HUD CERTIFICATION EXAM 5 COMPREHENSIVE
HOUSING AND URBAN DEVELOPMENT STUDY
GUIDE 2026
◉ FHA.
Answer: Front end 31%
Back end 43%
Limited funds, bad credit, bankruptcy, high debt to income ratio.
◉ EEM (Energy) FHA.
Answer: Front end 33%
Back end 45%
◉ VA.
Answer: 41%
◉ USDA.
Answer: Front End 29%
Back End 41%, low-to-moderate income, must live rural area, no
down payment, competitive rates. Bellow 115% median income.
Loan term 33 to 38 yrs
,◉ Equal Credit Opportunity Act (ECOA).
Answer: A federal act, which prohibits discrimination by lenders on
the basis of sex or marital status in any aspect of a credit transaction.
◉ Front end Ratio.
Answer: PITIA/ Gross Income
◉ Within three days of receiving a loan application, lenders are
required to supply the client with.
Answer: Loan Estimate
◉ How may years at a job to show employment stability?.
Answer: At least 2 years
◉ Which factor determines whether the client will have to pay
private mortgage insurance versus mortgage insurance premium.
Answer: Type of loan
◉ The Fair Housing Act.
Answer: The federal law that prohibits discrimination in housing
based on race, color, religion, sex, handicap, familial status, and
national origin
,◉ The Housing and Urban Development Act.
Answer: providing government-insured loans to moderate-income
people.
◉ The Dodd-Frank Act.
Answer: protects borrowers from predatory lending practices
◉ Affirmatively Furthering Fair Housing (AFFH).
Answer: Advocating for lenders to operate in underserved areas
◉ After how many days can foreclosure proceedings begin if the
client is not being evaluated for loss mitigation, and has missed
payments on an FHA loan.
Answer: 120
◉ FHA 203K Loan.
Answer: allows the homeowner to refinance the home loan to
perform repair
◉ Streamlined 203K Loan.
, Answer: minor rehabilitation and/or home improvement projects
that will not require the involvement of consultants, engineers,
and/or architects
◉ key advantage of the client using a real estate agent versus selling
her house on her own.
Answer: Real estate agents negotiate on behalf of the client.
◉ A means test.
Answer: bankruptcy qualification that considers income and equity
in assets to determine if a client has the ability to repay part of the
debt
◉ Default.
Answer: when a payment has not been made after 60 to 90 days.
FHA 30 days
◉ Delinquent.
Answer: timely mortgage payments by the end of the grace period
(14 day)
◉ Which notice must the servicer send the client once the mortgage
is delinquent and before 45 days past due?.
Answer: Housing counseling
HOUSING AND URBAN DEVELOPMENT STUDY
GUIDE 2026
◉ FHA.
Answer: Front end 31%
Back end 43%
Limited funds, bad credit, bankruptcy, high debt to income ratio.
◉ EEM (Energy) FHA.
Answer: Front end 33%
Back end 45%
◉ VA.
Answer: 41%
◉ USDA.
Answer: Front End 29%
Back End 41%, low-to-moderate income, must live rural area, no
down payment, competitive rates. Bellow 115% median income.
Loan term 33 to 38 yrs
,◉ Equal Credit Opportunity Act (ECOA).
Answer: A federal act, which prohibits discrimination by lenders on
the basis of sex or marital status in any aspect of a credit transaction.
◉ Front end Ratio.
Answer: PITIA/ Gross Income
◉ Within three days of receiving a loan application, lenders are
required to supply the client with.
Answer: Loan Estimate
◉ How may years at a job to show employment stability?.
Answer: At least 2 years
◉ Which factor determines whether the client will have to pay
private mortgage insurance versus mortgage insurance premium.
Answer: Type of loan
◉ The Fair Housing Act.
Answer: The federal law that prohibits discrimination in housing
based on race, color, religion, sex, handicap, familial status, and
national origin
,◉ The Housing and Urban Development Act.
Answer: providing government-insured loans to moderate-income
people.
◉ The Dodd-Frank Act.
Answer: protects borrowers from predatory lending practices
◉ Affirmatively Furthering Fair Housing (AFFH).
Answer: Advocating for lenders to operate in underserved areas
◉ After how many days can foreclosure proceedings begin if the
client is not being evaluated for loss mitigation, and has missed
payments on an FHA loan.
Answer: 120
◉ FHA 203K Loan.
Answer: allows the homeowner to refinance the home loan to
perform repair
◉ Streamlined 203K Loan.
, Answer: minor rehabilitation and/or home improvement projects
that will not require the involvement of consultants, engineers,
and/or architects
◉ key advantage of the client using a real estate agent versus selling
her house on her own.
Answer: Real estate agents negotiate on behalf of the client.
◉ A means test.
Answer: bankruptcy qualification that considers income and equity
in assets to determine if a client has the ability to repay part of the
debt
◉ Default.
Answer: when a payment has not been made after 60 to 90 days.
FHA 30 days
◉ Delinquent.
Answer: timely mortgage payments by the end of the grace period
(14 day)
◉ Which notice must the servicer send the client once the mortgage
is delinquent and before 45 days past due?.
Answer: Housing counseling
