HUD Certification Exam | 115 Questions and
Answers 2023 100% Correct (Verified Answers)
Deed Restrictions – correct answer✔✔ Legally enforceable terms that govern the use
of real estate
Redlining – correct answer✔✔ The practice of refusing to make residential loans or
imposing more onerous terms on any loans made because of the predominant race,
color, national origin, religion, sex, disability, or familial status of the area’s residents.
Civil Rights Act of 1968 – correct answer✔✔ Following the assassination of Dr. Martin
Luther King Jr., Congress passed what monumental piece of legislation, which prohibits
discrimination in housing sales, rentals, and financing based on race, color, national
origin, religion, sex, disability and familial status?
7 – correct answer✔✔ The Fair Housing Act, as amended, protects how many
characteristics?
Reasonable Modification – correct answer✔✔ A property manager of an apartment
complex that receives federal financial assistance installs a ramp so that a tenant in a
wheelchair can easily access her first-floor apartment.
Reasonable Accommodation – correct answer✔✔ Housing provider has a policy of
requiring tenants to come to the rental office to pay their rent. A tenant with a mental
disability, who is afraid to leave her unit, is allowed to mail her rent payment.
True – correct answer✔✔ The Fair Housing Act does not prohibit a lender from
showing potential clients information about different loans.
Fair Housing Assistance Program (FHAP) – correct answer✔✔ Provides annual
funding to state and local agencies that enforce fair housing laws that are substantially
equivalent to the Fair Housing Act. These funds go towards an agency’s capacity
building, administrative costs, investigative and enforcement efforts, training and other
projects designed to support enforcement of fair housing law.
Fair Housing Initiatives Program (FHIP) – correct answer✔✔ Provides funding to fair
housing organizations and nonprofits that assist people who may have been victims of
housing discrimination.
Marketing Analysis – correct answer✔✔ Aim is to identify groups of people who would
benefit most if targeted by the campaign, the characteristics of these people, and their
expectations.

Networking Event – correct answer✔✔ The opportunity to increase awareness of the
plans and actions of housing industry members, private organizations and foundation s,
public housing agencies, neighborhood groups, regional organizations, and others to
further fair housing objectives.
Personal Information – correct answer✔✔ The section of the credit report that
contains employer details.
Account Information – correct answer✔✔ The section of a credit report that contains
information about a student loan.
Public Records – correct answer✔✔ The section of the credit report that contains
court information such as a bankruptcy.
Inquiries – correct answer✔✔ The section of the credit report that will show recent
attempts to open a credit card.
Consumer Rights – correct answer✔✔ The section of the credit report that contains
information about how to correct inaccuracies.
Account History – correct answer✔✔ Credit: Payment history of accounts, including
late payments, delinquencies, judgments, and liens.
Amounts Owed – correct answer✔✔ Credit: Ratio of total credit extended to the
amount of credit owed.
Length of Credit History – correct answer✔✔ Credit: Overall length of credit history in
the report as well as the average age of accounts.
Types of Credit – correct answer✔✔ Credit: Variety of accounts (e.g. credit card, auto
loan, mortgage)
New Credit – correct answer✔✔ Credit: Number of recent credit inquiries, as well as
new credit accounts.
AnnualCreditReport.com – correct answer✔✔ Where does a client go to get a free
credit report?
Fair Credit Reporting Act (FCRA) – correct answer✔✔ You have the right to dispute
information in your credit file that is incomplete, inaccurate, or unverifiable.
Fair and Accurate Credit Transactions Act (FACTA) – correct answer✔✔ You have
the right to a free annual credit report.

HUD Exam Prep 119 Complete Questions and
Answers 2023
% Impact of Account Payment History on Credit Score – correct answer✔✔ 35%
portion of credit score based on the payment history of accounts, including late
payments, delinquencies, judgments, and liens
% Impact of Amounts Owed on Accounts on Credit Score – correct answer✔✔ 30%
portion of score based on the ratio of total credit extended to the amount of credit owed
% Impact of Length of Credit History on Credit Score – correct answer✔✔ 15%
portion of score based don the overall length of credit history in the report, as well as
average age of accounts
% Impact of Types of Credit Used on Credit Score – correct answer✔✔ 10%
portion of score based on the variety of accounts
% Impact of New Credit on Credit Score – correct answer✔✔ 10%
portion of score based on the number of recent credit INQUIRIES
1.1.1) All of the following would help a counselor develop a realistic household budget,
except:
A. Payment information for a paid-off car
B. Amount spent on groceries
C. Rent payment information
D. Monthly cable bill – correct answer✔✔ A
1.1.2) All of the following are reasons why it is important for a client to track income and
expenses before finalizing a budget, except:
A. It helps show clients that they actually spend less on some expenses than they think.
B. It helps identify spending habits.
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines. – correct answer✔✔ C
1.1.3) Which of the following is a “want” and not a “need”?
A. Health care premium
B. Car insurance
C. Gym membership
D. Rent – correct answer✔✔ C
1.1.4) All of the following are effective ways to decrease expenses, except:
A. Cancel insurance policy
B. Cancel cable service

C. Stick to a shopping list
D. Conserve energy in the home – correct answer✔✔ A
1.1.5) All of the following are effective strategies to increase income, except:
A. Work over time
B. Teach yoga
C. Find a second job
D. Factor in an anticipated raise – correct answer✔✔ D
1.1.6) Rebecca’s next appointment is with Ray, a client who recently started a new job
and wants to buy a car to cut down on his commute. Rebecca reviews documents that
Ray brought to the counseling session and determines that Ray makes about $1,900
each month after taxes. He pays his bills every month and covers his other expenses,
but he never has any
money left for savings. Identify which information is used in determining a budget, and
which information is not.
A. Pay Stub
B. Bank Statements
C. Utility Bills
D. Social Security Award Letter
E. Annual Bonus
F. Stock Dividends
G. Employer Reimbursements
H. Credit Score – correct answer✔✔ Used to determine budget: A, B, C, D
Not used to determine budget: E, F, G, H
1.1.7) Ray’s commute on the bus takes over an hour, so he wants to buy a car as soon
as possible, but he has poor credit and cannot obtain a loan right now. He thinks he can
find a reliable car for about $2,000 and has about 20% of the total in the bank from his
tax refund. If Ray’s goal is to buy a car within 8 months, what is the minimum amount he
needs to save each
month?
A. $150
B. $175
C. $200
D. $225 – correct answer✔✔ C
1.1.8) Rebecca helps determine that with adjustments Ray can set aside $320 each
month to buy
the car. How many months will he need to save this amount?
A. At least 4
B. At least 5
C. At least 6
D. At least 7 – correct answer✔✔ B
1.2.1) Which section of a credit report will contain employer details?

A. Consumer rights
B. Account information
C. Personal information
D. Public records
E. Inquiries – correct answer✔✔ C
1.2.2) Which section of a credit report will contain information about a student loan?
A. Personal information
B. Public records
C. Inquiries
D. Consumer rights
E. Account information – correct answer✔✔ E
1.2.3) Which section of a credit report will contain court information such as bankruptcy?
A. Public records
B. Inquiries
C. Personal information
D. Consumer rights
E. Account information – correct answer✔✔ A
1.2.4) Which section of a credit report will show recent attempts to open a credit card?
A. Personal information
B. Public records
C. Consumer rights
D. Inquiries
E. Account information – correct answer✔✔ D
1.2.5) Which section of a credit report will contain information about how to correct
inaccuracies?
A. Personal information
B. Consumer rights
C. Public records
D. Inquiries
E. Account information – correct answer✔✔ B
1.2.6) Indicate which of the following concepts would generate a positive effect on a
credit report
and which would have a negative effect:
A. Paying bills early
B. Filing for bankruptcy
C. Applying for a new credit card every month
D. High credit card balances – correct answer✔✔ Positive Effect on Credit Report
ANegative Effect on Credit Report
B-C-D

1.2.9) Place the letters in the correct sequence from the MOST important factor to the
LEAST important factor that impacts the determination of a credit score.
A. Amount of total credit used
B. Number of inquiries on record
C. History of delinquent payment
D. Length of time accounts have been established – correct answer✔✔ Most
Important to Least Important
C-A-D-B
1.2.10) Where should a client go to obtain free credit reports?
A. www.freecreditreport.com
B. www.myfico.com
C. www.annualcreditreport.com
D. www.experian.com – correct answer✔✔ C
1.2.12) Consumers have rights protected by fair credit laws. Indicate which credit
regulation corresponds to the scenarios described. You may use an act more than
once.

1. Amy sees a charge she did not make on her credit
   card statement and wants to dispute it.
   A. Fair Credit Reporting Act (FCRA)
   B. Fair Credit Billing Act (FCBA)
   C. Fair and Accurate Credit Transactions Act (FACTA) – correct answer✔✔ B
   1.2.12) Consumers have rights protected by fair credit laws. Indicate which credit
   regulation corresponds to the scenarios described. You may use an act more than
   once.
   _ 2. Peter wants to dispute inaccurate information in his credit report. A. Fair Credit Reporting Act (FCRA) B. Fair Credit Billing Act (FCBA) C. Fair and Accurate Credit Transactions Act (FACTA) – correct answer✔✔ A 1.2.12) Consumers have rights protected by fair credit laws. Indicate which credit regulation corresponds to the scenarios described. You may use an act more than once. 3. Jen has been the victim of identity theft and
   wants to place a fraud alert on her credit file.
   A. Fair Credit Reporting Act (FCRA)
   B. Fair Credit Billing Act (FCBA)
   C. Fair and Accurate Credit Transactions Act (FACTA) – correct answer✔✔ C
   1.2.12) Consumers have rights protected by fair credit laws. Indicate which credit
   regulation corresponds to the scenarios described. You may use an act more than
   once.
   __ 4. Mary wants to review her credit report for free.

HUD Practice Exam 89 Verified Q&A 100% Correct
Which document is most important when working with a client to develop an initial
budget as part of a Client Action Plan? – correct answer✔✔ List of Assets
Retirement plan statement
Pay stub X
Current lease
A client would like purchase a home within one year. The client is motivated to increase
household income as a way to save for a down payment and qualify for a loan. Which is
the best solution for the client to reach this goal? – correct answer✔✔
A credit report may contain which information? – correct answer✔✔ Income history
Criminal record

of accounts in collection status

A history of payments on an elctric bill
A credit report contains inaccurate information. Which action item should the counselor
include in the Client Action Plan? – correct answer✔✔ FIle a dispute with the
appropaite credit reporting agency
Six months ago a client left a job as a reporter to start a business in the retail industry.
To prepare to buy a house, the client closed credit card accounts and has been using
savings to pay down credit card debt and collections. The client has not been able to
save much for a down payment with all the debt payments but knows about an
affordable homeownership program that only requires a 1% down payment with an FHA
loan.
What might result from the client closing the credit card accounts? – correct answer✔✔
Which action would a client take to improve a credit score? – correct answer✔✔
A client does not receive a written monthly statement from the credit card company.
Which credit law could this omission violate? – correct answer✔✔ FCBA
A client shopping for a mortgage loan presents a housing counselor with an offer from a
local mortgage lender. The interest rate on the offer is 7.5% for a 30-year fixed rate
mortgage with a 20% down payment required. The counselor reviews the client file and
determines the client’s credit score is 725 and the client’s total debt-to-income ratio is
20%.
The client asks the housing counselor if the offer is a case of illegal predatory lending.
How should the housing counselor respond? – correct answer✔✔ I am unable to

determine whether the loan is predatory but i suggest you shop around with other
ledning sources
Which action should a counselor recommend a client take first after discovering identity
theft? – correct answer✔✔ File an identity theft report
In which situation would a client’s responsibilities, recurring costs, and upfront costs be
evaluated? – correct answer✔✔ When weighing housing options
A client works 40 hours a week making $15 an hour. What is the highest monthly
mortgage the client can afford based on income if the client secures a conventional
loan? – correct answer✔✔ Front End Ratio Formula
Conventional = <28%
Which type of government insured loan was created for financing homes in rural areas?

• correct answer✔✔ USDA
  A client keeps having budget problems due to unexpected expenses. Which financial
  tool would best assist this client to prepare for unexpected expenses and avoid
  increasing credit usage? – correct answer✔✔ Emergency Fund
  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? – correct answer✔✔ Front End Ratio Formula
  What is the back-end ratio for a client with a monthly housing expense of $1,250, a
  monthly total of $88 in other consumer debt payments, and a gross household income
  of $4,460 per month (rounded to the nearest whole percent)? – correct answer✔✔
  Debt to income ratio or back end ratio
  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? – correct answer✔✔ FHA
  downpayment is at least 3.5%
  Under which condition would most down payment assistance programs approve a
  waiver of the homeownership education requirement? – correct answer✔✔ Most will
  not waive the homeownership education requirement
  Which type of assistance administered by a public housing authority allows for location
  flexibility? – correct answer✔✔ Project based vouchers 2.2-23

SSI open water final exam Questions and
answers 2023 (Verified Answers)
Which of the statements concerning sound transmission underwater is incorrect?
-Sound will travel farther underwater then in air
-Divers find it difficult to locate the direction of a sound producing source
-Divers find it easy to talk to each other directly through water
-Sound travels four times faster underwater than in air – Answer✅ -Divers find it easy to talk
to each other directly through water
The absolute pressure expressed in terms of atmospheres absolute at 33 feet in sea water is:
-2 ata
-1 ata

• 4 ata
• 3 ata – Answer✅ 2 ata
  The condition in which certain colors are diminished as depth increases is called:
  -Refraction
  -Turbidity
  -Diffusion
  -Absorption – Answer✅ Absorption
  Earplugs
  -Aid equalization of the middle of the ear
• Protect against cold
  -Should never be worn while diving
  -Protect ears from squeeze – Answer✅ -Should never be worn while diving
  Gauge pressure is defined as:
• Hydrostatic pressure minus 1 ata
• The pressure at the surface
• The depth reading on a gauge
• Absolute pressure minus 1 ata – Answer✅ – Absolute pressure minus 1 ata
  Sinus squeeze can be prevented by:
  -Valsalva technique
• Wearing earplugs
• Tilting the divers head back and forth
• Not diving with a cold – Answer✅ – Not diving with a cold
  The event that led to the use of the acronym SCUBA to describe diving was: – Answer✅ The
  development of the demand regulator in 1943

Ear squeeze can be prevented by
-Relaxing
-All answers are correct

• Never diving with a cold
• rotating the jaw, swallowing or Valsalva – Answer✅ -All answers are correct
  The first symptom of a sinus squeeze is usually:
• a dull pain deep within the head
• a sharp pain at the base of the neck
• a crushing pain high in the chest
• a sharp pain above the eyes – Answer✅ – a sharp pain above the eyes
  If you experience pain in the ear during descent:
  -Stop the descent and ascend till the pain stops
• abort the dive
  -place a finger in the ear canal and gently massage the ear until the pain ceases
• continue the descent while gently exhaling into the mask – Answer✅ – continue the descent
  while gently exhaling into the mask
  Body heat is lost at a rate of _ than air. – Answer✅ 25-30 times faster
  Proper equalization techniques must be learned in order to:
  -prevent sinus squeeze
  -prevent ear pain
  -prevent squeeze injuries
• all answers are correct – Answer✅ – all answers are correct
  Salt water weighs _ pounds per cubic foot and freshwater weighs _ pounds per cubic foot.
• Answer✅ 64/62.5
  Underwater, the bending of light rays causes objects to appear to be: – Answer✅ closer
  The purpose of equalization is to:
  -ensure the uneven application of pressure between the water and air spaces in the body
  -prevent water from entering air spaces in the body
  -introduce additional air into body air spaces in response to increasing external pressure
  -remove all fluids from body air spaces – Answer✅ -introduce additional air into body air
  spaces in response to increasing external pressure
  One atmosphere of pressure is defined as
  -1 ata
  -each 34ft of depth in freshwater
  -each 33ft of depth in saltwater

HUD Practice Test and Correct Answers A+ GUIDE
Which document is most important when working with a client to develop an initial
budget as part of a Client Action Plan? – correct answer✔✔ Pay Stub
A client would like to purchase a home within one year. The client is motivated to
increase household income as a way to save for a down payment and qualify for a loan.
Which is the
best solution for the client to reach this goal? – correct answer✔✔ Find a second job
A credit report may contain which information? – correct answer✔✔ The number of
accounts in collection status
Six months ago a client left a job as a reporter to start a
business in the retail industry. To prepare to buy a house, the client closed credit card
accounts and has been using savings to
pay down credit card debt and collections. The client has not
been able to save much for a down payment with all the debt
payments but knows about an affordable homeownership
program that only requires a 1% down payment with an FHA
loan. What might result from the client closing the credit card
accounts? – correct answer✔✔ It increases credit utilization, causing a negative
impact on the credit
score.
Which action would a client take to improve a credit score? – correct answer✔✔ Pay
delinquent accounts
A client does not receive a written monthly statement from the credit card company.
Which credit law could this omission violate? – correct answer✔✔ Fair Credit Billing
Act
A client shopping for a mortgage loan presents a housing counselor with an offer from a
local mortgage lender. The interest rate on the offer is 7.5% for a 30-year fixed rate
mortgage with a 20% down payment required. The counselor reviews the client file and
determines the client’s credit score is 725 and the client’s total debt-to-income ratio is
20%. – correct answer✔✔ “I am unable to determine whether the loan is predatory,
but I suggest you shop around with other lending sources.”
Which action should a counselor recommend a client take first after discovering identity
theft? – correct answer✔✔ File an identity theft report
In which situation would a client’s responsibilities, recurring costs, and upfront costs be
evaluated? – correct answer✔✔ When weighing housing options

A client works 40 hours a week making $15 an hour. What is the highest monthly
mortgage the client can afford based on income if the client secures a conventional
loan? – correct answer✔✔ $728
Which type of government insured loan was created for financing homes in rural areas?

• correct answer✔✔ USDA
  A client keeps having budget problems due to unexpected expenses. Which financial
  tool would best assist this client to prepare for unexpected expenses and avoid
  increasing credit usage? – correct answer✔✔ Emergency Funds
  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? – correct answer✔✔ $736
  Use Front-End Ratio
  What is the back-end ratio for a client with a monthly housing expense of $1,250, a
  monthly total of $88 in other consumer debt payments, and a gross household income
  of $4,460 per month (rounded to the nearest whole percent)? – correct answer✔✔
  30%
  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? – correct answer✔✔ $1,750
  Under which condition would most down payment assistance programs approve a
  waiver of the homeownership education requirement? – correct answer✔✔ Most will
  not waive the homeownership education requirement.
  Which type of assistance administered by a public housing authority allows for location
  flexibility? – correct answer✔✔ Tenant-based vouchers
  A client’s payment history affects which factor of creditworthiness? – correct answer✔✔
  Character
  Which action may a lender take to determine a borrower’s character? – correct
  answer✔✔ Call an employer to verify employment
  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? – correct answer✔✔ Collateral

HUD Exam – Tenancy questions and
answers 2023
Jake has a session with a new client, Ruth, later that day. She has received notice that
her apartment complex, which offers her project-based housing assistance, will be sold
to a new management company in six months. The new company will renovate the
building and will no longer participate in the project-based assistance program. To help
Ruth find another affordable rental option, Jake should take all of the following steps,
except:
A. Provide Ruth with contact information for local housing authorities that administer
rental assistance programs.
B. Approve Ruth for a Housing Choice Voucher. C. Help Ruth understand what may
deter a landlord from approving her rental application.
D. Assist Ruth in distinguishing between her housing wants and needs – correct
answer✔✔ B. Approve Ruth for a Housing Choice Voucher.
-Housing counselors cannot approve clients for Housing Choice Vouchers; however,
they can refer clients to local housing agencies where they can submit an application.
Ahmed has received a note from his landlord explaining that he will be evicted if he
continues to break tenant regulations. The note did not specify exactly what Ahmed was
doing wrong. If Ahmed reviews his lease, he is likely to find all of the following
guidelines that he must abide by, except:
A. Guests may not stay at the housing unit more than 15 days without the owner’s
written consent.
B. The resident is permitted to park only in the parking location 152.
C. The resident agrees to permit the landlord to enter the apartment unannounced to
show the unit to potential tenants.
D. The resident agrees to keep the premises and all items in order and good condition. –
correct answer✔✔ C. The resident agrees to permit the landlord to enter the
apartment unannounced to show the unit to potential tenants.
Jake has a Skype appointment scheduled with his client, Tatiana, who is upset about
her landlord’s behavior. All of the situations that Tatiana describes would likely suggest
that her landlord is in breach of contract, except:
A. Fixing a broken stovetop seven months after she submitted a request for repair.
B. Arriving on the site of the property for a random home inspection, without prior
warning.
C. Neglecting to pay the water bill, resulting in two weeks without water service.
D. Calling Tatiana in advance to advise her that he will come by to replace a broken
cabinet door. – correct answer✔✔ D. Calling Tatiana in advance to advise her that he
will come by to repair a broken cabinet door.
Jamie has an actual cash value renters insurance policy with contents coverage, loss of
use coverage, and liability coverage. For which expense will she likely be reimbursed?

A. The cost of rebuilding the living room, which was destroyed by fire.
B. The entire cost of purchasing a brand new bedroom set damaged by a pipe burst and
subsequent water damage.
C. Expenses associated with purchasing replacement materials for the artwork she sells
through an online vendor.
D. Expenses for legal fees when Jamie is sued by her daughter’s classmate who injured
himself when he tripped over clutter at Jamie’s apartment. – correct answer✔✔ D.
Expenses for legal fees when Jamie is sued by her daughter’s classmate who injured
himself when he tripped over clutter at Jamie’s apartment.
Jake has clients in all of the following situations. Which client would Jake likely
recommend contact an emergency rent assistance program?
A. The client wants to quit working to return to college and will need help paying for rent
while in school.
B. The client cannot afford a rental in the area and needs a housing subsidy to obtain a
rental.
C. The client has been living with a roommate who suddenly moves and does not leave
his portion of the month’s rent.
D. The client has been notified that her rent will increase by $200 per month if she
decides to remain in her apartment after her lease comes up for renewal in four months.
She cannot afford to pay an additional $200 a month. – correct answer✔✔ C. The
client has been living with a roommate who suddenly moves and does not leave his
portion of the month’s rent.
-If the roommate did not leave his portion of the rent, the client may not have enough
money to pay the full amount of rent. If he does not pay in full, he may be threatened by
eviction. Emergency rent assistance programs are likely to assist in this situation.
A client with two cats received a cure or quit notice. Which following action would a
housing counselor likely recommend to someone in this situation?
A. Send an “answer” to the court explaining that the animal is not considered a pet.
B. Find another home for the animal within the time frame outlined in the notice.
C. Consult with a housing counselor to find housing in preparation for the eviction.
D. Hide the cat at a friend’s house for a few days or until things cool off with the
landlord. – correct answer✔✔ B. Find another home for the animal within the time
frame outlined in the notice.
All of the following clients are facing challenges with rental housing. Which client would
Jake likely refer to an emergency shelter?
A. The client had an unexpected medical expense and knows she will not be able to
afford utilities for several months.
B. The client cannot afford rental in the new area where he plans to move.
C. The client has received a pay rent or quit notice.
D. The client did not pay rent within five days of the final judgment and will be evicted in
hours. – correct answer✔✔ D. The client did not pay rent within five days of the final
judgment and will be evicted in 24 hours.

Utah State ASL interpreters written exam
Linguistic Register – correct answer✔✔ Determines the levels of formality in a
message
5 Linguistic Registers – correct answer✔✔ Frozen
Formal
Consultative
Casual
Intimate
Frozen Register – correct answer✔✔ “Our Father Who Art In Heaven” or Pledge of
Allegiance
Turn Taking: None
Sentence Structure: Complex/ Archaic
Vocabulary: Formal/archaic
Volume/Speed: Large/ Slower than normal speed
Topics Allowed:Limited
Formal Register – correct answer✔✔ General Conference
Turn Taking: Limited/ Controlled
Sentence Structure: Complex/Compound
Vocabulary: Formal
Volume/Speed: Large/ Slower than normal speed
Topics Allowed: Impersonal
Consultative Register – correct answer✔✔ Dr. Appt
Turn Taking: Restrained But Active
Sentence Structure: Fully Formed
Vocabulary: Technical Jargon
Volume/Speed: Conversational Speed and Signing Space
Topics Allowed: Professional
Casual Register – correct answer✔✔ Book Club/ Neighborhood Party
Turn Taking: Fluid/ Interruptions are Allowed
Sentence Structure: Fragment/ Some Run On
Vocabulary: Informal
Volume/Speed: Faster than Conversational/ Relaxed Signing Space
Topics Allowed: Personal
Intimate Register – correct answer✔✔ Close Friends/ Family
Turn Taking: Interruptions are Common
Sentence Structure: Incomplete
Vocabulary: Some Lexicon has personal Meaning

Volume/Speed:Sometimes Signs are not Required/ Small Truncated
Topics Allowed:Personal
Culture and Language – correct answer✔✔ System of meanings and values,
Language is the medium through which culture is transmitted
American Sign LAnguage – correct answer✔✔ Naturally occurring Visual Gesture
Language that adheres to linguistic rules. Not derived from English. Has it’s own
grammar and syntax
Sign Supported Systems/Manually Coded English – correct answer✔✔ Broad term
referring to English-Based signing systems
Rochester Method
Seeing Essential English SEE1
Signing Exact English SEE2
Conceptually Accurate Signed English
Rochester Method – correct answer✔✔ EVERY WORD is fingerspelled except and
which is signed
Seeing Essential English SEE1 – correct answer✔✔ Sign for every word, no
correction for the concept on the sign.
English grammer is strictly adhered to.
EX. Carpet Car & Pet
Signing Exact English SEE2 – correct answer✔✔ Sign Translatable to only one
English Meaning
Run has same sign regardless of concept
Letter markers are used to differentiate between signs meanings
make sign with a P= Produce with a C= Create
Conceptually Accurate Signed English CASE – correct answer✔✔ english grammar +
conceptually accurate ASL
usually accompanied by inaudible mouthing of the English words
Reciprocity of Perspectives – correct answer✔✔ majority group assumes others
deserve to be like them, hearing people assume deaf want to hear “Fix it” hearing aids,
cochlea, speech therapy
Paternalism and Possessive Consciousness – correct answer✔✔ A care-taker
attitude by members of the dominant group toward members of the oppressed, based
on the assumption that they are unable to make appropriate decisions and need to be
taken care of

HUD Housing Counselor Certification Practice
Questions and Answers 2023 100% Complete
What is the maximum percent of area median income allowable for a household to
qualify for a Housing Choice Voucher? – correct answer✔✔ 50%
Which is the maximum recommended housing ratio for renting an apartment? – correct
answer✔✔ 30%
Eligibility requirements for down-payment assistance programs include which factors? –
correct answer✔✔ 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? – correct answer✔✔ 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? – correct answer✔✔ 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? – correct answer✔✔ Inappropriate
Who is responsible for educating home-buyers about their rights? – correct answer✔✔
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? –
correct answer✔✔ A 30-day period
What are the responsibilities of a home inspector? – correct answer✔✔ 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? – correct answer✔✔ To compare loan estimates
Which is the best advice that a housing counselor can give the client to protect against
identity theft? – correct answer✔✔ 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? – correct answer✔✔ 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? – correct answer✔✔ $3000 to $4000
Is Application Fee an upfront cost of clients who are considering renting or buying a
property? – correct answer✔✔ 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? – correct
answer✔✔ 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? – correct answer✔✔ $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? – correct
answer✔✔ 43%
Which is the maximum debt-to-income ratio allowable for an FHA Energy Efficiency
Mortgage loan? – correct answer✔✔ 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)? – correct answer✔✔ 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)? – correct answer✔✔
$1,292
On which factor is a borrower’s annual mortgage insurance premium (MIP) based? –
correct answer✔✔ 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? – correct answer✔✔ $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 – correct answer✔✔ C- Track all income
and expenses
How should a client apply for the Housing Choice Voucher Program? – correct
answer✔✔ Contact the local Public Housing Authority
Which website provides information on programs to assist home-buyers with down
payment assistance? – correct answer✔✔ 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? –
correct answer✔✔ 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? – correct answer✔✔ 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? – correct answer✔✔ Loan Estimate
What is a pre-approval from a lender? – correct answer✔✔ 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 singlefamily home near a good school for less than $150,000.

HUD Exam – Housing Affordability Questions and
Answers with Complete Solutions
All of the following are true statements about upfront costs associated with renting and
buying, except;
A. Renters generally pay a security deposit upon signing a lease.
B. The average cost due upon signing a lease for a rental is typically between 20% of
the monthly rent..
C. Closing costs are typically comprised of lender fees, discount points, title insurance,
home inspection fees, escrow deposit, property taxes, private mortgage insurance, and
attorney’s fees.
D. A client who desires to purchase a home worth $150,000 could be required to pay
$7,000 in standard closing costs. – correct answer✔✔ B. The average costs due upon
signing a lease for a rental is typically 20% of the monthly rent.
-This statement is not true. However, the figure of 20% is relevant for those considering
buying a home (down payment).
A couple, the Smiths, recently scheduled a meeting with Rebecca. They have owned
their home for seven years and have accumulated some equity in the home. However,
they are now struggling to pay their mortgage, because the wife left her full-time job
when she had a baby. Her husband’s salary is paid in installments of $900 a week,
which are subject to deductions and other withholdings. Each month, they pay $1,000 in
principal and interest, $110 for taxes, $130 for insurance, and $20 in homeowners
assessments. What is their current front-end ratio (as a whole number with no decimal
point)? – correct answer✔✔ 32%
Formula: Gross monthly income = Total weekly pay before deuctions x 52 / 12
Front end ratio = Monthly housing expenses / Gross monthly Income.
One option that Rebecca suggests to the Smiths is to sell their home and rent a home
that is smaller and more affordable. If the Smiths decide to do this, they will no longer
have a mortgage, so what is the maximum amount that they can afford to pay in rent
and renters insurance each month? Tip: Recall that the husband ‘s salary is paid in
installments of $900 a week, which are subject to deductions and other withholdings. –
correct answer✔✔ $1,170
If the Smiths sell their home and purchase a more affordable property, what is the
maximum amount that is affordable for the Smiths to pay in PITIA each month if they
obtained a conventional loan? Tip: Recall that the husband ‘s salary is paid in
installments of $900 a week, which are subject to deductions and other withholdings –
correct answer✔✔ $1,092
The Smiths explain to Rebecca that they’ve already found a smaller, more affordable
home they’ve considered buying. It would cost them $990 each month in PITIA.

HUD Practice test Questions and Answers
with complete Solutions
1) A client would like to purchase a house within one year. The client is motivated to
increase household income as a way to save for a down payment and qualify for a loan.
Which is the best solution for the client to reach this goal? – correct answer✔✔ Find a
second job
2) Six months ago a client left a job as a reporter to start a business in the retail
industry. To prepare to buy a house, the client closed credit card accounts and has
been using savings to pay down credit card debt and collections. The client has not
been able to save much for a down payment with all the debt payments but knows
about an affordable homeownership program that only requires a 1% down payment
with an FHA Loan. What might result from the client closing the credit card accounts? –
correct answer✔✔ It decreases credit utilization, causing a positive impact on the
credit score

3. Which family is most likely to qualify for the Earned Income Tax Credit (EITC) –
   correct answer✔✔ An individual employed part time in a minimum wage job
4. A client shopping for a mortgage loan present a housing counselor with an offer from
   a local mortgage lender. The interest rate on the offer is 7.5% for a 30 year fixed rate
   mortgage with a 20% down payment required. The counselor reviews the client file and
   determines the client’s credit score is 725 and the client’s total debt to income ratio is
   20%. The client asks the housing counselor if the offer is a case of illegal predatory
   lending. How should the housing counselor respond? – correct answer✔✔ I am
   unable to determine whether the loan is predatory, but I suggest you shop around with
   other lending sources.
5. Which does a servicer do in the non-judicial foreclosure? – correct answer✔✔
   Issues a Notice of Default (NOD) to the borrower
   6 Under which circumstance must a servicer refrain from the foreclosure process –
   correct answer✔✔ The client has a pending loan modification application
6. What should a counselor and borrower focus on when developing an emergency
   budget? – correct answer✔✔ Increasing income and decreasing expenses
7. A client who is not behind on the mortgage was recently informed of a reduction of
   income for two months by the client’s employer. The Client has an FHA loan and would
   like to take action as soon as possible to avoid a mortgage delinquency. Which FHA
   Loss Mitigation option is likely best for this client? – correct answer✔✔ Informal/formal
   forbearance

HUD Test 1 | 159 Questions and Answers
100% Correct
Which document should the counselor review with the client to identify spending habits
and track expenses? – correct answer✔✔ Bank Statement
Which additional information would the housing counselor need to prepare a household
budget for this client? – correct answer✔✔ Net income
Which item in the client’s budget is a fixed expense? – correct answer✔✔ Car lease
payment
What is the maximum percent of area median income allowable for a household to
qualify for a Housing Choice Voucher? – correct answer✔✔ 50%
Which is the maximum recommended housing ratio for renting an apartment? – correct
answer✔✔ 30%
Eligibility requirement for down payment assistance programs include which factors? –
correct answer✔✔ Income, homebuyer education, purchase price
The client is considering an FHA mortgage. What is the upfront mortgage insurance
premium (UFMIP) for a FHA mortgage? – correct answer✔✔ 1.75% (UFMIP)
The annual MIP (Mortgage Insurance Premium) for FHA mortgages ranges? – correct
answer✔✔ between 0.8% and 1.05%.
USDA loans charge up front Grantee Fee ? – correct answer✔✔ 2%
The client decides to purchase a townhouse through a down payment assistance
program with a recapture clause. Three years later, the client remarries, and his wife
owns a single family home. Which situation might cause an accelerated loan payment?

• correct answer✔✔ Client moves to his wife’s home and rents his townhouse to
  tenant
  If the client was denied a mortgage loan and the lender told him to come back after his
  divorce had been final for 3 years, what is the best advice for the housing counselor to
  provide to the client? – correct answer✔✔ Contact the Federal Trade Commission as
  the lender’s action might violate the Equal Credit Opportunity Act.
  A question from a lender on which topic would be inappropriate? – correct answer✔✔
  Medical history

Which is a responsibility of a housing counselor? – correct answer✔✔ Educate
homebuyers about their rights
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? –
correct answer✔✔ 30 days period
Which is a responsibility of a home inspector? – correct answer✔✔ *Evaluate the
condition of a home
*Examine mechanical systems
*Identify items to be repaired or replaced
Which is the best reason that a housing counselor would suggest that a client speak to
3 to 5 different lenders before choosing one? – correct answer✔✔ the client can
compare loan estimates
Which is the best advice that a housing counselor can give the client to protect against
identity theft? – correct answer✔✔ Review credit report at least once per year
The client tells the lender that he is expecting a raise soon. Which action should the
lender take? – correct answer✔✔ Provide a loan estimate without factoring in the
raise
Average closing costs rage? – correct answer✔✔ 3% and 4%
The client is considering renting an apartment with a different landlord. Which would be
an upfront cost of moving to the new apartment? – correct answer✔✔ Application fee
The client is second-guessing his decision to buy a home, so the counselor asks a
series of questions. Which response would best align with the homewonership option
for this client? – correct answer✔✔ Client wants to customize his home with do-ityourself projects
Maximum Front-end ration for a standard convention loan % ? – correct answer✔✔
28%
Front-end ratio – correct answer✔✔ monthly housing expenses / Gross monthly
income
매달 income에 housing expenses의 %
Back-end ratio(Debt to income)for a standard convention loan % ? – correct answer✔✔
maximum 36%

Back – end ratio – correct answer✔✔ Total monthly debt expense/ Gross monthly
income
매달 income에 Debt의 %
Back-end ratio(Debt to income) for a standard FHA loan % ? – correct answer✔✔
41%-43%
maximum 43%
If FHA Energy Efficiency Mortgage can 45%
Maximum Front-end ration for a standard FHA loan % ? – correct answer✔✔ 31%
How to calculate maximum monthly housing expense? – correct answer✔✔ front-end
ratio x Gross income
Which steps should housing counselor take to assess the client’s readiness to purchase
a home? – correct answer✔✔ -Assess funds available for upfront coasts
-Calculate debt-to-income ratio
-Determine maximum housing payment
On which factor is a borrower’s annual mortgage insurance premium (MIP) based? –
correct answer✔✔ Current principal balance
Loan to Value Ratio – correct answer✔✔ LTV ratio= Mortgage Amount (MA)/
Appraised Property Value (APV)
Calculated by amount of loan compared to the value of property
Best LTV ratio= 80% or lower
EX) LTV 75%
75% Mortgage가 낸돈
25% 내가 낸돈
Private Mortgage insurance – correct answer✔✔ Less 20% down payment required
Mortgage Insurance Premium – correct answer✔✔ Less 20 % down payment FHA
Loan required
Hard to do cancellation
The client only tracks bill payments. Which should the housing counselor recommend to
help the client begin planning for a home purchase? – correct answer✔✔ Track all
income and expense
How should a client apply for the Housing Choice Voucher Program? – correct
answer✔✔ Contact the local Public Housing Authority

HUD Exam- Homeownership
Which factor is best for housing counselors to use when determining how much a client
can afford to spend on purchasing a home?
A. Debt to-income ratios
B. Annual gross income
C. Savings
D. Options A, B, C
E. None of the above – correct answer✔✔ D. Options A, B, and C
A person or company that makes loans for real estate purchases. “Loan officer” is a
related term that refers to a representative of a lending or mortgage company who is
responsible for soliciting homebuyers and for qualifying and processing loans. – correct
answer✔✔ Lender
A government official responsible for determining the value of a property for taxation
purpose. – correct answer✔✔ Assessor
A professional who conducts an inspection of the home’s structure and mechanical
systems to determine quality, soundness, and safety. S/he makes the potential
homebuyer aware of any repairs that may be necessary. – correct answer✔✔ Home
Inspector
A lender’s representative who analyzes a loan application, the potential borrower’s
credit history, and a judgement of the property value to determine the amount of risk
involved in making the loan. – correct answer✔✔ Underwriter
A professional who gives an estimate of a property’s fair market value based on the
sales of comparable homes in the area and on the property’s features. This estimate is
generally required by a lender before loan approval to ensure that the mortgage loan
amount is not more than the value of the property. – correct answer✔✔ Appraiser
Which statement most accurately describes a member of the homebuying team?
A. a real estate agent or broker is typically an attorney or works for an escrow company.
S/he oversees the final transaction in property purchase, at which time the title is
transferred from the seller to the buyer.
B. The lender requires an assessment of the home by a home inspector before loan
approval
C. An insurance agent is also know as a settlement agent.
D. a home inspector is generally paid by the buyer. – correct answer✔✔ D. A home
inspector is generally paid by the buyer
Which piece of advice would you give to clients as they begin the process of obtaining
financing?

A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone calls. – correct
answer✔✔ B. Have all potential lenders pull credit within a 30-day window.
All of the following is information necessary for your client to gather in preparation for
filling out the URLA, except:
A. Figures related to income from child support.
B. Figures related to student loans
C. Year home was built
D. Referrals of past landlords – correct answer✔✔ D. Referrals of past lenders
All of the following statements describe working with an appraiser during the “obtaining
financing” step of purchasing a home, except:
A. it is improper for an appraiser to consider racial or religious background of a
neighborhood’s residents to determine the value of a home.
B. Lenders hire appraisers
C. Homebuyers can cancel the offer contract if the contract includes a contingency
clause.
D. Homebuyers rarely are allowed to see the appraisal information and for that reason
are encouraged to get a home inspection. – correct answer✔✔ D. Homebuyers rarely
are allowed to see the appraisal information and for that reason are encouraged to get a
home inspection.
-In some cases, the lender is required to share the appraisal information with clients. It
is helpful for clients to review the appraisal report with you in order to identify any
improper factors used to determine the home’s value. Whether or not clients view the
appraisal, they should have a home inspection done, especially since the two processes
are different from one another.
A client is shopping for a loan and submits a loan application to a lender. The client
asks for information about possible settlement costs, but the lender says that he needs
to see the purchase contract in order to move forward with the process. The lender
should have provided which item?
A. URLA
B. ATR/QM
C. Loan Estimate
D. Closing Disclosure – correct answer✔✔ C. Loan Estimate
A client spoke with five lenders. Four of the five lenders quoted interest rates between
4.1% and 4.6%. One lender mentioned a 3.1% interest rate if she signed for it within the
next 36 hours. She was very interested in this loan, so she asked for more information
(e.g., conditions and fees). The lender provided some information about the loan, but
nothing included the APR. Which regulation deems this practice unlawful?
A. ECOA
B. RESPA

