HUD Test 1/159 Questions and
Answers/A+ Graded
Which document should the counselor review with the client to identify
spending habits and track expenses? - -Bank Statement
-Which additional information would the housing counselor need to prepare
a household budget for this client? - -Net income
-Which item in the client's budget is a fixed expense? - -Car lease payment
-What is the maximum percent of area median income allowable for a
household to qualify for a Housing Choice Voucher? - -50%
-Which is the maximum recommended housing ratio for renting an
apartment? - -30%
-Eligibility requirement for down payment assistance programs include
which factors? - -Income, homebuyer education, purchase price
-The client is considering an FHA mortgage. What is the upfront mortgage
insurance premium (UFMIP) for a FHA mortgage? - -1.75% (UFMIP)
-The annual MIP (Mortgage Insurance Premium) for FHA mortgages ranges? -
-between 0.8% and 1.05%.
-USDA loans charge up front Grantee Fee ? - -2%
-The client decides to purchase a townhouse through a down payment
assistance program with a recapture clause. Three years later, the client
remarries, and his wife owns a single family home. Which situation might
cause an accelerated loan payment? - -Client moves to his wife's home and
rents his townhouse to tenant
-If the client was denied a mortgage loan and the lender told him to come
back after his divorce had been final for 3 years, what is the best advice for
the housing counselor to provide to the client? - -Contact the Federal Trade
Commission as the lender's action might violate the Equal Credit Opportunity
Act.
-A question from a lender on which topic would be inappropriate? - -Medical
history
, -Which is a responsibility of a housing counselor? - -Educate homebuyers
about their rights
-In order to minimize the impact on the client's credit score, what is the
maximum time frame within which the client should apply for pre-approval
from multiple lenders? - -30 days period
-Which is a responsibility of a home inspector? - -*Evaluate the condition of
a home
*Examine mechanical systems
*Identify items to be repaired or replaced
-Which is the best reason that a housing counselor would suggest that a
client speak to 3 to 5 different lenders before choosing one? - -the client can
compare loan estimates
-Which is the best advice that a housing counselor can give the client to
protect against identity theft? - -Review credit report at least once per year
-The client tells the lender that he is expecting a raise soon. Which action
should the lender take? - -Provide a loan estimate without factoring in the
raise
-Average closing costs rage? - -3% and 4%
-The client is considering renting an apartment with a different landlord.
Which would be an upfront cost of moving to the new apartment? - -
Application fee
-The client is second-guessing his decision to buy a home, so the counselor
asks a series of questions. Which response would best align with the
homewonership option for this client? - -Client wants to customize his home
with do-it- yourself projects
-Maximum Front-end ration for a standard convention loan % ? - -28%
-Front-end ratio - -monthly housing expenses / Gross monthly income
매달 income 에 housing expenses 의 %
-Back-end ratio(Debt to income)for a standard convention loan % ? - -
maximum 36%
-Back - end ratio - -Total monthly debt expense/ Gross monthly income
매달 income 에 Debt 의 %
-Back-end ratio(Debt to income) for a standard FHA loan % ? - -41%-43%
, maximum 43%
If FHA Energy Efficiency Mortgage can 45%
-Maximum Front-end ration for a standard FHA loan % ? - -31%
-How to calculate maximum monthly housing expense? - -front-end ratio x
Gross income
-Which steps should housing counselor take to assess the client's readiness
to purchase a home? - --Assess funds available for upfront coasts
-Calculate debt-to-income ratio
-Determine maximum housing payment
-On which factor is a borrower's annual mortgage insurance premium (MIP)
based? - -Current principal balance
-Loan to Value Ratio - -LTV ratio= Mortgage Amount (MA)/ Appraised
Property Value (APV)
Calculated by amount of loan compared to the value of property
Best LTV ratio= 80% or lower
EX) LTV 75%
75% Mortgage 가 낸돈
25% 내가 낸돈
-Private Mortgage insurance - -Less 20% down payment required
-Mortgage Insurance Premium - -Less 20 % down payment FHA Loan
required
Hard to do cancellation
-The client only tracks bill payments. Which should the housing counselor
recommend to help the client begin planning for a home purchase? - -Track
all income and expense
-How should a client apply for the Housing Choice Voucher Program? - -
Contact the local Public Housing Authority
-What are Housing Choice Vouchers? - -very low-income families to choose
and lease or purchase safe, decent, and affordable privately-owned rental
housing.
