HUD CERTIFICATION SOLUTION BUNDLE
2026 SOLVED QUESTIONS WITH CORRECT
ANSWERS 100% ACCURATE
◉ What determines whether a client will have to pay private mortgage
insurance (PMI) versus mortgage insurance premium (MIP)? Answer:
Type of loan and loan program
◉ When a client submits a loan application, which document should
they receive within 3 business day? Answer: Loan estimate
◉ What is the most important document in a Client Action Plan?
Answer: Paystubs
◉ LTV (Loan-to-Value Ratio) Answer: - Compares the amount of the
loan to the appraised value (purchase price)
- LTV = (Loan amount/Appraisal)x100 (use the lower of appraised value
or purchase price)
- indicates how much of PP is being financed by loan
- higher LTV = higher loan, higher risk for lender
- lower LTV = lower risk, lower monthly cost for buyer
◉ Home Buying Process (steps) Answer: 1. Determine if home-
ownership is right for client
2. Determine how much client can afford
3. Help client understand their rights
,4. Shop for a home
5. Make an offer
6. Obtain financing
7. Get home inspection
8. Purchase homeowners' insurance
9. Close on home
◉ Underwriter Answer: -Works with lenders to analyze a loan
application
-Evaluates borrower's credit history and property value to gauge lending
risk and borrower's capacity to repay the loan
◉ What information should be included in a Client Action Plan?
Answer: -Client Personal/contact info
-Household info (# of people, ages, employment status)
-Client's goals (buy a home, avoid foreclosure, find a rental, reduce debt)
- Income and expenses
-Assets & Liabilities (bank accounts, savings, retirement accounts,
outstanding debts, credit cards, student loans, monthly debts)
-Credit report details
-Current housing (current housing type, housing payments, mortgage
terms, interest, delinquency status)
-Barriers/challenges
, ◉ What is the up-front mortgage insurance premium (MIP) for an FHA
mortgage? Answer: 1.75%
◉ Rental Ratio Answer: Front 30%
Back 36%
◉ FHA Ratio Answer: Front 31%
Back 43%
◉ FHA EEM Ratio Answer: Front 33%
Back 45%
◉ Conventional Ratio Answer: Front 28%
Back 36%
◉ Front End Ratio (Housing Ratio) Answer: Housing Expenses/Gross
Income
◉ Back End Ratio (Debt-to-Income (DTI) Ratio) Answer: All
expenses/Gross Income
◉ Pay Schedule formulas Answer: Weekly pay = 4x52/12
Biweekly pay = 2x26/12
Bimonthly pay = 2x24/12
2026 SOLVED QUESTIONS WITH CORRECT
ANSWERS 100% ACCURATE
◉ What determines whether a client will have to pay private mortgage
insurance (PMI) versus mortgage insurance premium (MIP)? Answer:
Type of loan and loan program
◉ When a client submits a loan application, which document should
they receive within 3 business day? Answer: Loan estimate
◉ What is the most important document in a Client Action Plan?
Answer: Paystubs
◉ LTV (Loan-to-Value Ratio) Answer: - Compares the amount of the
loan to the appraised value (purchase price)
- LTV = (Loan amount/Appraisal)x100 (use the lower of appraised value
or purchase price)
- indicates how much of PP is being financed by loan
- higher LTV = higher loan, higher risk for lender
- lower LTV = lower risk, lower monthly cost for buyer
◉ Home Buying Process (steps) Answer: 1. Determine if home-
ownership is right for client
2. Determine how much client can afford
3. Help client understand their rights
,4. Shop for a home
5. Make an offer
6. Obtain financing
7. Get home inspection
8. Purchase homeowners' insurance
9. Close on home
◉ Underwriter Answer: -Works with lenders to analyze a loan
application
-Evaluates borrower's credit history and property value to gauge lending
risk and borrower's capacity to repay the loan
◉ What information should be included in a Client Action Plan?
Answer: -Client Personal/contact info
-Household info (# of people, ages, employment status)
-Client's goals (buy a home, avoid foreclosure, find a rental, reduce debt)
- Income and expenses
-Assets & Liabilities (bank accounts, savings, retirement accounts,
outstanding debts, credit cards, student loans, monthly debts)
-Credit report details
-Current housing (current housing type, housing payments, mortgage
terms, interest, delinquency status)
-Barriers/challenges
, ◉ What is the up-front mortgage insurance premium (MIP) for an FHA
mortgage? Answer: 1.75%
◉ Rental Ratio Answer: Front 30%
Back 36%
◉ FHA Ratio Answer: Front 31%
Back 43%
◉ FHA EEM Ratio Answer: Front 33%
Back 45%
◉ Conventional Ratio Answer: Front 28%
Back 36%
◉ Front End Ratio (Housing Ratio) Answer: Housing Expenses/Gross
Income
◉ Back End Ratio (Debt-to-Income (DTI) Ratio) Answer: All
expenses/Gross Income
◉ Pay Schedule formulas Answer: Weekly pay = 4x52/12
Biweekly pay = 2x26/12
Bimonthly pay = 2x24/12
