HUD Test 1 (questions & answers)
already passed
Bank Statement - correct answer ✔✔Which document should the counselor review with the
client to identify spending habits and track expenses?
Net income - correct answer ✔✔Which additional information would the housing counselor
need to prepare a household budget for this client?
Car lease payment - correct answer ✔✔Which item in the client's budget is a fixed expense?
50% - correct answer ✔✔What is the maximum percent of area median income allowable for a
household to qualify for a Housing Choice Voucher?
30% - correct answer ✔✔Which is the maximum recommended housing ratio for renting an
apartment?
Income, homebuyer education, purchase price - correct answer ✔✔Eligibility requirement for
down payment assistance programs include which factors?
1.75% (UFMIP) - correct answer ✔✔The client is considering an FHA mortgage. What is the
upfront mortgage insurance premium (UFMIP) for a FHA mortgage?
between 0.8% and 1.05%. - correct answer ✔✔The annual MIP (Mortgage Insurance Premium)
for FHA mortgages ranges?
2% - correct answer ✔✔USDA loans charge up front Grantee Fee ?
,Client moves to his wife's home and rents his townhouse to tenant - correct answer ✔✔The
client decides to purchase a townhouse through a down payment assistance program with a
recapture clause. Three years later, the client remarries, and his wife owns a single family home.
Which situation might cause an accelerated loan payment?
Contact the Federal Trade Commission as the lender's action might violate the Equal Credit
Opportunity Act. - correct answer ✔✔If the client was denied a mortgage loan and the lender
told him to come back after his divorce had been final for 3 years, what is the best advice for the
housing counselor to provide to the client?
Medical history - correct answer ✔✔A question from a lender on which topic would be
inappropriate?
Educate homebuyers about their rights - correct answer ✔✔Which is a responsibility of a
housing counselor?
30 days period - correct answer ✔✔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?
*Evaluate the condition of a home
*Examine mechanical systems
*Identify items to be repaired or replaced - correct answer ✔✔Which is a responsibility of a
home inspector?
the client can compare loan estimates - correct answer ✔✔Which is the best reason that a
housing counselor would suggest that a client speak to 3 to 5 different lenders before choosing
one?
, Review credit report at least once per year - correct answer ✔✔Which is the best advice that a
housing counselor can give the client to protect against identity theft?
Provide a loan estimate without factoring in the raise - correct answer ✔✔The client tells the
lender that he is expecting a raise soon. Which action should the lender take?
3% and 4% - correct answer ✔✔Average closing costs rage?
Application fee - correct answer ✔✔The client is considering renting an apartment with a
different landlord. Which would be an upfront cost of moving to the new apartment?
Client wants to customize his home with do-it- yourself projects - correct answer ✔✔The client
is second-guessing his decision to buy a home, so the counselor asks a series of questions.
Which response would best align with the homewonership option for this client?
28% - correct answer ✔✔Maximum Front-end ration for a standard convention loan % ?
monthly housing expenses / Gross monthly income
매달 income 에 housing expenses 의 % - correct answer ✔✔Front-end ratio
maximum 36% - correct answer ✔✔Back-end ratio(Debt to income)for a standard convention
loan % ?
Total monthly debt expense/ Gross monthly income
매달 income 에 Debt 의 % - correct answer ✔✔Back - end ratio
41%-43%
maximum 43%
already passed
Bank Statement - correct answer ✔✔Which document should the counselor review with the
client to identify spending habits and track expenses?
Net income - correct answer ✔✔Which additional information would the housing counselor
need to prepare a household budget for this client?
Car lease payment - correct answer ✔✔Which item in the client's budget is a fixed expense?
50% - correct answer ✔✔What is the maximum percent of area median income allowable for a
household to qualify for a Housing Choice Voucher?
30% - correct answer ✔✔Which is the maximum recommended housing ratio for renting an
apartment?
Income, homebuyer education, purchase price - correct answer ✔✔Eligibility requirement for
down payment assistance programs include which factors?
1.75% (UFMIP) - correct answer ✔✔The client is considering an FHA mortgage. What is the
upfront mortgage insurance premium (UFMIP) for a FHA mortgage?
between 0.8% and 1.05%. - correct answer ✔✔The annual MIP (Mortgage Insurance Premium)
for FHA mortgages ranges?
2% - correct answer ✔✔USDA loans charge up front Grantee Fee ?
,Client moves to his wife's home and rents his townhouse to tenant - correct answer ✔✔The
client decides to purchase a townhouse through a down payment assistance program with a
recapture clause. Three years later, the client remarries, and his wife owns a single family home.
Which situation might cause an accelerated loan payment?
Contact the Federal Trade Commission as the lender's action might violate the Equal Credit
Opportunity Act. - correct answer ✔✔If the client was denied a mortgage loan and the lender
told him to come back after his divorce had been final for 3 years, what is the best advice for the
housing counselor to provide to the client?
Medical history - correct answer ✔✔A question from a lender on which topic would be
inappropriate?
Educate homebuyers about their rights - correct answer ✔✔Which is a responsibility of a
housing counselor?
30 days period - correct answer ✔✔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?
*Evaluate the condition of a home
*Examine mechanical systems
*Identify items to be repaired or replaced - correct answer ✔✔Which is a responsibility of a
home inspector?
the client can compare loan estimates - correct answer ✔✔Which is the best reason that a
housing counselor would suggest that a client speak to 3 to 5 different lenders before choosing
one?
, Review credit report at least once per year - correct answer ✔✔Which is the best advice that a
housing counselor can give the client to protect against identity theft?
Provide a loan estimate without factoring in the raise - correct answer ✔✔The client tells the
lender that he is expecting a raise soon. Which action should the lender take?
3% and 4% - correct answer ✔✔Average closing costs rage?
Application fee - correct answer ✔✔The client is considering renting an apartment with a
different landlord. Which would be an upfront cost of moving to the new apartment?
Client wants to customize his home with do-it- yourself projects - correct answer ✔✔The client
is second-guessing his decision to buy a home, so the counselor asks a series of questions.
Which response would best align with the homewonership option for this client?
28% - correct answer ✔✔Maximum Front-end ration for a standard convention loan % ?
monthly housing expenses / Gross monthly income
매달 income 에 housing expenses 의 % - correct answer ✔✔Front-end ratio
maximum 36% - correct answer ✔✔Back-end ratio(Debt to income)for a standard convention
loan % ?
Total monthly debt expense/ Gross monthly income
매달 income 에 Debt 의 % - correct answer ✔✔Back - end ratio
41%-43%
maximum 43%
