How to Fill Out a HUD-1 Form

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Working in a mortgage, title, escrow or settlement company requires you to complete many forms for clients who are buying and selling their homes. Upon the closing of a real estate transaction, a HUD-1 Settlement Statement must be issued to the buyer (called the "borrower") and the seller. This outlines the financial responsibility of each party, usually showing the buyer how much money is needed to complete the deal and outlining the funds received by the seller.

Complete the first section, "Part B." This details the loan information. Check the box for the type of loan. Fill in the property location and the name and address for the borrower, seller and lender. The settlement agent, date and location also are needed.

Fill in the appropriate lines in sections J and K, which are summaries of the borrower’s and seller's transactions, respectively. These sections make the appropriate adjustments for items such as property taxes and other expenses due each party.

Complete lines 103 and 502 in sections J and K after you fill in the rest of the HUD-1 form and have totals on line 1400.

Place costs for the borrower and seller in the appropriate columns on the right for the remainder of the form. Details about who pays for what are outlined in the sales contract.

Complete Part L, Section 700, which details the real estate commissions paid. Then find the good-faith estimate that was issued when the buyer completed the loan application.

Use the good-faith estimate to complete sections 800 to 1300, making any changes where necessary according to the sales agreement. Place prorated hazard insurance, private mortgage insurance and property tax costs in Section 1000. Use Section 1100 for charges related to title search and insurance. Carefully place the amounts for which the buyer and seller are responsible in the appropriate columns.

Total lines 700 through 1305 and place the amounts on line 1400 under the column for each party. These will be transferred to borrower's line 103 and seller's line 502, so that the calculation in sections J and K may be completed.

Add lines starting with "2" for the borrower and "5" for the seller and put the amounts on lines 220 and 520, respectively. Place the amount from line 120 on line 301 for the borrower. Put the total from line 520 on line 602 for the seller.

Move the total from Section J, line 120 to line 301. Place the total from line 220 on line 302. Move the total from Section K, line 420 to line 601. Place the total from line 520 on line 602.

Subtract line 302 from 301 and line 602 from Line 601 and enter the amount of cash due to or from the borrower and seller at settlement. Normally, the "From" box will be checked for the buyer and the "To" box for the seller.

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