HUD Certification Exam | 115 Questions
and Answers 100% verified | Latest 2024
Deed Restrictions – Answer Legally enforceable terms that govern the use of
real estate
Redlining – Answer The practice of refusing to make residential loans or
imposing more onerous terms on any loans made because of the predominant
race, color, national origin, religion, sex, disability, or familial status of the area’s
residents.
Civil Rights Act of 1968 – Answer Following the assassination of Dr. Martin
Luther King Jr., Congress passed what monumental piece of legislation, which
prohibits discrimination in housing sales, rentals, and financing based on race,
color, national origin, religion, sex, disability and familial status?
7 – Answer The Fair Housing Act, as amended, protects how many
characteristics?
Reasonable Modification – Answer A property manager of an apartment
complex that receives federal financial assistance installs a ramp so that a tenant
in a wheelchair can easily access her first-floor apartment.
Reasonable Accommodation – Answer Housing provider has a policy of
requiring tenants to come to the rental office to pay their rent. A tenant with a
mental disability, who is afraid to leave her unit, is allowed to mail her rent
payment.
True – Answer The Fair Housing Act does not prohibit a lender from showing
potential clients information about different loans.
Fair Housing Assistance Program (FHAP) – Answer Provides annual funding to
state and local agencies that enforce fair housing laws that are substantially
equivalent to the Fair Housing Act. These funds go towards an agency’s capacity

building, administrative costs, investigative and enforcement efforts, training and
other projects designed to support enforcement of fair housing law.
Fair Housing Initiatives Program (FHIP) – Answer Provides funding to fair
housing organizations and nonprofits that assist people who may have been
victims of housing discrimination.
Marketing Analysis – Answer Aim is to identify groups of people who would
benefit most if targeted by the campaign, the characteristics of these people, and
their expectations.
Networking Event – Answer The opportunity to increase awareness of the
plans and actions of housing industry members, private organizations and
foundations, public housing agencies, neighborhood groups, regional
organizations, and others to further fair housing objectives.
Personal Information – Answer The section of the credit report that contains
employer details.
Account Information – Answer The section of a credit report that contains
information about a student loan.
Public Records – Answer The section of the credit report that contains court
information such as a bankruptcy.
Inquiries – Answer The section of the credit report that will show recent
attempts to open a credit card.
Consumer Rights – Answer The section of the credit report that contains
information about how to correct inaccuracies.
Account History – Answer Credit: Payment history of accounts, including late
payments, delinquencies, judgments, and liens.
Amounts Owed – Answer Credit: Ratio of total credit extended to the amount
of credit owed.

HUD Certification | 90 Questions and
Answers with Solutions
Which document is most important when working with a client to develop an
initial budget as part of a Client Action Plan?
Pay stub
Retirement plan statement
List of assets
Current lease – Answer Pay stub
A client would like purchase a home within one year. The client is motivated to
increase household income as a way to save for a down payment and qualify for a
loan. Which is the best solution for the client to reach this goal?
Find a second job
Borrow from retirement fund
Sell major assets
Find a temporary job through a staffing service – Answer Find a second job
A credit report may contain which information?
The number of accounts in collection status
A history of payments on an electric bill
Income history
Criminal record – Answer The number of accounts in collection status
A credit report contains inaccurate information. Which action item should the
counselor include in the Client Action Plan?
-Attach a letter to mortgage applications explaining the inaccuracies.
-Investigate the reasons why the inaccuracies occurred to determine the
responsible party.
-Include a personal consumer statement on the credit report.

-File a dispute with the appropriate credit reporting agency. – Answer File a
dispute with the appropriate credit reporting agency.
Six months ago a client left a job as a reporter to start a business in the retail
industry. To prepare to buy a house, the client closed credit card accounts and has
been using savings to pay down credit card debt and collections. The client has
not been able to save much for a down payment with all the debt payments but
knows about an affordable home-ownership program that only requires a 1%
down payment with an FHA loan.
What might result from the client closing the credit card accounts?
-It decreases credit utilization, causing a negative impact on the credit score.
-It increases credit utilization, causing a negative impact on the credit score.
-It increases credit utilization, causing a positive impact on the credit score.
-It decreases credit utilization, causing a positive impact on the credit score. –
Answer It decreases credit utilization, causing a positive impact on the credit
score.
Which action would a client take to improve a credit score?
-Request to expunge public records
-Apply for new credit cards to increase credit
-Cancel all credit cards
-Pay delinquent accounts – Answer Pay delinquent accounts
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 – Answer Fair Credit Billing Act
A client shopping for a mortgage loan presents a housing counselor with an offer
from a local mortgage lender. The interest rate on the offer is 7.5% for a 30-year
fixed rate mortgage with a 20% down payment required. The counselor reviews

the client file and determines the client’s credit score is 725 and the client’s total
debt-to-income ratio is 20%.
The client asks the housing counselor if the offer is a case of illegal predatory
lending. How should the housing counselor respond?
-“You have been a victim of predatory lending and should file a report with the
Consumer Finance Protection Bureau (CFPB).”
-“The loan seems reasonable. You might do better, but I cannot steer you to any
particular loan originator.”
-“I am unable to determine whether the loan is predatory, but I suggest you shop
around with other lending sources.”
-“I cannot offer legal advice, but I would not proceed with the loan.” – Answer
“I am unable to determine whether the loan is predatory, but I suggest you shop
around with other lending sources.”
Which action should a counselor recommend a client take first after discovering
identity theft?
-File for a name change.
-Apply for a new Social Security number.
-File an identity theft report.
-Purchase identity theft protection. – Answer File an identity theft report.
In which situation would a client’s responsibilities, recurring costs, and upfront
costs be evaluated?
-When considering closing costs
-When choosing a loan officer
-When weighing housing options
-When applying for a loan modification – Answer When weighing housing
options
A client works 40 hours a week making $15 an hour. What is the highest monthly
mortgage the client can afford based on income if the client secures a
conventional loan?

HUD Exam Prep | 196 Actual Questions and
Answers 100% Correct | LATEST 2023-2024
% Impact of Account Payment History on Credit Score – Answer 35%
portion of credit score based on the payment history of accounts, including late
payments, delinquencies, judgments, and liens
% Impact of Amounts Owed on Accounts on Credit Score – Answer 30%
portion of score based on the ratio of total credit extended to the amount of
credit owed
% Impact of Length of Credit History on Credit Score – Answer 15%
portion of score based don the overall length of credit history in the report, as
well as average age of accounts
% Impact of Types of Credit Used on Credit Score – Answer 10%
portion of score based on the variety of accounts
% Impact of New Credit on Credit Score – Answer 10%
portion of score based on the number of recent credit INQUIRIES
1.1.1) All of the following would help a counselor develop a realistic household
budget, except:
A. Payment information for a paid-off car
B. Amount spent on groceries
C. Rent payment information
D. Monthly cable bill – Answer A
1.1.2) All of the following are reasons why it is important for a client to track
income and expenses before finalizing a budget, except:
A. It helps show clients that they actually spend less on some expenses than they
think.
B. It helps identify spending habits.
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines. – Answer C

1.1.3) Which of the following is a “want” and not a “need”?
A. Health care premium
B. Car insurance
C. Gym membership
D. Rent – Answer C
1.1.4) All of the following are effective ways to decrease expenses, except:
A. Cancel insurance policy
B. Cancel cable service
C. Stick to a shopping list
D. Conserve energy in the home – Answer A
1.1.5) All of the following are effective strategies to increase income, except:
A. Work over time
B. Teach yoga
C. Find a second job
D. Factor in an anticipated raise – Answer D
1.1.6) Rebecca’s next appointment is with Ray, a client who recently started a new
job and wants to buy a car to cut down on his commute. Rebecca reviews
documents that Ray brought to the counseling session and determines that Ray
makes about $1,900 each month after taxes. He pays his bills every month and
covers his other expenses, but he never has any
money left for savings. Identify which information is used in determining a budget,
and which information is not.
A. Pay Stub
B. Bank Statements
C. Utility Bills
D. Social Security Award Letter
E. Annual Bonus
F. Stock Dividends
G. Employer Reimbursements
H. Credit Score – Answer Used to determine budget: A, B, C, D
Not used to determine budget: E, F, G, H

1.1.7) Ray’s commute on the bus takes over an hour, so he wants to buy a car as
soon as possible, but he has poor credit and cannot obtain a loan right now. He
thinks he can find a reliable car for about $2,000 and has about 20% of the total in
the bank from his tax refund. If Ray’s goal is to buy a car within 8 months, what is
the minimum amount he needs to save each
month?
A. $150
B. $175
C. $200
D. $225 – Answer C
1.1.8) Rebecca helps determine that with adjustments Ray can set aside $320
each month to buy
the car. How many months will he need to save this amount?
A. At least 4
B. At least 5
C. At least 6
D. At least 7 – Answer B
1.2.1) Which section of a credit report will contain employer details?
A. Consumer rights
B. Account information
C. Personal information
D. Public records
E. Inquiries – Answer C
1.2.2) Which section of a credit report will contain information about a student
loan?
A. Personal information
B. Public records
C. Inquiries
D. Consumer rights
E. Account information – Answer E
1.2.3) Which section of a credit report will contain court information such as
bankruptcy?
A. Public records

B. Inquiries
C. Personal information
D. Consumer rights
E. Account information – Answer A
1.2.4) Which section of a credit report will show recent attempts to open a credit
card?
A. Personal information
B. Public records
C. Consumer rights
D. Inquiries
E. Account information – Answer D
1.2.5) Which section of a credit report will contain information about how to
correct inaccuracies?
A. Personal information
B. Consumer rights
C. Public records
D. Inquiries
E. Account information – Answer B
1.2.6) Indicate which of the following concepts would generate a positive effect on
a credit report
and which would have a negative effect:
A. Paying bills early
B. Filing for bankruptcy
C. Applying for a new credit card every month
D. High credit card balances – Answer Positive Effect on Credit Report
ANegative Effect on Credit Report
B-C-D
1.2.9) Place the letters in the correct sequence from the MOST important factor to
the LEAST important factor that impacts the determination of a credit score.
A. Amount of total credit used
B. Number of inquiries on record
C. History of delinquent payment

HUD Housing Counselor Certification
Practice | 127 Actual Questions and Answers
100% Correct | LATEST 2023-2024
What is the maximum percent of area median income allowable for a household
to qualify for a Housing Choice Voucher? – Answer 50%
Which is the maximum recommended housing ratio for renting an apartment? –
Answer 30%
Eligibility requirements for down-payment assistance programs include which
factors? – Answer 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? – Answer 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? –
Answer 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? – Answer Inappropriate
Who is responsible for educating home-buyers about their rights? – Answer
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? – Answer A 30-day period

What are the responsibilities of a home inspector? – Answer 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? – Answer To compare loan estimates
Which is the best advice that a housing counselor can give the client to protect
against identity theft? – Answer 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? – Answer
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? – Answer $3000 to $4000
Is Application Fee an upfront cost of clients who are considering renting or buying
a property? – Answer 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? – Answer 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? – Answer $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? –
Answer 43%
Which is the maximum debt-to-income ratio allowable for an FHA Energy
Efficiency Mortgage loan? – Answer 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)? – Answer 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)? –
Answer $1,292
On which factor is a borrower’s annual mortgage insurance premium (MIP) based?

