HUD EXAM PREP STUDY SET WITH COMPLETE SOLUTIONS 100%
VERIFIED!! LATEST UPDATE ALREADY GRADED A+
Conventional Loan - (ANSWER)Front end 28%
Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA prime loans.
Good credit, 20% down payment. May have interest only terms
FHA - (ANSWER)Front end 31%
Back end 43%
Limited funds, bad credit, bankruptcy, high debt to income ratio.
EEM (Energy) FHA - (ANSWER)Front end 33%
Back end 45%
VA - (ANSWER)41%
USDA - (ANSWER)Front End 29%
Back End 41%, low-to-moderate income, must live rural area, no down payment, competitive rates.
Bellow 115% median income. Loan term 33 to 38 yrs
Equal Credit Opportunity Act (ECOA) - (ANSWER)A federal act, which prohibits discrimination by lenders
on the basis of sex or marital status in any aspect of a credit transaction.
Front end Ratio - (ANSWER)PITIA/ Gross Income
Within three days of receiving a loan application, lenders are required to supply the client with -
(ANSWER)Loan Estimate
How may years at a job to show employment stability? - (ANSWER)At least 2 years
,HUD EXAM PREP STUDY SET WITH COMPLETE SOLUTIONS 100%
VERIFIED!! LATEST UPDATE ALREADY GRADED A+
Which factor determines whether the client will have to pay private mortgage insurance versus
mortgage insurance premium - (ANSWER)Type of loan
The Fair Housing Act - (ANSWER)The federal law that prohibits discrimination in housing based on race,
color, religion, sex, handicap, familial status, and national origin
The Housing and Urban Development Act - (ANSWER)providing government-insured loans to moderate-
income people.
The Dodd-Frank Act - (ANSWER)protects borrowers from predatory lending practices
Affirmatively Furthering Fair Housing (AFFH) - (ANSWER)Advocating for lenders to operate in
underserved areas
After how many days can foreclosure proceedings begin if the client is not being evaluated for loss
mitigation, and has missed payments on an FHA loan - (ANSWER)120
FHA 203K Loan - (ANSWER)allows the homeowner to refinance the home loan to perform repair
Streamlined 203K Loan - (ANSWER)minor rehabilitation and/or home improvement projects that will not
require the involvement of consultants, engineers, and/or architects
key advantage of the client using a real estate agent versus selling her house on her own - (ANSWER)Real
estate agents negotiate on behalf of the client.
A means test - (ANSWER)bankruptcy qualification that considers income and equity in assets to
determine if a client has the ability to repay part of the debt
Default - (ANSWER)when a payment has not been made after 60 to 90 days. FHA 30 days
, HUD EXAM PREP STUDY SET WITH COMPLETE SOLUTIONS 100%
VERIFIED!! LATEST UPDATE ALREADY GRADED A+
Delinquent - (ANSWER)timely mortgage payments by the end of the grace period (14 day)
Which notice must the servicer send the client once the mortgage is delinquent and before 45 days past
due? - (ANSWER)Housing counseling
advertisement that guarantees a government-approved loan modification must be reported to...... -
(ANSWER)Report the company to the Federal Trade Commission (FTC)
The only mortgage loan product that allows family assistance - (ANSWER)FHA - USDA and VA do not
require down payment, and conventional loans won't allow family funds
Consumer Finance Protection Bureau CFPB - (ANSWER)Easier-to-use mortgage disclosure forms that
clearly outline the terms of a mortgage to the borrower
Satisfies efforts to Affirmatively Further Fair Housing - (ANSWER)Reviewing marketing materials of local
mortgage lenders satisfies efforts to Affirmatively Further Fair Housing
Chapter 7 Bankruptcy - (ANSWER)Means test, Liquidation of assets, best for client with no assets
Chapter 13 bankrupcy - (ANSWER)retain house/car, Wager earner plan-pay all or part of debts 3-5 yrs,
Earned Income Tax Credit (EITC) - (ANSWER)Low to moderate earned income individuals or family. Net
earnings from self employment. Tax credits are based on income, marital status, number of children
Child and dependent care tax credit - (ANSWER)working or looking for work may be eligible if they are
paying a service to take care of a dependent (child or adult). Also may claim additional credits for
qualifying children under 17
VERIFIED!! LATEST UPDATE ALREADY GRADED A+
Conventional Loan - (ANSWER)Front end 28%
Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA prime loans.
