HUD CERTIFICATION MID ALL ANSWERS AND
QUESTIONS SURE A+
✔✔Which action should a counselor recommend a client take first after discovering
identity theft?
-File for a name change.
-Apply for a new Social Security number.
-File an identity theft report.
-Purchase identity theft protection. - ✔✔File an identity theft report.
✔✔In which situation would a client's responsibilities, recurring costs, and upfront costs
be evaluated?
-When considering closing costs
-When choosing a loan officer
-When weighing housing options
-When applying for a loan modification - ✔✔When weighing housing options
✔✔A client works 40 hours a week making $15 an hour. What is the highest monthly
mortgage the client can afford based on income if the client secures a conventional
loan?
-$728
-$806
-$936
-$1,118 - ✔✔$728
✔✔Which type of government insured loan was created for financing homes in rural
areas?
-VA
-Fannie Mae
-FHA
,-USDA - ✔✔USDA
✔✔Which type of assistance administered by a public housing authority allows for
location flexibility. A client keeps having budget problems due to unexpected expenses.
Which financial tool would best assist this client to prepare for unexpected expenses
and avoid increasing credit usage?
-Emergency fund
-Line of credit
-Payday loan
-Retirement savings account - ✔✔Emergency fund
✔✔A client has a monthly household income of $2,300, monthly debt payments of
$450, and an optimal monthly housing ratio of 32%. What is the client's optimal monthly
housing payment?
-$592
-$736
-$880
-$1,186 - ✔✔$736
✔✔What is the back-end ratio for a client with a monthly housing expense of $1,250, a
monthly total of $88 in other consumer debt payments, and a gross household income
of $4,460 per month (rounded to the nearest whole percent)?
-29%
-30%
-31%
-32% - ✔✔30%
✔✔A client earns a salary of $45,000 at a job held for three years. The client has credit
card bills, student loans, and a car loan totaling $500 per month. The client has already
saved $3,500 for a down payment and is using an FHA Energy Efficient Mortgage
(EEM).
If the client wants to make the minimum down payment for a home priced at $150,000,
how much more does the client need to save?
-$1,750
-$2,250
-$4,500
-$5,250 - ✔✔$1,750
✔✔Under which condition would most down payment assistance programs approve a
waiver of the home-ownership education requirement?
, -Most will not waive the home-ownership education requirement
-When the home-buyer has successfully passed a home-ownership exam
-When the home-buyer has a verifiable disability or handicap
-When the home-buyer has completed four years of college - ✔✔Most will not waive the
home-ownership education requirement
✔✔Which type of assistance administered by a public housing authority allows for
location flexibility?
-USDA
-FHA
-Project-based vouchers
-Tenant-based vouchers - ✔✔Tenant-based vouchers
✔✔A client's payment history affects which factor of creditworthiness?
-Collateral
-Capacity
-Character
-Capital - ✔✔Character
✔✔Which action may a lender take to determine a borrower's character?
-Calculate housing ratios to see debt obligations.
-Examine pay stubs to determine amount of income.
-Review the appraisal.
-Call an employer to verify employment. - ✔✔Call an employer to verify employment.
✔✔A client is in the process of purchasing a home with a sales price of $162,000. The
client has a net worth of $50,000, a credit score of 680, and a debt-to-income ratio of
36%. The home has appraised for $155,000. Which factor of creditworthiness will most
likely be an obstacle to purchasing the home?
-Character
-Capital
-Collateral
-Capacity - ✔✔Collateral
✔✔When a lender inquires about how much money a borrower has saved for a down
payment on a home, what factor is being considered?
-Character
-Collateral
-Capital
QUESTIONS SURE A+
✔✔Which action should a counselor recommend a client take first after discovering
identity theft?
-File for a name change.
-Apply for a new Social Security number.
-File an identity theft report.
-Purchase identity theft protection. - ✔✔File an identity theft report.
✔✔In which situation would a client's responsibilities, recurring costs, and upfront costs
be evaluated?
-When considering closing costs
-When choosing a loan officer
-When weighing housing options
-When applying for a loan modification - ✔✔When weighing housing options
✔✔A client works 40 hours a week making $15 an hour. What is the highest monthly
mortgage the client can afford based on income if the client secures a conventional
loan?
-$728
-$806
-$936
-$1,118 - ✔✔$728
✔✔Which type of government insured loan was created for financing homes in rural
areas?
-VA
-Fannie Mae
-FHA
,-USDA - ✔✔USDA
✔✔Which type of assistance administered by a public housing authority allows for
location flexibility. A client keeps having budget problems due to unexpected expenses.
Which financial tool would best assist this client to prepare for unexpected expenses
and avoid increasing credit usage?
-Emergency fund
-Line of credit
-Payday loan
-Retirement savings account - ✔✔Emergency fund
✔✔A client has a monthly household income of $2,300, monthly debt payments of
$450, and an optimal monthly housing ratio of 32%. What is the client's optimal monthly
housing payment?
-$592
-$736
-$880
-$1,186 - ✔✔$736
✔✔What is the back-end ratio for a client with a monthly housing expense of $1,250, a
monthly total of $88 in other consumer debt payments, and a gross household income
of $4,460 per month (rounded to the nearest whole percent)?
-29%
-30%
-31%
-32% - ✔✔30%
✔✔A client earns a salary of $45,000 at a job held for three years. The client has credit
card bills, student loans, and a car loan totaling $500 per month. The client has already
saved $3,500 for a down payment and is using an FHA Energy Efficient Mortgage
(EEM).
If the client wants to make the minimum down payment for a home priced at $150,000,
how much more does the client need to save?
-$1,750
-$2,250
-$4,500
-$5,250 - ✔✔$1,750
✔✔Under which condition would most down payment assistance programs approve a
waiver of the home-ownership education requirement?
, -Most will not waive the home-ownership education requirement
-When the home-buyer has successfully passed a home-ownership exam
-When the home-buyer has a verifiable disability or handicap
-When the home-buyer has completed four years of college - ✔✔Most will not waive the
home-ownership education requirement
✔✔Which type of assistance administered by a public housing authority allows for
location flexibility?
-USDA
-FHA
-Project-based vouchers
-Tenant-based vouchers - ✔✔Tenant-based vouchers
✔✔A client's payment history affects which factor of creditworthiness?
-Collateral
-Capacity
-Character
-Capital - ✔✔Character
✔✔Which action may a lender take to determine a borrower's character?
-Calculate housing ratios to see debt obligations.
-Examine pay stubs to determine amount of income.
-Review the appraisal.
-Call an employer to verify employment. - ✔✔Call an employer to verify employment.
✔✔A client is in the process of purchasing a home with a sales price of $162,000. The
client has a net worth of $50,000, a credit score of 680, and a debt-to-income ratio of
36%. The home has appraised for $155,000. Which factor of creditworthiness will most
likely be an obstacle to purchasing the home?
-Character
-Capital
-Collateral
-Capacity - ✔✔Collateral
✔✔When a lender inquires about how much money a borrower has saved for a down
payment on a home, what factor is being considered?
-Character
-Collateral
-Capital
