HUD HOUSING COUNSELOR
CERTIFICATION 2024 ACTUAL EXAM
QUESTIONS AND DETAILED
ANSWERS WITH RATIONALES|
GUARANTEED PASS
What is the maximum percent of area median income allowable
for a household to qualify for a Housing Choice Voucher?
Correct Answer 50%
Which is the maximum recommended housing ratio for renting
an apartment? Correct Answer 30%
Eligibility requirements for down-payment assistance programs
include which factors? Correct Answer Income, home-buyer
education, purchase price
The client is considering an FHA mortgage. What is the upfront
mortgage insurance premium (UFMIP) for an
FHA mortgage? Correct Answer 1.75%
If the client was denied a mortgage loan and the lender told him
to come back after his divorce had been final for three years,
what is the best advice for the housing counselor to provide to
the client to report a violation to ECOA? Correct Answer
Contact the Federal Trade Commission as the lender's action
might violate the Equal Credit Opportunity Act
A question from a lender on the client's Medical History would
be inappropriate or appropriate? Correct Answer Inappropriate
Who is responsible for educating home-buyers about their
rights? Correct Answer Housing Counselor
,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
What are the responsibilities of a home inspector? Correct
Answer Examine mechanical systems, Evaluate the condition
of a home, Identify items to be repaired or replaced
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
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
The client tells the lender that he is expecting a raise soon.
Should the Lender provide a Loan Estimate (LE) with, or
without factoring the raise? Correct Answer Provide a loan
estimate without factoring in the raise
If this client obtains a mortgage of $100,000, typically, how
much should he expect to pay for closing costs? Correct
Answer $3000 to $4000
Is Application Fee an upfront cost of clients who are
considering renting or buying a property? Correct Answer
Renting
A client wants to customize his home with do-it-yourself
projects, this is an indication the client is best aligned with
which housing option; Home-ownership or Renting? Correct
Answer Home-ownership
,The client's gross monthly income is $4167 and the monthly
debts are $435. What is the maximum mortgage payment
(rounded to the nearest dollar) for which this client would
qualify using a standard conventional loan? Correct Answer
$1,065
NOTE: The maximum front-end ratio for a standard
conventional loan is 28%, and the back-end ratio is 36%. The
front-end ratio is calculated as 28% of the client's monthly
income of $4,167, which is $1,167. The back-end ratio is
calculated as 36% of the
client's monthly income of $4,167 minus the client's monthly
debt of $435, which equals $1,065. Therefore, the maximum
loan payment that the client qualifies for is the lower of the two
numbers, which is $1,065.
Which is the maximum debt-to-income ratio allowable for an
FHA loan? Correct Answer 43%
Which is the maximum debt-to-income ratio allowable for an
FHA Energy Efficiency Mortgage loan? Correct Answer 45%
The client's gross monthly income is $4167 and the monthly
debts are $435. With a monthly mortgage payment of $950,
which is the client's debt-to-income ratio (round to the nearest
whole percent)? Correct Answer 33%
The client's gross monthly income is $4167 and the monthly
debts are $435. If the client seeks an FHA Energy Efficient
Mortgage (EEM) loan, what is the maximum housing payment
for which he can qualify (rounded to the nearest dollar)?
Correct Answer $1,292
On which factor is a borrower's annual mortgage insurance
premium (MIP) based? Correct Answer Current principal
balance
, NOTE: The annual mortgage insurance premium (MIP) is
based on the unpaid principal balance of the loan. The loan-to-
value ratio is used to determine when private mortgage
insurance (PMI) can be dropped from the loan. Credit scores
do not affect MIP but might affect PMI.
Which is the upfront mortgage insurance premium (UFMIP) if
the client purchases a home with an FHA loan amount of
$116,000? Correct Answer $2,030
The client only tracks bill payments. Which should the housing
counselor recommend to help the client begin
planning for a home purchase?
A- Continue to track bill payments only
B- Track income only
C- Track all income and expenses
D- Track savings deposits and expenses Correct Answer C-
Track all income and expenses
How should a client apply for the Housing Choice Voucher
Program? Correct Answer Contact the local Public Housing
Authority
Which website provides information on programs to assist
home-buyers with down payment assistance? Correct Answer
HUD.gov
Based on the client's income of $56,400 per year of, savings of
12,000 toward a down payment, and credit score of 700, which
mortgage option is likely best for her; Conventional loan, FHA
loan, USDA Rural Development loan, or Subprime loan?
