HUD EXAM PREP QUESTIONS WITH CORRECT ANSWERS 2025

HUD EXAM PREP QUESTIONS WITH
CORRECT ANSWERS 2025
ConventionalMLoanM-MCORRECTMANSWERM-FrontMendM28%

BackMendM36%McanMgoMupMtoM45%MtoM50%(debtMtoMincome),MbackedMbyMprivateMlenders.MAKAMprimeMlo
ans.MGoodMcredit,M20%MdownMpayment.MMayMhaveMinterestMonlyMterms



FHAM-MCORRECTMANSWERM-FrontMendM31%

BackMendM43%

LimitedMfunds,MbadMcredit,Mbankruptcy,MhighMdebtMtoMincomeMratio.



EEMM(Energy)MFHAM-MCORRECTMANSWERM-FrontMendM33%

BackMendM45%



VAM-MCORRECTMANSWERM-41%



USDAM-MCORRECTMANSWERM-FrontMEndM29%

BackMEndM41%,Mlow-to-
moderateMincome,MmustMliveMruralMarea,MnoMdownMpayment,McompetitiveMrates.MBellowM115%MmedianM
income.MLoanMtermM33MtoM38Myrs



EqualMCreditMOpportunityMActM(ECOA)M-MCORRECTMANSWERM-
AMfederalMact,MwhichMprohibitsMdiscriminationMbyMlendersMonMtheMbasisMofMsexMorMmaritalMstatusMinMany
MaspectMofMaMcreditMtransaction.




FrontMendMRatioM-MCORRECTMANSWERM-PITIA/MGrossMIncome



WithinMthreeMdaysMofMreceivingMaMloanMapplication,MlendersMareMrequiredMtoMsupplyMtheMclientMwithM-
MCORRECTMANSWERM-LoanMEstimate




HowMmayMyearsMatMaMjobMtoMshowMemploymentMstability?M-MCORRECTMANSWERM-AtMleastM2Myears

,WhichMfactorMdeterminesMwhetherMtheMclientMwillMhaveMtoMpayMprivateMmortgageMinsuranceMversusMmo
rtgageMinsuranceMpremiumM-MCORRECTMANSWERM-TypeMofMloan



TheMFairMHousingMActM-MCORRECTMANSWERM-
TheMfederalMlawMthatMprohibitsMdiscriminationMinMhousingMbasedMonMrace,Mcolor,Mreligion,Msex,Mhandicap
,MfamilialMstatus,MandMnationalMorigin



TheMHousingMandMUrbanMDevelopmentMActM-MCORRECTMANSWERM-providingMgovernment-
insuredMloansMtoMmoderate-incomeMpeople.



TheMDodd-FrankMActM-MCORRECTMANSWERM-protectsMborrowersMfromMpredatoryMlendingMpractices



AffirmativelyMFurtheringMFairMHousingM(AFFH)M-MCORRECTMANSWERM-
AdvocatingMforMlendersMtoMoperateMinMunderservedMareas



AfterMhowMmanyMdaysMcanMforeclosureMproceedingsMbeginMifMtheMclientMisMnotMbeingMevaluatedMforMloss
Mmitigation,MandMhasMmissedMpaymentsMonManMFHAMloanM-MCORRECTMANSWERM-120




FHAM203KMLoanM-MCORRECTMANSWERM-
allowsMtheMhomeownerMtoMrefinanceMtheMhomeMloanMtoMperformMrepair



StreamlinedM203KMLoanM-MCORRECTMANSWERM-
minorMrehabilitationMand/orMhomeMimprovementMprojectsMthatMwillMnotMrequireMtheMinvolvementMofMco
nsultants,Mengineers,Mand/orMarchitects



keyMadvantageMofMtheMclientMusingMaMrealMestateMagentMversusMsellingMherMhouseMonMherMownM-
MCORRECTMANSWERM-RealMestateMagentsMnegotiateMonMbehalfMofMtheMclient.




AMmeansMtestM-MCORRECTMANSWERM-
bankruptcyMqualificationMthatMconsidersMincomeMandMequityMinMassetsMtoMdetermineMifMaMclientMhasMthe
MabilityMtoMrepayMpartMofMtheMdebt

, DefaultM-MCORRECTMANSWERM-
whenMaMpaymentMhasMnotMbeenMmadeMafterM60MtoM90Mdays.MFHAM30Mdays



DelinquentM-MCORRECTMANSWERM-
timelyMmortgageMpaymentsMbyMtheMendMofMtheMgraceMperiodM(14Mday)



WhichMnoticeMmustMtheMservicerMsendMtheMclientMonceMtheMmortgageMisMdelinquentMandMbeforeM45Mday
sMpastMdue?M-MCORRECTMANSWERM-HousingMcounseling



advertisementMthatMguaranteesMaMgovernment-approvedMloanMmodificationMmustMbeMreportedMto......M-
MCORRECTMANSWERM-ReportMtheMcompanyMtoMtheMFederalMTradeMCommissionM(FTC)




TheMonlyMmortgageMloanMproductMthatMallowsMfamilyMassistanceM-MCORRECTMANSWERM-FHAM-
MUSDAMandMVAMdoMnotMrequireMdownMpayment,MandMconventionalMloansMwon'tMallowMfamilyMfunds




ConsumerMFinanceMProtectionMBureauMCFPBM-MCORRECTMANSWERM-Easier-to-
useMmortgageMdisclosureMformsMthatMclearlyMoutlineMtheMtermsMofMaMmortgageMtoMtheMborrower



SatisfiesMeffortsMtoMAffirmativelyMFurtherMFairMHousingM-MCORRECTMANSWERM-
ReviewingMmarketingMmaterialsMofMlocalMmortgageMlendersMsatisfiesMeffortsMtoMAffirmativelyMFurtherMFai
rMHousing



ChapterM7MBankruptcyM-MCORRECTMANSWERM-
MeansMtest,MLiquidationMofMassets,MbestMforMclientMwithMnoMassets



ChapterM13MbankrupcyM-MCORRECTMANSWERM-retainMhouse/car,MWagerMearnerMplan-
payMallMorMpartMofMdebtsM3-5Myrs,



EarnedMIncomeMTaxMCreditM(EITC)M-MCORRECTMANSWERM-
LowMtoMmoderateMearnedMincomeMindividualsMorMfamily.MNetMearningsMfromMselfMemployment.MTaxMcred
itsMareMbasedMonMincome,MmaritalMstatus,MnumberMofMchildren