HUD CERTIFICATION PREP 2025
QUESTIONS WITH CORRECT ANSWERS
FRONTRENDRRATIOR-RCORRECTRANSWERR-
=theRratioRofRmonthlyRhousingRexpensesRtoRmonthlyRgrossRincome.RMONTHLYRHOUSINGREXPENSES/divide
dRbyRGROSSRMONTHLYRINCOMERexpressedRasRaRpercentageRofRGMI
Back-endRratioR(Debt-to-incomeRratio)R-RCORRECTRANSWERR-
ARrateRthatRcalculatesRaRborrower'sRtotalRmonthlyRdebt,RincludingRhousingRandRotherRdebtRobligations,RasR
aRpercentageRofRgrossRmonthlyRincome.RFrequentlyRusedRbyRlendersRtoRqualifyRborrowersRforRaRmortgage.R
AlsoRcalledRaRdebt-to-
incomeRratio>TotalRmonthlyRdebtRandRexpenses(includingRhousing)/dividedRbyRgrossRmonthlyRincomeRexp
ressedRasRaR%RofRGMI
DEFAULTR-RCORRECTRANSWERR-
TheRinabilityRtoRmakeRtimelyRpaymentsRorRfulfillRlegalRobligationsRofRloanRterms.RMortgage
loansRareRtypicallyRconsideredRinRdefaultRwhenRaRpaymentRhasRnotRbeenRmadeRafterR60RtoR90
days.RModulesR1.2,R2.1,R2.2,R3.1,R4.1,R4.2,R5.1,R5.2,R5.3,R6.1
ARREARAGESR-RCORRECTRANSWERR-
TheRtotalRamountRofRpastRdueRpaymentsRowedRtoRaRlenderRfromRaRborrowerRinRmortgageRpaymentsRorRtoR
aRlandlordRfromRaRtenantRinRrentalRpayments.RAlsoRcalledRarrears.
BLOCKBUSTINGR-RCORRECTRANSWERR-
ToRconvince,RorRattemptRtoRconvince,RaRpersonRtoRsellRorRrentRaRdwellingRbecauseRofRtheRentry,RorRprospect
iveRentry,RintoRtheRneighborhoodRofRaRpersonRorRpersonsRofRaRparticularRrace,Rcolor,Rreligion,Rsex,RfamilialRs
tatus,RnationalRorigin,RorRwithRaRdisability.
REDLININGR-RCORRECTRANSWERR-
TheRillegalRpracticeRofRrefusingRtoRmakeRresidentialRloansRorRimposingRmoreRonerousRtermsRonRanyRloansR
madeRbecauseRofRtheRpredominantRrace,Rcolor,RnationalRorigin,Rreligion,Rsex,Rdisability,RorRfamilialRstatusRo
fRtheRresidentsRofRtheRneighborhoodRinRwhichRtheRpropertyRis
located.
QUESTIONS WITH CORRECT ANSWERS
FRONTRENDRRATIOR-RCORRECTRANSWERR-
=theRratioRofRmonthlyRhousingRexpensesRtoRmonthlyRgrossRincome.RMONTHLYRHOUSINGREXPENSES/divide
dRbyRGROSSRMONTHLYRINCOMERexpressedRasRaRpercentageRofRGMI
Back-endRratioR(Debt-to-incomeRratio)R-RCORRECTRANSWERR-
ARrateRthatRcalculatesRaRborrower'sRtotalRmonthlyRdebt,RincludingRhousingRandRotherRdebtRobligations,RasR
aRpercentageRofRgrossRmonthlyRincome.RFrequentlyRusedRbyRlendersRtoRqualifyRborrowersRforRaRmortgage.R
AlsoRcalledRaRdebt-to-
incomeRratio>TotalRmonthlyRdebtRandRexpenses(includingRhousing)/dividedRbyRgrossRmonthlyRincomeRexp
ressedRasRaR%RofRGMI
DEFAULTR-RCORRECTRANSWERR-
TheRinabilityRtoRmakeRtimelyRpaymentsRorRfulfillRlegalRobligationsRofRloanRterms.RMortgage
loansRareRtypicallyRconsideredRinRdefaultRwhenRaRpaymentRhasRnotRbeenRmadeRafterR60RtoR90
days.RModulesR1.2,R2.1,R2.2,R3.1,R4.1,R4.2,R5.1,R5.2,R5.3,R6.1
ARREARAGESR-RCORRECTRANSWERR-
TheRtotalRamountRofRpastRdueRpaymentsRowedRtoRaRlenderRfromRaRborrowerRinRmortgageRpaymentsRorRtoR
aRlandlordRfromRaRtenantRinRrentalRpayments.RAlsoRcalledRarrears.
BLOCKBUSTINGR-RCORRECTRANSWERR-
ToRconvince,RorRattemptRtoRconvince,RaRpersonRtoRsellRorRrentRaRdwellingRbecauseRofRtheRentry,RorRprospect
iveRentry,RintoRtheRneighborhoodRofRaRpersonRorRpersonsRofRaRparticularRrace,Rcolor,Rreligion,Rsex,RfamilialRs
tatus,RnationalRorigin,RorRwithRaRdisability.
REDLININGR-RCORRECTRANSWERR-
TheRillegalRpracticeRofRrefusingRtoRmakeRresidentialRloansRorRimposingRmoreRonerousRtermsRonRanyRloansR
madeRbecauseRofRtheRpredominantRrace,Rcolor,RnationalRorigin,Rreligion,Rsex,Rdisability,RorRfamilialRstatusRo
fRtheRresidentsRofRtheRneighborhoodRinRwhichRtheRpropertyRis
located.
