HUD's FAQs - Can an Appropriate Payment Period be Substituted Whenever Requirements on the Forms are Stated in Terms of "Monthly"?

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Q: The term "monthly" is used throughout the GFE and HUD-1 forms. The requirements stated in terms of "monthly" do not work well for loans on which payments are not made monthly (e.g., are made biweekly or quarterly). In such transactions, can an appropriate payment period be substituted whenever requirements on the forms are stated in terms of "monthly"?

A: No, the GFE and HUD-1 are prescribed forms. The instructions for the GFE provide that the standardized form is the required form. HUD's regulations provide that language and terms used on the HUD-1 may not be changed, except in limited circumstances which do not include changes to the standardized language (see 24 CFR § 3500.9). The intent of the standardized GFE and HUD-1 is to provide borrowers an easier means of comparing loan offers, and to determine that they are getting the loan at settlement that they were offered in the GFE. For loans with payment plans that are not monthly, the periodic payments should be converted to a monthly basis (e.g., payments for a biweekly plan with 26 payments per year would be multiplied by 26/12, quarterly payments would be divided by 3, etc.).

This can be found in General – FAQ #6 of HUD’s FAQs.  HUD’s FAQs can be found at

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