HUD-1 Settlement Statement

HUD-1 Settlement Statement

The HUD-1 Settlement Statement was a document used to outline the terms of a home loan and itemize the final costs associated with a mortgage settlement. However, it has been replaced by the Closing Disclosure form as of October 2015, following the transfer of oversight of the Real Estate Settlement Procedures Act (RESPA) to the Consumer Financial Protection Bureau (CFPB).

Prior to this change, the HUD-1 was the standard form for all mortgage settlements, detailing all final terms, costs, and the responsibilities of each party involved in the transaction.

The new Closing Disclosure functions similarly to the HUD-1, detailing the terms and costs of the loan, such as monthly payments, interest rates, closing costs, and estimated taxes. Like the HUD-1, the Closing Disclosure must be provided to buyers at least three days before the closing date, allowing them adequate time to review the information and compare it with the Loan Estimate, which has replaced the Good Faith Estimate under CFPB regulations.

As a buyer, it is essential to carefully review the Closing Disclosure with your loan officer, just as you would have with the HUD-1 Settlement Statement, to ensure you fully understand the terms of your mortgage and any associated costs.

FHA Funding Fee

FHA funding fees are insurance premiums needed to secure your loan. How much you pay depends on your loan size, term, and down payment amount.

Second Mortgage

Second mortgages are loans secured by property already used as collateral for a home loan. They can be a home equity loan or a home equity line of credit.

FHA Loan

FHA loans are government-insured to help make housing more affordable in the U.S. This insurance protects lenders from large losses, encouraging more lending.

Prequalification

Before house hunting, know how much you can afford. Prequalification gives you an initial estimate of the mortgage amount a lender will provide.

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