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HUD Practice Exam Questions With Complete Solutions
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HUD Practice Exam Questions With Complete Solutions
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HUD Practice Exam Questions With Complete SolutionsA 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 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?
$1,750
$2,250
$4,500
$5,250 Correct Answer Down payment for EEM is 3.5% so
you take 150,000 x .035=5250-3500=$1750
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 2300-450=_X.32=592
A client has saved money for a small down payment and closing
costs to purchase a $100,000 home in the city. The client is
deciding whether to begin the homebuying process now or
continue saving for a larger down payment.
Client Profile
► Credit Score - 700
► Monthly income - $3,000
,► Savings - $15,000Types of Loans - LTV (%)
► Traditional conventional loan - 80%
► Conventional/piggyback - 80%/10%
► Conventional loan - 90%
► FHA loan - 96.5%
Which loan type would provide the highes Correct Answer
FHA loan
A client is currently renting month to month (tenancy at
sufferance). What advice should a housing counselor
recommend to better secure the housing? Correct Answer Seek
a new written lease agreement
A client is delinquent on the mortgage and at risk of default. The
client is considering signing the deed over to a real estate
investor to avoid foreclosure. What should the housing
counselor recommend? Correct Answer Advise against signing
over the deed to a real estate investor as a solution to avoid
foreclosure.
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?
Capacity
Collateral
Character
Capital Correct Answer Collateral
, A client recently experienced an unexpected car expense, which
resulted in the client using half the rent to pay for the expense.
The client, who still has a full-time job, would like to avoid
making a late payment. Which resource should a housing
counselor recommend first? Correct Answer Contact United
Way 211
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 - fact check this
one
A client with limited financial resources wants to improve safety
in the home to prepare for natural disasters. Which is the best
resource for the client to use in researching this topic? Correct
Answer Ready.gov
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
Answer is 728. 40x15=_x52_/12=_.28=728
A client, who is the surviving spouse of a military
servicemember, is interested in buying a home. The client now
works at a local nonprofit agency, making $36,000 per year. The
client has $4,000 in savings and a credit score of 624.If a client
has just received a commitment from a lender to provide a loan
for a fixed loan amount based on a review of the complete loan
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