Closing Disclosure vs. HUD-1: What Indiana Home Buyers Need to Know
Missy Horner
President, Empire Title Services | 20+ Years Experience
Quick Answer: CD vs. HUD-1
HUD-1: Used before October 2015. Still used in cash sales and non-mortgage transactions.
Closing Disclosure (CD): Standard form for all federally regulated mortgage closings since 2015.
When you get it: At least 3 business days before closing — by law.
What to check: Loan terms, total costs, names on title, cash to close amount.
Questions? Call Empire Title: (765) 935-9966
If you've been researching the closing process in Indiana, you may have come across both the "HUD-1" and the "Closing Disclosure" — and wondered what the difference is, or which one you'll receive.
The answer depends on how you're financing your home purchase. Here's the complete breakdown, and what you should review carefully when you receive your closing documents.
What Is the HUD-1 Settlement Statement?
The HUD-1 Settlement Statement was the standard closing document used for federally related mortgage transactions from the 1970s through 2015. It showed all fees, charges, and credits for both the buyer and seller on a single document.
In October 2015, the Consumer Financial Protection Bureau (CFPB) replaced the HUD-1 with the Closing Disclosure for most residential mortgage transactions. However, the HUD-1 is still used today for:
Understanding the Closing Disclosure (CD)
The Closing Disclosure is a 5-page document that itemizes every cost associated with your mortgage loan and home purchase. Your lender prepares it, and they're legally required to deliver it at least 3 business days before your closing date.
Page 1 — Loan Terms & Projected Payments
Your interest rate, loan amount, monthly payment breakdown (principal + interest + mortgage insurance + escrow). Compare this to your original Loan Estimate.
Page 2 — Closing Cost Details
Itemized list of every fee: loan origination, appraisal, title insurance, title search, recording fees, prepaid interest, homeowner's insurance. This is where Empire Title's fees appear.
Page 3 — Cash to Close & Summaries
Exactly how much money you need to bring to closing. Shows the purchase price, credits, deposits already paid, and total due from borrower.
Page 4 — Loan Disclosures
Loan assumptions, demand feature, negative amortization disclosures, late payment details. Important legal language about your mortgage.
Page 5 — Contact Information & Signatures
Lender, loan officer, settlement agent (Empire Title), and real estate agent contact info. The document you and your co-borrower(s) sign.
What to Check on Your Closing Disclosure
Your 3-Day Review Checklist
Frequently Asked Questions
What replaced the HUD-1 settlement statement?
The HUD-1 Settlement Statement was replaced by the Closing Disclosure (CD) in October 2015, following new mortgage disclosure rules from the Consumer Financial Protection Bureau (CFPB). The Closing Disclosure is used for most residential mortgage transactions today.
When do I receive my Closing Disclosure in Indiana?
Under federal law, lenders must deliver your Closing Disclosure at least 3 business days before your closing date. This gives you time to review it carefully, compare it to your Loan Estimate, and ask questions before signing.
What should I check on my Closing Disclosure?
Review your loan terms (rate, monthly payment, loan type), total closing costs (compare to your Loan Estimate for any increases), your cash to close amount, prepaid items (homeowner's insurance, property taxes, prepaid interest), and the names on the title. Call your title company or lender with any questions before closing day.
Is the HUD-1 still used in Indiana?
The HUD-1 is still used in certain transactions that don't involve a federally regulated mortgage — such as cash sales, seller-financed transactions, and some commercial deals. For standard financed home purchases, the Closing Disclosure is the required form.
Missy Horner
President, Empire Title Services
With over 20 years of experience in Indiana and Ohio real estate closings, Missy Horner leads Empire Title Services in providing expert title insurance, property searches, and closing coordination. A trusted resource for real estate agents, lenders, and homeowners throughout Wayne, Randolph, and Henry counties.