Close this search box.

Table of Contents

HUD-1 Form


The HUD-1 Form, also known as the Settlement Statement, is a document provided by a real estate agent or broker that itemizes all charges associated with a real estate transaction. The form is required by the U.S. Department of Housing and Urban Development (HUD), from which it takes its name. It details final costs and fees, including the purchase price, property taxes, and closing costs, and is used to ensure transparency and fair practices during real estate transactions.


The phonetics of the keyword “HUD-1 Form” would be: /hʌd wʌn fɔːrm/

Key Takeaways

1. Summary of Loan Terms: The HUD-1 form provides a detailed summary of the settlement costs and loan terms, including your monthly mortgage payments, interest rates, loan amount, and the term of the loan.

2. Transparency: This form is designed to provide complete transparency to the buyers and sellers in a real estate transaction. It documents all charges imposed on borrowers and sellers in connection with the settlement.

3. Legal Requirement: The HUD-1 Form is a required document by the Real Estate Settlement Procedures Act (RESPA) for all real estate transactions in the United States involving a federally related mortgage loan.


The HUD-1 Form, also known as the Settlement Statement, is a crucial document in real estate transactions, especially those involving mortgages. It provides a comprehensive breakdown of all costs involved in closing a real estate deal—from listing all fees paid by both the buyer and seller, to mortgage-related expenses, taxes, and insurance. The HUD-1 Form is important because it promotes transparency. It allows all parties in the transaction to clearly see and understand where their money is going, thereby reducing the likelihood of misunderstandings or disputes. Moreover, it is considered a legal document—providing a record that can serve as evidence if needed.


The HUD-1 Form, also known as the Settlement Statement, is an essential document used in real estate transactions, specifically during the closing process. This form serves as a detailed financial summary that provides both the buyer and seller with a complete list of incoming and outgoing funds. It helps all parties in the transaction understand the costs associated with the transaction, ensuring total transparency.The purpose of the HUD-1 Form is twofold. First, it aids in the clarification of the costs and charges for both buyers and sellers. The form itemizes closing costs (like escrow fees, loan processing fees, attorney fees, inspection fees, and property taxes), providing clarity on all costs involved in a real estate transaction. Secondly, the HUD-1 form offers a way to compare estimated costs with actual costs. This comparison allows for the reconciliation of any discrepancies, ensuring that the details of the transaction are correct and fair. It is a crucial tool in not just clarifying transaction details, but also in preventing any unforeseen expenses for both the buyer and seller during the settlement process of a real estate transaction.


1. Buying a Home: A real world example of using a HUD-1 form would be during the purchase of a house. The HUD-1 form would be used in the closing process. This form is used to itemize all the charges that are incurred by the borrower and the seller. It includes things such as real estate commissions, loan fees, cost of the home inspection, taxes, and insurance premiums.2. Refinancing Mortgage: Another situation where the HUD-1 form might be used is when someone is refinancing their mortgage. The HUD-1 form would itemize all the charges associated with refinancing the loan, including any fees or penalties for paying off the old mortgage early, appraisal fees, title search fees, and closing costs.3. Foreclosure: A HUD-1 form can also be used during a foreclosure process. In this scenario, the HUD-1 form would list all the costs associated with the foreclosure, like attorney’s fees, late payment penalties, and the outstanding balance of the mortgage. It provides clarity on outstanding amounts and is used during the final settlement.

Frequently Asked Questions(FAQ)

What is a HUD-1 Form?

The HUD-1 Form, also known as the Settlement Statement, is a document provided by a closing agent detailing all charges imposed on a borrower and seller during a real estate transaction.

Who gives the HUD-1 Form?

The HUD-1 Form is usually prepared and provided by the closing agent, which can be a title company, mortgage lender, or attorney.

Do I need a HUD-1 Form for every real estate transaction?

No, the HUD-1 Form was primarily used for mortgage loans. But since October 2015, it has been replaced by the Closing Disclosure form for most mortgage loans.

What kind of information does a HUD-1 Form provide?

A HUD-1 Form includes a detailed breakdown of all costs related to the real estate transaction, such as loan amount, loan terms, interest rates, prorated property taxes, agents’ commissions, and settlement fees.

Can I see a HUD-1 Form before the closing date?

Yes, the Real Estate Settlement Procedures Act requires that borrowers should be given a copy of the HUD-1 Form at least one day prior to the settlement.

Is HUD-1 Form the same as a Closing Disclosure?

No, while both provide detailed information about the real estate transaction costs, the Closing Disclosure also includes additional information regarding the mortgage loan which the HUD-1 Form does not.

Who needs to sign the HUD-1 Form?

Traditionally, both the buyer and the seller are required to sign the HUD-1 Form.

What should I do if I find errors on my HUD-1 Form?

You should discuss any errors or discrepancies you find on your HUD-1 Form with your real estate agent or attorney before the final settlement.

Related Finance Terms

Sources for More Information

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More