HUD HOUSING COUNSELOR CERTIFICATION PRACTICE EXAM 2026/2027 |
100% VERIFIED QUESTIONS AND CORRECT ANSWERS
1. What is the maximum percent of area median income allowable for a
household to qualify for a Housing Choice Voucher? - ANSWER 50%
2. Which is the maximum recommended housing ratio for renting an apartment?
- ANSWER 30%
3. Eligibility requirements for down-payment assistance programs include
which factors? - ANSWER Income, home-buyer education, purchase price
4. The client is considering an FHA mortgage. What is the upfront mortgage
insurance premium (UFMIP) for an FHA mortgage? - ANSWER 1.75%
5. 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? -
ANSWER Contact the Federal Trade Commission as the lender's action might
violate the Equal Credit Opportunity Act
6. A question from a lender on the client's Medical History would be
inappropriate or appropriate? - ANSWER Inappropriate
7. Who is responsible for educating home-buyers about their rights? -
ANSWER Housing Counselor
,8. 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? - ANSWER A 30-day period
9. What are the responsibilities of a home inspector? - ANSWER Examine
mechanical systems, Evaluate the condition of a home, Identify items to be
repaired or replaced
10. Which is the best reason that a housing counselor would suggest that a client
speak to three to five different lenders? - ANSWER To compare loan estimates
11. Which is the best advice that a housing counselor can give the client to
protect against identity theft? - ANSWER Review credit report at least once per
year
12. 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? -
ANSWER Provide a loan estimate without factoring in the raise
13. If this client obtains a mortgage of $100,000, typically, how much should he
expect to pay for closing costs? - ANSWER $3000 to $4000
14. Is Application Fee an upfront cost of clients who are considering renting or
buying a property? - ANSWER Renting
15. 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? - ANSWER Home-ownership
16. 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? - ANSWER
$1,065
17. Which is the maximum debt-to-income ratio allowable for an FHA loan? -
ANSWER 43%
18. Which is the maximum debt-to-income ratio allowable for an FHA Energy
Efficiency Mortgage loan? - ANSWER 45%
19. 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)? - ANSWER 33%
20. 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)? - ANSWER $1,292
21. On which factor is a borrower's annual mortgage insurance premium (MIP)
based? - ANSWER Current principal balance
22. Which is the upfront mortgage insurance premium (UFMIP) if the client
purchases a home with an FHA loan amount of $116,000? - ANSWER $2,030
23. The client only tracks bill payments. Which should the housing counselor
recommend to help the client begin planning for a home purchase? - ANSWER
C- Track all income and expenses
24. How should a client apply for the Housing Choice Voucher Program? -
ANSWER Contact the local Public Housing Authority
100% VERIFIED QUESTIONS AND CORRECT ANSWERS
1. What is the maximum percent of area median income allowable for a
household to qualify for a Housing Choice Voucher? - ANSWER 50%
2. Which is the maximum recommended housing ratio for renting an apartment?
- ANSWER 30%
3. Eligibility requirements for down-payment assistance programs include
which factors? - ANSWER Income, home-buyer education, purchase price
4. The client is considering an FHA mortgage. What is the upfront mortgage
insurance premium (UFMIP) for an FHA mortgage? - ANSWER 1.75%
5. 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? -
ANSWER Contact the Federal Trade Commission as the lender's action might
violate the Equal Credit Opportunity Act
6. A question from a lender on the client's Medical History would be
inappropriate or appropriate? - ANSWER Inappropriate
7. Who is responsible for educating home-buyers about their rights? -
ANSWER Housing Counselor
,8. 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? - ANSWER A 30-day period
9. What are the responsibilities of a home inspector? - ANSWER Examine
mechanical systems, Evaluate the condition of a home, Identify items to be
repaired or replaced
10. Which is the best reason that a housing counselor would suggest that a client
speak to three to five different lenders? - ANSWER To compare loan estimates
11. Which is the best advice that a housing counselor can give the client to
protect against identity theft? - ANSWER Review credit report at least once per
year
12. 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? -
ANSWER Provide a loan estimate without factoring in the raise
13. If this client obtains a mortgage of $100,000, typically, how much should he
expect to pay for closing costs? - ANSWER $3000 to $4000
14. Is Application Fee an upfront cost of clients who are considering renting or
buying a property? - ANSWER Renting
15. 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? - ANSWER Home-ownership
16. 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? - ANSWER
$1,065
17. Which is the maximum debt-to-income ratio allowable for an FHA loan? -
ANSWER 43%
18. Which is the maximum debt-to-income ratio allowable for an FHA Energy
Efficiency Mortgage loan? - ANSWER 45%
19. 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)? - ANSWER 33%
20. 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)? - ANSWER $1,292
21. On which factor is a borrower's annual mortgage insurance premium (MIP)
based? - ANSWER Current principal balance
22. Which is the upfront mortgage insurance premium (UFMIP) if the client
purchases a home with an FHA loan amount of $116,000? - ANSWER $2,030
23. The client only tracks bill payments. Which should the housing counselor
recommend to help the client begin planning for a home purchase? - ANSWER
C- Track all income and expenses
24. How should a client apply for the Housing Choice Voucher Program? -
ANSWER Contact the local Public Housing Authority
