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The first page of the HUD-1
Settlement Statement summarizes
all the costs and adjustments
for the borrower and seller.
Section J is the summary of the
borrower’s transaction and
Section K is the summary of the
seller’s side of the
transaction. You may receive a
copy of the seller’s side, but
it is not required.
Section 100 summarizes the
borrower’s costs, such as the
contract cost of the house, any
personal property being
purchased, and the total
settlement charges owed by the
borrower from Section L.
Beginning at line 106,
adjustments are made for items
(such as taxes, assessments,
fuel) that the seller has
previously paid. If you will
benefit from these items after
settlement, you will usually
repay the seller for that
portion of the cost.
Here is an example for you to
use in making your own
calculations:
|
J. SUMMARY OF
BORROWER'S TRANSACTION |
|
100. GROSS AMOUNT DUE
FROM BORROWER: |
|
101. Contract sales
price |
100,000.00 |
|
102. Personal Property |
|
|
103. Settlement charges
to borrower (line 1400) |
4,000.00 |
|
104. |
|
|
105. |
|
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Adjustments for
items paid by seller in
advance |
|
106. City/town taxes to |
|
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107. County taxes to |
|
|
108. Assessments 6/30
to 7/31 (owners
assn.) |
40.00 |
|
109. Fuel Oil 25
gals. @ $1.00/gal. |
25.00 |
|
110. |
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|
111. |
|
|
112. |
|
|
120. GROSS AMOUNT DUE
FROM BORROWER |
104,065.00 |
Assume in this example, the
cost of the house is $100,000
and the borrower’s total
settlement charges brought from
Line 1400 of Section L are
$4,000. Assume that the
settlement date is July 1. Here
the borrower has agreed to pay
the seller for the $40 Home
Owners Association dues that
have been paid for the month of
July and for the 25 gallons of
fuel oil left in the tank. This
is added for a gross amount due
from the borrower of $104,065.
Section 200 lists the amount
paid by the borrower or on
behalf of the borrower. This
will include the deposit of
earnest money you put down with
the agreement of sale, the
loan(s) you are getting and any
loan you may be assuming.
Beginning at Line 210,
adjustments are made for items
that the seller owes (such as
taxes, assessments) but for
which you as the borrower will
pay after settlement. The seller
will usually pay you or credit
you this portion at settlement.
|
200. AMOUNTS PAID BY
OR IN BEHALF OF
BORROWER: |
|
201. Deposit of earnest
money |
2,000.00 |
|
202. Principal amount of
new loan(s) |
80,000.00 |
|
203. Existing loan(s)
taken subject to |
|
|
204. |
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205. |
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206. |
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207. |
|
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208. |
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209. |
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Adjustments for
items unpaid by seller |
|
210. City/town taxes to |
|
|
211. County taxes 1/1
to 6/30 $1,200/ year |
600.00 |
|
212. Assessments 1/1
to 6/30 $200/yr. |
100.00 |
|
213. |
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214. |
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215. |
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216. |
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217. |
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218. |
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219. |
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220. TOTAL PAID
BY/FOR BORROWER |
82,700.00 |
| |
|
In this example, assume the
borrower paid an earnest deposit
of $2,000 and is getting a loan
for $80,000. A tax of $1200 and
an assessment of $200 are due at
the end of the year. The seller
will pay the borrower for six
months or one-half of this
amount. Line 220 shows the total
$82,700 to be paid by or for the
borrower.
Section 300 reflects the
difference between the gross
amount due from the borrower and
the total amount paid by/for the
borrower. Generally, line 303
will show the amount of cash the
borrower must bring to
settlement.
|
300. CASH AT
SETTLEMENT FROM/TO
BORROWER |
|
301. Gross Amount due
from borrower (line 120) |
104,065.00 |
|
302. Less amounts paid
by/for borrower (line
220) |
(82,700.00) |
|
303. CASH (x FROM) (
_ TO) BORROWER |
21,365.00 |
In this example, the borrower
must bring $21,365.00 to
settlement. |
Equal Housing Opportunity