HUD Practice Exam Correct Questions and Answers

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