What is the difference between HUD-1 and HUD 1A?
What is the difference between HUD-1 and HUD 1A?
The U.S. Department of Housing and Urban Development (HUD) prescribes the form of settlement statement. This is known as HUD 1. HUD 1A is an optional form used in transactions without a seller, such as a refinancing.
Who uses a HUD-1?
If you applied for a mortgage on or before October 3, 2015, or if you are applying for a reverse mortgage, you receive 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.
What was the purpose of HUD-1?
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.
What type of loan uses a HUD-1?
reverse mortgages
HUD-1 settlement statement vs. closing disclosure
| HUD-1 settlement statement | |
|---|---|
| Who gets one | Borrowers with certain reverse mortgages, HELOCs or manufactured homes (not attached to real property) |
| What it contains | Summary of all loan charges and who owes what, including the property’s purchase price and fees |
Which type of loan will use a HUD-1 in place of a closing disclosure Facebook?
Key Takeaways The HUD-1 Settlement Statement was the standard statement used to itemize all charges for buyers and sellers in a real estate transaction until 2015. It is still used in reverse mortgages, loan transactions that allow sellers to pull equity out of their home.
Is a HUD-1 the same as a closing statement?
The HUD-1 form, often also referred to as a “Settlement Statement”, a “Closing Statement”, “Settlement Sheet”, combination of the terms or even just “HUD” is a document used when a borrower is lent funds to purchase real estate.
Is a HUD-1 required for a cash sale?
Federal law does not require the use of the HUD-1 or the new Closing Disclosure in all cash transactions. While some states have laws requiring the use of a state promulgated form in cash transactions, in general the HUD-1, the Closing Disclosure or any other settlement statement can be used in cash transactions.
Are HUD-1 forms still used?
The HUD-1 Settlement Statement is a standard government real estate form that was once used by settlement agents, also called “closing agents,” to itemize all charges imposed upon a borrower and seller for a real estate transaction. The statement is no longer used, with one exception: reverse mortgages.
What is used in place of a HUD-1?
3, 2015. Borrowers began receiving a form called the “closing disclosure” instead of a HUD-1 for most kinds of mortgage loans after October 2015.
What is the difference between a HUD-1 and a closing disclosure?
Another big distinction between the Closing Disclosure and the HUD-1 is where the HUD-1 listed all terms, charges and credits for both the buyer and the seller, the Closing Disclosure has a separate form for the buyer as it does for the seller. This provides for more consumer protection at the closing table.
Is a HUD statement required?
Federal regulations require that unless its use is specifically exempted, either the HUD-1 or the HUD-1A, as appropriate, must be used for all mortgage transactions that are subject to the Real Estate Settlement Procedures Act.
Is HUD-1 required?