Correct Answer Conventional loan
This client is denied a loan to purchase a home because she
has not lived in the country for at least ten years. Which Act is
this adverse action violating, and where should the client report
CERTIFICATION 2024 ACTUAL EXAM
QUESTIONS AND DETAILED
ANSWERS WITH RATIONALES|
GUARANTEED PASS
What is the maximum percent of area median income allowable
for a household to qualify for a Housing Choice Voucher?
Correct Answer 50%
Which is the maximum recommended housing ratio for renting
an apartment? Correct Answer 30%
Eligibility requirements for down-payment assistance programs
include which factors? Correct Answer Income, home-buyer
education, purchase price
The client is considering an FHA mortgage. What is the upfront
mortgage insurance premium (UFMIP) for an
FHA mortgage? Correct Answer 1.75%
If the client was denied a mortgage loan and the lender told him
to come back after his divorce had been final for three years,
what is the best advice for the housing counselor to provide to
the client to report a violation to ECOA? Correct Answer
Contact the Federal Trade Commission as the lender's action
might violate the Equal Credit Opportunity Act
A question from a lender on the client's Medical History would
be inappropriate or appropriate? Correct Answer Inappropriate
Who is responsible for educating home-buyers about their
rights? Correct Answer Housing Counselor
,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
What are the responsibilities of a home inspector? Correct
Answer Examine mechanical systems, Evaluate the condition
of a home, Identify items to be repaired or replaced
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
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
The client tells the lender that he is expecting a raise soon.
Should the Lender provide a Loan Estimate (LE) with, or
without factoring the raise? Correct Answer Provide a loan
estimate without factoring in the raise
If this client obtains a mortgage of $100,000, typically, how
much should he expect to pay for closing costs? Correct
Answer $3000 to $4000
Is Application Fee an upfront cost of clients who are
considering renting or buying a property? Correct Answer
Renting
A client wants to customize his home with do-it-yourself
projects, this is an indication the client is best aligned with
which housing option; Home-ownership or Renting? Correct
Answer Home-ownership
,The client's gross monthly income is $4167 and the monthly
debts are $435. What is the maximum mortgage payment
(rounded to the nearest dollar) for which this client would
qualify using a standard conventional loan? Correct Answer
$1,065
NOTE: The maximum front-end ratio for a standard
conventional loan is 28%, and the back-end ratio is 36%. The
front-end ratio is calculated as 28% of the client's monthly
income of $4,167, which is $1,167. The back-end ratio is
calculated as 36% of the
client's monthly income of $4,167 minus the client's monthly
debt of $435, which equals $1,065. Therefore, the maximum
loan payment that the client qualifies for is the lower of the two
numbers, which is $1,065.
Which is the maximum debt-to-income ratio allowable for an
FHA loan? Correct Answer 43%
Which is the maximum debt-to-income ratio allowable for an
FHA Energy Efficiency Mortgage loan? Correct Answer 45%
The client's gross monthly income is $4167 and the monthly
debts are $435. With a monthly mortgage payment of $950,
which is the client's debt-to-income ratio (round to the nearest
whole percent)? Correct Answer 33%
The client's gross monthly income is $4167 and the monthly
debts are $435. If the client seeks an FHA Energy Efficient
Mortgage (EEM) loan, what is the maximum housing payment
for which he can qualify (rounded to the nearest dollar)?
Correct Answer $1,292
On which factor is a borrower's annual mortgage insurance
premium (MIP) based? Correct Answer Current principal
balance
, NOTE: The annual mortgage insurance premium (MIP) is
based on the unpaid principal balance of the loan. The loan-to-
value ratio is used to determine when private mortgage
insurance (PMI) can be dropped from the loan. Credit scores
do not affect MIP but might affect PMI.
Which is the upfront mortgage insurance premium (UFMIP) if
the client purchases a home with an FHA loan amount of
$116,000? Correct Answer $2,030
The client only tracks bill payments. Which should the housing
counselor recommend to help the client begin
planning for a home purchase?
A- Continue to track bill payments only
B- Track income only
C- Track all income and expenses
D- Track savings deposits and expenses Correct Answer C-
Track all income and expenses
How should a client apply for the Housing Choice Voucher
Program? Correct Answer Contact the local Public Housing
Authority
Which website provides information on programs to assist
home-buyers with down payment assistance? Correct Answer
HUD.gov
Based on the client's income of $56,400 per year of, savings of
12,000 toward a down payment, and credit score of 700, which
mortgage option is likely best for her; Conventional loan, FHA
loan, USDA Rural Development loan, or Subprime loan?
Correct Answer Conventional loan
This client is denied a loan to purchase a home because she
has not lived in the country for at least ten years. Which Act is
this adverse action violating, and where should the client report
