HUD Housing Counseling Exam
Questions With Correct Answers
Which |document |should |the |counselor |review |with |the |client |to |identify |spending |habits |and |
track |expenses?
A. |Credit |report
B. |Pay |stubs
C. |Bank |Statement
D. |Tax |returns |- |CORRECT |ANSWER✔✔-Bank |Statement
Which |additional |information |would |the |housing |counselor |need |to |prepare |a |household |
budget |for |this |client?
A. |Net |Income
B. |Lease |Documentation
C. |Credit |Score
D. |Bankruptcy |Discharge |- |CORRECT |ANSWER✔✔-Net |Income
Which |item |in |the |client's |budget |is |a |fixed |expense?
A. |Food
B. |Gasoline
C. |Car |Lease |Payment
,D. |Utilities |- |CORRECT |ANSWER✔✔-Car |Lease |Payment
What |is |the |maximum |percent |of |area |median |income |allowable |for |household |to |qualify |for |a
|Housing |Choice |Voucher? |- |CORRECT |ANSWER✔✔-50%
Which |is |the |the |maximum |recommended |housing |ratio |for |renting |an |apartment? |- |CORRECT |
ANSWER✔✔-30%
Eligibility |requirements |for |downpayment |assistance |programs |include |which |factors? |- |
CORRECT |ANSWER✔✔-Income, |homebuyer |education, |purchase |price
The |client |is |considering |an |FHA |mortgage. |What |is |the |upfront |mortgage |premium |(UFMIP) |
for |a |FHA |mortgage? |- |CORRECT |ANSWER✔✔-1.75%
The |client |decides |to |purchase |a |townhouse |through |a |down |payment |assistance |program |
with |a |recapture |clause. |Three |years |later, |the |client |remarries, |and |his |wife |owns |a |single |
family |home. |Which |situation |might |cause |accelerated |loan |payment?
A. |Client |moves |to |his |wife's |home |and |the |townhouse |loan |is |assumed |by |an |eligible |buyer. |
B. |Client's |wife |moves |into |the |townhouse. |
C. |Client |moves |to |his |wife's |home |and |rents |his |townhouse |to |a |tenant. |- |CORRECT |
ANSWER✔✔-Client |moves |to |his |wife's |home |and |rents |his |townhouse |to |a |tenant
If |a |client |was |denied |a |mortgage |loan |and |the |lender |told |him |to |come |back |after |his |divorce |
has |been |final |for |three |years, |what |is |the |best |advice |for |the |housing |counselor |to |provide |to |
the |client?
A. |Contact |the |FTC |as |the |lender's |action |might |violate |the |Equal |Credit |Opportunity |Act. |
, B. |Contact |the |local |fair |housing |center |as |the |lender's |action |might |violate |the |Fair |Housing |
Act. |- |CORRECT |ANSWER✔✔-Contact |the |FTC |as |the |lender's |action |might |violate |the |Equal |
Credit |Opportunity |Act
A |question |from |a |lender |on |which |topic |would |be |inappropriate? |- |CORRECT |ANSWER✔✔-
Medical |History
What |is |the |responsibility |of |a |housing |counselor? |- |CORRECT |ANSWER✔✔-Educate |
homebuyers |about |their |rights.
In |order |to |minimize |the |impact |on |the |client's |credit |score, |what |is |the |maximum |time |frame |
within |which |the |client |should |apply |for |pre-approval |from |multiple |lenders? |- |CORRECT |
ANSWER✔✔-A |30-day |period
Which |is |a |responsibility |of |a |home |inspector? |- |CORRECT |ANSWER✔✔-Evaluate |the |condition
|of |a |home, |examine |mechanical |systems, |identify |items |to |be |repaired |or |replaced.
Which |is |the |best |reason |that |a |housing |counselor |would |suggest |that |a |client |speak |to |three |
to |five |different |lenders |before |choosing |one? |- |CORRECT |ANSWER✔✔-So |the |client |can |
compare |loan |estimates
Which |is |the |best |advice |that |a |housing |counselor |can |give |the |client |to |protect |against |
identity |theft? |- |CORRECT |ANSWER✔✔-Review |credit |report |at |least |once |per |year
The |client |tells |the |lender |that |he |is |expecting |a |raise |soon. |Which |action |should |the |lender |
take? |- |CORRECT |ANSWER✔✔-Provide |a |loan |estimate |without |factoring |in |the |raise
If |the |client |obtains |a |mortage |of |$100,000, |typically, |how |much |should |he |expect |to |pay |for |
closing |costs?
