HUD Certification Exam Questions and
Correct Answers
Question 1
Adjusted Gross Income
Correct Answer
Gross income minus adjustments, or reductions, that one is eligible for, such as
deductions for unreimbursed business expenses, tuition and fees, and contributions
to certain retirement accounts.
Question 2
Energy Efficient Mortgage
Correct Answer
Best loan: A client would like to add insulation to the basement and attic as well as
seal air leaks in order to reduce the home's energy consumption.
Question 3
AnnualCreditReport.com
Correct Answer
Where does a client go to get a free credit report?
Question 4
Housing Choice Voucher
Correct Answer
Commonly referred to as Section 8; distributed locally by PHAs where you are free
to choose any housing that meets program requirements
Page 1 of 99
,Question 5
Adjustable Rate Mortgage
Correct Answer
Have an initial interest rate that applies for a defined period of time and then
adjusts at a pre-determined intervals for the life of the loan.
Question 6
Type of mortgage may be a good fit for those who want to live in eligible rural areas,
make less than 115% AMI, need flexible credit guidelines, may not have funds for a
DP
Correct Answer
USDA Loan
Question 7
Home Ownership and Equity Protections Act (HOEPA)
Correct Answer
Federal law enforcing special disclosure requirements and restrictions on terms for
loans that meet high-cost mortgage tests.
Question 8
Renters Insurance
Correct Answer
An insurance policy that provides coverage for damages, within a rental property, to
renters' belongings and liability.
Question 9
Fair Housing Initiatives Program (FHIP)
Correct Answer
Provides funding to fair housing organizations and nonprofits that assist people
who may have been victims of housing discrimination.
Page 2 of 99
,Question 10
Public Records
Correct Answer
The section of the credit report that contains court information such as a
bankruptcy.
Question 11
Fair Market Rent
Correct Answer
A determination of the monthly rent of a rental property, calculated by HUD.
Factored by geography and unit size, sets payment standards for public housing
programs
Question 12
Personal Information
Correct Answer
The section of the credit report that contains employer details.
Question 13
Civil Rights Act of 1968
Correct Answer
Following the assassination of Dr. Martin Luther King Jr., Congress passed what
monumental piece of legislation, which prohibits discrimination in housing sales,
rentals, and financing based on race, color, national origin, religion, sex, disability
and familial status?
Question 14
Marketing Analysis
Correct Answer
Aim is to identify groups of people who would benefit most if targeted by the
campaign, the characteristics of these people, and their expectations.
Page 3 of 99
, Question 15
Fair and Accurate Credit Transactions Act (FACTA)
Correct Answer
You have the right to place a fraud alert on your credit file.
Question 16
Community Development Block Grant Program
Correct Answer
HUD program that provides grants to states and localities to provide decent
housing and a suitable living environment and to expand economic opportunities,
principally for low-and-moderate income persons
Question 17
Account History
Correct Answer
Credit: Payment history of accounts, including late payments, delinquencies,
judgments, and liens.
Question 18
Closing Costs
Correct Answer
Fees for final property transfer that are not included in the price of the property.
Question 19
Inquiries
Correct Answer
The section of the credit report that will show recent attempts to open a credit card.
Page 4 of 99
Correct Answers
Question 1
Adjusted Gross Income
Correct Answer
Gross income minus adjustments, or reductions, that one is eligible for, such as
deductions for unreimbursed business expenses, tuition and fees, and contributions
to certain retirement accounts.
Question 2
Energy Efficient Mortgage
Correct Answer
Best loan: A client would like to add insulation to the basement and attic as well as
seal air leaks in order to reduce the home's energy consumption.
Question 3
AnnualCreditReport.com
Correct Answer
Where does a client go to get a free credit report?
Question 4
Housing Choice Voucher
Correct Answer
Commonly referred to as Section 8; distributed locally by PHAs where you are free
to choose any housing that meets program requirements
Page 1 of 99
,Question 5
Adjustable Rate Mortgage
Correct Answer
Have an initial interest rate that applies for a defined period of time and then
adjusts at a pre-determined intervals for the life of the loan.
Question 6
Type of mortgage may be a good fit for those who want to live in eligible rural areas,
make less than 115% AMI, need flexible credit guidelines, may not have funds for a
DP
Correct Answer
USDA Loan
Question 7
Home Ownership and Equity Protections Act (HOEPA)
Correct Answer
Federal law enforcing special disclosure requirements and restrictions on terms for
loans that meet high-cost mortgage tests.
Question 8
Renters Insurance
Correct Answer
An insurance policy that provides coverage for damages, within a rental property, to
renters' belongings and liability.
Question 9
Fair Housing Initiatives Program (FHIP)
Correct Answer
Provides funding to fair housing organizations and nonprofits that assist people
who may have been victims of housing discrimination.
Page 2 of 99
,Question 10
Public Records
Correct Answer
The section of the credit report that contains court information such as a
bankruptcy.
Question 11
Fair Market Rent
Correct Answer
A determination of the monthly rent of a rental property, calculated by HUD.
Factored by geography and unit size, sets payment standards for public housing
programs
Question 12
Personal Information
Correct Answer
The section of the credit report that contains employer details.
Question 13
Civil Rights Act of 1968
Correct Answer
Following the assassination of Dr. Martin Luther King Jr., Congress passed what
monumental piece of legislation, which prohibits discrimination in housing sales,
rentals, and financing based on race, color, national origin, religion, sex, disability
and familial status?
Question 14
Marketing Analysis
Correct Answer
Aim is to identify groups of people who would benefit most if targeted by the
campaign, the characteristics of these people, and their expectations.
Page 3 of 99
, Question 15
Fair and Accurate Credit Transactions Act (FACTA)
Correct Answer
You have the right to place a fraud alert on your credit file.
Question 16
Community Development Block Grant Program
Correct Answer
HUD program that provides grants to states and localities to provide decent
housing and a suitable living environment and to expand economic opportunities,
principally for low-and-moderate income persons
Question 17
Account History
Correct Answer
Credit: Payment history of accounts, including late payments, delinquencies,
judgments, and liens.
Question 18
Closing Costs
Correct Answer
Fees for final property transfer that are not included in the price of the property.
Question 19
Inquiries
Correct Answer
The section of the credit report that will show recent attempts to open a credit card.
Page 4 of 99
