HUD Housing Counselor Exam Questions
With Correct Answers
Adjustable |Rate |Mortgage |(ARM) |- |CORRECT |ANSWER✔✔-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.
Adjusted |Gross |Income |- |CORRECT |ANSWER✔✔-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.
AFFH |- |CORRECT |ANSWER✔✔-Affirmatively |Furthering |Fair |Housing
AFHMP |- |CORRECT |ANSWER✔✔-Affirmative |Fair |Housing |Marketing |Plan
Analysis |of |Impediments |(AI) |- |CORRECT |ANSWER✔✔-Analysis |of |Impediments |is |a |review |of |
impediments |or |barriers |that |affect |the |rights |of |fair |housing |choice. |It |covers |public |and |
private |policies, |practices, |and |procedures |affecting |housing |choice. |Impediments |to |fair |
housing |choice |are |defined |as |any |actions, |omissions, |or |decisions |that |restrict, |or |have |the |
effect |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 |staff, |housing |providers, |lenders, |and |
fair |housing |advocates; |and |assists |in |building |public |support |for |fair |housing |efforts.
Area |Median |Income |(AMI) |- |CORRECT |ANSWER✔✔-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.
Arrearages |- |CORRECT |ANSWER✔✔-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.
Assistance |Animal |- |CORRECT |ANSWER✔✔-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 |
effects |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.
Association |Dues |- |CORRECT |ANSWER✔✔-Charged |by |a |community |or |Homeowners |
Association |to |pay |for |repairs, |upkeep, |landscaping, |improvements, |and |property |
management.
Back-End |Ratio |- |CORRECT |ANSWER✔✔-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.
Balloon |Payment |- |CORRECT |ANSWER✔✔-An |oversize |payment |due |at |the |end |of |a |mortgage.
Blockbusting |- |CORRECT |ANSWER✔✔-To |convince, |or |attempt |to |convince, |a |person |to |sell |or |
rent |a |dwelling |because |of |the |entry, |or |prospective |entry, |into |the |neighborhood |of |a |person |
or |persons |of |a |particular |race, |color, |religion, |sex, |familial |status, |national |origin, |or |with |a |
disability.
With Correct Answers
Adjustable |Rate |Mortgage |(ARM) |- |CORRECT |ANSWER✔✔-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.
Adjusted |Gross |Income |- |CORRECT |ANSWER✔✔-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.
AFFH |- |CORRECT |ANSWER✔✔-Affirmatively |Furthering |Fair |Housing
AFHMP |- |CORRECT |ANSWER✔✔-Affirmative |Fair |Housing |Marketing |Plan
Analysis |of |Impediments |(AI) |- |CORRECT |ANSWER✔✔-Analysis |of |Impediments |is |a |review |of |
impediments |or |barriers |that |affect |the |rights |of |fair |housing |choice. |It |covers |public |and |
private |policies, |practices, |and |procedures |affecting |housing |choice. |Impediments |to |fair |
housing |choice |are |defined |as |any |actions, |omissions, |or |decisions |that |restrict, |or |have |the |
effect |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 |staff, |housing |providers, |lenders, |and |
fair |housing |advocates; |and |assists |in |building |public |support |for |fair |housing |efforts.
Area |Median |Income |(AMI) |- |CORRECT |ANSWER✔✔-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.
Arrearages |- |CORRECT |ANSWER✔✔-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.
Assistance |Animal |- |CORRECT |ANSWER✔✔-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 |
effects |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.
Association |Dues |- |CORRECT |ANSWER✔✔-Charged |by |a |community |or |Homeowners |
Association |to |pay |for |repairs, |upkeep, |landscaping, |improvements, |and |property |
management.
Back-End |Ratio |- |CORRECT |ANSWER✔✔-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.
Balloon |Payment |- |CORRECT |ANSWER✔✔-An |oversize |payment |due |at |the |end |of |a |mortgage.
Blockbusting |- |CORRECT |ANSWER✔✔-To |convince, |or |attempt |to |convince, |a |person |to |sell |or |
rent |a |dwelling |because |of |the |entry, |or |prospective |entry, |into |the |neighborhood |of |a |person |
or |persons |of |a |particular |race, |color, |religion, |sex, |familial |status, |national |origin, |or |with |a |
disability.
