HUD Housing Counselor Certification Practice Exam
QUESTIONS 2026-2027 COMPLETE ACCURATE EXAM
REAL QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (RELIABLE SOLUTIONS)
CURRENTLY UPDATED VERSION 2026 EDITION
The client is afraid her servicer might begin foreclosure proceedings
immediately and force her out of her home. Which information should the
housing counselor provide?
A- As long as the client is working with a housing counselor, the servicer
cannot file for foreclosure.
B- A mortgage servicer cannot make a first notice for foreclosure until a
borrower is more than 120 days
delinquent.
C- If the client makes a partial payment, it will delay foreclosure.
D- The client is not yet in default.
B- A mortgage servicer cannot make a first notice for foreclosure until a
borrower is more than 120 days delinquent.
,A client who is a single mother of two young children meets with a
housing counselor to create a spending
plan that helps her manage her finances better and improve her credit
score. She has been employed at her job for two years. She works 40
hours per week and earns $12 per hour. She does not receive child
support and her monthly income barely covers her monthly expenses, so
she is unable to save. She has one secured credit card and $5,000 of bad
debt, which has been in collection for three years. She also has an
outstanding judgment for $1,800 from a previous landlord when she was
evicted three years ago. She has a credit score of 580. Due to her past
credit history, she is renting from a private landlord.
Which step should be included in a Client Action Plan to best help this
client qualify for rental housing at an apartment complex?
A- Pay off the $1,800 judgment
B- Apply for a new job
C- Pay off the $5,000 bad debt
D- Close the secured credit card
A- Pay off the $1,800 judgment
NOTE: Paying off the $1,800 judgement most likely will help improve the
client's credit. Given that the judgement was for a previous eviction,
paying it off could also help the client's chances of getting into a better
rental. On the other hand, closing the secured credit card could actually
hurt the client's credit, because it appears to be the only positive item on
the client's credit report. Also, the client's current employer indicated the
possibility of a promotion; therefore, looking for a new job may
not be a good step. Paying off the $5,000 bad debt will improve her
credit, but that is unrelated to her past rental history.
Reference: Module 1.1 Budget
Page Number 18 to 20
,The client has no savings but thinks she can afford a home if the monthly
mortgage payment equals her rental payment. Which costs will prevent
this client from purchasing a home?
A- Property maintenance expenses
B- Principal, interest, taxes, insurance, and association fees (PITIA)
C- Pet deposit for pet owners
D- Closing costs
D- Closing costs
Closing costs average between 3% to 4% of the home purchase price
based on a variety of factors and may be higher or lower. It is important
for the client to understand that this may be a major cost when
purchasing a home, and that having no savings to use will prevent her
from purchasing. It also helps the client understand the importance of
identifying all costs and not just comparing monthly payment amounts. A
pet deposit is an expense, but is only a rental expense. The property
maintenance expense will apply only after she purchases the home.
Reference: Module 2.1 Renting vs. Buying
, The client tells her housing counselor that her employer has accessed
her credit report without
her consent. Which law protects the client from this action?
A- Fair Credit Reporting Act (FCRA)
B- Fair Credit Billing Act (FCBA)
C- Fair Labor Standards Act (FLSA)
D- Fair and Accurate Credit Transactions Act (FACTA)
A- Fair Credit Reporting Act (FCRA)
NOTE: An employer may not access an employee's credit file without his
or her consent per the
Fair Credit Reporting Act. The Fair and Accurate Credit Transactions Act
and the Fair Credit Billing Act protect consumers in other ways. The Fair
Labor Standards Act protects consumers with respect to other workplace
issues but does not address accessing a credit report without consent.
Reference: Module 1.2 Credit
QUESTIONS 2026-2027 COMPLETE ACCURATE EXAM
REAL QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (RELIABLE SOLUTIONS)
CURRENTLY UPDATED VERSION 2026 EDITION
The client is afraid her servicer might begin foreclosure proceedings
immediately and force her out of her home. Which information should the
housing counselor provide?
A- As long as the client is working with a housing counselor, the servicer
cannot file for foreclosure.
B- A mortgage servicer cannot make a first notice for foreclosure until a
borrower is more than 120 days
delinquent.
C- If the client makes a partial payment, it will delay foreclosure.
D- The client is not yet in default.
B- A mortgage servicer cannot make a first notice for foreclosure until a
borrower is more than 120 days delinquent.
,A client who is a single mother of two young children meets with a
housing counselor to create a spending
plan that helps her manage her finances better and improve her credit
score. She has been employed at her job for two years. She works 40
hours per week and earns $12 per hour. She does not receive child
support and her monthly income barely covers her monthly expenses, so
she is unable to save. She has one secured credit card and $5,000 of bad
debt, which has been in collection for three years. She also has an
outstanding judgment for $1,800 from a previous landlord when she was
evicted three years ago. She has a credit score of 580. Due to her past
credit history, she is renting from a private landlord.
Which step should be included in a Client Action Plan to best help this
client qualify for rental housing at an apartment complex?
A- Pay off the $1,800 judgment
B- Apply for a new job
C- Pay off the $5,000 bad debt
D- Close the secured credit card
A- Pay off the $1,800 judgment
NOTE: Paying off the $1,800 judgement most likely will help improve the
client's credit. Given that the judgement was for a previous eviction,
paying it off could also help the client's chances of getting into a better
rental. On the other hand, closing the secured credit card could actually
hurt the client's credit, because it appears to be the only positive item on
the client's credit report. Also, the client's current employer indicated the
possibility of a promotion; therefore, looking for a new job may
not be a good step. Paying off the $5,000 bad debt will improve her
credit, but that is unrelated to her past rental history.
Reference: Module 1.1 Budget
Page Number 18 to 20
,The client has no savings but thinks she can afford a home if the monthly
mortgage payment equals her rental payment. Which costs will prevent
this client from purchasing a home?
A- Property maintenance expenses
B- Principal, interest, taxes, insurance, and association fees (PITIA)
C- Pet deposit for pet owners
D- Closing costs
D- Closing costs
Closing costs average between 3% to 4% of the home purchase price
based on a variety of factors and may be higher or lower. It is important
for the client to understand that this may be a major cost when
purchasing a home, and that having no savings to use will prevent her
from purchasing. It also helps the client understand the importance of
identifying all costs and not just comparing monthly payment amounts. A
pet deposit is an expense, but is only a rental expense. The property
maintenance expense will apply only after she purchases the home.
Reference: Module 2.1 Renting vs. Buying
, The client tells her housing counselor that her employer has accessed
her credit report without
her consent. Which law protects the client from this action?
A- Fair Credit Reporting Act (FCRA)
B- Fair Credit Billing Act (FCBA)
C- Fair Labor Standards Act (FLSA)
D- Fair and Accurate Credit Transactions Act (FACTA)
A- Fair Credit Reporting Act (FCRA)
NOTE: An employer may not access an employee's credit file without his
or her consent per the
Fair Credit Reporting Act. The Fair and Accurate Credit Transactions Act
and the Fair Credit Billing Act protect consumers in other ways. The Fair
Labor Standards Act protects consumers with respect to other workplace
issues but does not address accessing a credit report without consent.
Reference: Module 1.2 Credit
