The HUD-1 Explained

Real Estate

The HUD-1 Explained

Section A-I: Lender info, settlement agent info, loan type, settlement date and property address.

Section L: Settlement Charges

Section 700: Agency Commissions

Section 900: Items Required by Lender to be Paid in Advance – mortgage and hazard insurance, misc. possibly collected by lender.

Section 1000: Reserves Deposited with Lender - borrower’s escrow account, escrow adjustment.

Section 1100: Title Charges - settlement agent's fee, title search and examination fees, title insurance binder charges, deed preparation fees, notary public’s fee, attorney's fees, total title insurance charge less the cost of the binder, costs for title insurance policies for borrower and lender, any other title-related charges.

Section 1200 - Government Recording and Transfer Charges

Section 1300 & 1400 - Additional Settlement Charges and Totals

Section 1300: survey and inspection fees.

1400: total settlement charges paid from borrower's and seller's funds.

Section J: Summary of Borrower's Transaction

Section 100: Gross Amount Due from Borrower - property gross sales price, charges for personal property purchased from the seller, borrower’s total settlement charges, amounts owed by the borrower or previously paid by the seller, items for which the seller has paid in advance, gross amount due from borrower.

Section 200: Amounts Paid By or In Behalf of Borrower - buyer’s credit from earnest money paid when the offer was accepted, the amount of the loan, misc. items paid by or on behalf of the buyer, bills the seller owes but has not yet paid, total amount borrower owes, summary of all items already paid by or for the borrower.

Section K: Summary of Seller's Transaction

Section 400: Gross Amount Due to Seller - gross sales price of the property, personal property, other amounts owed by the borrower or previously paid by the seller, items the seller has paid in advance, gross amount due to the seller.

Section 500: Reductions in Amount Due to Seller

l If borrower is assuming or taking title subject to existing liens which are deducted from the sales price.

l any first and/or second loans to be paid off as part of settlement.

l deposits paid to the seller by the borrower who is not the settlement agent.

l bills the seller owes but has not yet paid.

Section 600: Cash at Settlement To/From Seller - gross amount due to the seller, total of reductions in seller's proceeds

l 603: the difference between lines 601 and 602