HUD Housing Counselor Exam (Latest 2026 /
2027 Update) Questions and Verified Answers |
100% Correct | Grade A+
Save
Terms in this set (73)
In which situation would a client's When weighing housing options
responsibilities, recurring costs, and
up front costs be evaluated?
What determines whether a client Type of loan and loan program
will have to pay private mortgage
insurance (PMI) versus mortgage
insurance premium (MIP)?
When a client submits a loan Loan estimate
application, which document
should they receive within 3
business day?
,What is the most important Paystubs
document in a Client Action Plan?
LTV (Loan-to-Value Ratio) - Compares the amount of the loan to the
appraised value (purchase price)
- LTV = (Loan amount/Appraisal)x100 (use the
lower of appraised value or purchase price)
- indicates how much of PP is being financed by
loan
- higher LTV = higher loan, higher risk for lender
- lower LTV = lower risk, lower monthly cost for
buyer
Home Buying Process (steps) 1. Determine if home-ownership is right for client
2. Determine how much client can afford
3. Help client understand their rights
4. Shop for a home
5. Make an offer
6. Obtain financing
7. Get home inspection
8. Purchase homeowners' insurance
9. Close on home
Underwriter -Works with lenders to analyze a loan application
-Evaluates borrower's credit history and property
value to gauge lending risk and borrower's
capacity to repay the loan
, What information should be -Client Personal/contact info
included in a Client Action Plan? -Household info (# of people, ages, employment
status)
-Client's goals (buy a home, avoid foreclosure,
find a rental, reduce debt)
- Income and expenses
-Assets & Liabilities (bank accounts, savings,
retirement accounts, outstanding debts, credit
cards, student loans, monthly debts)
-Credit report details
-Current housing (current housing type, housing
payments, mortgage terms, interest, delinquency
status)
-Barriers/challenges
What is the up-front mortgage 1.75%
insurance premium (MIP) for an FHA
mortgage?
Rental Ratio Front 30%
Back 36%
FHA Ratio Front 31%
Back 43%
FHA EEM Ratio Front 33%
Back 45%
2027 Update) Questions and Verified Answers |
100% Correct | Grade A+
Save
Terms in this set (73)
In which situation would a client's When weighing housing options
responsibilities, recurring costs, and
up front costs be evaluated?
What determines whether a client Type of loan and loan program
will have to pay private mortgage
insurance (PMI) versus mortgage
insurance premium (MIP)?
When a client submits a loan Loan estimate
application, which document
should they receive within 3
business day?
,What is the most important Paystubs
document in a Client Action Plan?
LTV (Loan-to-Value Ratio) - Compares the amount of the loan to the
appraised value (purchase price)
- LTV = (Loan amount/Appraisal)x100 (use the
lower of appraised value or purchase price)
- indicates how much of PP is being financed by
loan
- higher LTV = higher loan, higher risk for lender
- lower LTV = lower risk, lower monthly cost for
buyer
Home Buying Process (steps) 1. Determine if home-ownership is right for client
2. Determine how much client can afford
3. Help client understand their rights
4. Shop for a home
5. Make an offer
6. Obtain financing
7. Get home inspection
8. Purchase homeowners' insurance
9. Close on home
Underwriter -Works with lenders to analyze a loan application
-Evaluates borrower's credit history and property
value to gauge lending risk and borrower's
capacity to repay the loan
, What information should be -Client Personal/contact info
included in a Client Action Plan? -Household info (# of people, ages, employment
status)
-Client's goals (buy a home, avoid foreclosure,
find a rental, reduce debt)
- Income and expenses
-Assets & Liabilities (bank accounts, savings,
retirement accounts, outstanding debts, credit
cards, student loans, monthly debts)
-Credit report details
-Current housing (current housing type, housing
payments, mortgage terms, interest, delinquency
status)
-Barriers/challenges
What is the up-front mortgage 1.75%
insurance premium (MIP) for an FHA
mortgage?
Rental Ratio Front 30%
Back 36%
FHA Ratio Front 31%
Back 43%
FHA EEM Ratio Front 33%
Back 45%
