HUD Practice Exam Questions and Answers (Graded A+)
4 views 0 purchase
Course
HUD
Institution
HUD
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 househo...
HUD Practice Exam 2023-2024 Questions and Answers (Graded A+)
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
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? - 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? - ANSWER-Most will not waive the homeownership education requirement
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller papersmaster01. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
