HUD Housing Counselor Certification
Practice Exam Questions With Correct
Answers
What |is |the |maximum |percent |of |area |median |income |allowable |for |a |household |to |qualify |for
|a |Housing |Choice |Voucher? |- |CORRECT |ANSWER✔✔-50%
Which |is |the |maximum |recommended |housing |ratio |for |renting |an |apartment? |- |CORRECT |
ANSWER✔✔-30%
Eligibility |requirements |for |down-payment |assistance |programs |include |which |factors? |- |
CORRECT |ANSWER✔✔-Income, |home-buyer |education, |purchase |price
The |client |is |considering |an |FHA |mortgage. |What |is |the |upfront |mortgage |insurance |premium |
(UFMIP) |for |an
FHA |mortgage? |- |CORRECT |ANSWER✔✔-1.75%
If |the |client |was |denied |a |mortgage |loan |and |the |lender |told |him |to |come |back |after |his |
divorce |had |been |final |for |three |years, |what |is |the |best |advice |for |the |housing |counselor |to |
provide |to |the |client |to |report |a |violation |to |ECOA? |- |CORRECT |ANSWER✔✔-Contact |the |
Federal |Trade |Commission |as |the |lender's |action |might |violate |the |Equal |Credit |Opportunity |
Act
A |question |from |a |lender |on |the |client's |Medical |History |would |be |inappropriate |or |
appropriate? |- |CORRECT |ANSWER✔✔-Inappropriate
,Who |is |responsible |for |educating |home-buyers |about |their |rights? |- |CORRECT |ANSWER✔✔-
Housing |Counselor
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
What |are |the |responsibilities |of |a |home |inspector? |- |CORRECT |ANSWER✔✔-Examine |
mechanical |systems, |Evaluate |the |condition |of |a |home, |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? |- |CORRECT |ANSWER✔✔-To |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. |Should |the |Lender |provide |a |Loan |
Estimate |(LE) |with, |or |without |factoring |the |raise? |- |CORRECT |ANSWER✔✔-Provide |a |loan |
estimate |without |factoring |in |the |raise
If |this |client |obtains |a |mortgage |of |$100,000, |typically, |how |much |should |he |expect |to |pay |for |
closing |costs? |- |CORRECT |ANSWER✔✔-$3000 |to |$4000
Is |Application |Fee |an |upfront |cost |of |clients |who |are |considering |renting |or |buying |a |property?
|- |CORRECT |ANSWER✔✔-Renting
A |client |wants |to |customize |his |home |with |do-it-yourself |projects, |this |is |an |indication |the |
client |is |best |aligned |with |which |housing |option; |Home-ownership |or |Renting? |- |CORRECT |
ANSWER✔✔-Home-ownership
,The |client's |gross |monthly |income |is |$4167 |and |the |monthly |debts |are |$435. |What |is |the |
maximum |mortgage |payment |(rounded |to |the |nearest |dollar) |for |which |this |client |would |
qualify |using |a |standard |conventional |loan? |- |CORRECT |ANSWER✔✔-$1,065
NOTE: |The |maximum |front-end |ratio |for |a |standard |conventional |loan |is |28%, |and |the |back-
end |ratio |is |36%. |The |front-end |ratio |is |calculated |as |28% |of |the |client's |monthly |income |of |
$4,167, |which |is |$1,167. |The |back-end |ratio |is |calculated |as |36% |of |the
client's |monthly |income |of |$4,167 |minus |the |client's |monthly |debt |of |$435, |which |equals |
$1,065. |Therefore, |the |maximum |loan |payment |that |the |client |qualifies |for |is |the |lower |of |the |
two |numbers, |which |is |$1,065.
Which |is |the |maximum |debt-to-income |ratio |allowable |for |an |FHA |loan? |- |CORRECT |
ANSWER✔✔-43%
Which |is |the |maximum |debt-to-income |ratio |allowable |for |an |FHA |Energy |Efficiency |Mortgage |
loan? |- |CORRECT |ANSWER✔✔-45%
The |client's |gross |monthly |income |is |$4167 |and |the |monthly |debts |are |$435. |With |a |monthly |
mortgage |payment |of |$950, |which |is |the |client's |debt-to-income |ratio |(round |to |the |nearest |
whole |percent)? |- |CORRECT |ANSWER✔✔-33%
The |client's |gross |monthly |income |is |$4167 |and |the |monthly |debts |are |$435. |If |the |client |
seeks |an |FHA |Energy |Efficient |Mortgage |(EEM) |loan, |what |is |the |maximum |housing |payment |
for |which |he |can |qualify |(rounded |to |the |nearest |dollar)? |- |CORRECT |ANSWER✔✔-$1,292
On |which |factor |is |a |borrower's |annual |mortgage |insurance |premium |(MIP) |based? |- |CORRECT
|ANSWER✔✔-Current |principal |balance
NOTE: |The |annual |mortgage |insurance |premium |(MIP) |is |based |on |the |unpaid |principal |
balance |of |the |loan. |The |loan-to-value |ratio |is |used |to |determine |when |private |mortgage |
, insurance |(PMI) |can |be |dropped |from |the |loan. |Credit |scores |do |not |affect |MIP |but |might |
affect |PMI.
