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HUD Housing Counselor Certification Practice Exam|127 Questions and Answers
HUD Housing Counselor Certification Practice Exam|127 Questions and Answers
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HUD Housing Counselor CertificationPractice Exam|127 Questions and
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? - -45%
-The client's gross monthly income is $4167 and the monthly debts are
$435. With a monthly mortgage payment of $950, which is the client's debt-
to-income ratio (round to the nearest whole percent)? - -33%
-The client's gross monthly income is $4167 and the monthly debts are
$435. If the client seeks an FHA Energy Efficient Mortgage (EEM) loan, what
is the maximum housing payment for which he can qualify (rounded to the
nearest dollar)? - -$1,292
-On which factor is a borrower's annual mortgage insurance premium (MIP)
based? - -Current principal balance
NOTE: The annual mortgage insurance premium (MIP) is based on the unpaid
principal balance of the loan. The loan-to-value ratio is used to determine
, when private mortgage insurance (PMI) can be dropped from the loan. Credit
scores do not affect MIP but might affect PMI.
-Which is the upfront mortgage insurance premium (UFMIP) if the client
purchases a home with an FHA loan amount of $116,000? - -$2,030
-The client only tracks bill payments. Which should the housing counselor
recommend to help the client begin
planning for a home purchase?
A- Continue to track bill payments only
B- Track income only
C- Track all income and expenses
D- Track savings deposits and expenses - -C- Track all income and expenses
-How should a client apply for the Housing Choice Voucher Program? - -
Contact the local Public Housing Authority
-Which website provides information on programs to assist home-buyers
with down payment assistance? - -HUD.gov
-Based on the client's income of $56,400 per year of, savings of 12,000
toward a down payment, and credit score of 700, which mortgage option is
likely best for her; Conventional loan, FHA loan, USDA Rural Development
loan, or Subprime loan? - -Conventional loan
-This client is denied a loan to purchase a home because she has not lived in
the country for at least ten years. Which Act is this adverse action violating,
and where should the client report this action to? - -Report the action to the
Federal Trade Commission, it is a violation of the Equal Credit Opportunity
Act
-If the client submits a loan application, which document should she receive
within three business days? - -Loan Estimate
-What is a pre-approval from a lender? - -When the lender commits to lend
a fixed amount based on a review of the client's application.
-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 parlor 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.
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