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HUD Certification Exam Questions And Answers With Complete Solutions
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HUD Certification Exam Questions And Answers With Complete Solutions
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HUD Certification Exam Questions And Answers WithComplete Solutions
A client does not receive a written monthly statement from the
credit card company. Which credit law could this omission
violate?
-Fair Credit Billing Act
-Fair Credit Reporting Act
-Fair Housing Act
-Fair and Accurate Credit Transactions Act Correct Answer
Fair Credit Billing Act
A client earns a salary of $45,000 at a job held for three years.
The client has credit card bills, student loans, and a car loan
totaling $500 per month. The client has already saved $3,500 for
a down payment and is using an FHA Energy Efficient
Mortgage (EEM).
If the client wants to make the minimum down payment for a
home priced at $150,000, how much more does the client need
to save?
-$1,750
-$2,250
-$4,500
-$5,250 Correct Answer $1,750
A client has a monthly household income of $2,300, monthly
debt payments of $450, and an optimal monthly housing ratio of
32%. What is the client's optimal monthly housing payment?
,-$592
-$736
-$880
-$1,186 Correct Answer $736
A client has saved money for a small down payment and closing
costs to purchase a $100,000 home in the city. The client is
deciding whether to begin the home-buying process now or
continue saving for a larger down payment.
Client Profile
► Credit Score - 700
► Monthly income - $3,000
► Savings - $15,000
Types of Loans - LTV (%)
► Traditional conventional loan - 80%
► Conventional/piggyback - 80%/10%
► Conventional loan - 90%
► FHA loan - 96.5%
Which loan type would provide the highest monthly payment,
assuming interest rates and other factors are equal?
Conventional/piggyback
FHA loan
Conventional loan
Traditional conventional loan Correct Answer
,A client is currently renting month to month (tenancy at
sufferance). What advice should a housing counselor
recommend to better secure the housing?
Seek a new written lease agreement
Seek a new oral lease agreement
Continue with the current lease arrangement
Seek a tenancy at will lease arrangement Correct Answer
A client is delinquent on the mortgage and at risk of default. The
client is considering signing the deed over to a real estate
investor to avoid foreclosure. What should the housing
counselor recommend?
-Recommend a reputable real estate agent to handle signing the
deed over to a real estate investor.
-Advise the client to take advantage of the offer to sign over the
deed.
-Recommend that the client file bankruptcy instead of signing
over the deed.
-Advise against signing over the deed to a real estate investor as
a solution to avoid foreclosure. Correct Answer
A client is in the process of purchasing a home with a sales price
of $162,000. The client has a net worth of $50,000, a credit
score of 680, and a debt-to-income ratio of 36%. The home has
appraised for $155,000. Which factor of creditworthiness will
most likely be an obstacle to purchasing the home?
-Character
-Capital
, -Collateral
-Capacity Correct Answer Collateral
A client recently experienced an unexpected car expense, which
resulted in the client using half the rent to pay for the expense.
The client, who still has a full-time job, would like to avoid
making a late payment. Which resource should a housing
counselor recommend first?
-Contact United Way 211
-Apply for transitional housing
-Contact local Legal Aid service
-Apply for emergency shelter Correct Answer
A client seeking to purchase is trying to decide between an
FHA-insured mortgage and another mortgage insured by private
mortgage insurance. Which is a distinguishing difference
between these two types of mortgage insurance?
-FHA-insured mortgages generally require payment of mortgage
insurance premiums, which are generally twice as expensive as
private mortgage insurance premiums for the same loan amount.
-Private mortgage insurance programs generally require
payment of mortgage insurance premiums for the life of the
loan. FHA-insured mortgages may allow for the removal of this
insurance after paying down the loan to below a 78% loan-to-
value level.
-Private mortgage insurance programs generally require
payment of mortgage insurance premiums, which are generally
twice as expensive as FHA mortgage insurance premiums for
the same loan amount.
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