What is the difference between a HUD and a settlement statement?

Asked by: Bud Quitzon  |  Last update: December 17, 2025
Score: 4.3/5 (8 votes)

The HUD-1 settlement statement is the older form that was used for federally related mortgages before October 2015, as required by the Department of Housing and Urban Development (HUD). The HUD-1 is still used for some types of loans, such as reverse mortgages, home equity lines of credit, and cash transactions.

Is the HUD the same as the settlement statement?

Although the HUD form is the most common form of Settlement Statement, the settlement agent may choose to use a less formal Settlement Statement for closings not governed by HUD regulations, such as cash transactions, commercial property closings or investment property closings.

What is another name for a settlement statement?

Mortgage loan settlement statements, used in real estate transactions, are often referred to as closing statements.

What is a property settlement statement?

A settlement statement is a document that outlines who paid what to whom in a real estate transaction. This statement is supposed to document all monies involved in the transaction so that both seller and buyer have this information.

What is the difference between HUD-1 and Alta settlement statement?

The Alta Settlement Statement is typically used in cash transactions or where the buyer is not utilizing a mortgage. On the other hand, the HUD-1 Settlement Statement is a document mandated by the U.S. Department of Housing and Urban Development (HUD) for certain real estate transactions.

Closing Disclosure, HUD-1, & Settlement Statement: What's the Difference?

31 related questions found

What does Alta settlement statement mean?

The ALTA settlement statement is an itemized list of all of the fees or charges that the buyer and seller will pay during the settlement portion of a real estate transaction. Everything from the sale price, loan amounts, school taxes and other pertinent information is contained in this document.

When should I receive the HUD-1 Settlement Statement?

The settlement agent shall deliver the completed HUD-1 or HUD-1A at or before the settlement, except as provided in paragraphs (c) and (d) of this section.

What is the addendum to the HUD-1 Settlement Statement?

The HUD-1 Addendum Form is used in conjunction with the HUD-1 Settlement Statement to provide additional information about the real estate transaction. It can be used to clarify certain aspects of the transaction, such as who is responsible for certain fees or the precise amount of funds paid at closing.

What is a HUD?

A head-up display, or heads-up display, also known as a HUD (/hʌd/) or head-up guidance system (HGS), is any transparent display that presents data without requiring users to look away from their usual viewpoints.

When should a seller receive a settlement statement?

Key takeaways. A closing statement is a form used in real estate transactions that itemizes all the buying or selling costs associated with the transaction. Legally, it must be given to homebuyers and sellers at least three business days before the closing.

What is the primary purpose of the settlement statement?

A The primary purpose of the settlement statement is to set forth all of the financial details of closing, showing each party's costs and credits.

What is the HUD statement called now?

The Closing Disclosure (CD - formerly the HUD-1 Uniform Settlement Statement) is a three-page, government-mandated form that details the costs associated with a real estate transaction.

Who prepares the HUD-1 Settlement Statement?

The instructions for completion of the HUD - 1 are primarily for the benefit of the settlement agents who prepare the statements and need not be transmitted to the parties as an integral part of the HUD - 1. There is no objection to the use of the HUD - 1 in transaction in which its use is not legally required.

What is a HUD letter?

The Department of Housing and Urban Development (HUD) issues FHA Mortgagee Letters to inform lenders about Federal Housing Administration (FHA) operations, policies, procedures, and changes.

What document replaced the HUD-1 Settlement Statement?

The document that replaces the HUD-1 Settlement Statement and the final TIL Disclosure is the Closing Disclosure. This reform came into effect to streamline and simplify the information provided to borrowers at the closing of a mortgage.

Who sends the final closing disclosure?

The lender is required to give you the Closing Disclosure at least three business days before you close on the mortgage loan. This three-day window allows you time to compare your final terms and costs to those estimated in the.

What are the two types of HUD?

HUD systems fall into two main classes: combiner and windshield. A combiner HUD uses a screen to reflect an image to the driver, while a windshield HUD has images projected directly off the windshield.

What is the difference between HUD settlement statement and closing disclosure?

Both documents ensure transparency, but while the Settlement Statement encompasses all financial aspects of the transaction, the Closing Disclosure emphasizes transparency specifically in mortgage lending, allowing borrowers adequate time to review loan terms and costs before finalizing the deal.

What are the cons of HUD?

Disadvantages of HUD 223f Loans
  • HUD is a government agency, which translates into more time to process loans, generally at least six months (but frequently much longer).
  • A borrower's rate won't be locked until HUD gives a commitment. ...
  • There is a need to pay both initial and annual MIP (Mortgage Insurance Premiums).

How do I get a HUD settlement statement?

The fully completed HUD-1 Settlement Statement generally must be delivered or mailed to you at or before the settlement. In cases where there is no settlement meeting, the escrow agent will mail you the HUD-1 after settlement, and you have the right to inspect it one day before settlement.

Where can I find my settlement statement?

The settlement statement can be provided to the homebuyer and seller by the mortgage lender, a settlement agent, a title company or a real estate attorney.

What are settlement charges on a HUD statement?

The HUD-1 Settlement Statement is a document that lists all charges and credits to the buyer and to the seller in a real estate settlement, or all the charges in a mortgage refinance.

How long does a settlement statement take?

After the dispute resolution, your settlement check can take up to six weeks to process. If you find yourself in need of legal settlement funding to fight for a personal injury settlement check, reach out to Stonewood Funding for pre-settlement funding in California at a low-interest rate and with no application fees.

How long does HUD take to respond to an offer?

Some HUD homes are offered through a ten-day bidding period, after which you will be promptly notified if your offer has been accepted. Other HUD homes are listed on an extended basis, and your offer will be accepted or rejected following the daily 3:00 p.m. bid opening.