LOAN QUESTIONS IN 200 SERIES OF HUD-1 Question: When the borrower is using a second loan to help finance the purchase of a home, may both loans go on the HUD-1?
No, each loan must have a separate GFE and a separate HUD-1. The principal amount of the second loan must be listed outside the borrower’s column with a brief explanation on Line 204-209 of the HUD-1 for the primary loan. If the net proceeds of the second loan are less than the principal amount, the net proceeds may be listed on the same line int eh borrower’s column.
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