HUD Housing Counselor
Certification Practice Exam
Questions with Correct Verified
Answers, Already Passed!
(Complete & Accurate)
The client thinks her cost of living is going to be the same because her
mortgage payment and her rental payment are comparable. What are
three recurring costs associated with home-ownership that are not
part of home rental?
A- Homeowners insurance, property taxes, home repairs
B- Property taxes, renters insurance, utility bill
C- Utility bill, car insurance, renters insurance
D- Car insurance, property taxes, cable bill - ANS ✓Homeowners
insurance, property taxes, home repairs
Which additional information should the housing counsellor request
from the client to determine her readiness to purchase a home?
Choose One:
A- Planned family size
B- Current lease
C- Pre-qualification letter
HUD Housing Counselor
, 2
HUD
D- Expenses - ANS ✓D- Expenses
A client has been a paralegal for five years and earns $56,400 per
year. She has been working part-time at an ice cream parlour for the
past few summers to save for her first home. Now that she has saved
$12,000 toward a down payment, she no longer needs to work a
second job. In the next three months, the client would like to buy a
single-family home near a good school for less than $150,000.
What is this client's maximum mortgage payment if the lender's
housing ratio is 28 percent (round to the nearest
dollar)? - ANS ✓$1,316
Which is the minimum percentage of the purchase price that the client
needs to make as a down payment to avoid having to pay mortgage
insurance with a conventional mortgage? - ANS ✓20%
Which factor determines whether the client will have to pay private
mortgage insurance versus mortgage
insurance premium?
A- Size of loan
B- Credit score
C- Type of loan
D- Loan-to-value ratio - ANS ✓C- Type of loan
The client would like to purchase a single-family home. Prices in the
area where she would like to live are around $450,000. She has
$45,000 left from the life insurance settlement and she has saved an
additional $5,000. She typically saves $500 per month, but when she
HUD Housing Counselor
, 3
HUD
has unexpected expenses she is unable to save. Because she takes her
children to school, she usually stops on her way to work for breakfast.
A- Earned Income Tax Credit
B- Child and Dependent Care Tax Credit
C- Energy tax credit
D- Educational tax credit - ANS ✓B- Child and Dependent Care Tax Credit
The client currently keeps the $45,000 remaining from the life
insurance settlement in a regular checking
account. Her goal is to use this money towards her down payment.
Which action should the housing counsellor suggest to this client?
A- Move the funds into a mutual fund
B- Move funds to a large purchase savings account with limited
accessibility
C- Leave the money in her current checking account for easy access
D- Move funds into a long-term Certificate of Deposit - ANS ✓Move
funds to a large purchase savings account with limited accessibility
The client wants to move her family to a lower-priced rental unit to
save money for a home, but is struggling with the upfront fees
required to move to a new apartment complex. Which strategy would
be most effective to help the client secure affordable housing and
cover moving expenses quickly?
A- Submit application for a housing voucher
B- Find an individual landlord and negotiate
C- Save for the move instead of paying utilities
HUD Housing Counselor
, 4
HUD
D- Apply for a loan to cover expenses - ANS ✓Find an individual landlord
and negotiate
Which type of lease and tenancy best protects the tenant?
A- An oral lease with tenancy at will
B- A written lease with contractual tenancy
C- A written lease with tenancy at will
D- An oral lease with tenancy at sufferance - ANS ✓A written lease with
contractual tenancy
The client wants to purchase a new home, but her lease might expire
before she can move into it. Which is the
best advice for the housing counsellor to provide?
A- Discuss a tenancy-at-sufferance agreement with the current
landlord
B- Stay in her current unit until the landlord evicts her
C- Find a seller who will allow her to move in before closing
D- Contact local Public Housing Agencies - ANS ✓A- Discuss a tenancy-
at-sufferance agreement with the current landlord
Which tactic would be most effective for the client to encourage a
positive landlord-tenant experience during a tenant initiated early
lease termination?
A- Stop paying rent immediately
B- Request return of the security deposit
HUD Housing Counselor
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller DoctorKen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.