HUD EXAM PREP| COMPLETE QUESTIONS WITH 100% RATED
EXPERT SOLUTIONS |2026 LATEST UPDATED
% Impact of Account Payment History on Credit Score - (answer)35%
portion of credit score based on the payment history of accounts, including late payments,
delinquencies, judgments, and liens
% Impact of Amounts Owed on Accounts on Credit Score - (answer)30%
portion of score based on the ratio of total credit extended to the amount of credit owed
% Impact of Length of Credit History on Credit Score - (answer)15%
portion of score based don the overall length of credit history in the report, as well as average
age of accounts
% Impact of Types of Credit Used on Credit Score - (answer)10%
portion of score based on the variety of accounts
% Impact of New Credit on Credit Score - (answer)10%
portion of score based on the number of recent credit INQUIRIES
,1.1.1) All of the following would help a counselor develop a realistic household budget, except:
A. Payment information for a paid-off car
B. Amount spent on groceries
C. Rent payment information
D. Monthly cable bill - (answer)A
1.1.2) All of the following are reasons why it is important for a client to track income and
expenses before finalizing a budget, except:
A. It helps show clients that they actually spend less on some expenses than they think.
B. It helps identify spending habits.
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines. - (answer)C
1.1.3) Which of the following is a "want" and not a "need"?
A. Health care premium
B. Car insurance
C. Gym membership
D. Rent - (answer)C
,1.1.4) All of the following are effective ways to decrease expenses, except:
A. Cancel insurance policy
B. Cancel cable service
C. Stick to a shopping list
D. Conserve energy in the home - (answer)A
1.1.5) All of the following are effective strategies to increase income, except:
A. Work over time
B. Teach yoga
C. Find a second job
D. Factor in an anticipated raise - (answer)D
1.1.6) Rebecca's next appointment is with Ray, a client who recently started a new job and wants
to buy a car to cut down on his commute. Rebecca reviews documents that Ray brought to the
counseling session and determines that Ray makes about $1,900 each month after taxes. He pays
his bills every month and covers his other expenses, but he never has any
money left for savings. Identify which information is used in determining a budget, and which
information is not.
, A. Pay Stub
B. Bank Statements
C. Utility Bills
D. Social Security Award Letter
E. Annual Bonus
F. Stock Dividends
G. Employer Reimbursements
H. Credit Score - (answer)Used to determine budget: A, B, C, D
Not used to determine budget: E, F, G, H
1.1.7) Ray's commute on the bus takes over an hour, so he wants to buy a car as soon as possible,
but he has poor credit and cannot obtain a loan right now. He thinks he can find a reliable car for
about $2,000 and has about 20% of the total in the bank from his tax refund. If Ray's goal is to
buy a car within 8 months, what is the minimum amount he needs to save each
month?
A. $150
B. $175
C. $200
D. $225 - (answer)C
EXPERT SOLUTIONS |2026 LATEST UPDATED
% Impact of Account Payment History on Credit Score - (answer)35%
portion of credit score based on the payment history of accounts, including late payments,
delinquencies, judgments, and liens
% Impact of Amounts Owed on Accounts on Credit Score - (answer)30%
portion of score based on the ratio of total credit extended to the amount of credit owed
% Impact of Length of Credit History on Credit Score - (answer)15%
portion of score based don the overall length of credit history in the report, as well as average
age of accounts
% Impact of Types of Credit Used on Credit Score - (answer)10%
portion of score based on the variety of accounts
% Impact of New Credit on Credit Score - (answer)10%
portion of score based on the number of recent credit INQUIRIES
,1.1.1) All of the following would help a counselor develop a realistic household budget, except:
A. Payment information for a paid-off car
B. Amount spent on groceries
C. Rent payment information
D. Monthly cable bill - (answer)A
1.1.2) All of the following are reasons why it is important for a client to track income and
expenses before finalizing a budget, except:
A. It helps show clients that they actually spend less on some expenses than they think.
B. It helps identify spending habits.
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines. - (answer)C
1.1.3) Which of the following is a "want" and not a "need"?
A. Health care premium
B. Car insurance
C. Gym membership
D. Rent - (answer)C
,1.1.4) All of the following are effective ways to decrease expenses, except:
A. Cancel insurance policy
B. Cancel cable service
C. Stick to a shopping list
D. Conserve energy in the home - (answer)A
1.1.5) All of the following are effective strategies to increase income, except:
A. Work over time
B. Teach yoga
C. Find a second job
D. Factor in an anticipated raise - (answer)D
1.1.6) Rebecca's next appointment is with Ray, a client who recently started a new job and wants
to buy a car to cut down on his commute. Rebecca reviews documents that Ray brought to the
counseling session and determines that Ray makes about $1,900 each month after taxes. He pays
his bills every month and covers his other expenses, but he never has any
money left for savings. Identify which information is used in determining a budget, and which
information is not.
, A. Pay Stub
B. Bank Statements
C. Utility Bills
D. Social Security Award Letter
E. Annual Bonus
F. Stock Dividends
G. Employer Reimbursements
H. Credit Score - (answer)Used to determine budget: A, B, C, D
Not used to determine budget: E, F, G, H
1.1.7) Ray's commute on the bus takes over an hour, so he wants to buy a car as soon as possible,
but he has poor credit and cannot obtain a loan right now. He thinks he can find a reliable car for
about $2,000 and has about 20% of the total in the bank from his tax refund. If Ray's goal is to
buy a car within 8 months, what is the minimum amount he needs to save each
month?
A. $150
B. $175
C. $200
D. $225 - (answer)C
