HUD Test 1 Questions with Complete
Solutions25
Which document should the counselor review with the client to identify spending habits and
track expenses? - ANSWERS-Bank Statement
Which additional information would the housing counselor need to prepare a household budget
for this client? - ANSWERS-Net income
Which item in the client's budget is a fixed expense? - ANSWERS-Car lease payment
What is the maximum percent of area median income allowable for a household to qualify for a
Housing Choice Voucher? - ANSWERS-50%
Which is the maximum recommended housing ratio for renting an apartment? - ANSWERS-30%
Eligibility requirement for down payment assistance programs include which factors? -
ANSWERS-Income, homebuyer education, purchase price
The client is considering an FHA mortgage. What is the upfront mortgage insurance premium
(UFMIP) for a FHA mortgage? - ANSWERS-1.75% (UFMIP)
The annual MIP (Mortgage Insurance Premium) for FHA mortgages ranges? - ANSWERS-
between 0.8% and 1.05%.
USDA loans charge up front Grantee Fee ? - ANSWERS-2%
,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? - ANSWERS-Client moves to
his wife's home and rents his townhouse to tenant
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? - ANSWERS-Contact the Federal Trade Commission as the lender's action might violate
the Equal Credit Opportunity Act.
A question from a lender on which topic would be inappropriate? - ANSWERS-Medical history
Which is a responsibility of a housing counselor? - ANSWERS-Educate homebuyers about their
rights
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? - ANSWERS-30
days period
Which is a responsibility of a home inspector? - ANSWERS-*Evaluate the condition of a home
*Examine mechanical systems
*Identify items to be repaired or replaced
Which is the best reason that a housing counselor would suggest that a client speak to 3 to 5
different lenders before choosing one? - ANSWERS-the client can compare loan estimates
Which is the best advice that a housing counselor can give the client to protect against identity
theft? - ANSWERS-Review credit report at least once per year
, The client tells the lender that he is expecting a raise soon. Which action should the lender
take? - ANSWERS-Provide a loan estimate without factoring in the raise
Average closing costs rage? - ANSWERS-3% and 4%
The client is considering renting an apartment with a different landlord. Which would be an
upfront cost of moving to the new apartment? - ANSWERS-Application fee
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? -
ANSWERS-Client wants to customize his home with do-it- yourself projects
Maximum Front-end ration for a standard convention loan % ? - ANSWERS-28%
Front-end ratio - ANSWERS-monthly housing expenses / Gross monthly income
매달 income 에 housing expenses 의 %
Back-end ratio(Debt to income)for a standard convention loan % ? - ANSWERS-maximum 36%
Back - end ratio - ANSWERS-Total monthly debt expense/ Gross monthly income
매달 income 에 Debt 의 %
Back-end ratio(Debt to income) for a standard FHA loan % ? - ANSWERS-41%-43%
maximum 43%
If FHA Energy Efficiency Mortgage can 45%
Maximum Front-end ration for a standard FHA loan % ? - ANSWERS-31%
Solutions25
Which document should the counselor review with the client to identify spending habits and
track expenses? - ANSWERS-Bank Statement
Which additional information would the housing counselor need to prepare a household budget
for this client? - ANSWERS-Net income
Which item in the client's budget is a fixed expense? - ANSWERS-Car lease payment
What is the maximum percent of area median income allowable for a household to qualify for a
Housing Choice Voucher? - ANSWERS-50%
Which is the maximum recommended housing ratio for renting an apartment? - ANSWERS-30%
Eligibility requirement for down payment assistance programs include which factors? -
ANSWERS-Income, homebuyer education, purchase price
The client is considering an FHA mortgage. What is the upfront mortgage insurance premium
(UFMIP) for a FHA mortgage? - ANSWERS-1.75% (UFMIP)
The annual MIP (Mortgage Insurance Premium) for FHA mortgages ranges? - ANSWERS-
between 0.8% and 1.05%.
USDA loans charge up front Grantee Fee ? - ANSWERS-2%
,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? - ANSWERS-Client moves to
his wife's home and rents his townhouse to tenant
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? - ANSWERS-Contact the Federal Trade Commission as the lender's action might violate
the Equal Credit Opportunity Act.
A question from a lender on which topic would be inappropriate? - ANSWERS-Medical history
Which is a responsibility of a housing counselor? - ANSWERS-Educate homebuyers about their
rights
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? - ANSWERS-30
days period
Which is a responsibility of a home inspector? - ANSWERS-*Evaluate the condition of a home
*Examine mechanical systems
*Identify items to be repaired or replaced
Which is the best reason that a housing counselor would suggest that a client speak to 3 to 5
different lenders before choosing one? - ANSWERS-the client can compare loan estimates
Which is the best advice that a housing counselor can give the client to protect against identity
theft? - ANSWERS-Review credit report at least once per year
, The client tells the lender that he is expecting a raise soon. Which action should the lender
take? - ANSWERS-Provide a loan estimate without factoring in the raise
Average closing costs rage? - ANSWERS-3% and 4%
The client is considering renting an apartment with a different landlord. Which would be an
upfront cost of moving to the new apartment? - ANSWERS-Application fee
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? -
ANSWERS-Client wants to customize his home with do-it- yourself projects
Maximum Front-end ration for a standard convention loan % ? - ANSWERS-28%
Front-end ratio - ANSWERS-monthly housing expenses / Gross monthly income
매달 income 에 housing expenses 의 %
Back-end ratio(Debt to income)for a standard convention loan % ? - ANSWERS-maximum 36%
Back - end ratio - ANSWERS-Total monthly debt expense/ Gross monthly income
매달 income 에 Debt 의 %
Back-end ratio(Debt to income) for a standard FHA loan % ? - ANSWERS-41%-43%
maximum 43%
If FHA Energy Efficiency Mortgage can 45%
Maximum Front-end ration for a standard FHA loan % ? - ANSWERS-31%