-Which website provides information on programs to assist homebuyers with
down payment assistance? - -HUD.gov
-Based on the client's income, saving, and credit score of 700, which
mortgage option is likely best for her? - -Conventional loan
Answers/A+ Graded
Which document should the counselor review with the client to identify
spending habits and track expenses? - -Bank Statement
-Which additional information would the housing counselor need to prepare
a household budget for this client? - -Net income
-Which item in the client's budget is a fixed expense? - -Car lease payment
-What is the maximum percent of area median income allowable for a
household to qualify for a Housing Choice Voucher? - -50%
-Which is the maximum recommended housing ratio for renting an
apartment? - -30%
-Eligibility requirement for down payment assistance programs include
which factors? - -Income, homebuyer education, purchase price
-The client is considering an FHA mortgage. What is the upfront mortgage
insurance premium (UFMIP) for a FHA mortgage? - -1.75% (UFMIP)
-The annual MIP (Mortgage Insurance Premium) for FHA mortgages ranges? -
-between 0.8% and 1.05%.
-USDA loans charge up front Grantee Fee ? - -2%
-The client decides to purchase a townhouse through a down payment
assistance program with a recapture clause. Three years later, the client
remarries, and his wife owns a single family home. Which situation might
cause an accelerated loan payment? - -Client moves to his wife's home and
rents his townhouse to tenant
-If the client was denied a mortgage loan and the lender told him to come
back after his divorce had been final for 3 years, what is the best advice for
the housing counselor to provide to the client? - -Contact the Federal Trade
Commission as the lender's action might violate the Equal Credit Opportunity
Act.
-A question from a lender on which topic would be inappropriate? - -Medical
history
, -Which is a responsibility of a housing counselor? - -Educate homebuyers
about their rights
-In order to minimize the impact on the client's credit score, what is the
maximum time frame within which the client should apply for pre-approval
from multiple lenders? - -30 days period
-Which is a responsibility of a home inspector? - -*Evaluate the condition of
a home
*Examine mechanical systems
*Identify items to be repaired or replaced
-Which is the best reason that a housing counselor would suggest that a
client speak to 3 to 5 different lenders before choosing one? - -the client can
compare loan estimates
-Which is the best advice that a housing counselor can give the client to
protect against identity theft? - -Review credit report at least once per year
-The client tells the lender that he is expecting a raise soon. Which action
should the lender take? - -Provide a loan estimate without factoring in the
raise
-Average closing costs rage? - -3% and 4%
-The client is considering renting an apartment with a different landlord.
Which would be an upfront cost of moving to the new apartment? - -
Application fee
-The client is second-guessing his decision to buy a home, so the counselor
asks a series of questions. Which response would best align with the
homewonership option for this client? - -Client wants to customize his home
with do-it- yourself projects
-Maximum Front-end ration for a standard convention loan % ? - -28%
-Front-end ratio - -monthly housing expenses / Gross monthly income
매달 income 에 housing expenses 의 %
-Back-end ratio(Debt to income)for a standard convention loan % ? - -
maximum 36%
-Back - end ratio - -Total monthly debt expense/ Gross monthly income
매달 income 에 Debt 의 %
-Back-end ratio(Debt to income) for a standard FHA loan % ? - -41%-43%
, maximum 43%
If FHA Energy Efficiency Mortgage can 45%
-Maximum Front-end ration for a standard FHA loan % ? - -31%
-How to calculate maximum monthly housing expense? - -front-end ratio x
Gross income
-Which steps should housing counselor take to assess the client's readiness
to purchase a home? - --Assess funds available for upfront coasts
-Calculate debt-to-income ratio
-Determine maximum housing payment
-On which factor is a borrower's annual mortgage insurance premium (MIP)
based? - -Current principal balance
-Loan to Value Ratio - -LTV ratio= Mortgage Amount (MA)/ Appraised
Property Value (APV)
Calculated by amount of loan compared to the value of property
Best LTV ratio= 80% or lower
EX) LTV 75%
75% Mortgage 가 낸돈
25% 내가 낸돈
-Private Mortgage insurance - -Less 20% down payment required
-Mortgage Insurance Premium - -Less 20 % down payment FHA Loan
required
Hard to do cancellation
-The client only tracks bill payments. Which should the housing counselor
recommend to help the client begin planning for a home purchase? - -Track
all income and expense
-How should a client apply for the Housing Choice Voucher Program? - -
Contact the local Public Housing Authority
-What are Housing Choice Vouchers? - -very low-income families to choose
and lease or purchase safe, decent, and affordable privately-owned rental
housing.
-Which website provides information on programs to assist homebuyers with
down payment assistance? - -HUD.gov
-Based on the client's income, saving, and credit score of 700, which
mortgage option is likely best for her? - -Conventional loan