Which |is |the |upfront |mortgage |insurance |premium |(UFMIP) |if |the |client |purchases |a |home |
with |an |FHA |loan |amount |of |$116,000? |- |CORRECT |ANSWER✔✔-$2,030
The |client |only |tracks |bill |payments. |Which |should |the |housing |counselor |recommend |to |help |
the |client |begin
planning |for |a |home |purchase?
A- |Continue |to |track |bill |payments |only
B- |Track |income |only
C- |Track |all |income |and |expenses
D- |Track |savings |deposits |and |expenses |- |CORRECT |ANSWER✔✔-C- |Track |all |income |and |
expenses
How |should |a |client |apply |for |the |Housing |Choice |Voucher |Program? |- |CORRECT |ANSWER✔✔-
Contact |the |local |Public |Housing |Authority
Which |website |provides |information |on |programs |to |assist |home-buyers |with |down |payment |
assistance? |- |CORRECT |ANSWER✔✔-HUD.gov
Based |on |the |client's |income |of |$56,400 |per |year |of, |savings |of |12,000 |toward |a |down |
payment, |and |credit |score |of |700, |which |mortgage |option |is |likely |best |for |her; |Conventional |
loan, |FHA |loan, |USDA |Rural |Development |loan, |or |Subprime |loan? |- |CORRECT |ANSWER✔✔-
Conventional |loan
This |client |is |denied |a |loan |to |purchase |a |home |because |she |has |not |lived |in |the |country |for |
at |least |ten |years. |Which |Act |is |this |adverse |action |violating, |and |where |should |the |client |
Practice Exam Questions With Correct
Answers
What |is |the |maximum |percent |of |area |median |income |allowable |for |a |household |to |qualify |for
|a |Housing |Choice |Voucher? |- |CORRECT |ANSWER✔✔-50%
Which |is |the |maximum |recommended |housing |ratio |for |renting |an |apartment? |- |CORRECT |
ANSWER✔✔-30%
Eligibility |requirements |for |down-payment |assistance |programs |include |which |factors? |- |
CORRECT |ANSWER✔✔-Income, |home-buyer |education, |purchase |price
The |client |is |considering |an |FHA |mortgage. |What |is |the |upfront |mortgage |insurance |premium |
(UFMIP) |for |an
FHA |mortgage? |- |CORRECT |ANSWER✔✔-1.75%
If |the |client |was |denied |a |mortgage |loan |and |the |lender |told |him |to |come |back |after |his |
divorce |had |been |final |for |three |years, |what |is |the |best |advice |for |the |housing |counselor |to |
provide |to |the |client |to |report |a |violation |to |ECOA? |- |CORRECT |ANSWER✔✔-Contact |the |
Federal |Trade |Commission |as |the |lender's |action |might |violate |the |Equal |Credit |Opportunity |
Act
A |question |from |a |lender |on |the |client's |Medical |History |would |be |inappropriate |or |
appropriate? |- |CORRECT |ANSWER✔✔-Inappropriate
,Who |is |responsible |for |educating |home-buyers |about |their |rights? |- |CORRECT |ANSWER✔✔-
Housing |Counselor
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
What |are |the |responsibilities |of |a |home |inspector? |- |CORRECT |ANSWER✔✔-Examine |
mechanical |systems, |Evaluate |the |condition |of |a |home, |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? |- |CORRECT |ANSWER✔✔-To |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. |Should |the |Lender |provide |a |Loan |
Estimate |(LE) |with, |or |without |factoring |the |raise? |- |CORRECT |ANSWER✔✔-Provide |a |loan |
estimate |without |factoring |in |the |raise
If |this |client |obtains |a |mortgage |of |$100,000, |typically, |how |much |should |he |expect |to |pay |for |
closing |costs? |- |CORRECT |ANSWER✔✔-$3000 |to |$4000
Is |Application |Fee |an |upfront |cost |of |clients |who |are |considering |renting |or |buying |a |property?
