HUD Housing Counselor
Certification Practice Exam
(100% Correct Answers)
,What is the maximum percent of area median income allowable for a household to qualify for a Housing Choice
Voucher?
50%
Which is the maximum recommended housing ratio for renting an apartment? 30%
Eligibility requirements for down-payment assistance programs include which factors? Income,
home-buyer education, purchase price
The client is considering an FHA mortgage. What is the upfront mortgage insurance premium (UFMIP) for an
FHA mortgage?
1.75%
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?
Contact the Federal Trade Commission as the lender's action might violate the Equal Credit Opportunity Act
A question from a lender on the client's Medical History would be inappropriate or appropriate?
,Inappropriate
Who is responsible for educating home-buyers about their rights? Housing
Counselor
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?
A 30-day period
What are the responsibilities of a home inspector?
Examine mechanical systems, Evaluate the condition of a home, Identify items to be repaired or replaced
Which is the best reason that a housing counselor would suggest that a client speak to three to five different
lenders?
To compare loan estimates
Which is the best advice that a housing counselor can give the client to protect against identity theft? Review
credit report at least once per year
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?
Provide a loan estimate without factoring in the raise
, If this client obtains a mortgage of $100,000, typically, how much should he expect to pay for closing costs?
$3000 to $4000
Is Application Fee an upfront cost of clients who are considering renting or buying a property? Renting
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?
Home-ownership
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?
$1,065
NOTE: The maximum front-end ratio for a standard conventional loan is 28%, and the back-end ratio is 36%. The
front-end ratio is calculated as 28% of the client's monthly income of $4,167, which is $1,167.
The back-end ratio is calculated as 36% of the
client's monthly income of $4,167 minus the client's monthly debt of $435, which equals $1,065. Therefore, the
maximum loan payment that the client qualifies for is the lower of the two numbers, which is $1,065.
Which is the maximum debt-to-income ratio allowable for an FHA loan? 43%
Which is the maximum debt-to-income ratio allowable for an FHA Energy Efficiency Mortgage loan?
Certification Practice Exam
(100% Correct Answers)
,What is the maximum percent of area median income allowable for a household to qualify for a Housing Choice
Voucher?
50%
Which is the maximum recommended housing ratio for renting an apartment? 30%
Eligibility requirements for down-payment assistance programs include which factors? Income,
home-buyer education, purchase price
The client is considering an FHA mortgage. What is the upfront mortgage insurance premium (UFMIP) for an
FHA mortgage?
1.75%
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?
Contact the Federal Trade Commission as the lender's action might violate the Equal Credit Opportunity Act
A question from a lender on the client's Medical History would be inappropriate or appropriate?
,Inappropriate
Who is responsible for educating home-buyers about their rights? Housing
Counselor
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?
A 30-day period
What are the responsibilities of a home inspector?
Examine mechanical systems, Evaluate the condition of a home, Identify items to be repaired or replaced
Which is the best reason that a housing counselor would suggest that a client speak to three to five different
lenders?
To compare loan estimates
Which is the best advice that a housing counselor can give the client to protect against identity theft? Review
credit report at least once per year
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?
Provide a loan estimate without factoring in the raise
, If this client obtains a mortgage of $100,000, typically, how much should he expect to pay for closing costs?
$3000 to $4000
Is Application Fee an upfront cost of clients who are considering renting or buying a property? Renting
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?
Home-ownership
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?
$1,065
NOTE: The maximum front-end ratio for a standard conventional loan is 28%, and the back-end ratio is 36%. The
front-end ratio is calculated as 28% of the client's monthly income of $4,167, which is $1,167.
The back-end ratio is calculated as 36% of the
client's monthly income of $4,167 minus the client's monthly debt of $435, which equals $1,065. Therefore, the
maximum loan payment that the client qualifies for is the lower of the two numbers, which is $1,065.
Which is the maximum debt-to-income ratio allowable for an FHA loan? 43%
Which is the maximum debt-to-income ratio allowable for an FHA Energy Efficiency Mortgage loan?
