Closing Disclosure vs. HUD-1 Settlement Statement
Not sure whether your closing will use a Closing Disclosure (CD) or the older HUD-1 Settlement Statement? This guide explains exactly how they differ, when each is used, and what buyers and sellers should expect based on their loan type.
📌 When Each Form Is Used
| Form | Used For |
|---|---|
| Closing Disclosure (CD) | Most residential mortgage loans after TRID (2015). Required for Conventional, FHA, VA, USDA. |
| HUD-1 Settlement Statement | Used for cash deals, reverse mortgages, HELOCs, and certain commercial or non-TRID loans. |
If the buyer is financing with a standard mortgage, the closing will almost always use the Closing Disclosure. Cash deals and non-TRID loans typically use the HUD-1.
📄 Side-By-Side Comparison
| Feature | Closing Disclosure (CD) | HUD-1 |
|---|---|---|
| Pages | 5 pages | 3 pages |
| Delivery Rule | Must be provided to buyer 3 business days before signing (TRID). | No 3-day rule. |
| Used For | Most consumer mortgage loans. | Cash, reverse mortgage, HELOC, non-TRID. |
| Breakdown Style | Organized into sections A–G; totals on Page 3. | Organized into 100–700 numbered lines. |
| Cash-to-Close | Summarized clearly on Page 3. | Shown across several line items. |
🧠Which One Will You Receive?
It depends entirely on the type of loan:
- If the buyer is getting a mortgage → You get a Closing Disclosure.
- If the deal is cash or reverse mortgage → You get a HUD-1.
- If the property is FSBO with seller financing → You typically get a HUD-1.
- If the buyer uses a HELOC → HUD-1 is common.