HUD HOUSING COUNSELLOR
CERTIFICATION PRACTICE EXAM
WITH CORRECT ACTUAL QUESTIONS
LATEST, Exams of Organization and
Business Administration
What is the maximum percent of area median income allowable for a
household to qualify for a Housing Choice Voucher? - ANSWER
>>>>>50%
Which is the maximum recommended housing ratio for renting an
apartment? - ANSWER >>>>>30%
Eligibility requirements for down-payment assistance programs include
which factors? - ANSWER >>>>>Income, home-buyer education,
purchase price
The client is considering an FHA mortgage. What is the upfront
mortgage insurance premium (UFMIP) for an
FHA mortgage? - ANSWER >>>>>1.75%
If the client was denied a mortgage loan and the lender told him to
come back after his divorce had been final for three years, what is the
best advice for the housing counselor to provide to the client to report a
violation to ECOA? - ANSWER >>>>>Contact the Federal Trade
Commission as the lender's action might violate the Equal Credit
Opportunity Act
,A question from a lender on the client's Medical History would be
inappropriate or appropriate? - ANSWER >>>>>Inappropriate
Who is responsible for educating home-buyers about their rights? -
ANSWER >>>>>Housing Counselor
In order to minimize the impact on the client's credit score, what is the
maximum time frame within which the client should apply for pre-
approval from multiple lenders? - ANSWER >>>>>A 30-day period
What are the responsibilities of a home inspector? - ANSWER
>>>>>Examine mechanical systems, Evaluate the condition of a home,
Identify items to be repaired or replaced
Which is the best reason that a housing counselor would suggest that a
client speak to three to five different lenders? - ANSWER >>>>>To
compare loan estimates
Which is the best advice that a housing counselor can give the client to
protect against identity theft? - ANSWER >>>>>Review credit report at
least once per year
The client tells the lender that he is expecting a raise soon. Should the
Lender provide a Loan Estimate (LE) with, or without factoring the raise?
- ANSWER >>>>>Provide a loan estimate without factoring in the raise
If this client obtains a mortgage of $100,000, typically, how much should
he expect to pay for closing costs? - ANSWER >>>>>$3000 to $4000
,Is Application Fee an upfront cost of clients who are considering renting
or buying a property? - ANSWER >>>>>Renting
A client wants to customize his home with do-it-yourself projects, this is
an indication the client is best aligned with which housing option;
Home-ownership or Renting? - ANSWER >>>>>Home-ownership
The client's gross monthly income is $4167 and the monthly debts are
$435. What is the maximum mortgage payment (rounded to the nearest
dollar) for which this client would qualify using a standard conventional
loan? - ANSWER >>>>>$1,065
NOTE: The maximum front-end ratio for a standard conventional loan is
28%, and the back-end ratio is 36%. The front-end ratio is calculated as
28% of the client's monthly income of $4,167, which is $1,167. The back-
end ratio is calculated as 36% of the
client's monthly income of $4,167 minus the client's monthly debt of
$435, which equals $1,065. Therefore, the maximum loan payment that
the client qualifies for is the lower of the two numbers, which is $1,065.
Which is the maximum debt-to-income ratio allowable for an FHA loan?
- ANSWER >>>>>43%
Which is the maximum debt-to-income ratio allowable for an FHA
Energy Efficiency Mortgage loan? - ANSWER >>>>>45%
The client's gross monthly income is $4167 and the monthly debts are
$435. With a monthly mortgage payment of $950, which is the client's
debt-to-income ratio (round to the nearest whole percent)? - ANSWER
>>>>>33%
, The client's gross monthly income is $4167 and the monthly debts are
$435. If the client seeks an FHA Energy Efficient Mortgage (EEM) loan,
what is the maximum housing payment for which he can qualify
(rounded to the nearest dollar)? - ANSWER >>>>>$1,292
On which factor is a borrower's annual mortgage insurance premium
(MIP) based? - ANSWER >>>>>Current principal balance
NOTE: The annual mortgage insurance premium (MIP) is based on the
unpaid principal balance of the loan. The loan-to-value ratio is used to
determine when private mortgage insurance (PMI) can be dropped from
the loan. Credit scores do not affect MIP but might affect PMI.
Which is the upfront mortgage insurance premium (UFMIP) if the client
purchases a home with an FHA loan amount of $116,000? - ANSWER
>>>>>$2,030
The client only tracks bill payments. Which should the housing
counselor recommend to help the client begin
planning for a home purchase?
