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HUD I – Settlement Statement
We will discuss this form by each line item. A loan closer should walk through this form with you at closing, line item, by line item.
PAGE ONE (1) OF THE HUD I – Settlement Statement:
B. Type of Loan: This form is a standard settlement statement form for all closings.
The loan options are:
• FHA – Federal Housing Administration
• RECD – Rural Economic and Community Development
• Conv. Unins. – Conventional Uninsured
• VA – Veterans Affairs
• Conv. Ins. – Conventional Insured
• File Number: This number is assigned by the lending institution.
• Loan Number: This number is assigned by the lending institution.
• Mortgage Insurance Case Number: This number is often referred to as the MIC. This number is used on FHA insured loans only.
C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(p.o.c.)" were paid outside the closing, they are shown here for information purposes and are not included in the totals.
D. Name and Address of Borrower: The borrower is the person receiving the loan and buying the house. The borrower is the person making the loan with the lending institution. There may be one or more names shown in this block. If there is more than one person purchasing this home and approved for this loan, the names will be shown as follows:
Sam and Janet Murray
1234 Hewitt Avenue
Tulsa, OK 74119
The address that is placed in this box, is the property address of the newly purchased home.
E. Name and Address of Seller: The name and address of the person selling the house goes in this location. The address should be a new forwarding address, if one is available.
F. Name and Address of Lender: The name and address of the lending institution goes in this box. This is the financial institution or mortgage company that is making you the loan to purchase this house.
G. Property Location: The address of the new home goes here. Normally, the property location and the borrowers address will be the same, but if an investor is purchasing a home to rent rather than live in, the addresses will be different.
H. Settlement Agent: The Settlement Agent is the person closing the loan for you. Typically this is a closing company name.
Place of Settlement: This is the address of the location where the closing is taking place. It is normally the address of the Settlement Agent or could be a bank or mortgage company address, if the closing is taking place at the financial institution or mortgage company office location.
I. Settlement Date: This is the actual date of closing.
J. Summary of Borrower’s Transaction:
Just as the statement says, the left side of the settlement statement of "J" is always the "buyer’s" or "borrower’s" side of the statement.
100) Gross Amount Due from Borrower
101) Contract Sales Price: This is the actual selling price of the home. It is the amount you agreed to pay for the home.
102) Personal Property: If there is a value added to the purchase of a home for personal property, that was not included in the contract price, that amount would be shown here.
103) Settlement Charges to Borrower (line 1400): The amount on this line is a transferred amount from line 1400 on page 2 of the Settlement Statement. We will discuss later how this amount is totalled.
104) Blank: Used for unusual items needing to be shown.
105) Blank: Used for unusual items needing to be shown.
Adjustments for items paid in advance:
106) City/town taxes __________ to ____________
The amount shown on this line will indicate real estate taxes that have been paid for months "from and to". It is normally the obligation of the seller to pay real estate taxes from the last time they were paid current to the date of closing on this loan. This line is used for city and town taxes only.
107) County taxes ___________ to _____________
This line is used for only county real estate taxes paid by the seller.
108) Assessments __________ to ______________
This line is used for assessments only. An assessment could be a special charge that cities, town, or counties sometimes charge for special infra-structure, such as streets and sewer lines.
109) – 112) Extra blank lines for unusual items unique to a loan closing only.
120) Gross Amount Due From Borrower:
The total of the contract sales price and any amounts shown on lines 101 through 112 are totalled here.
200) Amounts Paid By or on Behalf of Borrower:
201) Deposit or earnest money:
The amount you gave your real estate agent as a deposit or earnest money is shown on this line. There is no set amount for this. It can be whatever amount was agreed upon when the contract was signed.
202) Principal amount of new loan(s):
The amount shown on this line is the actual amount of money you are borrowing from the financial institution or mortgage company to purchase this house.
203) Existing loan(s) taken subject to:
This line is not used in typical loan closings. It is an exception type line item.
204) – 209) Extra blank lines for usual items unique to a loan closing only.
Adjustments for items paid by seller:
210) City/town taxes ________ to ___________
The amount of real estate taxes due from the closing date to the end of the tax year is shown on this line. It is the amount the borrower is responsible for.
