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HUD CERTIFICATION EXAM 2024 ACTUAL EXAM COMPLETE
300 QUESTIONS WITH DETAILED VERIFIED ANSWERS BEST
REVISION MATERIAL ALREADY GRADED A+
The client currently pays $2,050 in rent, though her mortgage
payment could be higher. Which is the most
effective strategy to be able to manage a higher payment?
A- Withdraw retirement account funds to pay down car and credit
card balances
B- Delay home purchase until the car loan is paid off
C- Consolidate car loan and credit card balances
D- Utilize savings to pay the mortgage in the future - CORRECT
ANSWER >>>>B- Delay home purchase until the car loan is paid off
Which was instituted by Congress to better protect home-buyers
following the most recent housing crisis?
A- Federal Trade Commission
B- National Mortgage Settlement
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C- Consumer Finance Protection Bureau
D- Truth In Lending Act - CORRECT ANSWER >>>>C- Consumer
Finance Protection Bureau
Which initiative encourages housing counseling agencies to
advocate that lenders operate in underserved areas?
A- Affirmatively Furthering Fair Housing
B- Fair Housing Initiatives Program
C- Fair Housing Testing Program
D- Fair Housing Assistance Program - CORRECT ANSWER >>>>A-
Affirmatively Furthering Fair Housing
Which action taken by a housing counseling agency would
affirmatively further fair housing?
A- Report potential violations to the local fair housing authority
B- Create an outreach campaign designed to raise awareness about
critical housing topics
C- Accompany clients when viewing properties to ensure they are
treated fairly
D- Discourage tenants from seeking housing with landlords who
appear to consistently engage in discriminatory practices -
CORRECT ANSWER >>>>B- Create an outreach campaign designed
to raise awareness about critical housing topics
Which section of a credit report shows a client's payment history? -
CORRECT ANSWER >>>>Account information
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Which is the maximum payment (rounded to the nearest dollar) for
principal, interest, taxes, insurance, and association fees (PITIA) this
client can afford according to FHA back-end ratio guidelines?
Assets, $58200, Total Gross Monthly Income $6400 Debt Expenses
$615, Household Expenses $4679 - CORRECT ANSWER >>>>$2137
NOTE: The back-end ratio includes total principal, interest, taxes,
and insurance, plus other monthly debt. The maximum back-end
ratio for FHA is 43%. The client's total monthly income is $6,400,
and her total monthly debt is $615. Forty-three percent of $6,400 is
$2,752. Subtracting the total monthly debt from $2,752, the
remainder is $2,137, which is the maximum total principal, interest,
taxes, insurance, and association fees (PITIA) payment.
Reference: Module 2.1 Renting vs. Buying
Page Number 21 to 24
Which is the down payment required if the client purchases a
$375,000 home with an FHA mortgage? - CORRECT ANSWER
>>>>$13,125
NOTE: The down payment would be 3.5% of the $375,000 purchase
price, which is $13,125 ($375,000 multiplied by 0.035 equals
$13,125).
The client attempted to purchase a condo six months ago but was
denied. The mortgage required a minimum credit score of 640, 3%
down payment and a 35% front-end ratio and a 43% back-end
ratio. The purchase price was $225,000 with a down payment of
$45,000, monthly principal and interest payment of $939, property
taxes of $196 and a homeowner association fee of $228 for a total
monthly payment of $1,363. During the intake process, she was
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asked about her children and her responsibilities as a mot -
CORRECT ANSWER >>>>Fair Housing Act
NOTE: The Fair Housing Act prohibits housing discrimination and
protects seven characteristics: race, religion, color, national origin,
familial status, disability, and sex. In this situation, the loan officer
appears to have denied the loan based on the client's familial
status.
The client has recently replaced her sewer lines. Which is the best
information a housing counselor should
provide this client who still worries about sewer backup and is
considering flood insurance to cover potential
damage?
A- Homeowners who do not live in designated high-risk flood zones
should not consider purchasing flood
insurance.
B- The new sewer lines are covered by a warranty.
C- Flood insurance policies do not cover water that comes from
inside a home.
D- The client's contents insura - CORRECT ANSWER >>>>C- Flood
insurance policies do not cover water that comes from inside a
home.
In reviewing a loan estimate, the housing counselor finds fees for
services that seem unnecessary. What is the most likely
explanation for these fees? Choose one:
