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
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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
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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
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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
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