HUD Practice Test Quizzes and Correct
Answers/ 2024-2025.
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? -
Answer: 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? - Answer: Capital
A first-time buyer wants a conventional loan but does not have the assets to
qualify. This client may have to purchase with an FHA loan unless the client saves
more money. Which of the Four C's of Credit does this involve? - Answer: Capital
Page 1 of 15
, Which describes a homebuyer who would be ineligible as a first-time homebuyer,
as defined by most down payment assistance programs? - Answer: A client who
lost a home to foreclosure two years ago.
Which step does a homebuyer complete in the process of purchasing a home? -
Answer: 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 homebuying process? - Answer: Determining
if homeownership is right for the client
Which charge cannot change from the Loan Estimate to the Closing Disclosure? -
Answer: Fees paid to lender
Which is the minimum qualifying credit score for an FHA mortgage if the client
made a 3.5% down payment? - Answer: 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
homebuying process now or continue saving for a larger down payment. Which
loan type would provide the highest monthly payment, assuming interest rates
and other factors are equal? - Answer: FHA 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
Page 2 of 15
Answers/ 2024-2025.
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? -
Answer: 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? - Answer: Capital
A first-time buyer wants a conventional loan but does not have the assets to
qualify. This client may have to purchase with an FHA loan unless the client saves
more money. Which of the Four C's of Credit does this involve? - Answer: Capital
Page 1 of 15
, Which describes a homebuyer who would be ineligible as a first-time homebuyer,
as defined by most down payment assistance programs? - Answer: A client who
lost a home to foreclosure two years ago.
Which step does a homebuyer complete in the process of purchasing a home? -
Answer: 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 homebuying process? - Answer: Determining
if homeownership is right for the client
Which charge cannot change from the Loan Estimate to the Closing Disclosure? -
Answer: Fees paid to lender
Which is the minimum qualifying credit score for an FHA mortgage if the client
made a 3.5% down payment? - Answer: 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
homebuying process now or continue saving for a larger down payment. Which
loan type would provide the highest monthly payment, assuming interest rates
and other factors are equal? - Answer: FHA 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
Page 2 of 15
