this refers to conventional uninsured loan wherein you’ll be required to pay a 20% downpayment.

You will also be asked to provide details about the loan you have availed.

  1. File Number
  2. Loan Number
  3. Mortgage Insurance Case Number

Section C.
Section C contains what you need to know about the form. There is nothing you have to fill out here, but please remember to read this section of the form.

Section D. Name and Address of Borrower
Provide here the name and address of the borrower.

Section E. Name and Address of Seller
Provide here the name and address of the seller.

Section F. Name and Address of Lender
Provide here the name and address of the lender.

Section G. Property Location
provide here the address of the location the borrower intends to purchase.

Section H. Settlement Agent; Place of Settlement
Provide here the name of the settlement agent or the loan officer and the address where the settlement has been made.

Section I. Settlement Date
Provide here the date of the settlement.

PAGE 2
Section J. Summary of Borrower’s Transaction

In this section, you will be providing the gross amount that the borrower has to pay in the whole loan period. Provide all that is applicable to the transaction.

Section K. Summary of Seller’s Transaction
In this section, you will be providing the gross amount that the seller has to pay in the whole loan period. Provide all that is applicable to the transaction.

Section L. Settlement Charges
This section contains more subsections, but these are generally divided into 3 columns: the first column contains the type of charge, the second column indicates the amount paid from the borrower’s funds at the settlement, and the third column indicates the amount paid from the seller’s at the settlement.

It is important that you provide accurate information in this section. This serves as transparency for both the borrower and the seller. It would also indicate if there are any charges the borrower has to pay the seller. Indicate the information needed in these items.

  • Subsection 700.Total real estate broker fees.
  • Subsection 800. Items payable in connection with the loan.
  • Subsection 900. Items required by the lender to be paid in advance
  • Subsection 1000. Reserves deposited with the lender.
  • Subsection 1100. Title charges.
  • Subsection 1200. Government recording and transfer charges.
  • Subsection 1300. Additional settlement charges.
  • Subsection 1400. Total settlement charges.

PAGE 3
For a mortgage loan buyer, Page 3 of the form serves as the additional information on the terms and conditions of the mortgage loan. Indicate here the information needed.

  • Comparison of Good Faith Estimate (GFE) and HUD-1 Charges.
  • Charges that can Change
  • Loan Terms

This section provides the borrower more information about your lending company’s terms and conditions for the mortgage loan. This would contain information such as the initial loan amount, loan term, interest rate, prepayment penalty, balloon payment, and more. Please indicate here all the information needed so as to provide the borrower an accurate picture of the loan payment.

I have finished filling out Form HUD-1. What’s next?

Provide the borrower your accomplished Form HUD-1. Keep copies of your and your company’s references.

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