HUD CERTIFICATION EXAM NEWEST 2026 ACTUAL
EXAM TEST BANK| HUD CERTIFICATION EXAM
PREP WITH COMPLETE 400 REAL EXAM QUESTIONS
AND CORRECT VERIFIED ANSWERS/ ALREADY
GRADED A+ (MOST RECENT!!)
A client does not receive a written monthly statement from the credit
card company. Which credit law could this omission violate?
A. Fair Credit Billing Act
B. Fair Credit Reporting Act
C. Fair Housing Act
D. Fair and Accurate Credit Transactions Act - Correct Answer -Fair
Credit Billing Act
In which situation would a client's responsibilities, recurring costs, and
upfront costs be evaluated?
A. When considering closing costs
B. When choosing a loan officer
C. When weighing housing options
D. When applying for a loan modification - Correct Answer -When
weighing housing options
A client works 40 hours a week making $15 an hour. What is the highest
monthly mortgage the client can afford based on income if the client
secures a conventional loan?
A. $728
pg. 1
,B. $806
C. $936
D. $1,118 - Correct Answer -$728
Which type of government insured loan was created for financing homes
in rural areas?
A. VA
B. Fannie Mae
C. FHA
D. USDA - Correct Answer -USDA
Which type of assistance administered by a public housing authority
allows for location flexibility. A client keeps having budget problems
due to unexpected expenses. Which financial tool would best assist this
client to prepare for unexpected expenses and avoid increasing credit
usage?
A. Emergency fund
B. Line of credit
C. Payday loan
D. Retirement savings account - Correct Answer -Emergency fund
A client has a monthly household income of $2,300, monthly debt
payments of $450, and an optimal monthly housing ratio of 32%. What
is the client's optimal monthly housing payment?
A. $592
B. $736
pg. 2
,C. $880
D. $1,186 - Correct Answer -$736
What is the back-end ratio for a client with a monthly housing expense
of $1,250, a monthly total of $88 in other consumer debt payments, and
a gross household income of $4,460 per month (rounded to the nearest
whole percent)?
A. 29%
A. 30%
C. 31%
D. 32% - Correct Answer -30%
A client earns a salary of $45,000 at a job held for three years. The client
has credit card bills, student loans, and a car loan totaling $500 per
month. The client has already saved $3,500 for a down payment and is
using an FHA Energy Efficient Mortgage (EEM).
If the client wants to make the minimum down payment for a home
priced at $150,000, how much more does the client need to save?
A. $1,750
B. $2,250
C. $4,500
D. $5,250 - Correct Answer -$1,750
Which type of assistance administered by a public housing authority
allows for location flexibility?
A. USDA
B. FHA
pg. 3
, C. Project-based vouchers
D. Tenant-based vouchers - Correct Answer -Tenant-based vouchers
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?
A. Character
B. Capital
C. Collateral
D. Capacity - Correct 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?
A. Character
B. Collateral
C. Capital
D. Capacity - Correct 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?
A. Capacity
B. Character
C. Capital
pg. 4
EXAM TEST BANK| HUD CERTIFICATION EXAM
PREP WITH COMPLETE 400 REAL EXAM QUESTIONS
AND CORRECT VERIFIED ANSWERS/ ALREADY
GRADED A+ (MOST RECENT!!)
A client does not receive a written monthly statement from the credit
card company. Which credit law could this omission violate?
A. Fair Credit Billing Act
B. Fair Credit Reporting Act
C. Fair Housing Act
D. Fair and Accurate Credit Transactions Act - Correct Answer -Fair
Credit Billing Act
In which situation would a client's responsibilities, recurring costs, and
upfront costs be evaluated?
A. When considering closing costs
B. When choosing a loan officer
C. When weighing housing options
D. When applying for a loan modification - Correct Answer -When
weighing housing options
A client works 40 hours a week making $15 an hour. What is the highest
monthly mortgage the client can afford based on income if the client
secures a conventional loan?
A. $728
pg. 1
,B. $806
C. $936
D. $1,118 - Correct Answer -$728
Which type of government insured loan was created for financing homes
in rural areas?
A. VA
B. Fannie Mae
C. FHA
D. USDA - Correct Answer -USDA
Which type of assistance administered by a public housing authority
allows for location flexibility. A client keeps having budget problems
due to unexpected expenses. Which financial tool would best assist this
client to prepare for unexpected expenses and avoid increasing credit
usage?
A. Emergency fund
B. Line of credit
C. Payday loan
D. Retirement savings account - Correct Answer -Emergency fund
A client has a monthly household income of $2,300, monthly debt
payments of $450, and an optimal monthly housing ratio of 32%. What
is the client's optimal monthly housing payment?
A. $592
B. $736
pg. 2
,C. $880
D. $1,186 - Correct Answer -$736
What is the back-end ratio for a client with a monthly housing expense
of $1,250, a monthly total of $88 in other consumer debt payments, and
a gross household income of $4,460 per month (rounded to the nearest
whole percent)?
A. 29%
A. 30%
C. 31%
D. 32% - Correct Answer -30%
A client earns a salary of $45,000 at a job held for three years. The client
has credit card bills, student loans, and a car loan totaling $500 per
month. The client has already saved $3,500 for a down payment and is
using an FHA Energy Efficient Mortgage (EEM).
If the client wants to make the minimum down payment for a home
priced at $150,000, how much more does the client need to save?
A. $1,750
B. $2,250
C. $4,500
D. $5,250 - Correct Answer -$1,750
Which type of assistance administered by a public housing authority
allows for location flexibility?
A. USDA
B. FHA
pg. 3
, C. Project-based vouchers
D. Tenant-based vouchers - Correct Answer -Tenant-based vouchers
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?
A. Character
B. Capital
C. Collateral
D. Capacity - Correct 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?
A. Character
B. Collateral
C. Capital
D. Capacity - Correct 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?
A. Capacity
B. Character
C. Capital
pg. 4
