HUD HOUSING COUNSELOR EXAM
Questions and Answers
1. Adjustable Rate Mortgage (ARM): Adjustable rate mortgages have an initial rate that
applies for a defined period of time (typically from one month to 10 years), then adjusts at pre-
determined intervals for the life of the loan. Interest rates can increase or decrease when adjusted.
2. Adjusted Gross Income: Gross income minus adjustments, or reductions, that one is eligible
for, such as
deductions for unreimbursed business expenses, tuition and fees, and contributions to certain retirement
accounts.
3. AFFH: Aflrmatively Furthering Fair Housing
4. AFHMP: Aflrmative Fair Housing Marketing Plan
5. Analysis of Impediments (AI): Analysis of Impediments is a review of impediments or
barriers that
attect the rights of fair housing choice. It covers public and private policies, practices, and procedures attecting
housing choice. Impediments to fair housing choice are defined as any actions, omissions, or decisions that
restrict, or have the ettect of restricting, the availability of housing choices, based on race, color, religion, sex,
disability, familial status, or national origin. The AI supports fair housing planning; provides essential
information to policy makers, administrative statt, housing providers, lenders, and fair housing advocates;
and assists in building public support for fair housing ettorts.
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, 6. Area Median Income (AMI): The midpoint in the family income range for a metropolitan
statistical area
or for the non-metropolitan parts of a state. Determined annually by HUD, the figure often is used as a
basis to stratify incomes into very low, low, moderate, and above moderate. Frequently used to determine
income eligibility for various housing programs.
7. Arrearages: The total amount of past due payments owed to a lender from a borrower in
mortgage payments
or to a landlord from a tenant in rental payments. Also called arrears.
8. Assistance Animal: An assistance animal is not considered a pet. it is an animal that works,
provides assistance, or performs tasks for the benefit of a person with a disability, or provides emotional
support that alleviates one or more identifies symptoms or ettects of a person's disability. For purposes
of reasonable accommodation requests, the Fair Housing Act does not require an assistance animal to
be individually trained or certified. While dogs are the most common type of assistance animal, other
animals can also be assistance animals.
9. Association Dues: Charged by a community or Homeowners Association to pay for repairs,
upkeep, land- scaping, improvements, and property management.
10. Back-End Ratio: A rate that calculates a borrower's total monthly debt, including
housing and other debt obligations, as a percentage of gross monthly income. Frequently used by
lenders to qualify borrowers for a mortgage. Also called a debt-to-income ratio.
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Questions and Answers
1. Adjustable Rate Mortgage (ARM): Adjustable rate mortgages have an initial rate that
applies for a defined period of time (typically from one month to 10 years), then adjusts at pre-
determined intervals for the life of the loan. Interest rates can increase or decrease when adjusted.
2. Adjusted Gross Income: Gross income minus adjustments, or reductions, that one is eligible
for, such as
deductions for unreimbursed business expenses, tuition and fees, and contributions to certain retirement
accounts.
3. AFFH: Aflrmatively Furthering Fair Housing
4. AFHMP: Aflrmative Fair Housing Marketing Plan
5. Analysis of Impediments (AI): Analysis of Impediments is a review of impediments or
barriers that
attect the rights of fair housing choice. It covers public and private policies, practices, and procedures attecting
housing choice. Impediments to fair housing choice are defined as any actions, omissions, or decisions that
restrict, or have the ettect of restricting, the availability of housing choices, based on race, color, religion, sex,
disability, familial status, or national origin. The AI supports fair housing planning; provides essential
information to policy makers, administrative statt, housing providers, lenders, and fair housing advocates;
and assists in building public support for fair housing ettorts.
1/
11
, 6. Area Median Income (AMI): The midpoint in the family income range for a metropolitan
statistical area
or for the non-metropolitan parts of a state. Determined annually by HUD, the figure often is used as a
basis to stratify incomes into very low, low, moderate, and above moderate. Frequently used to determine
income eligibility for various housing programs.
7. Arrearages: The total amount of past due payments owed to a lender from a borrower in
mortgage payments
or to a landlord from a tenant in rental payments. Also called arrears.
8. Assistance Animal: An assistance animal is not considered a pet. it is an animal that works,
provides assistance, or performs tasks for the benefit of a person with a disability, or provides emotional
support that alleviates one or more identifies symptoms or ettects of a person's disability. For purposes
of reasonable accommodation requests, the Fair Housing Act does not require an assistance animal to
be individually trained or certified. While dogs are the most common type of assistance animal, other
animals can also be assistance animals.
9. Association Dues: Charged by a community or Homeowners Association to pay for repairs,
upkeep, land- scaping, improvements, and property management.
10. Back-End Ratio: A rate that calculates a borrower's total monthly debt, including
housing and other debt obligations, as a percentage of gross monthly income. Frequently used by
lenders to qualify borrowers for a mortgage. Also called a debt-to-income ratio.
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