HUD Housing Exam Questions and
Answers15
Which document should the counselor review with the client to identify spending habits and
track expenses: - ANSWERS-Bank statement
Which additional information would the housing counselor need to prepare a household budget
for this client? - ANSWERS-Net income
Which item in the client's budget is a fixed expense? - ANSWERS-Car lease payment
What is the maximum percent of area medium income allowable for a household to qualify for
a Housing Choice Voucher? - ANSWERS-50%
Which is the maximum recommended housing ratio for renting an apartment? - ANSWERS-30%
Eligibility requirements for down payment assistance programs include which factors? -
ANSWERS-Income, homebuyer education, and purchase price
The client is considering an FHA Mortgage. What is the upfront mortgage insurance premium
(UFMIP) for an FHA mortgage? - ANSWERS-1.75%
The client decides to purchase a townhouse through a down payment assistance program with
a recapture clause. Three years later, the client remarries, and his wife owns a single family
home. Which situation might cause an accelerated loan payment? - ANSWERS-Client moves into
wife's home and rents his townhouse to a tenant
, If the client was denied a mortgage loan and the lender told him to come back after his divorce
has been final for three years, what is the best advice the counselor can provide to the client? -
ANSWERS-Contact the Federal Trade Commission as the lender's action might violate the Equal
Credit Opportunity Act
A question from a lender on which topic would be inappropriate? - ANSWERS-Medical history
Which is a responsibility of a housing counselor? - ANSWERS-Educate homebuyers about their
rights
In order to minimize the impact on the client's credit score, what is the maximum time frame
within which the client should apply for pre-approval from multiple lenders? - ANSWERS-30-day
period.
Which is a responsibility of a home inspector? - ANSWERS-A) Evaluate condition of the home
B) Examine medical systems
C) identify items to be repaired or replaced
Which is the best reason a counselor would suggest that client speak to three to five difference
lenders before choosing one? - ANSWERS-So the client can compre loan estimates
Which is the best advice that a housing counselor can give to protect against identity theft? -
ANSWERS-Review credit report at least once a year
The client tells the lender that he is expecting a raise soon. Which actions should the lender
take? - ANSWERS-Provide a loan estimate without factoring in the raise
If the client obtains a mortgage of $100,000 typically how much should he expect to pay for
closing costs? - ANSWERS-$4k - 3-4% on average
Answers15
Which document should the counselor review with the client to identify spending habits and
track expenses: - ANSWERS-Bank statement
Which additional information would the housing counselor need to prepare a household budget
for this client? - ANSWERS-Net income
Which item in the client's budget is a fixed expense? - ANSWERS-Car lease payment
What is the maximum percent of area medium income allowable for a household to qualify for
a Housing Choice Voucher? - ANSWERS-50%
Which is the maximum recommended housing ratio for renting an apartment? - ANSWERS-30%
Eligibility requirements for down payment assistance programs include which factors? -
ANSWERS-Income, homebuyer education, and purchase price
The client is considering an FHA Mortgage. What is the upfront mortgage insurance premium
(UFMIP) for an FHA mortgage? - ANSWERS-1.75%
The client decides to purchase a townhouse through a down payment assistance program with
a recapture clause. Three years later, the client remarries, and his wife owns a single family
home. Which situation might cause an accelerated loan payment? - ANSWERS-Client moves into
wife's home and rents his townhouse to a tenant
, If the client was denied a mortgage loan and the lender told him to come back after his divorce
has been final for three years, what is the best advice the counselor can provide to the client? -
ANSWERS-Contact the Federal Trade Commission as the lender's action might violate the Equal
Credit Opportunity Act
A question from a lender on which topic would be inappropriate? - ANSWERS-Medical history
Which is a responsibility of a housing counselor? - ANSWERS-Educate homebuyers about their
rights
In order to minimize the impact on the client's credit score, what is the maximum time frame
within which the client should apply for pre-approval from multiple lenders? - ANSWERS-30-day
period.
Which is a responsibility of a home inspector? - ANSWERS-A) Evaluate condition of the home
B) Examine medical systems
C) identify items to be repaired or replaced
Which is the best reason a counselor would suggest that client speak to three to five difference
lenders before choosing one? - ANSWERS-So the client can compre loan estimates
Which is the best advice that a housing counselor can give to protect against identity theft? -
ANSWERS-Review credit report at least once a year
The client tells the lender that he is expecting a raise soon. Which actions should the lender
take? - ANSWERS-Provide a loan estimate without factoring in the raise
If the client obtains a mortgage of $100,000 typically how much should he expect to pay for
closing costs? - ANSWERS-$4k - 3-4% on average
