HUD PRACTICE EXAM 2026 EXAM REVIEW
COMPLETE QUESTIONS AND ANSWERS
◉ Mortgage Insurance Premium (MIP). Answer: Annual fee. Based
on loan balance. FHA .8%-1.05%
◉ Down Payment Assistance (DPA). Answer: Is typically based on
income, family size, and the property purchased. Programs are
HOME investment partnership program and Comm. Dev. Block Grant
Program.
◉ Subsidized Apartment Search. Answer: Maintained by HUD but
privately owned subsidized housing.
◉ Public Housing Agency (PHA). Answer: Offer public housing and
housing vouchers. HUD administers funds.
◉ Total Tenant Payment. Answer: Tenants will pay the highest
amount of either
30% (family, disability, elderly)
10%(gross income) welfare rent
,◉ Federal Housing Choice Voucher Program (Sec. 8). Answer: Assists
very low-income families, elderly and disabled. Distributed by PHAs
for housing in private market.
◉ The Civil Rights Act of 1866. Answer: all people born in the United
States (except for American Indians) were natural citizens. All
citizens had the full and equal right to use, purchase, lease, and
transfer real estate and property without distinction of race, color, or
previous condition of slavery.
◉ 1896, Plessy v. Ferguson. Answer: Separate but equal. providing
segregated programs, services, and facilities including public
accommodations and housing
◉ 1933, Home Owners' Loan Corporation (HOLC). Answer: The
HOLC was created by Congress to avoid mass foreclosure during the
Great Depression. The mission was to refinance mortgages in default
to help borrowers avoid foreclosure.
◉ Redlining. Answer: Refusing to make loans or imposing more
onerous terms because of race, religion....
◉ Deed Restrictions. Answer: Clauses in a deed limiting the future
uses of the property and terms are transferred with the deed.
, ◉ 1948, Shelly v. Kraemer. Answer: Deed restrictions and covenants
were deemed illegal and unenforceable. Violate the Fair Housing Act
◉ 1954, Brown v. Board of Education. Answer: Overturned the
"separate but equal" policy established in Plessy v. Ferguson.
◉ 1962, Executive Order 11063. Answer: President JFK signed this,
prohibiting discrimination in the sale, leasing, rental, or other use of
properties and facilities backed by federal funds
◉ Civil Rights Act of 1964. Answer: Prohibited discrimination on the
basis of race, color, or national origin in programs and activites that
receive federal funding.
◉ Housing and Urban Development Act of 1968. Answer: expand the
availability of government-secured home loans to moderate-income
families
◉ 1974 and 1988, Amendments to the Fair Housing Act. Answer:
expanded the law to include sex, disability and familial status total of
7 characteristics
◉ A civil action in US District Court or state court can be filed within
how many years of a violation?. Answer: 2 years
COMPLETE QUESTIONS AND ANSWERS
◉ Mortgage Insurance Premium (MIP). Answer: Annual fee. Based
on loan balance. FHA .8%-1.05%
◉ Down Payment Assistance (DPA). Answer: Is typically based on
income, family size, and the property purchased. Programs are
HOME investment partnership program and Comm. Dev. Block Grant
Program.
◉ Subsidized Apartment Search. Answer: Maintained by HUD but
privately owned subsidized housing.
◉ Public Housing Agency (PHA). Answer: Offer public housing and
housing vouchers. HUD administers funds.
◉ Total Tenant Payment. Answer: Tenants will pay the highest
amount of either
30% (family, disability, elderly)
10%(gross income) welfare rent
,◉ Federal Housing Choice Voucher Program (Sec. 8). Answer: Assists
very low-income families, elderly and disabled. Distributed by PHAs
for housing in private market.
◉ The Civil Rights Act of 1866. Answer: all people born in the United
States (except for American Indians) were natural citizens. All
citizens had the full and equal right to use, purchase, lease, and
transfer real estate and property without distinction of race, color, or
previous condition of slavery.
◉ 1896, Plessy v. Ferguson. Answer: Separate but equal. providing
segregated programs, services, and facilities including public
accommodations and housing
◉ 1933, Home Owners' Loan Corporation (HOLC). Answer: The
HOLC was created by Congress to avoid mass foreclosure during the
Great Depression. The mission was to refinance mortgages in default
to help borrowers avoid foreclosure.
◉ Redlining. Answer: Refusing to make loans or imposing more
onerous terms because of race, religion....
◉ Deed Restrictions. Answer: Clauses in a deed limiting the future
uses of the property and terms are transferred with the deed.
, ◉ 1948, Shelly v. Kraemer. Answer: Deed restrictions and covenants
were deemed illegal and unenforceable. Violate the Fair Housing Act
◉ 1954, Brown v. Board of Education. Answer: Overturned the
"separate but equal" policy established in Plessy v. Ferguson.
◉ 1962, Executive Order 11063. Answer: President JFK signed this,
prohibiting discrimination in the sale, leasing, rental, or other use of
properties and facilities backed by federal funds
◉ Civil Rights Act of 1964. Answer: Prohibited discrimination on the
basis of race, color, or national origin in programs and activites that
receive federal funding.
◉ Housing and Urban Development Act of 1968. Answer: expand the
availability of government-secured home loans to moderate-income
families
◉ 1974 and 1988, Amendments to the Fair Housing Act. Answer:
expanded the law to include sex, disability and familial status total of
7 characteristics
◉ A civil action in US District Court or state court can be filed within
how many years of a violation?. Answer: 2 years