• Answer 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? – Answer $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 – Answer C- Track all income and
  expenses

How should a client apply for the Housing Choice Voucher Program? – Answer
Contact the local Public Housing Authority
Which website provides information on programs to assist home-buyers with
down payment assistance? – Answer 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? – Answer 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? – Answer 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? – Answer Loan Estimate
What is a pre-approval from a lender? – Answer 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.
Does this client meet a lender’s expectation for continued employment? –
Answer Yes, because the client has been at her job over two years
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:
A- Predatory lending practices
B- Subprime mortgage terms

HUD Practice Exam | 89 Actual Questions
and Answers 100% Correct
Which document is most important when working with a client to develop an
initial budget as part of a Client Action Plan? – Answer List of Assets
Retirement plan statement
Pay stub X
Current lease
A client would like purchase a home within one year. The client is motivated to
increase household income as a way to save for a down payment and qualify for a
loan. Which is the best solution for the client to reach this goal? – Answer
A credit report may contain which information? – Answer Income history
Criminal record

of accounts in collection status

A history of payments on an elctric bill
A credit report contains inaccurate information. Which action item should the
counselor include in the Client Action Plan? – Answer FIle a dispute with the
appropaite credit reporting agency
Six months ago a client left a job as a reporter to start a business in the retail
industry. To prepare to buy a house, the client closed credit card accounts and has
been using savings to pay down credit card debt and collections. The client has
not been able to save much for a down payment with all the debt payments but
knows about an affordable homeownership program that only requires a 1%
down payment with an FHA loan.
What might result from the client closing the credit card accounts? – Answer
Which action would a client take to improve a credit score? – Answer
A client does not receive a written monthly statement from the credit card
company. Which credit law could this omission violate? – Answer FCBA

A client shopping for a mortgage loan presents a housing counselor with an offer
from a local mortgage lender. The interest rate on the offer is 7.5% for a 30-year
fixed rate mortgage with a 20% down payment required. The counselor reviews
the client file and determines the client’s credit score is 725 and the client’s total
debt-to-income ratio is 20%.
The client asks the housing counselor if the offer is a case of illegal predatory
lending. How should the housing counselor respond? – Answer I am unable to
determine whether the loan is predatory but i suggest you shop around with
other ledning sources
Which action should a counselor recommend a client take first after discovering
identity theft? – Answer File an identity theft report
In which situation would a client’s responsibilities, recurring costs, and upfront
costs be evaluated? – Answer When weighing housing options
A client works 40 hours a week making $15 an hour. What is the highest monthly
mortgage the client can afford based on income if the client secures a
conventional loan? – Answer Front End Ratio Formula
Conventional = <28%
Which type of government insured loan was created for financing homes in rural
areas? – Answer USDA
A client keeps having budget problems due to unexpected expenses. Which
financial tool would best assist this client to prepare for unexpected expenses and
avoid increasing credit usage? – Answer Emergency Fund
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? – Answer Front End Ratio Formula
What is the back-end ratio for a client with a monthly housing expense of $1,250,
a monthly total of $88 in other consumer debt payments, and a gross household
income of $4,460 per month (rounded to the nearest whole percent)? –
Answer Debt to income ratio or back end ratio

HUD Housing Counselor Exam | 71 Questions
and Answers 100% Correct
Adjustable Rate Mortgage (ARM) – Answer Adjustable rate mortgages have an
initial rate that applies for a defined period of time (typically from one month to
10 years), then adjusts at pre-determined intervals for the life of the loan. Interest
rates can increase or decrease when adjusted.
Adjusted Gross Income – Answer Gross income minus adjustments, or
reductions, that one is eligible for, such as deductions for unreimbursed business
expenses, tuition and fees, and contributions to certain retirement accounts.
AFFH – Answer Affirmatively Furthering Fair Housing
AFHMP – Answer Affirmative Fair Housing Marketing Plan
Analysis of Impediments (AI) – Answer Analysis of Impediments is a review of
impediments or barriers that affect the rights of fair housing choice. It covers
public and private policies, practices, and procedures affecting housing choice.
Impediments to fair housing choice are defined as any actions, omissions, or
decisions that restrict, or have the effect of restricting, the availability of housing
choices, based on race, color, religion, sex, disability, familial status, or national
origin. The AI supports fair housing planning; provides essential information to
policy makers, administrative staff, housing providers, lenders, and fair housing
advocates; and assists in building public support for fair housing efforts.
Area Median Income (AMI) – Answer The midpoint in the family income range
for a metropolitan statistical area or for the non-metropolitan parts of a state.
Determined annually by HUD, the figure often is used as a basis to stratify incomes
into very low, low, moderate, and above moderate. Frequently used to determine
income eligibility for various housing programs.
Arrearages – Answer The total amount of past due payments owed to a lender
from a borrower in mortgage payments or to a landlord from a tenant in rental
payments. Also called arrears.

Assistance Animal – Answer An assistance animal is not considered a pet. it is
an animal that works, provides assistance, or performs tasks for the benefit of a
person with a disability, or provides emotional support that alleviates one or more
identifies symptoms or effects of a person’s disability. For purposes of reasonable
accommodation requests, the Fair Housing Act does not require an assistance
animal to be individually trained or certified. While dogs are the most common
type of assistance animal, other animals can also be assistance animals.
Association Dues – Answer Charged by a community or Homeowners
Association to pay for repairs, upkeep, landscaping, improvements, and property
management.
Back-End Ratio – Answer A rate that calculates a borrower’s total monthly
debt, including housing and other debt obligations, as a percentage of gross
monthly income. Frequently used by lenders to qualify borrowers for a mortgage.
Also called a debt-to-income ratio.
Balloon Payment – Answer An oversize payment due at the end of a
mortgage.
Blockbusting – Answer To convince, or attempt to convince, a person to sell or
rent a dwelling because of the entry, or prospective entry, into the neighborhood
of a person or persons of a particular race, color, religion, sex, familial status,
national origin, or with a disability.
Cash-for-keys – Answer An alternative to a legal eviction following foreclosure.
The occupant receives cash funds from the servicer in exchange for turning in the
keys and vacating the property. Certain conditions apply, such as returning the
property in broom-clean condition and with all appliances.
CDBG – Answer Community Development Block Grant
CFPB – Answer Consumer Financial Protection Bureau
Closing Costs – Answer Fees for final property transfer that are not included in
the price of the property. Typical closing costs can include loan origination fees,

NACA HUD Certification Exam | 63 Questions
and Answers 100% Correct
Credit Report – Answer a compilation of data about you that has been
gathered by credit reporting agencies or “credit bureaus”
Length of Credit History – Answer Makes up 15% of FICO score
Type – Answer __ of credit use makes up 10% of FICO score
New Credit or Inquiries – Answer Makes up 10% of FICO score
Amounts Owed – Answer Makes up 30% of FICO score
Payment History – Answer Makes up 35% of FICO score
Fair Credit Reporting Act (FCRA) – Answer act that protects privacy of
background information and ensures that information supplied is accurate in the
files of the nation’s credit reporting companies
Residential Mortgage Credit Report – Answer a credit report containing
information from all three credit bureaus and is used to determine credit
worthiness therefore is full verified when a customer applies for a loan and it will
affect the credit score
Negative Amortization – Answer when the loan principal increases over time
even though you are making payments
Balloon Payment – Answer a final loan payment that is much larger than the
regular monthly payments
PITI – Answer Principal, Interest, Taxes, Insurance
4 C’s of Credit – Answer Capacity, Capital, Character, Collateral

Chapter 7 Bankruptcy – Answer Straight Bankruptcy; most common form for
individuals; typically used by people who have no hope of repaying their debt;
Truth in Lending Act (TILA) – Answer Requires lenders to provide consumers
with loan cost information so that they can comparison shop (to protect
consumers against inaccurate and unfair loan billing and credit card practices)
Title 6 of the Civil Rights Act of 1964 – Answer no person in the united states
shall, on the ground of race, color, or national origin, be excluded from
participation in, be denied the benefits of, or be subjected to discrimination under
any program or activity receiving federal financial assistance.
Title 8 of the Civil Rights Act of 1968 – Answer The Fair Housing Act; Executive
Order 11063 (This Order signed by JFK on Nov. 20, 1962, “prohibits discrimination
in the sale, leasing, rental, or other disposition of properties and facilities owned
or operated by the federal government or provided with federal funds.” This order
banned segregation federally funded housing.)
Section 504 of the Rehabilitation Act of 1973 – Answer Extends civil rights to
people with disabilities; the first disability civil rights law to be enacted in the U.S;
set the stage for the Americans with Disabilities Act.
The Age Discrimination Act of 1975 – Answer Prohibits discrimination on the
basis of age in programs and activities receiving federal financial assistance
Title 9 of the Education Amendments of 1972 – Answer bars educational
institutions or activities that receive federal funds from discriminating against
persons on the basis of sex
Housing Counselor – Answer a professional who is HUD certified to provide
advice and guidance to individuals and households to assist them in improving
their housing situation and meeting the responsibilities of tenancy and
homeownership.
counselor – Answer The main role of the __ is to assess the client’s
needs and educate them on how to achieve their goals of homeownership.

