HUD Housing Counselor Certification
Practice Exam Questions and Correct
Answers
Question 1
Which action taken by a housing counseling agency would affirmatively further fair
housing?
A- Report potential violations to the local fair housing authority
B- Create an outreach campaign designed to raise awareness about critical housing
topics
C- Accompany clients when viewing properties to ensure they are treated fairly
D- Discourage tenants from seeking housing with landlords who appear to
consistently engage in discriminatory practices
Correct Answer
B- Create an outreach campaign designed to raise awareness about critical housing
topics
Question 2
Which is the best reason that a housing counselor would suggest that a client speak
to three to five different lenders?
Correct Answer
To compare loan estimates
Question 3
Which is an appropriate feature of a safe room?
Correct Answer
Few or no windows
NOTE: A safe room should have few-to-no windows, as that makes it less likely that
safety will be compromised. Rooms on the interior of the home and rooms without
doors to the outside are preferable for this same reason. The size of a room has
little bearing on whether it is an appropriate safe room.
Page 1 of 86
,Question 4
Which is an eligibility factor for the Earned Income Tax Credit?
A- Having a qualifying child
B- Pursuing post-secondary education
C- Filing as head of household
D- Receiving wages
Correct Answer
D- Receiving wages
Question 5
Eligibility requirements for down-payment assistance programs include which factors?
Correct Answer
Income, home-buyer education, purchase price
Question 6
The client is also behind on her credit card debt and has only a few job prospects. She
is considering filing for bankruptcy but wants to keep her home. Which advice should
the housing counselor provide?
A- Suggest the client file for a Chapter 13 bankruptcy
B- Suggest the client file for a Chapter 7 bankruptcy
C- Provide the client with the name of a bankruptcy attorney
D- Explore loss mitigation options available
Correct Answer
D- Explore loss mitigation options available
Page 2 of 86
,Question 7
Which additional information would the housing counselor need to prepare the
action plan for this client?
A- Documentation of life insurance payout
B- Client's current lease agreement
C- Documentation of household expenses
D- Listings for properties the client is interested in purchasing
Correct Answer
Documentation of household expenses
Question 8
Which Affirmatively Furthering Fair Housing action might benefit a client?
A- Settle fair housing complaints on behalf of the client
B- Commence a civil action in an appropriate U.S. district or state court on behalf of
the client
C- Require banks to operate in areas that are underserved
D- Conduct educational initiatives to inform people about fair housing obligations
Correct Answer
D- Conduct educational initiatives to inform people about fair housing obligations
Question 9
The client currently pays $2,050 in rent, though her mortgage payment could be
higher. Which is the most
effective strategy to be able to manage a higher payment?
A- Withdraw retirement account funds to pay down car and credit card balances
B- Delay home purchase until the car loan is paid off
C- Consolidate car loan and credit card balances
D- Utilize savings to pay the mortgage in the future
Correct Answer
B- Delay home purchase until the car loan is paid off
Page 3 of 86
, Question 10
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?
Correct Answer
A 30-day period
Question 11
Which is the best advice that a housing counselor can give the client to protect
against identity theft?
Correct Answer
Review credit report at least once per year
Question 12
This client has $25,000 of equity in her home and needs $49,000 to replace her
windows and pipes. Which
finance option should the housing counselor recommend?
A- Conventional Mortgage
B- Second Mortgage
C- FHA 203k
D- Home Equity Line of Credit
Correct Answer
C- FHA 203k
NOTE: An FHA 203k loan is based on the future value of the property after repairs
and will provide the funds for home improvements beyond the current equity in the
house.
Page 4 of 86
Practice Exam Questions and Correct
Answers
Question 1
Which action taken by a housing counseling agency would affirmatively further fair
housing?
A- Report potential violations to the local fair housing authority
B- Create an outreach campaign designed to raise awareness about critical housing
topics
C- Accompany clients when viewing properties to ensure they are treated fairly
D- Discourage tenants from seeking housing with landlords who appear to
consistently engage in discriminatory practices
Correct Answer
B- Create an outreach campaign designed to raise awareness about critical housing
topics
Question 2
Which is the best reason that a housing counselor would suggest that a client speak
to three to five different lenders?
Correct Answer
To compare loan estimates
Question 3
Which is an appropriate feature of a safe room?
Correct Answer
Few or no windows
NOTE: A safe room should have few-to-no windows, as that makes it less likely that
safety will be compromised. Rooms on the interior of the home and rooms without
doors to the outside are preferable for this same reason. The size of a room has
little bearing on whether it is an appropriate safe room.
Page 1 of 86
,Question 4
Which is an eligibility factor for the Earned Income Tax Credit?
A- Having a qualifying child
B- Pursuing post-secondary education
C- Filing as head of household
D- Receiving wages
Correct Answer
D- Receiving wages
Question 5
Eligibility requirements for down-payment assistance programs include which factors?
Correct Answer
Income, home-buyer education, purchase price
Question 6
The client is also behind on her credit card debt and has only a few job prospects. She
is considering filing for bankruptcy but wants to keep her home. Which advice should
the housing counselor provide?
A- Suggest the client file for a Chapter 13 bankruptcy
B- Suggest the client file for a Chapter 7 bankruptcy
C- Provide the client with the name of a bankruptcy attorney
D- Explore loss mitigation options available
Correct Answer
D- Explore loss mitigation options available
Page 2 of 86
,Question 7
Which additional information would the housing counselor need to prepare the
action plan for this client?
A- Documentation of life insurance payout
B- Client's current lease agreement
C- Documentation of household expenses
D- Listings for properties the client is interested in purchasing
Correct Answer
Documentation of household expenses
Question 8
Which Affirmatively Furthering Fair Housing action might benefit a client?
A- Settle fair housing complaints on behalf of the client
B- Commence a civil action in an appropriate U.S. district or state court on behalf of
the client
C- Require banks to operate in areas that are underserved
D- Conduct educational initiatives to inform people about fair housing obligations
Correct Answer
D- Conduct educational initiatives to inform people about fair housing obligations
Question 9
The client currently pays $2,050 in rent, though her mortgage payment could be
higher. Which is the most
effective strategy to be able to manage a higher payment?
A- Withdraw retirement account funds to pay down car and credit card balances
B- Delay home purchase until the car loan is paid off
C- Consolidate car loan and credit card balances
D- Utilize savings to pay the mortgage in the future
Correct Answer
B- Delay home purchase until the car loan is paid off
Page 3 of 86
, Question 10
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?
Correct Answer
A 30-day period
Question 11
Which is the best advice that a housing counselor can give the client to protect
against identity theft?
Correct Answer
Review credit report at least once per year
Question 12
This client has $25,000 of equity in her home and needs $49,000 to replace her
windows and pipes. Which
finance option should the housing counselor recommend?
A- Conventional Mortgage
B- Second Mortgage
C- FHA 203k
D- Home Equity Line of Credit
Correct Answer
C- FHA 203k
NOTE: An FHA 203k loan is based on the future value of the property after repairs
and will provide the funds for home improvements beyond the current equity in the
house.
Page 4 of 86
