HUD Exam - Housing Affordability
Questions with Correct Answers 2025
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AllRofRtheRfollowingRareRtrueRstatementsRaboutRupfrontRcostsRassociatedRwithRrentingRandRbuying,Rexcept;
A.RRentersRgenerallyRpayRaRsecurityRdepositRuponRsigningRaRlease.R
B.RTheRaverageRcostRdueRuponRsigningRaRleaseRforRaRrentalRisRtypicallyRbetweenR20%RofRtheRmonthlyRrent..
C.RClosingRcostsRareRtypicallyRcomprisedRofRlenderRfees,RdiscountRpoints,RtitleRinsurance,RhomeRinspectionR
fees,RescrowRdeposit,RpropertyRtaxes,RprivateRmortgageRinsurance,RandRattorney'sRfees.R
D.RARclientRwhoRdesiresRtoRpurchaseRaRhomeRworthR$150,000RcouldRbeRrequiredRtoRpayR$7,000RinRstandard
RclosingRcosts.R-RCORRECTRANSWERR-
B.RTheRaverageRcostsRdueRuponRsigningRaRleaseRforRaRrentalRisRtypicallyR20%RofRtheRmonthlyRrent.
-
ThisRstatementRisRnotRtrue.RHowever,RtheRfigureRofR20%RisRrelevantRforRthoseRconsideringRbuyingRaRhomeR(
downRpayment).
ARcouple,RtheRSmiths,RrecentlyRscheduledRaRmeetingRwithRRebecca.RTheyRhaveRownedRtheirRhomeRforRseve
nRyearsRandRhaveRaccumulatedRsomeRequityRinRtheRhome.RHowever,RtheyRareRnowRstrugglingRtoRpayRtheirR
mortgage,RbecauseRtheRwifeRleftRherRfull-
timeRjobRwhenRsheRhadRaRbaby.RHerRhusband'sRsalaryRisRpaidRinRinstallmentsRofR$900RaRweek,RwhichRareRsu
bjectRtoRdeductionsRandRotherRwithholdings.REachRmonth,RtheyRpayR$1,000RinRprincipalRandRinterest,R$110
RforRtaxes,R$130RforRinsurance,RandR$20RinRhomeownersRassessments.RWhatRisRtheirRcurrentRfront-
endRratioR(asRaRwholeRnumberRwithRnoRdecimalRpoint)?R-RCORRECTRANSWERR-32%
Formula:RGrossRmonthlyRincomeR=RTotalRweeklyRpayRbeforeRdeuctionsRxR52R/R12
FrontRendRratioR=RMonthlyRhousingRexpensesR/RGrossRmonthlyRIncome.
OneRoptionRthatRRebeccaRsuggestsRtoRtheRSmithsRisRtoRsellRtheirRhomeRandRrentRaRhomeRthatRisRsmallerRan
dRmoreRaffordable.RIfRtheRSmithsRdecideRtoRdoRthis,RtheyRwillRnoRlongerRhaveRaRmortgage,RsoRwhatRisRtheRm
aximumRamountRthatRtheyRcanRaffordRtoRpayRinRrentRandRrentersRinsuranceReachRmonth?RTip:RRecallRthatRt
heRhusbandR'sRsalaryRisRpaidRinRinstallmentsRofR$900RaRweek,RwhichRareRsubjectRtoRdeductionsRandRotherRw
ithholdings.R-RCORRECTRANSWERR-$1,170
IfRtheRSmithsRsellRtheirRhomeRandRpurchaseRaRmoreRaffordableRproperty,RwhatRisRtheRmaximumRamountRth
atRisRaffordableRforRtheRSmithsRtoRpayRinRPITIAReachRmonthRifRtheyRobtainedRaRconventionalRloan?RTip:RRec
Questions with Correct Answers 2025
Save
AllRofRtheRfollowingRareRtrueRstatementsRaboutRupfrontRcostsRassociatedRwithRrentingRandRbuying,Rexcept;
A.RRentersRgenerallyRpayRaRsecurityRdepositRuponRsigningRaRlease.R
B.RTheRaverageRcostRdueRuponRsigningRaRleaseRforRaRrentalRisRtypicallyRbetweenR20%RofRtheRmonthlyRrent..
C.RClosingRcostsRareRtypicallyRcomprisedRofRlenderRfees,RdiscountRpoints,RtitleRinsurance,RhomeRinspectionR
fees,RescrowRdeposit,RpropertyRtaxes,RprivateRmortgageRinsurance,RandRattorney'sRfees.R
D.RARclientRwhoRdesiresRtoRpurchaseRaRhomeRworthR$150,000RcouldRbeRrequiredRtoRpayR$7,000RinRstandard
RclosingRcosts.R-RCORRECTRANSWERR-
B.RTheRaverageRcostsRdueRuponRsigningRaRleaseRforRaRrentalRisRtypicallyR20%RofRtheRmonthlyRrent.
-
ThisRstatementRisRnotRtrue.RHowever,RtheRfigureRofR20%RisRrelevantRforRthoseRconsideringRbuyingRaRhomeR(
downRpayment).
ARcouple,RtheRSmiths,RrecentlyRscheduledRaRmeetingRwithRRebecca.RTheyRhaveRownedRtheirRhomeRforRseve
nRyearsRandRhaveRaccumulatedRsomeRequityRinRtheRhome.RHowever,RtheyRareRnowRstrugglingRtoRpayRtheirR
mortgage,RbecauseRtheRwifeRleftRherRfull-
timeRjobRwhenRsheRhadRaRbaby.RHerRhusband'sRsalaryRisRpaidRinRinstallmentsRofR$900RaRweek,RwhichRareRsu
bjectRtoRdeductionsRandRotherRwithholdings.REachRmonth,RtheyRpayR$1,000RinRprincipalRandRinterest,R$110
RforRtaxes,R$130RforRinsurance,RandR$20RinRhomeownersRassessments.RWhatRisRtheirRcurrentRfront-
endRratioR(asRaRwholeRnumberRwithRnoRdecimalRpoint)?R-RCORRECTRANSWERR-32%
Formula:RGrossRmonthlyRincomeR=RTotalRweeklyRpayRbeforeRdeuctionsRxR52R/R12
FrontRendRratioR=RMonthlyRhousingRexpensesR/RGrossRmonthlyRIncome.
OneRoptionRthatRRebeccaRsuggestsRtoRtheRSmithsRisRtoRsellRtheirRhomeRandRrentRaRhomeRthatRisRsmallerRan
dRmoreRaffordable.RIfRtheRSmithsRdecideRtoRdoRthis,RtheyRwillRnoRlongerRhaveRaRmortgage,RsoRwhatRisRtheRm
aximumRamountRthatRtheyRcanRaffordRtoRpayRinRrentRandRrentersRinsuranceReachRmonth?RTip:RRecallRthatRt
heRhusbandR'sRsalaryRisRpaidRinRinstallmentsRofR$900RaRweek,RwhichRareRsubjectRtoRdeductionsRandRotherRw
ithholdings.R-RCORRECTRANSWERR-$1,170
IfRtheRSmithsRsellRtheirRhomeRandRpurchaseRaRmoreRaffordableRproperty,RwhatRisRtheRmaximumRamountRth
atRisRaffordableRforRtheRSmithsRtoRpayRinRPITIAReachRmonthRifRtheyRobtainedRaRconventionalRloan?RTip:RRec
