Definition of HUD-1 form:
A HUD-1 form, also called a HUD-1 Settlement Statement, is a standardized mortgage lending document. Creditors or their closing agents use this form to create an itemized list of all charges and credits to the buyer and to the seller in a consumer credit mortgage transaction. A HUD-1 form is most commonly used for reverse mortgages and mortgage refinance transactions.
A form used in real estate sales, where all the closing costs that the buyer and seller are responsible for paying are itemized into one complete list. This is the standard settlement form used in all transactions involving federally related mortgage loans. Also called closing sheet or settlement form.
As of October 3, 2015, the Closing Disclosure form replaced the HUD-1 form for most real estate transactions. However, if you applied for a mortgage on or before October 3, 2015, you received a HUD-1. In transactions that do not include a seller, such as a refinance loan, the settlement agent may use the shortened HUD-1A form.
How to use HUD-1 form in a sentence?
- Both must be reviewed by the borrower before the closing in order to prevent errors or surprises.
- Since late 2015, a different form, the Closing Disclosure, is prepared for the parties involved in all other real estate transactions.
- The HUD-1 form listing all closing costs is given to all parties involved in reverse mortgage and mortgage refinance transactions.
Meaning of HUD-1 form & HUD-1 form Definition