HUD HOUSING COUNSEL STUDY EXAM GUIDE QUESTIONS
AND ANSWERS FIRM A+
✔✔Which describes a homebuyer who would be ineligible as a first-time homebuyer, as
defined by most down payment assistance programs? - ✔✔A client who lost a home to
foreclosure two years ago.
✔✔Which step does a homebuyer complete in the process of purchasing a home? -
✔✔Get a home inspection
✔✔A counselor's understanding of the client's spending habits and use of credit are
most important in which step of the homebuying process? - ✔✔Determining if
homeownership is right for the client
✔✔Which charge cannot change from the Loan Estimate to the Closing Disclosure? -
✔✔Fees paid to lender
✔✔Which is the minimum qualifying credit score for an FHA mortgage if the client made
a 3.5% down payment? - ✔✔580
✔✔A client has saved money for a small down payment and closing costs to purchase a
$100,000 home in the city. The client is deciding whether to begin the homebuying
process now or continue saving for a larger down payment. Which loan type would
provide the highest monthly payment, assuming interest rates and other factors are
equal? - ✔✔FHA Loan
✔✔A client, who is the surviving spouse of a military service member, is interested in
buying a home. The client now works at a local nonprofit agency, making $36,000 per
year. The client has $4,000 in savings and a credit score of 624. If a client has just
received a commitment from a lender to provide a loan for a fixed loan amount based
on a review of the complete loan application package by an underwriter, in what stage
of the lending process is the client? - ✔✔Pre-approval
✔✔What are key differences between PMI and MIP? - ✔✔Conventional loans may
require PMI, removed at 78% LTV. FHA loans require MIP, removed upon fulfillment of
loan terms.
✔✔A client seeking to purchase is trying to decide between an FHA-insured mortgage
and another mortgage insured by private mortgage insurance. Which is a distinguishing
difference between these two types of mortgage insurance? - ✔✔FHA-insured
mortgages generally require payment of mortgage insurance premiums for the life of the
loan. Many private mortgage insurance programs may allow for their removal after
paying down the loan to below a 78% loan-to-value level.
, ✔✔Which borrower information is contained in the Uniform Residential Loan Application
(URLA)? - ✔✔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? -
✔✔Good Faith Estimate (GFE) and HUD-1 Settlement Statement
✔✔Which government regulation prohibits a lender from discriminating against a
borrower who uses public assistance to qualify for a mortgage loan? - ✔✔Equal Credit
Opportunity Act (ECOA)
✔✔Which item would affect the cost of earthquake insurance? - ✔✔Structural material
✔✔For a client whose most recent rental history is unfavorable, which initial strategy
should a housing counselor recommend to increase a potential landlord's willingness to
rent to the client? - ✔✔Complete a tenant responsibilities and obligations course
conducted by a housing counselor.
✔✔Which entity would be most likely to issue a Housing Choice Voucher? - ✔✔Local
housing authority
✔✔What is the purpose of the Veterans Affairs Supportive Housing (VASH) program? -
✔✔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? - ✔✔New landlord
has to honor the existing lease
✔✔Which is a typical responsibility of a landlord? - ✔✔Repairing a leak in the roof
✔✔A client is currently renting month to month (tenancy at sufferance). What advice
should a housing counselor recommend to better secure the housing? - ✔✔Seek a new
written lease agreement
✔✔Which circumstance is generally covered by renter's insurance? - ✔✔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)? -
✔✔A individual employed part time in a minimum wage job
AND ANSWERS FIRM A+
✔✔Which describes a homebuyer who would be ineligible as a first-time homebuyer, as
defined by most down payment assistance programs? - ✔✔A client who lost a home to
foreclosure two years ago.
✔✔Which step does a homebuyer complete in the process of purchasing a home? -
✔✔Get a home inspection
✔✔A counselor's understanding of the client's spending habits and use of credit are
most important in which step of the homebuying process? - ✔✔Determining if
homeownership is right for the client
✔✔Which charge cannot change from the Loan Estimate to the Closing Disclosure? -
✔✔Fees paid to lender
✔✔Which is the minimum qualifying credit score for an FHA mortgage if the client made
a 3.5% down payment? - ✔✔580
✔✔A client has saved money for a small down payment and closing costs to purchase a
$100,000 home in the city. The client is deciding whether to begin the homebuying
process now or continue saving for a larger down payment. Which loan type would
provide the highest monthly payment, assuming interest rates and other factors are
equal? - ✔✔FHA Loan
✔✔A client, who is the surviving spouse of a military service member, is interested in
buying a home. The client now works at a local nonprofit agency, making $36,000 per
year. The client has $4,000 in savings and a credit score of 624. If a client has just
received a commitment from a lender to provide a loan for a fixed loan amount based
on a review of the complete loan application package by an underwriter, in what stage
of the lending process is the client? - ✔✔Pre-approval
✔✔What are key differences between PMI and MIP? - ✔✔Conventional loans may
require PMI, removed at 78% LTV. FHA loans require MIP, removed upon fulfillment of
loan terms.
✔✔A client seeking to purchase is trying to decide between an FHA-insured mortgage
and another mortgage insured by private mortgage insurance. Which is a distinguishing
difference between these two types of mortgage insurance? - ✔✔FHA-insured
mortgages generally require payment of mortgage insurance premiums for the life of the
loan. Many private mortgage insurance programs may allow for their removal after
paying down the loan to below a 78% loan-to-value level.
, ✔✔Which borrower information is contained in the Uniform Residential Loan Application
(URLA)? - ✔✔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? -
✔✔Good Faith Estimate (GFE) and HUD-1 Settlement Statement
✔✔Which government regulation prohibits a lender from discriminating against a
borrower who uses public assistance to qualify for a mortgage loan? - ✔✔Equal Credit
Opportunity Act (ECOA)
✔✔Which item would affect the cost of earthquake insurance? - ✔✔Structural material
✔✔For a client whose most recent rental history is unfavorable, which initial strategy
should a housing counselor recommend to increase a potential landlord's willingness to
rent to the client? - ✔✔Complete a tenant responsibilities and obligations course
conducted by a housing counselor.
✔✔Which entity would be most likely to issue a Housing Choice Voucher? - ✔✔Local
housing authority
✔✔What is the purpose of the Veterans Affairs Supportive Housing (VASH) program? -
✔✔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? - ✔✔New landlord
has to honor the existing lease
✔✔Which is a typical responsibility of a landlord? - ✔✔Repairing a leak in the roof
✔✔A client is currently renting month to month (tenancy at sufferance). What advice
should a housing counselor recommend to better secure the housing? - ✔✔Seek a new
written lease agreement
✔✔Which circumstance is generally covered by renter's insurance? - ✔✔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)? -
✔✔A individual employed part time in a minimum wage job
