HUD Settlement Statement Explained

Section B - Type of financing being obtained by the borrower

Item 6 File number assigned by the title company for their reference.
Item 7 Loan number assigned to the borrower's loan by their lender.
Item 8 If borrower is obtaining an FHA loan, a case number is Assigned by FHA for their reference

Section 100 - Lines 101 through 120 are debits to the borrower

Line 101 - Sales price per a contractual agreement between the borrower and seller
Line 102 - If applicable, amount charged to the borrower for any personal property being purchased from the seller
Line 103 - Total of the breakdown of the borrowers loan closing fees listed on Page 2 of Settlement Statements (Line 1400)
Lines 104 and 105 - If applicable, any additional charges to the borrower (if refinancing, payoff of existing mortgage and/or the payment of the annual property taxes)
Lines 106, 107, 108 - Borrowers will be charged a proration share of the annual property taxes calculated in accordance with municipal tax billings (annual, semi-annual or quarterly)
Lines 109 -112 - If applicable, any additional debit prorations to the borrower (such as Homeowners Association Dues, rents, etc.)
Line 120 - Total debit of lines 101 through 112

Section 200 - Lines 201 through 220 are credits to the borrower

Line 201 - Amount of earnest money given by the borrower as a deposit with the contract
Line 202 - Amount of loan given to the borrower by the lender
Line 203 - If applicable, the amount of an existing loan being assumed
Line 204-209 - Any additional credits due to the borrower through (such as prepaid appraisal and credit report fees to the lender)
Lines 210, 211, 212 - If closing between 1/1 and 8/31, this will be a credit of the borrowers prorata share of the annual property taxes calculated from 1/1 through date of closing
Lines 213-219 - If applicable, any additional credit prorations to the borrower
Line 220 - Total credit of lines 201 through 219

Section 300

Line 301 - Total debit amount due from borrower taken from line 120
Line 302 - Less total amount of credits to borrower taken from Line 220
Line 303 - Total remaining closing costs to be paid by or refunded to borrower at closing

Section L - SETTLEMENT CHARGES

Section 700

Lines 700-704 - Brokers commission, typically paid by the seller
Line 700 - Total Broker's commission (if two real estate companies involved in the transaction, each agent receives a percentage of the total commission as agreed upon)
Line 701 - Percentage amount of commission to be paid to first agent
Line 702 - Percentage amount of commission to be paid to second agent
Lines 703-704 - Any additional commissions to be paid to agent

Section 800

Lines 801-811 - Items Payable in connection with Loan (Closing Costs)
Line 801 - Loan origination fee
Line 802 - Loan discount or Points
Line 803 - Cost for an appraisal to determine the value of the subject property
Line 804 - Cost for borrower's credit report to check credit history
Line 805 - Cost for lender's appraiser to return to property to determine that any repairs required from the initial inspection have been completed satisfactorily
Line 806 - Typically not applicable
Line 807 - If assuming an existing mortgage, the holder of that mortgage charges an assumption or transfer fee
Line 808-811 - Typically a Tax Service Fee, Underwriting Fee, Document Preparation Fee, Courier Fee and any additional closing costs due to the lender

Section 900

Lines 900-905 - Items Required By Lender To Be Paid In Advance
(Prepaids)
Line 901 - Interest on the loan from date of closing until the end of the month
Line 902 - Mortgage insurance required by the lender (FHA and Conventional Insured loans)
Line 903 - Lender requires the first year's homeowners insurance premium to be paid in advance. (If a refinance, typically 6 months to be paid in advance
) Line 904 - If applicable, Lender requires the first year's flood insurance premium to be paid in advance Line 905 - Any additional charges required by the lender to be paid in advance (such as a VA Funding Fee)

Section 1000

Lines 1000-1010 - Reserves Deposited with Lender (Escrow Account- Set-up).
This section is based on the month the borrower's first payment is due and the month in which these premiums are due again. For example; the closing took place in March, 2000 and the homeowner's insurance was paid at closing. The first payment is due May 1st, 2000. The homeowners insurance will be due again in March, 2001. Beginning with May, only 10 payments will be made by March, 2001 which means only 10/12th of the insurance premium has been paid in. The lender will require the other 1/12th be collected at closing so there will be a full year's premium in escrow on the due date.
Line 1001 - Amount necessary to insure lender sufficient funds to pay homeowners insurance premium on the next due date
Line 1002 - Amount necessary to pay mortgage insurance in full
Line 1003 - Amount necessary to insure lender sufficient funds to pay annual city property taxes, if city taxes are applicable
Line 1004 - Amount necessary to insure lender sufficient funds to pay annual county property taxes
Line 1005 - If applicable, amount necessary to insure lender sufficient funds to pay any assessments payable as part of the property taxes (such as trash pick-up)
Line 1006 - If applicable, amount necessary to insure lender sufficient funds to pay flood insurance premium on the next due date
Lines 1007-1010 - If applicable, any additional amounts necessary for escrow -set-up

Section 1100

Lines 1100-1113 - Title Charges (Title Company Closing Fees)
Line 1101 - Closing fee to the title company for closing the transaction
Line 1102 - Title Search fee for searching the subject property and owner
Line 1103 - Fee for examining the title search to determine what is necessary to insure a clear and free title
Line 1104 - Typically, not applicable
Line 1105 - Document preparation fee to the title company for the preparation of loan closing documents
Line 1106 - Typically, not applicable
Line 1107 - Fee for the attorney's time spent in legal work or conducting the closing
Line 1108 - Premium for title insurance required by the lender to insure clear and free title
Lines 1109-1110 - Breakdown of title insurance coverage to lender and owner
Line 1109 - Amount of title insurance coverage to the lender
Line 1110 - Amount of title insurance coverage to the new owner
Lines 1111-1113 - Any additional charges by the title company for additional services (such as preparing Power of Attorney, Quitclaim Deed, etc.)

Section 1200

Lines 1200-1205 - Government Recording and Transfer Charges
Line 1201 - Breakdown and total per page charge to record the Warranty Deed, Deed of Trust and a release to complete the transaction (The release fee is typically paid by the seller unless refinancing)
Line 1202 - Typically, not applicable
Line 1203 - Breakdown and total state tax fees to record the Warranty Deed and Deed of Trust
Lines 1204-1205 Any additional recording fees to record legal documents (such as Power of Attorney, Quitclaim Deed, etc.)

Section 1300

Lines 1300-1305 - Additional Settlement Charges
Line 1301 - Fee to have a surveying company to inspect subject property and provide drawing
Line 1302 - Fee to have termites and/or damage due to termites (typically paid by the seller)
Lines 1303-1305 - Any additional closing fees/charges (such Home Warranty, etc.)

Section 1400

Line 1400 - Total Settlement Charges (Lines 700 through 1305)