HUD Exam Prep | 196 Questions and Answers
100% Correct
Conventional Loan – Answer Front end 28%
Back end 36% can go up to 45% to 50%(debt to income), backed by private
lenders. AKA prime loans. Good credit, 20% down payment. May have interest
only terms
FHA – Answer Front end 31%
Back end 43%
Limited funds, bad credit, bankruptcy, high debt to income ratio.
EEM (Energy) FHA – Answer Front end 33%
Back end 45%
VA – Answer 41%
USDA – Answer Front End 29%
Back End 41%, low-to-moderate income, must live rural area, no down payment,
competitive rates. Bellow 115% median income. Loan term 33 to 38 yrs
Equal Credit Opportunity Act (ECOA) – Answer A federal act, which prohibits
discrimination by lenders on the basis of sex or marital status in any aspect of a
credit transaction.
Front end Ratio – Answer PITIA/ Gross Income
Within three days of receiving a loan application, lenders are required to supply
the client with – Answer Loan Estimate
How may years at a job to show employment stability? – Answer At least 2
years
Which factor determines whether the client will have to pay private mortgage
insurance versus mortgage insurance premium – Answer Type of loan

The Fair Housing Act – Answer The federal law that prohibits discrimination in
housing based on race, color, religion, sex, handicap, familial status, and national
origin
The Housing and Urban Development Act – Answer providing governmentinsured loans to moderate-income people.
The Dodd-Frank Act – Answer protects borrowers from predatory lending
practices
Affirmatively Furthering Fair Housing (AFFH) – Answer Advocating for lenders
to operate in underserved areas
After how many days can foreclosure proceedings begin if the client is not being
evaluated for loss mitigation, and has missed payments on an FHA loan –
Answer 120
FHA 203K Loan – Answer allows the homeowner to refinance the home loan
to perform repair
Streamlined 203K Loan – Answer minor rehabilitation and/or home
improvement projects that will not require the involvement of consultants,
engineers, and/or architects
key advantage of the client using a real estate agent versus selling her house on
her own – Answer Real estate agents negotiate on behalf of the client.
A means test – Answer bankruptcy qualification that considers income and
equity in assets to determine if a client has the ability to repay part of the debt
Default – Answer when a payment has not been made after 60 to 90 days.
FHA 30 days
Delinquent – Answer timely mortgage payments by the end of the grace
period (14 day)

Which notice must the servicer send the client once the mortgage is delinquent
and before 45 days past due? – Answer Housing counseling
advertisement that guarantees a government-approved loan modification must be
reported to…… – Answer Report the company to the Federal Trade
Commission (FTC)
The only mortgage loan product that allows family assistance – Answer FHA –
USDA and VA do not require down payment, and conventional loans won’t allow
family funds
Consumer Finance Protection Bureau CFPB – Answer Easier-to-use mortgage
disclosure forms that clearly outline the terms of a mortgage to the borrower
Satisfies efforts to Affirmatively Further Fair Housing – Answer Reviewing
marketing materials of local mortgage lenders satisfies efforts to Affirmatively
Further Fair Housing
Chapter 7 Bankruptcy – Answer Means test, Liquidation of assets, best for
client with no assets
Chapter 13 bankrupcy – Answer retain house/car, Wager earner plan-pay all
or part of debts 3-5 yrs,
Earned Income Tax Credit (EITC) – Answer Low to moderate earned income
individuals or family. Net earnings from self employment. Tax credits are based on
income, marital status, number of children
Child and dependent care tax credit – Answer working or looking for work
may be eligible if they are paying a service to take care of a dependent (child or
adult). Also may claim additional credits for qualifying children under 17
Home Equity Line of Credit (HELOC) – Answer multiple expenses over a long
period of time. Draw period 10 yrs. Repayment 15yrs. Lower interest rate.

HUD Certification Module 4 Questions and
Answers 100% Correct
What parts of the home buying process does the housing counselor directly assist a client with? –
Answer 1) determining if homeownership if right for them 2) figuring out how much the client can
afford 3) helping clients understand their rights
What parts of the home buying process does the housing counselor help prepare the client for? –
Answer shopping for a home, making an offer, obtaining financing, getting a home inspection,
purchasing homeowners insurance, closing on the home
What questions can housing counselors ask clients to assess their readiness to buy a home? – Answer
Do you foresee the need to change jobs or relocate in the next several years?
Are you willing to properly maintain the home and make repairs as needed?
Do you have a record of paying your bills/debts on time?
Is your credit currently above 640?
Do you have enough money in savings for a down payment, closing costs, and other fees?
Are you willing to abide by standards established by a community association?
Are you willing to adjust your budget and spending habits?
Do you have the ability to make a mortgage payment every month in addition to other debt payments
and living expenses?
Is your annual income equivalent to at least a third of the average home price in the desired
neighborhood?

Have you previously owned a home?
What is a subprime loan? – Answer a type of mortgage with less stringent lending and underwriting
terms and conditions, usually offered to borrowers with blemished or limited credit history
Who would be a good fit for an FHA insured loan? – Answer have limited funds for a down payment
and closing costs and may not qualify for a conventional mortgage loan due to flawed credit
history/bankruptcy/high debt-to-income ratio
What is a real estate agent/broker’s job? – Answer they are licensed to negotiate and arrange real
estate sales for a commission
What is a lender’s job? – Answer a lender refers to a person/company that makes loans for real
estate purchases
Who is the underwriter? – Answer a lender’s representative who analyzes a loan application, the
potential borrower’s credit history, and a judgement of the property value. Determines risk of making
the loan
Who is the home inspector? – Answer a professional who conducts an inspection of the home’s
structure and mechanical systems to determine quality, soundness, and safety
Who is the appraiser? – Answer a professional who estimates a property’s fair market value based
on the sales of comparable homes in the area and the property’s features.
Who is the closing agent? – Answer also known as the settlement agent, the individual oversees the
final transaction in the property purchase
Who is the insurance agent? – Answer a person employed to sell insurance policies

HUD Exam – Tenancy Questions and
Answers 100% Verified
Jake has a session with a new client, Ruth, later that day. She has received notice
that her apartment complex, which offers her project-based housing assistance,
will be sold to a new management company in six months. The new company will
renovate the building and will no longer participate in the project-based
assistance program. To help Ruth find another affordable rental option, Jake
should take all of the following steps, except:
A. Provide Ruth with contact information for local housing authorities that
administer rental assistance programs.
B. Approve Ruth for a Housing Choice Voucher. C. Help Ruth understand what may
deter a landlord from approving her rental application.
D. Assist Ruth in distinguishing between her housing wants and needs – Answer
B. Approve Ruth for a Housing Choice Voucher.
-Housing counselors cannot approve clients for Housing Choice Vouchers;
however, they can refer clients to local housing agencies where they can submit
an application.
Ahmed has received a note from his landlord explaining that he will be evicted if
he continues to break tenant regulations. The note did not specify exactly what
Ahmed was doing wrong. If Ahmed reviews his lease, he is likely to find all of the
following guidelines that he must abide by, except:
A. Guests may not stay at the housing unit more than 15 days without the owner’s
written consent.
B. The resident is permitted to park only in the parking location 152.
C. The resident agrees to permit the landlord to enter the apartment
unannounced to show the unit to potential tenants.
D. The resident agrees to keep the premises and all items in order and good
condition. – Answer C. The resident agrees to permit the landlord to enter the
apartment unannounced to show the unit to potential tenants.
Jake has a Skype appointment scheduled with his client, Tatiana, who is upset
about her landlord’s behavior. All of the situations that Tatiana describes would
likely suggest that her landlord is in breach of contract, except:
A. Fixing a broken stovetop seven months after she submitted a request for repair.

B. Arriving on the site of the property for a random home inspection, without
prior warning.
C. Neglecting to pay the water bill, resulting in two weeks without water service.
D. Calling Tatiana in advance to advise her that he will come by to replace a
broken cabinet door. – Answer D. Calling Tatiana in advance to advise her that
he will come by to repair a broken cabinet door.
Jamie has an actual cash value renters insurance policy with contents coverage,
loss of use coverage, and liability coverage. For which expense will she likely be
reimbursed?
A. The cost of rebuilding the living room, which was destroyed by fire.
B. The entire cost of purchasing a brand new bedroom set damaged by a pipe
burst and subsequent water damage.
C. Expenses associated with purchasing replacement materials for the artwork she
sells through an online vendor.
D. Expenses for legal fees when Jamie is sued by her daughter’s classmate who
injured himself when he tripped over clutter at Jamie’s apartment. – Answer
D. Expenses for legal fees when Jamie is sued by her daughter’s classmate who
injured himself when he tripped over clutter at Jamie’s apartment.
Jake has clients in all of the following situations. Which client would Jake likely
recommend contact an emergency rent assistance program?
A. The client wants to quit working to return to college and will need help paying
for rent while in school.
B. The client cannot afford a rental in the area and needs a housing subsidy to
obtain a rental.
C. The client has been living with a roommate who suddenly moves and does not
leave his portion of the month’s rent.
D. The client has been notified that her rent will increase by $200 per month if she
decides to remain in her apartment after her lease comes up for renewal in four
months. She cannot afford to pay an additional $200 a month. – Answer C.
The client has been living with a roommate who suddenly moves and does not
leave his portion of the month’s rent.
-If the roommate did not leave his portion of the rent, the client may not have
enough money to pay the full amount of rent. If he does not pay in full, he may be
threatened by eviction. Emergency rent assistance programs are likely to assist in
this situation.

HUD Counselor Certification | 217 Questions and
Answers 100% correct | Rated A+ | 2023-2024
Elements IN a Budget – Answer -Pay Stubs. (For self employed -> profit + loss statements) -Bank
Statement
-Utility Bill
-Soc. Sec. Award Letter
-Credit Card Debt
-Car Expenses
-Child Support
-Hobby Income (Avg.)
Elements NOT in a Budget – Answer -Stock Dividends
-Annual Bonus
-Reimbursements
-Credit Score
-Pretax Payroll Deduc.
Which information should be included in a Client Action Plan? – Answer The client’s housing goal
and the counselor’s action steps
5 Sections of a Credit Report – Answer -Personal Information
-Account/Trade lines
-Public Records
-Inquiries
-Consumer Rights. Note: It does not include the credit score, the score is available for purchase
Credit Report: Personal Info – Answer -Name
-SS#

-Address
-Phone #
-Employers
Credit Report: Account/Trade Lines – Answer Information about each credit account:
-payment history
-account dates
-credit limits
-balances owed
Credit Report: Public Records – Answer -Bankruptcy
-Judgements
-Tax Liens
-Wage Garnishments
Credit Report: Inquiries – Answer Requests initiated by a company or person for a consumer’s credit
profile information.
Credit Report: Consumer Rights – Answer Information about consumer rights and protection for
reference.
Credit Score – Answer A numerical interpretation of a consumer’s creditworthiness based on
information in their credit report.
FICO Score – Answer Fair Isaac Corporation (300-850)
Most commonly used scoring model.
5 Pieces to FICO Score – Answer 1. Account/Payment History

