HUD PRACTICE EXAM 2026 ACTUAL EXAM
SCRIPT FULL QUESTIONS AND VERIFIED
SOLUTIONS
◉ What are key differences between PMI and MIP? Answer:
Conventional loans may require PMI, removed at 78% LTV. FHA
loans require MIP, removed upon fulfillment of loan terms
◉ MIP Answer: for FHA only, paid for life of loan
◉ PMI Answer: for conventional only, removed at 78% LTV
◉ Which borrower information is contained in the Uniform
Residential Loan Application (URLA)?
a.)Credit score
b.)Asset information
c.)Education
d.)Tax information Answer: Asset information
◉ In order to comply with the Know Before You Owe rule, which
disclosures were replaced with new versions that more clearly
outline mortgage terms to borrowers? Answer: Good Faith Estimate
(GFE) and HUD-1 Settlement Statement
, ◉ Which entity would be most likely to issue a Housing Choice
Voucher? Answer: Local housing authority
◉ What is the purpose of the Veterans Affairs Supportive Housing
(VASH) program? Answer: To end veteran homelessness
◉ A tenant's apartment building has been sold. The new owners
have informed the tenant that the rent will immediately increase by
$100 a month despite having four months left on the written lease.
Which best describes the situation? Answer: New landlord has to
honor the existing lease
◉ A client is currently renting month to month (tenancy at
sufferance). What advice should a housing counselor recommend to
better secure the housing? Answer: Seek a new written lease
agreement
◉ Which circumstance is generally covered by renter's insurance?
Answer: A pipe burst in the apartment above the tenant's unit and
causes water damage to the tenant's personal belongings.
◉ Which family is most likely to qualify for the Earned Income Tax
Credit (EITC)? Answer: A individual employed part time in a
minimum wage job
SCRIPT FULL QUESTIONS AND VERIFIED
SOLUTIONS
◉ What are key differences between PMI and MIP? Answer:
Conventional loans may require PMI, removed at 78% LTV. FHA
loans require MIP, removed upon fulfillment of loan terms
◉ MIP Answer: for FHA only, paid for life of loan
◉ PMI Answer: for conventional only, removed at 78% LTV
◉ Which borrower information is contained in the Uniform
Residential Loan Application (URLA)?
a.)Credit score
b.)Asset information
c.)Education
d.)Tax information Answer: Asset information
◉ In order to comply with the Know Before You Owe rule, which
disclosures were replaced with new versions that more clearly
outline mortgage terms to borrowers? Answer: Good Faith Estimate
(GFE) and HUD-1 Settlement Statement
, ◉ Which entity would be most likely to issue a Housing Choice
Voucher? Answer: Local housing authority
◉ What is the purpose of the Veterans Affairs Supportive Housing
(VASH) program? Answer: To end veteran homelessness
◉ A tenant's apartment building has been sold. The new owners
have informed the tenant that the rent will immediately increase by
$100 a month despite having four months left on the written lease.
Which best describes the situation? Answer: New landlord has to
honor the existing lease
◉ A client is currently renting month to month (tenancy at
sufferance). What advice should a housing counselor recommend to
better secure the housing? Answer: Seek a new written lease
agreement
◉ Which circumstance is generally covered by renter's insurance?
Answer: A pipe burst in the apartment above the tenant's unit and
causes water damage to the tenant's personal belongings.
◉ Which family is most likely to qualify for the Earned Income Tax
Credit (EITC)? Answer: A individual employed part time in a
minimum wage job
