HUD Certification Exam Questions and Answers (Graded A)
Question : Which document is most important when working
with a client to develop an initial budget as part of a Client Action Plan?Pay Stub
Question : 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?Find a second job
Question : A credit report may contain which information?
The number of accounts in collection status
Question : 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?It increases credit utilization, causing a negative impact on the credit score.
Question : Which action would a client take to improve a
credit score?Pay delinquent accounts
Question : 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
Question : 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%."I am unable to determine whether the loan is predatory, but I suggest you shop around with other lending sources."
Question : Which action should a counselor recommend a
client take first after discovering identity theft?File an identity theft report
Question : In which situation would a client's responsibilities,
recurring costs, and upfront costs be evaluated?When weighing housing options
Question : 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?$728
Question : Which type of government insured loan was
created for financing homes in rural areas?
USDA
Question : 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?Emergency Funds
Question : 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?$736 Use Front-End Ratio