|- |CORRECT |ANSWER✔✔-Renting
A |client |wants |to |customize |his |home |with |do-it-yourself |projects, |this |is |an |indication |the |
client |is |best |aligned |with |which |housing |option; |Home-ownership |or |Renting? |- |CORRECT |
ANSWER✔✔-Home-ownership
,The |client's |gross |monthly |income |is |$4167 |and |the |monthly |debts |are |$435. |What |is |the |
maximum |mortgage |payment |(rounded |to |the |nearest |dollar) |for |which |this |client |would |
qualify |using |a |standard |conventional |loan? |- |CORRECT |ANSWER✔✔-$1,065
NOTE: |The |maximum |front-end |ratio |for |a |standard |conventional |loan |is |28%, |and |the |back-
end |ratio |is |36%. |The |front-end |ratio |is |calculated |as |28% |of |the |client's |monthly |income |of |
$4,167, |which |is |$1,167. |The |back-end |ratio |is |calculated |as |36% |of |the
client's |monthly |income |of |$4,167 |minus |the |client's |monthly |debt |of |$435, |which |equals |
$1,065. |Therefore, |the |maximum |loan |payment |that |the |client |qualifies |for |is |the |lower |of |the |
two |numbers, |which |is |$1,065.
Which |is |the |maximum |debt-to-income |ratio |allowable |for |an |FHA |loan? |- |CORRECT |
ANSWER✔✔-43%
Which |is |the |maximum |debt-to-income |ratio |allowable |for |an |FHA |Energy |Efficiency |Mortgage |
loan? |- |CORRECT |ANSWER✔✔-45%
The |client's |gross |monthly |income |is |$4167 |and |the |monthly |debts |are |$435. |With |a |monthly |
mortgage |payment |of |$950, |which |is |the |client's |debt-to-income |ratio |(round |to |the |nearest |
whole |percent)? |- |CORRECT |ANSWER✔✔-33%
The |client's |gross |monthly |income |is |$4167 |and |the |monthly |debts |are |$435. |If |the |client |
seeks |an |FHA |Energy |Efficient |Mortgage |(EEM) |loan, |what |is |the |maximum |housing |payment |
for |which |he |can |qualify |(rounded |to |the |nearest |dollar)? |- |CORRECT |ANSWER✔✔-$1,292
On |which |factor |is |a |borrower's |annual |mortgage |insurance |premium |(MIP) |based? |- |CORRECT
|ANSWER✔✔-Current |principal |balance
NOTE: |The |annual |mortgage |insurance |premium |(MIP) |is |based |on |the |unpaid |principal |
balance |of |the |loan. |The |loan-to-value |ratio |is |used |to |determine |when |private |mortgage |
, insurance |(PMI) |can |be |dropped |from |the |loan. |Credit |scores |do |not |affect |MIP |but |might |
affect |PMI.
Which |is |the |upfront |mortgage |insurance |premium |(UFMIP) |if |the |client |purchases |a |home |
with |an |FHA |loan |amount |of |$116,000? |- |CORRECT |ANSWER✔✔-$2,030
The |client |only |tracks |bill |payments. |Which |should |the |housing |counselor |recommend |to |help |
the |client |begin
planning |for |a |home |purchase?
A- |Continue |to |track |bill |payments |only
B- |Track |income |only
C- |Track |all |income |and |expenses
D- |Track |savings |deposits |and |expenses |- |CORRECT |ANSWER✔✔-C- |Track |all |income |and |
expenses
How |should |a |client |apply |for |the |Housing |Choice |Voucher |Program? |- |CORRECT |ANSWER✔✔-
Contact |the |local |Public |Housing |Authority
Which |website |provides |information |on |programs |to |assist |home-buyers |with |down |payment |
assistance? |- |CORRECT |ANSWER✔✔-HUD.gov
Based |on |the |client's |income |of |$56,400 |per |year |of, |savings |of |12,000 |toward |a |down |
payment, |and |credit |score |of |700, |which |mortgage |option |is |likely |best |for |her; |Conventional |
loan, |FHA |loan, |USDA |Rural |Development |loan, |or |Subprime |loan? |- |CORRECT |ANSWER✔✔-
Conventional |loan
This |client |is |denied |a |loan |to |purchase |a |home |because |she |has |not |lived |in |the |country |for |
at |least |ten |years. |Which |Act |is |this |adverse |action |violating, |and |where |should |the |client |
