HUD HOUSING COUNSELING EXAM
QUESTIONS AND ANSWERS 2026
VERIFIED.
Rental Obstacle + Solutions: Low Income - ANS -Some Renters reject people whose Rent
would be more than 30% of GMI
-Solutions
-Apply for Housing Assistance
-Expand housing search areas
-Get a roommate
-Move in w/family or friends
Strategies for decreasing expenses and debt - ANS Prioritize "needs over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services(e.g. cable, telephone)
-limit miscellaneous spending
- stick to a shopping list
- pay off a loan or credit card
- move to more affordable housing
- change insurance coverage to lower premiums
Fair Credit Reporting Act (FCRA) - ANS -Right to know what is your file
-Right to dispute incomplete or inaccurate information
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 63
,- Access to your file is limited only to people w/valid need (i.e, creditor, insurer)
-You may seek damages from violators (sue)
- States have their own rules which additionally project
What documents to use when tracking income - ANS -Paychecks, direct deposits slips
- If self-employed, income + expenses sheet
- Additional income checks or cash
- Government benefit letters
Site to obtain free credit report - ANS www.annualcreditreport.com
Chapter 13 bankruptcy - ANS Allows individuals w/regular income to develop a plan to repay
all or part of their debts over 3 to 5 years can stop foreclose sure proceedings + may delinquent
mortgage payments over time
Steps to take if victim of identity theft - ANS -Place a fraud alert w/the credit reporting
agencies
- order credit reports to review + identify inaccuracies
- create an identify theft report obtain ID theft affidavit from the FTC
- File a police report
Fair and Accurate credit Transcription Act (FACTA) - ANS -Right to free annual credit report
- Right to place a fraud alert on your credit file
- Receipts may not include entirety of credit card #s
Four Steps of Asset building - ANS 1.Chose the right bank or credit union account
2. Build savings for emergencies + Large purchase 3. Invest for retirement
4. Take advantage of tax credits
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 63
,Fair credit billing Act (FCBA) - ANS -You can dispute billing errors associated w/credit card
account
- Must be billed in a timely manner
% of factors how they affect credit score - ANS 35% account history
30% amounts owed
15% length of credit history
10% new credit
10% types of credit used
Credit reporting agencies on FICO Score - ANS -EQUIFAX
- EXPERIAN
- TRANS UNION
FICO Score - ANS -Credit scores often referred to as
= Fair Isaac Corporation
Range:300-850
Means test - ANS A bankruptcy qualification that considers income + equity in assets to
determine if a client has the ability to repay part of the debt
How to fix: Credit Card maxed / too much debt - ANS -Pay down debt + keep balances low
- Pay more than minimum
- know the balance - check statements
How to fix: Delinquencies / collections / Judgments - ANS Get current + pay on time moving
forward
- sett up payments reminders
- adjust budget
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 63
, Factors in determining credit score - ANS -Payments History
- Capacity used
- Length of credit history
- Type of credit used
- New credit
Inquires - ANS Request initiated by a company or person for a consumer's credit profile
information
How to fix: Incorrect information on a credit report - ANS Dispute inaccuracies:
*Notify credit reporting agencies of inaccuracies + provide supporting documentation
* keep records of dispute documentation
Steps in creating a budget - ANS 1. Help client identify short + long-term goals
2. Track income
3. Track expenses
4. Adjust goals + budget *increase income *decrease expenses + debt %.
5. Create client action plan
Section of Credit Report: Public Records - ANS Items that are listed in the public record,
including -bankruptcy
- judgments
-tax liens
- wage garnishments
Section of Credit Report: Personal information - ANS Consumer identification information,
including:
-Name
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 63
QUESTIONS AND ANSWERS 2026
VERIFIED.
Rental Obstacle + Solutions: Low Income - ANS -Some Renters reject people whose Rent
would be more than 30% of GMI
-Solutions
-Apply for Housing Assistance
-Expand housing search areas
-Get a roommate
-Move in w/family or friends
Strategies for decreasing expenses and debt - ANS Prioritize "needs over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services(e.g. cable, telephone)
-limit miscellaneous spending
- stick to a shopping list
- pay off a loan or credit card
- move to more affordable housing
- change insurance coverage to lower premiums
Fair Credit Reporting Act (FCRA) - ANS -Right to know what is your file
-Right to dispute incomplete or inaccurate information
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 63
,- Access to your file is limited only to people w/valid need (i.e, creditor, insurer)
-You may seek damages from violators (sue)
- States have their own rules which additionally project
What documents to use when tracking income - ANS -Paychecks, direct deposits slips
- If self-employed, income + expenses sheet
- Additional income checks or cash
- Government benefit letters
Site to obtain free credit report - ANS www.annualcreditreport.com
Chapter 13 bankruptcy - ANS Allows individuals w/regular income to develop a plan to repay
all or part of their debts over 3 to 5 years can stop foreclose sure proceedings + may delinquent
mortgage payments over time
Steps to take if victim of identity theft - ANS -Place a fraud alert w/the credit reporting
agencies
- order credit reports to review + identify inaccuracies
- create an identify theft report obtain ID theft affidavit from the FTC
- File a police report
Fair and Accurate credit Transcription Act (FACTA) - ANS -Right to free annual credit report
- Right to place a fraud alert on your credit file
- Receipts may not include entirety of credit card #s
Four Steps of Asset building - ANS 1.Chose the right bank or credit union account
2. Build savings for emergencies + Large purchase 3. Invest for retirement
4. Take advantage of tax credits
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 63
,Fair credit billing Act (FCBA) - ANS -You can dispute billing errors associated w/credit card
account
- Must be billed in a timely manner
% of factors how they affect credit score - ANS 35% account history
30% amounts owed
15% length of credit history
10% new credit
10% types of credit used
Credit reporting agencies on FICO Score - ANS -EQUIFAX
- EXPERIAN
- TRANS UNION
FICO Score - ANS -Credit scores often referred to as
= Fair Isaac Corporation
Range:300-850
Means test - ANS A bankruptcy qualification that considers income + equity in assets to
determine if a client has the ability to repay part of the debt
How to fix: Credit Card maxed / too much debt - ANS -Pay down debt + keep balances low
- Pay more than minimum
- know the balance - check statements
How to fix: Delinquencies / collections / Judgments - ANS Get current + pay on time moving
forward
- sett up payments reminders
- adjust budget
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 63
, Factors in determining credit score - ANS -Payments History
- Capacity used
- Length of credit history
- Type of credit used
- New credit
Inquires - ANS Request initiated by a company or person for a consumer's credit profile
information
How to fix: Incorrect information on a credit report - ANS Dispute inaccuracies:
*Notify credit reporting agencies of inaccuracies + provide supporting documentation
* keep records of dispute documentation
Steps in creating a budget - ANS 1. Help client identify short + long-term goals
2. Track income
3. Track expenses
4. Adjust goals + budget *increase income *decrease expenses + debt %.
5. Create client action plan
Section of Credit Report: Public Records - ANS Items that are listed in the public record,
including -bankruptcy
- judgments
-tax liens
- wage garnishments
Section of Credit Report: Personal information - ANS Consumer identification information,
including:
-Name
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 63
