Welcome to “What Is A HUD-1?”, a four-part series breaking down the settlement statement that’s used in a real estate transaction. The settlement statement, also known as the HUD-1, is your receipt – it’s an itemization of every penny associated with the sale or purchase, so if it’s money-related then it’ll be shown on the HUD-1. Each party (buyer and seller) or signatory will sign multiple copies of the HUD-1.
A quick note – HUD, which is short for the US Department of Housing and Urban Development, is a department in the federal government that oversees, among other things, housing, and includes departments like Freddie Mac, Fannie Mae, and the Federal Housing Administration.
The HUD-1 is split into a buyer side (left column on pages 1 and 2) and a seller side (right column on pages 1 and 2). We’ll start Part One with the borrower’s side of the transaction – the Gross Amount Due From Borrower (these are costs to the buyer).
Plenty more to come – look for the next installment, where we’ll take a look at the summary of the seller’s side of the transaction.