HUD-1 Settlement Statement - Buyer
What is the HUD-1?
The HUD-1 is a form used by the settlement agent to itemize all charges imposed upon a borrower and seller for a
real estate transaction. It gives each party a complete list of their
incoming and outgoing funds. Fees associated with the transaction but paid prior to closing are also
included on the HUD. They are normally marked "POC," for Paid
Outside of Closing.
When is the HUD-1 Used?
The statutes of the Real Estate Settlement Procedures Act (RESPA) require
the form be used as the standard real estate settlement form in all transactions
in the United States which involve federally related mortgage loans. It's
used for nearly all transactions that involve a buyer and seller, including
cash closings.
When is the HUD-1 Distributed?
RESPA states you should be given a copy of the HUD-1 at least one day
prior to settlement. In real life, entries may still be coming in a few
hours before closing. Most buyers and sellers study the statement on their
own, with their real estate agent, attorney, and with the settlement agent.
Section J, Summary of Borrower's Transaction
Section 100, Gross Amount Due from Borrower
Line 101 states the gross sales price of the property.
Charges for personal property (such items as draperies, washer, dryer,
outdoor furniture, and decorative items being purchased from the seller)
are listed on 102.
Line 103 shows the total settlement charges to the borrower that are brought
forward from Line 1400.
Lines 104 and 105 are for amounts owed by the borrower or previously paid
by the seller.
• Entries charged to the borrower include a balance in the seller's escrow
account if the borrower is assuming the loan.
• The borrower may owe the seller a portion of uncollected rents.
Lines 106 through 112 are for items which the Seller has paid in advance.
For instance, the buyer must reimburse the seller for his prorated portion
of county taxes if the seller paid an annual bill. Each person pays charges
for the time they owned the property.
Line 120 is the gross amount due from borrower. It is the total of Lines
101 through 112.
Section 200, Amounts Paid By or In Behalf of Borrower
These are all entries for funds the borrower will receive at closing.
Line 201 gives the buyer credit for the amount of earnest money paid when
the offer was accepted.
Line 202 is the amount of the new loan, which is being paid to the borrower
by the lender.
Line 203 is used when the borrower is assuming a loan or taking title
subject to an existing loan or lien on the property.
Lines 204 through 209 are used to list miscellaneous items paid by or
on behalf of the buyer. They may include such items as an allowance the
seller is making for repairs or replacement of items. This area is also
used when the seller accepts a note from the borrower for part of the
purchase price.
Lines 210 through 219 are for bills which the seller has not yet paid,
but owes all or a portion of. Taxes and assessments are listed, but the
area might also include rent collected in advance by the seller for a
period extending beyond the settlement date.
Line 220 is the total for all items in Section 200. The total is added
to the borrower's proceeds.
Section 300, Cash at Settlement From/To Borrower
Line 301 is a summary of the total amount due from the borrower.
Line 302 is a summery of all items already paid by or for the borrower.
Line 303 is the difference between lines 301 and 302. It most often shows
how much money the borrower must bring to closing. It could be a negative
number, indicating that the borrower will receive funds back at closing.