HUD CERTIFICATION EXAM 2025/2026
NEWEST QUESTIONS AND ANSWERS |
A+ GRADE
Wire Transfer Fee Correct Answer Fee charged when a
client sends a payment to another account electronically
through electronic funds transfer (EFT)
Overdraft Fee Correct Answer Fee charged when an
account doesn't have money to cover a purchase and the
financial institution loans money to complete the payment.
Stop Payment Fee Correct Answer Fee charged to
invalidate a check before it is cashed.
NSF Fee Correct Answer Fee charged if there is not
enough money in an account to cover a check payment of
other purchase.
CD; Money Market; High-Interest Account Correct Answer
Examples of accounts that would be ideal for short-term
large purchase savings
Renters Insurance Correct Answer An insurance policy
that provides coverage for damages, within a rental
property, to renters' belongings and liability.
,Discount Points Correct Answer A type of pre-paid interest
normally paid at closing and generally calculated to be
equivalent to 1% of the total loan amount
Default Correct Answer The inability to make timely
payments or fulfill legal obligations of loan terms.
Equity Correct Answer Value of ownership interest in
property.
Foreclosure Correct Answer A legal process in which
mortgaged property is sold to pay the loan of a defaulting
borrower.
Escrow Correct Answer Funds to be used for specific
purposes by parties carrying out a mutual transaction,
deposited with a third party.
Closing Costs Correct Answer Fees for final property
transfer that are not included in the price of the property.
Homeowners Insurance Correct Answer An insurance
policy that can provide coverage for damages to a
dwelling and contents that belong to the homeowner.
Front-end Ration Correct Answer A rate that calculates a
borrower's housing-related obligations as a percentage of
gross monthly income. AKA - Housing Ratio
Conventional Loan Correct Answer A mortgage loan
backed by private lenders. Loans with a DP less than 20%
, of purchase price may require private mortgage insurance
(PMI)
Principal Correct Answer The amount of money borrowed
to buy a house or the amount of the loan that has not been
paid back to the lender.
Mortgage Insurance Premium (MIP) Correct Answer A
monthly payment, usually part of the mortgage payment
for FHA loans, paid by a borrower for mortgage insurance.
Private mortgage Insurance (PMI) Correct Answer
Insurance policy that protects a lender from potential risks
when a homebuyer pays less than 20% for a down
payment.
Ground Rent Correct Answer An arrangement in which the
owner of a dwelling or structure does not own the land on
which the structure resides.
Association Dues Correct Answer Charged by community
or Homeowners Association to pay for repairs, upkeep,
landscaping, improvements and property management.
Adjusted Gross Income Correct Answer Gross income
minus adjustments, or reductions, that one is eligible for,
such as deductions for unreimbursed business expenses,
tuition and fees, and contributions to certain retirement
accounts.
NEWEST QUESTIONS AND ANSWERS |
A+ GRADE
Wire Transfer Fee Correct Answer Fee charged when a
client sends a payment to another account electronically
through electronic funds transfer (EFT)
Overdraft Fee Correct Answer Fee charged when an
account doesn't have money to cover a purchase and the
financial institution loans money to complete the payment.
Stop Payment Fee Correct Answer Fee charged to
invalidate a check before it is cashed.
NSF Fee Correct Answer Fee charged if there is not
enough money in an account to cover a check payment of
other purchase.
CD; Money Market; High-Interest Account Correct Answer
Examples of accounts that would be ideal for short-term
large purchase savings
Renters Insurance Correct Answer An insurance policy
that provides coverage for damages, within a rental
property, to renters' belongings and liability.
,Discount Points Correct Answer A type of pre-paid interest
normally paid at closing and generally calculated to be
equivalent to 1% of the total loan amount
Default Correct Answer The inability to make timely
payments or fulfill legal obligations of loan terms.
Equity Correct Answer Value of ownership interest in
property.
Foreclosure Correct Answer A legal process in which
mortgaged property is sold to pay the loan of a defaulting
borrower.
Escrow Correct Answer Funds to be used for specific
purposes by parties carrying out a mutual transaction,
deposited with a third party.
Closing Costs Correct Answer Fees for final property
transfer that are not included in the price of the property.
Homeowners Insurance Correct Answer An insurance
policy that can provide coverage for damages to a
dwelling and contents that belong to the homeowner.
Front-end Ration Correct Answer A rate that calculates a
borrower's housing-related obligations as a percentage of
gross monthly income. AKA - Housing Ratio
Conventional Loan Correct Answer A mortgage loan
backed by private lenders. Loans with a DP less than 20%
, of purchase price may require private mortgage insurance
(PMI)
Principal Correct Answer The amount of money borrowed
to buy a house or the amount of the loan that has not been
paid back to the lender.
Mortgage Insurance Premium (MIP) Correct Answer A
monthly payment, usually part of the mortgage payment
for FHA loans, paid by a borrower for mortgage insurance.
Private mortgage Insurance (PMI) Correct Answer
Insurance policy that protects a lender from potential risks
when a homebuyer pays less than 20% for a down
payment.
Ground Rent Correct Answer An arrangement in which the
owner of a dwelling or structure does not own the land on
which the structure resides.
Association Dues Correct Answer Charged by community
or Homeowners Association to pay for repairs, upkeep,
landscaping, improvements and property management.
Adjusted Gross Income Correct Answer Gross income
minus adjustments, or reductions, that one is eligible for,
such as deductions for unreimbursed business expenses,
tuition and fees, and contributions to certain retirement
accounts.