Good credit, 20% down payment. May have interest only terms
FHA - (ANSWER)Front end 31%
Back end 43%
Limited funds, bad credit, bankruptcy, high debt to income ratio.
EEM (Energy) FHA - (ANSWER)Front end 33%
Back end 45%
VA - (ANSWER)41%
USDA - (ANSWER)Front End 29%
Back End 41%, low-to-moderate income, must live rural area, no down payment, competitive rates.
Bellow 115% median income. Loan term 33 to 38 yrs
Equal Credit Opportunity Act (ECOA) - (ANSWER)A federal act, which prohibits discrimination by lenders
on the basis of sex or marital status in any aspect of a credit transaction.
Front end Ratio - (ANSWER)PITIA/ Gross Income
Within three days of receiving a loan application, lenders are required to supply the client with -
(ANSWER)Loan Estimate
How may years at a job to show employment stability? - (ANSWER)At least 2 years
,HUD EXAM PREP STUDY SET WITH COMPLETE SOLUTIONS 100%
VERIFIED!! LATEST UPDATE ALREADY GRADED A+
Which factor determines whether the client will have to pay private mortgage insurance versus
mortgage insurance premium - (ANSWER)Type of loan
The Fair Housing Act - (ANSWER)The federal law that prohibits discrimination in housing based on race,
color, religion, sex, handicap, familial status, and national origin
The Housing and Urban Development Act - (ANSWER)providing government-insured loans to moderate-
income people.
The Dodd-Frank Act - (ANSWER)protects borrowers from predatory lending practices
Affirmatively Furthering Fair Housing (AFFH) - (ANSWER)Advocating for lenders to operate in
underserved areas
After how many days can foreclosure proceedings begin if the client is not being evaluated for loss
mitigation, and has missed payments on an FHA loan - (ANSWER)120
FHA 203K Loan - (ANSWER)allows the homeowner to refinance the home loan to perform repair
Streamlined 203K Loan - (ANSWER)minor rehabilitation and/or home improvement projects that will not
require the involvement of consultants, engineers, and/or architects
key advantage of the client using a real estate agent versus selling her house on her own - (ANSWER)Real
estate agents negotiate on behalf of the client.
A means test - (ANSWER)bankruptcy qualification that considers income and equity in assets to
determine if a client has the ability to repay part of the debt
Default - (ANSWER)when a payment has not been made after 60 to 90 days. FHA 30 days
, HUD EXAM PREP STUDY SET WITH COMPLETE SOLUTIONS 100%
VERIFIED!! LATEST UPDATE ALREADY GRADED A+
Delinquent - (ANSWER)timely mortgage payments by the end of the grace period (14 day)
Which notice must the servicer send the client once the mortgage is delinquent and before 45 days past
due? - (ANSWER)Housing counseling
advertisement that guarantees a government-approved loan modification must be reported to...... -
(ANSWER)Report the company to the Federal Trade Commission (FTC)
The only mortgage loan product that allows family assistance - (ANSWER)FHA - USDA and VA do not
require down payment, and conventional loans won't allow family funds
Consumer Finance Protection Bureau CFPB - (ANSWER)Easier-to-use mortgage disclosure forms that
clearly outline the terms of a mortgage to the borrower
Satisfies efforts to Affirmatively Further Fair Housing - (ANSWER)Reviewing marketing materials of local
mortgage lenders satisfies efforts to Affirmatively Further Fair Housing
Chapter 7 Bankruptcy - (ANSWER)Means test, Liquidation of assets, best for client with no assets
Chapter 13 bankrupcy - (ANSWER)retain house/car, Wager earner plan-pay all or part of debts 3-5 yrs,
Earned Income Tax Credit (EITC) - (ANSWER)Low to moderate earned income individuals or family. Net
earnings from self employment. Tax credits are based on income, marital status, number of children
Child and dependent care tax credit - (ANSWER)working or looking for work may be eligible if they are
paying a service to take care of a dependent (child or adult). Also may claim additional credits for
qualifying children under 17
