HUD Housing Counselor Exam
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is the main purpose of HUD-approved housing counseling?
✔✔To help clients make informed housing decisions and achieve financial stability.
What should a counselor do first when assessing a client's housing needs?
✔✔Conduct a thorough intake and financial assessment.
What is a key component of a client action plan in housing counseling?
✔✔Specific, measurable, and time-bound goals.
What should a housing counselor do if a client cannot afford their mortgage payment?
✔✔Discuss loss mitigation options such as forbearance or modification.
What is the main goal of pre-purchase housing counseling?
✔✔To prepare clients for sustainable homeownership.
1
,What document verifies that a client has completed HUD-approved counseling?
✔✔A certificate of completion issued by a HUD-approved agency.
What should a counselor do if they suspect a client is a victim of housing discrimination?
✔✔Refer the client to HUD’s Office of Fair Housing and Equal Opportunity.
What is the first step in the foreclosure prevention process?
✔✔Contact the loan servicer immediately to discuss options.
What financial ratio is used to assess housing affordability?
✔✔The front-end debt-to-income ratio.
What should a counselor review to help a client budget effectively?
✔✔Income, expenses, debts, and savings goals.
What federal law prohibits housing discrimination based on race, color, religion, sex, or national
origin?
✔✔The Fair Housing Act.
2
, What is a common reason clients face mortgage delinquency?
✔✔Unexpected income loss or medical expenses.
What is the purpose of post-purchase housing counseling?
✔✔To help homeowners maintain their property and manage finances.
When counseling renters, what should be discussed regarding lease agreements?
✔✔Tenant rights, responsibilities, and lease terms.
What is the first step in creating a household budget?
✔✔Track all income and expenses.
What should a counselor do if a client’s credit report has errors?
✔✔Help the client file disputes with the credit bureaus.
What is the ideal emergency savings goal recommended in housing counseling?
✔✔Three to six months of living expenses.
3
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is the main purpose of HUD-approved housing counseling?
✔✔To help clients make informed housing decisions and achieve financial stability.
What should a counselor do first when assessing a client's housing needs?
✔✔Conduct a thorough intake and financial assessment.
What is a key component of a client action plan in housing counseling?
✔✔Specific, measurable, and time-bound goals.
What should a housing counselor do if a client cannot afford their mortgage payment?
✔✔Discuss loss mitigation options such as forbearance or modification.
What is the main goal of pre-purchase housing counseling?
✔✔To prepare clients for sustainable homeownership.
1
,What document verifies that a client has completed HUD-approved counseling?
✔✔A certificate of completion issued by a HUD-approved agency.
What should a counselor do if they suspect a client is a victim of housing discrimination?
✔✔Refer the client to HUD’s Office of Fair Housing and Equal Opportunity.
What is the first step in the foreclosure prevention process?
✔✔Contact the loan servicer immediately to discuss options.
What financial ratio is used to assess housing affordability?
✔✔The front-end debt-to-income ratio.
What should a counselor review to help a client budget effectively?
✔✔Income, expenses, debts, and savings goals.
What federal law prohibits housing discrimination based on race, color, religion, sex, or national
origin?
✔✔The Fair Housing Act.
2
, What is a common reason clients face mortgage delinquency?
✔✔Unexpected income loss or medical expenses.
What is the purpose of post-purchase housing counseling?
✔✔To help homeowners maintain their property and manage finances.
When counseling renters, what should be discussed regarding lease agreements?
✔✔Tenant rights, responsibilities, and lease terms.
What is the first step in creating a household budget?
✔✔Track all income and expenses.
What should a counselor do if a client’s credit report has errors?
✔✔Help the client file disputes with the credit bureaus.
What is the ideal emergency savings goal recommended in housing counseling?
✔✔Three to six months of living expenses.
3