2. Amounts Owed
3. Length of Credit History
4. New Credit
5. Types (Mix) of Credit
   Credit Score: Account History – Answer 35%
   Portion of score based on payment history, including late payments, delinquencies, judgements, and
   liens.
   Credit Score: Amounts Owed – Answer 30%
   Portion of score based on the ratio of total credit extended to the amount of credit owed.
   Credit Score: Length of History – Answer 15%
   Portion of score based on the overall length of credit history in the report, as well as the average age of
   accounts.
   Credit Score: New Credit – Answer 10%
   Portion of score based on the # of recent credit inquiries, as well as new credit accounts.
   Credit Score: Types/Mix of Credit – Answer 10%
   Portion of score based on the variety of accounts (credit card, auto loan, mortgage).
   FCRA – Answer Fair Credit Reporting Act
   Fair Credit Reporting Act – Answer -Right to know what is in your file
   -Right to dispute inaccurate/incomplete info on credit report
   -Access to your file is limited (such as by employers)
   -May seek damages from violators
   -May have additional state rights

FACTA – Answer Fair and Accurate Credit Transactions Act
Fair and Accurate Credit Transactions Act – Answer -Right to free annual credit report
(annualcreditreport.com)
-Right to place fraud alert on file for 90 days
-Credit card #’s must be truncated; full # cannot be visible on receipts
FCBA – Answer Fair Credit Billing Act
Fair Credit Billing Act – Answer -Right to dispute billing errors on credit card. Must send by mail in
first 60 days. 30 days for creditor acknowledge a dispute and 90 days to research.
-Must be billed in timely fashion. (at least 14 days before payment is due)
4 Steps Toward Asset Building – Answer 1. Choose the right bank or credit union

2. Build Savings for emergencies and large purchases
3. Invest for retirement
4. Take advantage of tax credits
   Escrow – Answer Funds to be used for specific purposes by parties carrying out a mutual transaction,
   deposited with a third party. Commonly used by lenders to allocate funds for a homeowner’s property
   taxes, insurance premiums, or other fees when they become due.
   Ground Rent – Answer When someone owes a property but not the land, they need to pay rent for
   the lot.
   Conventional Mortgage Loan – Answer Private lenders. – Conforming conventional loans follow
   lending rules set by Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan
   Mortgage Corporation (Freddie Mac). – Non-conforming conventional loans cannot be sold to Fannie
   Mae or Freddie Mac. Though not insured by any government program, loans with a down payment of
   less than 20% may require private mortgage Insurance (PMI)

HUD Exam – Fair Housing Questions and
Answers 100% correct
Which describes the legally enforceable terms that govern the use of real estate?
A. Residential security restrictions
B. Deed restrictions
C. Redlined Maps
Government-sponsored deeds – Answer B. Deed Restrictions
-Deed restrictions are legally enforceable terms that govern the use of real estate. Deed restrictions that
discriminate based on any of the seven prohibited bases for discrimination are illegal and unenforceable.
Which is the practice of refusing to make residential loans or imposing more onerous terms on any loans
made because of the predominant race, color, national origin, religion, sex, disability, of familial status of
the area’s residents?
A. Securitizing
B. Blockbusting
C. Predatory lending
D Redlining – Answer D. Redlining
-Redlining is the practice of refusing to make residential loans or imposing more onerous terms on any
loan made because of the predominant race, color, national origin, religion, sex, disability, or familial
status of the area’s residents.
Following the assasination of Dr. Martin Luther King Jr. , Congress passed what monumental piece of
legislation, which prohibits discrimination in housing sales, rentals, and financing based on race, color,
national origin, religion, (and as later amended) sex, disability, and familial status? – Answer Civil
Rights Act of 1968
The Fair Housing Act, as amended, protects how many characteristics? – Answer 7 Characteristics;
race, color, national origin, sex, religion, disability and familial status
A property manager of an apartment complex that receives federal financial assistance installs a ramp so
that a tenant in a wheelchair can easily access her first-floor apartment.

What type of change is this an example of?
A. Reasonable accommodation
B. Accessibility modification
C. Reasonable modification
D. Accessibility accommodation. – Answer C. Reasonable Modification
A housing provider has a policy of requiring tenants to come to the rental office to pay their rent. A
tenant with a mental disability, who is afraid to leave her unit, is allowed to mail her rent payment.
What type of change is this an example of?
A. Reasonable accommodation
B. Accessibility modification
C. Reasonable modification
D. Accessibility accommodation. – Answer Reasonable Acommodation
Refusing to rent, sell, or negotiate for housing when the owner of the housing is a private entity that
owns six single family houses.
A. This is a legal practice.
B. This is a prohibited practice. – Answer B. Prohibited Practice
-According to the Fair Housing Act, it is prohibited to rent, sell, or negotiate the sale or rental of a
dwelling based on protected characteristics. Since the private entity owns more that three single-family
houses, it is subject to compliance with fair housing laws.
Making housing that is operated by a religious organization unavailable to those who are not members
of the religious organization.
A. This is a legal practice.
B. This is a prohibited practice. – Answer A. Legal practice
-The Fair Housing Act restrictions do not apply to circumstances in which housing is operated by, or in
conjunction with, a religious organization, association, society, or nonprofit organization.
Limiting information regarding suitably priced dwelling available for inspection, sale, or rental of an
owner-occupied facility with fifteen individual family units

HUD Exam – Housing Affordability
Questions and Answers
All of the following are true statements about upfront costs associated with renting and buying, except;
A. Renters generally pay a security deposit upon signing a lease.
B. The average cost due upon signing a lease for a rental is typically between 20% of the monthly rent..
C. Closing costs are typically comprised of lender fees, discount points, title insurance, home inspection
fees, escrow deposit, property taxes, private mortgage insurance, and attorney’s fees.
D. A client who desires to purchase a home worth $150,000 could be required to pay $7,000 in standard
closing costs. – Answer B. The average costs due upon signing a lease for a rental is typically 20% of
the monthly rent.
-This statement is not true. However, the figure of 20% is relevant for those considering buying a home
(down payment).
A couple, the Smiths, recently scheduled a meeting with Rebecca. They have owned their home for
seven years and have accumulated some equity in the home. However, they are now struggling to pay
their mortgage, because the wife left her full-time job when she had a baby. Her husband’s salary is paid
in installments of $900 a week, which are subject to deductions and other withholdings. Each month,
they pay $1,000 in principal and interest, $110 for taxes, $130 for insurance, and $20 in homeowners
assessments. What is their current front-end ratio (as a whole number with no decimal point)? –
Answer 32%
Formula: Gross monthly income = Total weekly pay before deuctions x 52 / 12
Front end ratio = Monthly housing expenses / Gross monthly Income.
One option that Rebecca suggests to the Smiths is to sell their home and rent a home that is smaller and
more affordable. If the Smiths decide to do this, they will no longer have a mortgage, so what is the
maximum amount that they can afford to pay in rent and renters insurance each month? Tip: Recall that
the husband ‘s salary is paid in installments of $900 a week, which are subject to deductions and other
withholdings. – Answer $1,170
If the Smiths sell their home and purchase a more affordable property, what is the maximum amount
that is affordable for the Smiths to pay in PITIA each month if they obtained a conventional loan? Tip:

HUD Exam – Housing Affordability
Questions and Answers
All of the following are true statements about upfront costs associated with renting and buying, except;
A. Renters generally pay a security deposit upon signing a lease.
B. The average cost due upon signing a lease for a rental is typically between 20% of the monthly rent..
C. Closing costs are typically comprised of lender fees, discount points, title insurance, home inspection
fees, escrow deposit, property taxes, private mortgage insurance, and attorney’s fees.
D. A client who desires to purchase a home worth $150,000 could be required to pay $7,000 in standard
closing costs. – Answer B. The average costs due upon signing a lease for a rental is typically 20% of
the monthly rent.
-This statement is not true. However, the figure of 20% is relevant for those considering buying a home
(down payment).
A couple, the Smiths, recently scheduled a meeting with Rebecca. They have owned their home for
seven years and have accumulated some equity in the home. However, they are now struggling to pay
their mortgage, because the wife left her full-time job when she had a baby. Her husband’s salary is paid
in installments of $900 a week, which are subject to deductions and other withholdings. Each month,
they pay $1,000 in principal and interest, $110 for taxes, $130 for insurance, and $20 in homeowners
assessments. What is their current front-end ratio (as a whole number with no decimal point)? –
Answer 32%
Formula: Gross monthly income = Total weekly pay before deuctions x 52 / 12
Front end ratio = Monthly housing expenses / Gross monthly Income.
One option that Rebecca suggests to the Smiths is to sell their home and rent a home that is smaller and
more affordable. If the Smiths decide to do this, they will no longer have a mortgage, so what is the
maximum amount that they can afford to pay in rent and renters insurance each month? Tip: Recall that
the husband ‘s salary is paid in installments of $900 a week, which are subject to deductions and other
withholdings. – Answer $1,170
If the Smiths sell their home and purchase a more affordable property, what is the maximum amount
that is affordable for the Smiths to pay in PITIA each month if they obtained a conventional loan? Tip:

HUD Exam – Financial Management
Questions and Answers
All of the following would help a counselor develop a realistic household budget, except:
A. Payment information for a paid-off car
B. Amount spent on groceries
C. Rent payment information
D. Monthly cable bill – Answer Answer: A
Since the car is paid off, the expense does not need to be included in the new budget.
All of the following are reasons why it is important for a client to track income and expenses before
finalizing a budget, except:
A. It helps show clients that they spend less on some expenses than they think.
B. It helps identify spending habits
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines. – Answer Answer: C.
Clients may find that their spending and expenses are out of control. However, the purpose of tracking is
to inform realistic budget preparation, not to condone or condemn a client’s judgement.
Which of the following is a “want” and not a “need”
A. Health care premium
B. Car insurance
C. Gym Membership
D. Rent – Answer Answer: C. Gym Membership.
What information is used in determining a budget (give 4) – Answer Pay Stub, Bank Statements,
Utility Bills, and Social Security Award Letter.
Ray’s commute on the bus takes over an hour, so he wants to buy a car as soon as possible, but he has
poor credit and cannot obtain a loan right now. He thinks he can find a reliable car for about $2,000 and
has about 20% of the total in the bank from his tax refund. if Ray’s goal is to buy a car within 8 months,
what is the minimum amount he needs to save each month? – Answer Ray has 20% of $2,000 saved,
or $400, so he needs at lease $1,600 more to reach his goal. If he saves for 8 months, he will need to
save $200 each month.
Which section of a credit report will contain employer details? – Answer Personal Information
Which section of a credit report will contain information about a student loan – Answer Account
Information
Which section of a credit report will contain court information such as bankruptcy? – Answer Public
Records
Which section of a credit report will show recent attempts to open a credit card? – Answer Inquiries