Questions With Correct Answers
Which |document |should |the |counselor |review |with |the |client |to |identify |spending |habits |and |
track |expenses?
A. |Credit |report
B. |Pay |stubs
C. |Bank |Statement
D. |Tax |returns |- |CORRECT |ANSWER✔✔-Bank |Statement
Which |additional |information |would |the |housing |counselor |need |to |prepare |a |household |
budget |for |this |client?
A. |Net |Income
B. |Lease |Documentation
C. |Credit |Score
D. |Bankruptcy |Discharge |- |CORRECT |ANSWER✔✔-Net |Income
Which |item |in |the |client's |budget |is |a |fixed |expense?
A. |Food
B. |Gasoline
C. |Car |Lease |Payment
,D. |Utilities |- |CORRECT |ANSWER✔✔-Car |Lease |Payment
What |is |the |maximum |percent |of |area |median |income |allowable |for |household |to |qualify |for |a
|Housing |Choice |Voucher? |- |CORRECT |ANSWER✔✔-50%
Which |is |the |the |maximum |recommended |housing |ratio |for |renting |an |apartment? |- |CORRECT |
ANSWER✔✔-30%
Eligibility |requirements |for |downpayment |assistance |programs |include |which |factors? |- |
CORRECT |ANSWER✔✔-Income, |homebuyer |education, |purchase |price
The |client |is |considering |an |FHA |mortgage. |What |is |the |upfront |mortgage |premium |(UFMIP) |
for |a |FHA |mortgage? |- |CORRECT |ANSWER✔✔-1.75%
The |client |decides |to |purchase |a |townhouse |through |a |down |payment |assistance |program |
with |a |recapture |clause. |Three |years |later, |the |client |remarries, |and |his |wife |owns |a |single |
family |home. |Which |situation |might |cause |accelerated |loan |payment?
A. |Client |moves |to |his |wife's |home |and |the |townhouse |loan |is |assumed |by |an |eligible |buyer. |
B. |Client's |wife |moves |into |the |townhouse. |
C. |Client |moves |to |his |wife's |home |and |rents |his |townhouse |to |a |tenant. |- |CORRECT |
ANSWER✔✔-Client |moves |to |his |wife's |home |and |rents |his |townhouse |to |a |tenant
If |a |client |was |denied |a |mortgage |loan |and |the |lender |told |him |to |come |back |after |his |divorce |
has |been |final |for |three |years, |what |is |the |best |advice |for |the |housing |counselor |to |provide |to |
the |client?
A. |Contact |the |FTC |as |the |lender's |action |might |violate |the |Equal |Credit |Opportunity |Act. |
, B. |Contact |the |local |fair |housing |center |as |the |lender's |action |might |violate |the |Fair |Housing |
Act. |- |CORRECT |ANSWER✔✔-Contact |the |FTC |as |the |lender's |action |might |violate |the |Equal |
Credit |Opportunity |Act
A |question |from |a |lender |on |which |topic |would |be |inappropriate? |- |CORRECT |ANSWER✔✔-
Medical |History
What |is |the |responsibility |of |a |housing |counselor? |- |CORRECT |ANSWER✔✔-Educate |
homebuyers |about |their |rights.
In |order |to |minimize |the |impact |on |the |client's |credit |score, |what |is |the |maximum |time |frame |
within |which |the |client |should |apply |for |pre-approval |from |multiple |lenders? |- |CORRECT |
ANSWER✔✔-A |30-day |period
Which |is |a |responsibility |of |a |home |inspector? |- |CORRECT |ANSWER✔✔-Evaluate |the |condition
|of |a |home, |examine |mechanical |systems, |identify |items |to |be |repaired |or |replaced.
Which |is |the |best |reason |that |a |housing |counselor |would |suggest |that |a |client |speak |to |three |
to |five |different |lenders |before |choosing |one? |- |CORRECT |ANSWER✔✔-So |the |client |can |
compare |loan |estimates
Which |is |the |best |advice |that |a |housing |counselor |can |give |the |client |to |protect |against |
identity |theft? |- |CORRECT |ANSWER✔✔-Review |credit |report |at |least |once |per |year
The |client |tells |the |lender |that |he |is |expecting |a |raise |soon. |Which |action |should |the |lender |
take? |- |CORRECT |ANSWER✔✔-Provide |a |loan |estimate |without |factoring |in |the |raise
If |the |client |obtains |a |mortage |of |$100,000, |typically, |how |much |should |he |expect |to |pay |for |
closing |costs?
