Exam (elaborations)
HUD Practice Test and Correct Answers
- Course
- Institution
HUD Practice Test and Correct Answers
[Show more]
Seller
Follow
Victorious23
Reviews received
Content preview
HUD Practice Test and CorrectAnswers
Which document is most important when working with a client to develop an
initial budget as part of a Client Action Plan? - -Pay Stub
-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
-A credit report may contain which information? - -The number of accounts
in collection status
-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.
-Which action would a client take to improve a credit score? - -Pay
delinquent accounts
-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
-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."
-Which action should a counselor recommend a client take first after
discovering identity theft? - -File an identity theft report
, -In which situation would a client's responsibilities, recurring costs, and
upfront costs be evaluated? - -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? - -$728
-Which type of government insured loan was created for financing homes in
rural areas? - -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? - -Emergency Funds
-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
-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)? - -30%
-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
-Under which condition would most down payment assistance programs
approve a waiver of the homeownership education requirement? - -Most will
not waive the homeownership education requirement.
-Which type of assistance administered by a public housing authority allows
for location flexibility? - -Tenant-based vouchers
-A client's payment history affects which factor of creditworthiness? - -
Character
-Which action may a lender take to determine a borrower's character? - -
Call an employer to verify employment
-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
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 Victorious23. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
74735 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
Recently viewed by you
