HUD HOUSING COUNSELOR CERTIFICATION EXAM 2024
ACTUAL EXAM COMPLETE 270 QUESTIONS WITH
DETAILED VERIFIED ANSWERS BEST REVISION
MATERIAL / ALREADY GRADED A+
3.2 FHIP & FHAP? - ANSWER: FHIP provides funding to fair housing organizations and
non-profits that assist people who may have been victims of housing discrimination.
FHAP provides annual funding to state and local agencies that are substantially
equivalent to the Fair Housing Act. These funds go towards an agency's capacity
building, administrative costs, investigative and enforcement efforts, training, and
other projects designed to support enforcement of fair housing laws.
A1: Which document should the counselor review with the client to identify
spending habits and track expenses? - ANSWER: Bank statement. Reviewing the
client's bank statement is an important step in identifying spending habits, because
it provides insight into actual income and expense transactions.
A1: Which additional information would the housing counselor need to prepare a
household budget besides gross income and expenses? - ANSWER: Net income. The
scenario provides the gross income and total expense, but the counselor needs the
net income to prepare a realistic budget.
A1: Which item in the client's budget is a fixed expense? Food, gas, utilities & car
payment. - ANSWER: Car lease payment. A car lease will have a fixed monthly
payment. Other expenses - like food, gas, and utilities - can vary.
A1: What is the maximum percent of area median income allowable for a household
to qualify for a Housing Choice Voucher? - ANSWER: 50%. According to HUD's
Housing Choice Voucher eligibility guidelines, a household income cannot exceed
50% of the area median income to initially qualify.
A1: What is the maximum recommended housing ratio for renting an apartment? -
ANSWER: 30%. The maximum housing ratio recommended for renters is 30% of
gross income.
A1: Eligibility requirements for downpayment assistance programs include which
factors? - ANSWER: Eligibility varies depending on the program but is typically based
on income, homebuyer education, and the price of the property being purchased.
A1: What is the upfront mortgage insurance premium (UFMIP) for an FHA mortgage?
- ANSWER: The upfront mortgage insurance premium (UFMIP) is 1.75% for FHA
mortgages. The annual MIP for FHA mortgages ranges between 0.8% and 1.05%.
USDA loans charge an up-front Guarantee Fee of 2%.
, A1: Which situation might cause an accelerated loan payment? - ANSWER: Client
moves to his wife's home and rents his townhouse to a tenant. Many downpayment
assistance programs (DPA) require owner occupancy. The recapture clause is
triggered when the husband rents or sells the townhouse, but the loan can be
assumed by an eligible buyer.
A1: 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? - ANSWER: Contact the FTC as the
lender's action might violate the ECOA, which states: Federal law requires lenders to
make credit available equally without discrimination based on race, color, religion,
national origin, age, sex, marital status, or receipt of income from public assistance
programs. This client's marital status of 'single' or 'divorced' should have no effect on
the approval of the mortgage loan.
A1: A question from a lender on which topic would be inappropriate? Debt, income,
employment, or medical history. - ANSWER: Medical history. To complete a loan
application, the lender must ask questions about debt, income, and employment
history. Questions about the client's medical history, especially pertaining to a
disability, could indicate discrimination.
A1: Which is a responsibility of a housing counselor? Educate homebuyers about
their rights, selecting the lender, home inspector, or realtor. - ANSWER: Educate
homebuyers about their rights. One of the housing counselor's responsibilities is to
help the client understand their rights in the process. The client selects the lender
and home inspector and works with a realtor to shop for a home.
A1: 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? - ANSWER: A 30-day period. Pulling all credit reports within a 30-
day period reduces the negative impact on a credit score.
A1: Which is a responsibility of a home inspector? - ANSWER: Evaluate the condition
of a home. Examine mechanical systems. Identify items to be repaired or replaced.
Appraisers evaluate home value. Contractors perform repairs.
A1: Which is the best reason that a housing counselor would suggest that a client
speak to three to five different lenders before choosing one? - ANSWER: So the client
can compare loan estimates. One way to avoid predatory lending practices is to
compare multiple loan estimates from lenders. When comparing estimates, a client
should take time to review all the information and weed out any over-the-top offers
that seem fishy or suspicious. While it is great to get a low interest rate, the client
should be looking at more than only the rate when making comparisons. If the client
has questions about estimates received, they can bring them back to the counselor
to discuss.
