HUD CERTIFICATION 2026 STUDY GUIDE QUESTIONS
AND ANSWERS GRADED A+
✔✔What are key differences between PMI and MIP?
Conventional loans may require MIP, removed at 78% LTV. FHA loans require PMI,
removed upon fulfillment of loan terms.
Conventional loans may require PMI, removed at 78% LTV. FHA loans require MIP,
removed upon fulfillment of loan terms.
Conventional loans may require MIP, removed at fulfillment of loan terms. FHA loans
require PMI, removed at 78% LTV.
Conventional loans may require PMI, removed upon fulfillment of loan terms. FHA loans
require MIP, removed at 78% LTV. - ✔✔
✔✔A client seeking to purchase is trying to decide between an FHA-insured mortgage
and another mortgage insured by private mortgage insurance. Which is a distinguishing
difference between these two types of mortgage insurance?
-FHA-insured mortgages generally require payment of mortgage insurance premiums,
which are generally twice as expensive as private mortgage insurance premiums for the
same loan amount.
-Private mortgage insurance programs generally require payment of mortgage
insurance premiums for the life of the loan. FHA-insured mortgages may allow for the
removal of this insurance after paying down the loan to below a 78% loan-to-value level.
-Private mortgage insurance programs generally require payment of mortgage
insurance premiums, which are generally twice as expensive as FHA mortgage
insurance premiums for the same loan amount.
-FHA-insured mortgages generally require payment of mortgage insurance prem - ✔✔
✔✔Which borrower information is contained in the Uniform Residential Loan Application
(URLA)?
Credit score
Tax information
Asset information
Education - ✔✔
✔✔In order to comply with the Know Before You Owe rule, which disclosures were
replaced with new versions that more clearly outline mortgage terms to borrowers?
-Loan Estimate and HUD-1 Settlement Statement
-Good Faith Estimate (GFE) and Closing Disclosure
-Loan Estimate and Closing Disclosure
-Good Faith Estimate (GFE) and HUD-1 Settlement Statement - ✔✔Loan Estimate and
Closing Disclosure
, ✔✔Which government regulation prohibits a lender from discriminating against a
borrower who uses public assistance to qualify for a mortgage loan?
Truth in Lending Act (TILA)
Home Ownership and Equity Protections Act (HOEPA)
Equal Credit Opportunity Act (ECOA)
Real Estate Settlement Procedures Act (RESPA) - ✔✔Equal Credit Opportunity Act
(ECOA)
✔✔Which item would affect the cost of earthquake insurance?
Groundwater flow patterns
Age of borrower
Structural material
Residential zoning type - ✔✔
✔✔For a client whose most recent rental history is unfavorable, which initial strategy
should a housing counselor recommend to increase a potential landlord's willingness to
rent to the client?
-Complete a tenant responsibilities and obligations course conducted by a housing
counselor.
-Inform the landlord that to refuse a tenant access to housing is a violation of the Fair
Housing Act.
-Write a letter explaining the various issues the client experienced under the last
landlord.
-Propose a higher monthly rental rate to the landlord to make up for the increased risk
of an unfavorable rental history. - ✔✔
✔✔Which entity would be most likely to issue a Housing Choice Voucher?
Local housing authority
HUD
Local nonprofit organization
Apartment complex - ✔✔HUD
✔✔What is the purpose of the Veterans Affairs Supportive Housing (VASH) program?
-To end veteran homelessness
-To offer veterans the same benefits as the Housing Choice Voucher Program
-To help veterans obtain a VA loan
-To provide rental vouchers to most veterans - ✔✔To end veteran homelessness
AND ANSWERS GRADED A+
✔✔What are key differences between PMI and MIP?
Conventional loans may require MIP, removed at 78% LTV. FHA loans require PMI,
removed upon fulfillment of loan terms.
Conventional loans may require PMI, removed at 78% LTV. FHA loans require MIP,
removed upon fulfillment of loan terms.
Conventional loans may require MIP, removed at fulfillment of loan terms. FHA loans
require PMI, removed at 78% LTV.
Conventional loans may require PMI, removed upon fulfillment of loan terms. FHA loans
require MIP, removed at 78% LTV. - ✔✔
✔✔A client seeking to purchase is trying to decide between an FHA-insured mortgage
and another mortgage insured by private mortgage insurance. Which is a distinguishing
difference between these two types of mortgage insurance?
-FHA-insured mortgages generally require payment of mortgage insurance premiums,
which are generally twice as expensive as private mortgage insurance premiums for the
same loan amount.
-Private mortgage insurance programs generally require payment of mortgage
insurance premiums for the life of the loan. FHA-insured mortgages may allow for the
removal of this insurance after paying down the loan to below a 78% loan-to-value level.
-Private mortgage insurance programs generally require payment of mortgage
insurance premiums, which are generally twice as expensive as FHA mortgage
insurance premiums for the same loan amount.
-FHA-insured mortgages generally require payment of mortgage insurance prem - ✔✔
✔✔Which borrower information is contained in the Uniform Residential Loan Application
(URLA)?
Credit score
Tax information
Asset information
Education - ✔✔
✔✔In order to comply with the Know Before You Owe rule, which disclosures were
replaced with new versions that more clearly outline mortgage terms to borrowers?
-Loan Estimate and HUD-1 Settlement Statement
-Good Faith Estimate (GFE) and Closing Disclosure
-Loan Estimate and Closing Disclosure
-Good Faith Estimate (GFE) and HUD-1 Settlement Statement - ✔✔Loan Estimate and
Closing Disclosure
, ✔✔Which government regulation prohibits a lender from discriminating against a
borrower who uses public assistance to qualify for a mortgage loan?
Truth in Lending Act (TILA)
Home Ownership and Equity Protections Act (HOEPA)
Equal Credit Opportunity Act (ECOA)
Real Estate Settlement Procedures Act (RESPA) - ✔✔Equal Credit Opportunity Act
(ECOA)
✔✔Which item would affect the cost of earthquake insurance?
Groundwater flow patterns
Age of borrower
Structural material
Residential zoning type - ✔✔
✔✔For a client whose most recent rental history is unfavorable, which initial strategy
should a housing counselor recommend to increase a potential landlord's willingness to
rent to the client?
-Complete a tenant responsibilities and obligations course conducted by a housing
counselor.
-Inform the landlord that to refuse a tenant access to housing is a violation of the Fair
Housing Act.
-Write a letter explaining the various issues the client experienced under the last
landlord.
-Propose a higher monthly rental rate to the landlord to make up for the increased risk
of an unfavorable rental history. - ✔✔
✔✔Which entity would be most likely to issue a Housing Choice Voucher?
Local housing authority
HUD
Local nonprofit organization
Apartment complex - ✔✔HUD
✔✔What is the purpose of the Veterans Affairs Supportive Housing (VASH) program?
-To end veteran homelessness
-To offer veterans the same benefits as the Housing Choice Voucher Program
-To help veterans obtain a VA loan
-To provide rental vouchers to most veterans - ✔✔To end veteran homelessness
