HUD Exam Housing Affordability QUIZ Correctly
Answered Questions Guaranteed 100% Pass
A client has $2,500 in savings and a credit score of 690. Family members have offered to
contribute to down payment costs to help him buy the home. - CORRECT ANSWER ✔✔ -FHA
A client has $25,000 in savings and a credit score of 740. She plans to keep some savings in
reserves and has identified additional funds to cover closing cost. He/She would like to buy a
$100,000 home and is steadily employed. What loan option would be best for this client? -
CORRECT ANSWER ✔✔ -Conventional
A couple, the Smiths, recently scheduled a meeting with Rebecca. They have owned their home
for seven years and have accumulated some equity in the home. However, they are now
struggling to pay their mortgage, because the wife left her full-time job when she had a baby.
Her husband's salary is paid in installments of $900 a week, which are subject to deductions and
other withholdings. Each month, they pay $1,000 in principal and interest, $110 for taxes, $130
for insurance, and $20 in homeowners assessments. What is their current front-end ratio (as a
whole number with no decimal point)? - CORRECT ANSWER ✔✔ -32%
Formula: Gross monthly income = Total weekly pay before deuctions x
Front end ratio = Monthly housing expenses / Gross monthly Income.
All of the following are true statements about upfront costs associated with renting and buying,
except;
, A. Renters generally pay a security deposit upon signing a lease.
B. The average cost due upon signing a lease for a rental is typically between 20% of the
monthly rent..
C. Closing costs are typically comprised of lender fees, discount points, title insurance, home
inspection fees, escrow deposit, property taxes, private mortgage insurance, and attorney's fees.
D. A client who desires to purchase a home worth $150,000 could be required to pay $7,000 in
standard closing costs. - CORRECT ANSWER ✔✔ -B. The average costs due upon signing a
lease for a rental is typically 20% of the monthly rent.
-This statement is not true. However, the figure of 20% is relevant for those considering buying a
home (down payment).
All of the following describe the Housing Choice Voucher Program (Section 8) except:
A. Moves due to changes in family size or job location are allowed.
B. Landlords cannot provide unsanitary housing or charge a high rent.
C. Vouchers are provided to participants directly from the local HUD office
D. Elderly renters can participate in the program. - CORRECT ANSWER ✔✔ -C. Vouchers are
provided to participants directly from the HUD office.
-Local public housing authorities distribute vouchers to program participants.
Another client would like to buy a $100,000 home and is steadily employed. This client has
$2,000 in ssavings and a credit score of 600. His family makes 60% AMI. He lives in a small
Answered Questions Guaranteed 100% Pass
A client has $2,500 in savings and a credit score of 690. Family members have offered to
contribute to down payment costs to help him buy the home. - CORRECT ANSWER ✔✔ -FHA
A client has $25,000 in savings and a credit score of 740. She plans to keep some savings in
reserves and has identified additional funds to cover closing cost. He/She would like to buy a
$100,000 home and is steadily employed. What loan option would be best for this client? -
CORRECT ANSWER ✔✔ -Conventional
A couple, the Smiths, recently scheduled a meeting with Rebecca. They have owned their home
for seven years and have accumulated some equity in the home. However, they are now
struggling to pay their mortgage, because the wife left her full-time job when she had a baby.
Her husband's salary is paid in installments of $900 a week, which are subject to deductions and
other withholdings. Each month, they pay $1,000 in principal and interest, $110 for taxes, $130
for insurance, and $20 in homeowners assessments. What is their current front-end ratio (as a
whole number with no decimal point)? - CORRECT ANSWER ✔✔ -32%
Formula: Gross monthly income = Total weekly pay before deuctions x
Front end ratio = Monthly housing expenses / Gross monthly Income.
All of the following are true statements about upfront costs associated with renting and buying,
except;
, A. Renters generally pay a security deposit upon signing a lease.
B. The average cost due upon signing a lease for a rental is typically between 20% of the
monthly rent..
C. Closing costs are typically comprised of lender fees, discount points, title insurance, home
inspection fees, escrow deposit, property taxes, private mortgage insurance, and attorney's fees.
D. A client who desires to purchase a home worth $150,000 could be required to pay $7,000 in
standard closing costs. - CORRECT ANSWER ✔✔ -B. The average costs due upon signing a
lease for a rental is typically 20% of the monthly rent.
-This statement is not true. However, the figure of 20% is relevant for those considering buying a
home (down payment).
All of the following describe the Housing Choice Voucher Program (Section 8) except:
A. Moves due to changes in family size or job location are allowed.
B. Landlords cannot provide unsanitary housing or charge a high rent.
C. Vouchers are provided to participants directly from the local HUD office
D. Elderly renters can participate in the program. - CORRECT ANSWER ✔✔ -C. Vouchers are
provided to participants directly from the HUD office.
-Local public housing authorities distribute vouchers to program participants.
Another client would like to buy a $100,000 home and is steadily employed. This client has
$2,000 in ssavings and a credit score of 600. His family makes 60% AMI. He lives in a small
