HUD SET TIPS ANSWERS AND QUESTIONS SURE A+
✔✔Which step does a home-buyer complete in the process of purchasing a home?
Get a home assessment
Get a home inspection
Select the appraiser
Purchase life insurance - ✔✔Get a home inspection
✔✔A counselor's understanding of the client's spending habits and use of credit are
most important in which step of the home-buying process?
Evaluating housing affordability for the client
Obtaining financing
Making an offer on a home
Determining if home-ownership is right for the client - ✔✔Evaluating housing
affordability for the client
✔✔Which charge cannot change from the Loan Estimate to the Closing Disclosure?
Initial deposit for the escrow amount
Fees paid to lender
Daily interest charge
Government recording charge - ✔✔
✔✔Which is the minimum qualifying credit score for an FHA mortgage if the client made
a 3.5% down payment?
540
580
600
640 - ✔✔580
, ✔✔A client has saved money for a small down payment and closing costs to purchase a
$100,000 home in the city. The client is deciding whether to begin the home-buying
process now or continue saving for a larger down payment.
Client Profile
► Credit Score - 700
► Monthly income - $3,000
► Savings - $15,000
Types of Loans - LTV (%)
► Traditional conventional loan - 80%
► Conventional/piggyback - 80%/10%
► Conventional loan - 90%
► FHA loan - 96.5%
Which loan type would provide the highest monthly payment, assuming interest rates
and other factors are equal?
Conventional/piggyback
FHA loan
Conventional loan
Traditional conventional loan - ✔✔
✔✔A client, who is the surviving spouse of a military service member, is interested in
buying a home. The client now works at a local nonprofit agency, making $36,000 per
year. The client has $4,000 in savings and a credit score of 624.
If a client has just received a commitment from a lender to provide a loan for a fixed
loan amount based on a review of the complete loan application package by an
underwriter, in what stage of the lending process is the client?
Loan committee review
Pre-approval
Pre-qualification
Loan application - ✔✔
✔✔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. - ✔✔
✔✔Which step does a home-buyer complete in the process of purchasing a home?
Get a home assessment
Get a home inspection
Select the appraiser
Purchase life insurance - ✔✔Get a home inspection
✔✔A counselor's understanding of the client's spending habits and use of credit are
most important in which step of the home-buying process?
Evaluating housing affordability for the client
Obtaining financing
Making an offer on a home
Determining if home-ownership is right for the client - ✔✔Evaluating housing
affordability for the client
✔✔Which charge cannot change from the Loan Estimate to the Closing Disclosure?
Initial deposit for the escrow amount
Fees paid to lender
Daily interest charge
Government recording charge - ✔✔
✔✔Which is the minimum qualifying credit score for an FHA mortgage if the client made
a 3.5% down payment?
540
580
600
640 - ✔✔580
, ✔✔A client has saved money for a small down payment and closing costs to purchase a
$100,000 home in the city. The client is deciding whether to begin the home-buying
process now or continue saving for a larger down payment.
Client Profile
► Credit Score - 700
► Monthly income - $3,000
► Savings - $15,000
Types of Loans - LTV (%)
► Traditional conventional loan - 80%
► Conventional/piggyback - 80%/10%
► Conventional loan - 90%
► FHA loan - 96.5%
Which loan type would provide the highest monthly payment, assuming interest rates
and other factors are equal?
Conventional/piggyback
FHA loan
Conventional loan
Traditional conventional loan - ✔✔
✔✔A client, who is the surviving spouse of a military service member, is interested in
buying a home. The client now works at a local nonprofit agency, making $36,000 per
year. The client has $4,000 in savings and a credit score of 624.
If a client has just received a commitment from a lender to provide a loan for a fixed
loan amount based on a review of the complete loan application package by an
underwriter, in what stage of the lending process is the client?
Loan committee review
Pre-approval
Pre-qualification
Loan application - ✔✔
✔✔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. - ✔✔