A- Continue to track bill payments only
B- Track income only
C- Track all income and expenses
D- Track savings deposits and expenses - ANSWER >>>>>C- Track all
income and expenses
CERTIFICATION PRACTICE EXAM
WITH CORRECT ACTUAL QUESTIONS
LATEST, Exams of Organization and
Business Administration
What is the maximum percent of area median income allowable for a
household to qualify for a Housing Choice Voucher? - ANSWER
>>>>>50%
Which is the maximum recommended housing ratio for renting an
apartment? - ANSWER >>>>>30%
Eligibility requirements for down-payment assistance programs include
which factors? - ANSWER >>>>>Income, home-buyer education,
purchase price
The client is considering an FHA mortgage. What is the upfront
mortgage insurance premium (UFMIP) for an
FHA mortgage? - ANSWER >>>>>1.75%
If the client was denied a mortgage loan and the lender told him to
come back after his divorce had been final for three years, what is the
best advice for the housing counselor to provide to the client to report a
violation to ECOA? - ANSWER >>>>>Contact the Federal Trade
Commission as the lender's action might violate the Equal Credit
Opportunity Act
,A question from a lender on the client's Medical History would be
inappropriate or appropriate? - ANSWER >>>>>Inappropriate
Who is responsible for educating home-buyers about their rights? -
ANSWER >>>>>Housing Counselor
In order to minimize the impact on the client's credit score, what is the
maximum time frame within which the client should apply for pre-
approval from multiple lenders? - ANSWER >>>>>A 30-day period
What are the responsibilities of a home inspector? - ANSWER
>>>>>Examine mechanical systems, Evaluate the condition of a home,
Identify items to be repaired or replaced
Which is the best reason that a housing counselor would suggest that a
client speak to three to five different lenders? - ANSWER >>>>>To
compare loan estimates
Which is the best advice that a housing counselor can give the client to
protect against identity theft? - ANSWER >>>>>Review credit report at
least once per year
The client tells the lender that he is expecting a raise soon. Should the
Lender provide a Loan Estimate (LE) with, or without factoring the raise?
- ANSWER >>>>>Provide a loan estimate without factoring in the raise
If this client obtains a mortgage of $100,000, typically, how much should
he expect to pay for closing costs? - ANSWER >>>>>$3000 to $4000
,Is Application Fee an upfront cost of clients who are considering renting
or buying a property? - ANSWER >>>>>Renting
A client wants to customize his home with do-it-yourself projects, this is
an indication the client is best aligned with which housing option;
Home-ownership or Renting? - ANSWER >>>>>Home-ownership
The client's gross monthly income is $4167 and the monthly debts are
$435. What is the maximum mortgage payment (rounded to the nearest
dollar) for which this client would qualify using a standard conventional
loan? - ANSWER >>>>>$1,065
NOTE: The maximum front-end ratio for a standard conventional loan is
28%, and the back-end ratio is 36%. The front-end ratio is calculated as
28% of the client's monthly income of $4,167, which is $1,167. The back-
end ratio is calculated as 36% of the
client's monthly income of $4,167 minus the client's monthly debt of
$435, which equals $1,065. Therefore, the maximum loan payment that
the client qualifies for is the lower of the two numbers, which is $1,065.
Which is the maximum debt-to-income ratio allowable for an FHA loan?
- ANSWER >>>>>43%
Which is the maximum debt-to-income ratio allowable for an FHA
Energy Efficiency Mortgage loan? - ANSWER >>>>>45%
The client's gross monthly income is $4167 and the monthly debts are
$435. With a monthly mortgage payment of $950, which is the client's
debt-to-income ratio (round to the nearest whole percent)? - ANSWER
>>>>>33%
, The client's gross monthly income is $4167 and the monthly debts are
$435. If the client seeks an FHA Energy Efficient Mortgage (EEM) loan,
what is the maximum housing payment for which he can qualify
(rounded to the nearest dollar)? - ANSWER >>>>>$1,292
On which factor is a borrower's annual mortgage insurance premium
(MIP) based? - ANSWER >>>>>Current principal balance
NOTE: The annual mortgage insurance premium (MIP) is based on the
unpaid principal balance of the loan. The loan-to-value ratio is used to
determine when private mortgage insurance (PMI) can be dropped from
the loan. Credit scores do not affect MIP but might affect PMI.
Which is the upfront mortgage insurance premium (UFMIP) if the client
purchases a home with an FHA loan amount of $116,000? - ANSWER
>>>>>$2,030
The client only tracks bill payments. Which should the housing
counselor recommend to help the client begin
planning for a home purchase?
A- Continue to track bill payments only
B- Track income only
C- Track all income and expenses
D- Track savings deposits and expenses - ANSWER >>>>>C- Track all
income and expenses
