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Quiz: Cheap Housing 101
by Staff
It can be tough to find an affordable place to live. Test your knowledge of cheap housing in our quiz and avoid becoming one of the 10.5 million U.S. households that pays more than 50 percent of its income toward rent or mortgage payments.

Which of the following types of apartments usually have cheaper rent?

  • apartments in older, historic buildings
  • studio apartments
  • apartments in buildings with doormen

Housing costs are usually more expensive in what types of neighborhoods?

  • suburban neighborhoods
  • hip, urban neighborhoods
  • dense neighborhoods with more businesses and shops

Financial advisers recommend that an individual or family spend what percentage of their after-tax income on housing?

  • somewhere between 20 and 35 percent
  • no more than 25 percent
  • somewhere between 30 and 50 percent

What is a short sale?

  • a real estate transaction that involves a home being sold for less than the value of the loan
  • a real estate transaction that involves a home being sold to a buyer who can't make a down payment
  • another word for a foreclosure

How is a short sale different from a foreclosure?

  • A short sale costs the bank more money.
  • A short sale does not involve the bank repossessing the home.
  • A short sale is the first step of the foreclosure process.

How does the U.S. government define affordable housing?

  • housing that costs a household no more than half of their monthly, post-tax income
  • housing that costs a household no more than 30 percent of their monthly, post-tax income
  • housing that is priced 20 percent below the national monthly average

According to a 2007 survey, what percentage of Americans spend more than 30 percent of their income on housing?

  • fewer than 50 percent
  • about 50 percent
  • more than 60 percent

Which party is responsible for making repairs to a home during a short sale?

  • the buyer
  • the seller
  • the lender

How does the Section 8 housing program define a low-income family?

  • a family whose income is less than half of the national average
  • a family whose income is less than half of the average for the county where they live
  • a family whose income is below the poverty level

What amount of a family's monthly housing costs does Section 8 vouchers cover?

  • 100 percent of housing expenses
  • all housing expenses that exceed 50 percent of a family's monthly income
  • all housing expenses that exceed 30 percent of a family's monthly income

Which of the following is NOT one of the reasons a lender can benefit from a short sale?

  • Short sales look better on a lender's financial statements than foreclosures.
  • Short sales can save the lender from making payments for repairs and insurance that are necessary after foreclosure.
  • Short sales can turn a profit for the lender.

True or False: Section 8 vouchers cannot be transferred from one part of the country to another.

  • TRUE
  • FALSE

What is a roommate agreement?

  • an agreement that roommates can sign before moving in together that defines each party's financial responsibilities
  • an agreement that roommates can sign after going their separate ways to settle financial disputes
  • another word for a lease

What party(s) does the buyer have to negotiate with during a short sale transaction?

  • the lender
  • the seller
  • the lender and the seller

Who usually pays an apartment referral service?

  • the prospective tenant
  • the landlord
  • no one, referral services are non-profit organizations

True or False: Landlords are legally prohibited from negotiating rent with tenants, under federal Fair Housing laws.

  • TRUE
  • FALSE

What was the average price of a house in the Southern United States in 2010?

  • $117,000
  • $147,000
  • $187,000

What was the average price of a house in the Western United States in 2010?

  • $238,000
  • $251,000
  • $291,000

What is "workamping"?

  • a type of job that gives you free rent for looking after a property
  • a federal program that gives the unemployed free housing on national park grounds
  • a campsite where homeless people can stay free of charge

What is an "approved short sale?"

  • a short sale that has already been approved by a lender
  • a sale that has passed required federal standards for short sale transactions
  • a short sale that has been closed and completed