ACTUAL EXAM COMPLETE 270 QUESTIONS WITH
DETAILED VERIFIED ANSWERS BEST REVISION
MATERIAL / ALREADY GRADED A+
3.2 FHIP & FHAP? - ANSWER: FHIP provides funding to fair housing organizations and
non-profits that assist people who may have been victims of housing discrimination.
FHAP provides annual funding to state and local agencies that are substantially
equivalent to the Fair Housing Act. These funds go towards an agency's capacity
building, administrative costs, investigative and enforcement efforts, training, and
other projects designed to support enforcement of fair housing laws.
A1: Which document should the counselor review with the client to identify
spending habits and track expenses? - ANSWER: Bank statement. Reviewing the
client's bank statement is an important step in identifying spending habits, because
it provides insight into actual income and expense transactions.
A1: Which additional information would the housing counselor need to prepare a
household budget besides gross income and expenses? - ANSWER: Net income. The
scenario provides the gross income and total expense, but the counselor needs the
net income to prepare a realistic budget.
A1: Which item in the client's budget is a fixed expense? Food, gas, utilities & car
payment. - ANSWER: Car lease payment. A car lease will have a fixed monthly
payment. Other expenses - like food, gas, and utilities - can vary.
A1: What is the maximum percent of area median income allowable for a household
to qualify for a Housing Choice Voucher? - ANSWER: 50%. According to HUD's
Housing Choice Voucher eligibility guidelines, a household income cannot exceed
50% of the area median income to initially qualify.
A1: What is the maximum recommended housing ratio for renting an apartment? -
ANSWER: 30%. The maximum housing ratio recommended for renters is 30% of
gross income.
A1: Eligibility requirements for downpayment assistance programs include which
factors? - ANSWER: Eligibility varies depending on the program but is typically based
on income, homebuyer education, and the price of the property being purchased.
A1: What is the upfront mortgage insurance premium (UFMIP) for an FHA mortgage?
- ANSWER: The upfront mortgage insurance premium (UFMIP) is 1.75% for FHA
mortgages. The annual MIP for FHA mortgages ranges between 0.8% and 1.05%.
USDA loans charge an up-front Guarantee Fee of 2%.
, A1: Which situation might cause an accelerated loan payment? - ANSWER: Client
moves to his wife's home and rents his townhouse to a tenant. Many downpayment
assistance programs (DPA) require owner occupancy. The recapture clause is
triggered when the husband rents or sells the townhouse, but the loan can be
assumed by an eligible buyer.
A1: 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? - ANSWER: Contact the FTC as the
lender's action might violate the ECOA, which states: Federal law requires lenders to
make credit available equally without discrimination based on race, color, religion,
national origin, age, sex, marital status, or receipt of income from public assistance
programs. This client's marital status of 'single' or 'divorced' should have no effect on
the approval of the mortgage loan.
A1: A question from a lender on which topic would be inappropriate? Debt, income,
employment, or medical history. - ANSWER: Medical history. To complete a loan
application, the lender must ask questions about debt, income, and employment
history. Questions about the client's medical history, especially pertaining to a
disability, could indicate discrimination.
A1: Which is a responsibility of a housing counselor? Educate homebuyers about
their rights, selecting the lender, home inspector, or realtor. - ANSWER: Educate
homebuyers about their rights. One of the housing counselor's responsibilities is to
help the client understand their rights in the process. The client selects the lender
and home inspector and works with a realtor to shop for a home.
A1: 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? - ANSWER: A 30-day period. Pulling all credit reports within a 30-
day period reduces the negative impact on a credit score.
A1: Which is a responsibility of a home inspector? - ANSWER: Evaluate the condition
of a home. Examine mechanical systems. Identify items to be repaired or replaced.
Appraisers evaluate home value. Contractors perform repairs.
A1: Which is the best reason that a housing counselor would suggest that a client
speak to three to five different lenders before choosing one? - ANSWER: So the client
can compare loan estimates. One way to avoid predatory lending practices is to
compare multiple loan estimates from lenders. When comparing estimates, a client
should take time to review all the information and weed out any over-the-top offers
that seem fishy or suspicious. While it is great to get a low interest rate, the client
should be looking at more than only the rate when making comparisons. If the client
has questions about estimates received, they can bring them back to the counselor
to discuss.
