What Is a HUD-1 Settlement Statement?

The HUD-1 Settlement Statement itemizes closing costs for buyers and sellers. Most modern residential loans use the Closing Disclosure (CD), but HUD-1 is still used in certain transactions (e.g., reverse mortgages, some cash/HELOC deals, and specific exemptions). Here’s how HUD-1 compares to the CD and what to check before you sign.

🔎 HUD-1 vs Closing Disclosure: What’s the Difference?

  • HUD-1: legacy settlement statement, still used for reverse mortgages and some non-TRID transactions.
  • Closing Disclosure (CD): standard for most consumer residential loans since 2015 (TRID rules).
  • Timing: Buyers usually receive the CD at least 3 business days before closing. HUD-1 timing varies by deal type.
  • Purpose: both list debits/credits, fees, taxes, payoffs, prorations, and the final cash to close.

✅ What Each Section Tells You

  • Buyer/Seller debits & credits — who pays what; earnest money, deposits, and credits accounted for.
  • Loan & lender fees — origination, points, underwriting, prepaid interest (CD only for most loans).
  • Title/escrow fees — title search, settlement/closing fee, owner’s/lender’s title insurance.
  • Government/recording fees — transfer taxes, stamps, recording charges.
  • Prepaids/escrows — property taxes, insurance, HOA dues, escrow set-ups.
  • Payoffs & prorations — mortgage payoff, prorated taxes/HOA, liens to be cleared.
  • Cash to close / net to seller — final bottom line for each side.

⏱ How Deal Type Affects Your Timeline & Paperwork

  • Cash — fastest closings (often 7–14 days); no lender CD; settlement shows on closing package (sometimes HUD-1).
  • Conventional — CD required; appraisal + underwriting can affect fees/dates on the CD.
  • FHA/VA — CD required; stricter appraisal/repairs may change prorations or credits.
  • Contingencies — inspection, appraisal, or sale-of-home can shift credits, fees, and closing dates on your final statement.

🧭 How to Read It Without Missing Anything

  1. Compare to the purchase agreement (price, credits, personal property, prorations).
  2. Verify payoffs (mortgage, liens, HOA) and confirm recording/transfer taxes.
  3. Match title/escrow fees to the quote; watch for duplicated charges.
  4. Check prepaids/escrows for reasonableness (tax calendar, insurance dates).
  5. Confirm name, property address, and legal description are accurate.
  6. For CD: review as soon as delivered (3-day rule) and ask for corrections promptly.

🚩 Common Red Flags

  • Unexpected wire instructions — verify by phone with the title/attorney of record (no email changes).
  • Double-counted fees — a charge in both title and lender sections.
  • Wrong prorations — taxes/HOA applied to the wrong side or dates.
  • Incorrect payoffs — missing second liens, HELOC draws, or prepayment penalties.

📍 Attorney vs Title/Escrow States

Some states close through real estate attorneys, others through title/escrow companies. That can affect fee names, who prepares the statement, and scheduling. Ask your closer what to expect.

🏆 How Brokerless Keeps Your Closing Smooth

  • Accurate MLS data to avoid last-minute corrections that can ripple into the CD/HUD-1.
  • Fast listing edits when terms change (credits, close dates, occupancy).
  • Clear contact paths so the title team and agents reach you quickly—see How Buyers Contact Sellers.

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✅ Pre-Closing Checklist

  • Request settlement figures early; compare to your contract.
  • Send payoff letters (and HOA estoppels, if applicable) to title.
  • Confirm wired funds instructions by calling the closer (never rely on email alone).
  • Bring valid ID; confirm signing time, location, and notarization needs.
  • Review the final statement for correct names, credits, and prorations.
Ready to list with clean data and a smooth closing? 🚀
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❓ HUD-1 / Closing Disclosure FAQs

Is the HUD-1 still used?

Yes, for certain transactions like reverse mortgages and some non-TRID deals. Most consumer mortgages use the Closing Disclosure.

When will I receive my Closing Disclosure?

Typically at least 3 business days before closing. Use the review window to confirm fees and request corrections.

Who can help if something looks wrong?

Contact your title/escrow officer or closing attorney immediately. Your lender (if any) and Brokerless can help clarify line items.