211) County taxes _________ to ___________
If there are county real estate taxes, they are shown on this line.
212) Assessments _________ to ___________
If there are assessments due, they are shown on this line.
213) – 219) Extra blank lines for unusual items unique to a loan closing only.
220) Total Paid By/For Borrower:
The total of lines 201 through 219 is shown on this line.
300) Cash at Settlement From/To Borrower:
301) Gross Amount due from borrower (line120):
This is a transferred amount from line 120.
302) Less amounts paid by/for borrower (line 220):
This is a transferred amount from line 220.
303) Cash From/To Borrower:
The amount most often shown on this line is the amount of closing costs that have to be paid. It is the very unusual case when a borrower gets money paid "to" him/her at closing. Most often money is being received "from" the borrower for the balance of downpayment and closing costs.
K) Summary of Seller’s Transaction:
Just as the statement says, the right side of the settlement statement, "K" is always the "seller’s" side of the statement.
400) Gross Amount Due to Seller:
401) Contract sales price:
The amount of the sales price taken from the contract is entered on this line item.
402) Personal Property:
If there is any personal property value not included in the contract sales price, but is part of the contract, it is entered on this line.
403) – 405) Extra blank lines for unusual items unique to a loan closing only.
Adjustments for items paid by seller in advance:
406) City/town taxes __________ to ___________
The amount of city/town real estate taxes paid by the seller is shown on this line. The dates for which the taxes are being paid are also shown.
407) County taxes ___________ to ____________
The amount of county real estate taxes paid by the seller is shown on this line. The dates for which the taxes are being paid are also shown.
408) Assessments __________ to ____________
The amount of any assessments paid by the seller is shown on this line. The dates for which the assessments is being paid is also shown.
409) – 412) Extra blank lines for unusual items unique to a loan closing only.
420) Gross Amount Due to Seller:
The total of the contract sales price and any amounts shown on lines 401 through 412 are totalled on this line.
500) Reductions in Amount Due to Seller:
501) Excess deposit (see instructions):
There is not typically an amount shown on this line. It is there for unique circumstances.
502) Settlement charges to seller (line 1400):
This amount is a transferred amount from line 1400 on Page 2 of the Settlement Statement. We will discuss later how this amount is totalled.
503) Existing loan(s) taken subject to:
This line is not used in typical loan closings. It is an exception type line item.
504) Payoff of first mortgage loan:
The amount shown on this line is the "loan payoff" amount. If the seller had an existing mortgage on the house he/she has just sold, the payoff amount would go on this line.
505) Payoff of second mortgage loan:
If the seller had a second mortgage, which is an additional loan, on this house he/she is selling, that loan would have to be paid off also. The amount would be shown on this line.
506) – 509) Extra blank lines for unusual items unique to a loan closing only.
Adjustments for items unpaid by seller:
510) City/town real estate taxes _________ to _________
The amount of city/town taxes due from the beginning of the tax year to the closing date is shown on this line. It is the amount for which the seller is responsible.
511) County taxes ________ to _________
The amount of county real estate taxes due from the beginning of the tax year to the closing date is shown on this line. It is the amount for which the seller is responsible.
512) Assessments ________ to _________
The amount of assessments due from the beginning of the assessment year to the closing date is shown on this line. It is the amount for which the seller is responsible.
513) – 519) Extra blank lines for unusual items unique to a loan closing only.
520) Total Reduction Amount Due Seller:
The total of lines 501 through 519 is shown on this line.
600) Cash At Settlement To/From Seller:
601) Gross amount due to seller (line 420):
The amount from line 420 is transferred to this line.
602) Less reductions in amount due seller (line 520):
The amount from line 520 is transferred to this line.
603) Cash To/From Seller:
The amount most often shown on this line is called the amount of sales proceeds due to the seller. Usually the seller will receive money from the sale of his/her house.
It is the rare occasion when a seller has to bring money to the table to close on a loan. The amount shown on this line is generally known as equity from the sale of a house. For more information please contact Prime Lend America Mortgage Corporation - Call Toll-Free: 1-877-US-PRIME
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