The HUD-1 Settlement Statement was the standard closing document used for decades to itemize all charges and credits in a real estate transaction. Named after the U.S. Department of Housing and Urban Development (HUD), it provided a comprehensive, two-column accounting of everything the buyer paid, everything the seller paid, and how funds flowed through the transaction. Since October 2015, the HUD-1 has been largely replaced by the Closing Disclosure (CD) for most residential mortgage transactions under the TRID (TILA-RESPA Integrated Disclosure) rules.
Despite its replacement, the HUD-1 is still used for certain transaction types. Reverse mortgages, home equity loans/HELOCs, manufactured housing loans not secured by real estate, and transactions where no federally regulated lender is involved (such as all-cash purchases or seller-financed deals) continue to use the HUD-1 format. If you are involved in any of these transaction types, understanding the HUD-1 remains relevant.
The HUD-1 was a three-page form with distinct sections. Page 1 summarized the transaction — property address, settlement date, parties involved, and total amounts due from/to the buyer and seller. Page 2 detailed every line item: the purchase price, earnest money credit, loan amount, closing costs (broken down by type), prepaid items, escrow deposits, title charges, government taxes, and prorations. Page 3 included a comparison of the Good Faith Estimate to actual charges.
One advantage of the HUD-1 over the Closing Disclosure is its side-by-side format showing both buyer's and seller's figures on the same document. The CD separates buyer and seller information, which some closing professionals find less intuitive. However, the CD provides more detailed loan information and better borrower protections through the three-day review period and cost tolerance rules.
At Beycome Title, we prepare the appropriate settlement document for every transaction type. Whether your closing requires a Closing Disclosure or a HUD-1, our team ensures every charge is accurate, clearly explained, and compliant with applicable regulations. We walk every client through their settlement statement line by line — because no one should sign documents they do not fully understand. Get your free closing estimate.