HUD Assessment Questions and Answers 100% Correct!

Which document should the counselor review with client to identify spending habits and track expenses? - ANSWER-Bank Statement Which additional information would the housing counselor need to prepare a household budget? - ANSWER-Net Income What is the maximum percent of area median income allowable for a household to qualify for a Housing Choice Voucher? - ANSWER-50% Which is the maximum recommended housing ratio for renting an apartment? - ANSWER-30% Eligibility requirements for downpayment assistance programs include which factors? - ANSWER-Income, homebuyer education, purchase price What is the upfront mortgage insurance premium (UFMIP) for an FHA mortgage? - ANSWER-1.75% A question from a lender on which topic would be inappropriate? - ANSWER-Medical history What is a responsibility of a housing counselor? - ANSWER-Educate homebuyers about their rights What is the maximum time frame within which a client should apply for pre-approval from multiple lenders with minimum impact on their credit score? - ANSWER-30-day period Responsibilities of a home inspector? - ANSWER-Evaluate the condition of a home, Examine mechanical systems, Identify items to be repaired or replaced Why should a client speak to three to five different lenders before choosing one? - ANSWER-So the client can compare loan estimates What is the best advice that a housing counselor can give the client to protect against identity theft? - ANSWER-Review credit report at least once per year A client tells the lender that is expecting a raise soon. What action should the lender take? - ANSWER-Provide a loan estimate without factoring in the raise If a client obtains a mortgage of $100,000, typically how much should he expect to pay for closing costs? - ANSWER-$4,000 Closing costs ranges - ANSWER-3% and 4% on average. If a client is considering renting an apartment with a different landlord, what would be an upfront cost of moving to the new apartment? - ANSWER-Application fee What is the maximum debt-to-income ratio allowable for an FHA loan? - ANSWER-43% On which factor is a borrower's annual mortgage insurance premium (MIP) based? - ANSWER-Current principal balance