HUD Practice Exam With Correct And
Detailed Answers
Which fdocument fis fmost fimportant fwhen fworking fwith fa fclient fto fdevelop fan finitial
fbudget fas fpart fof fa fClient fAction fPlan? f- fCORRECT✅✅List fof fAssets
Retirement fplan fstatement
Pay fstub fX
Current flease
A fclient fwould flike fpurchase fa fhome fwithin fone fyear. fThe fclient fis fmotivated fto
fincrease fhousehold fincome fas fa fway fto fsave ffor fa fdown fpayment fand fqualify ffor fa
floan. fWhich fis fthe fbest fsolution ffor fthe fclient fto freach fthis fgoal? f- fCORRECT✅✅
A fcredit freport fmay fcontain fwhich finformation? f- fCORRECT✅✅Income fhistory f
Criminal frecord
# fof faccounts fin fcollection fstatus f
A fhistory fof fpayments fon fan felctric fbill
A fcredit freport fcontains finaccurate finformation. fWhich faction fitem fshould fthe
fcounselor finclude fin fthe fClient fAction fPlan? f- fCORRECT✅✅FIle fa fdispute fwith fthe
fappropaite fcredit freporting fagency
Six fmonths fago fa fclient fleft fa fjob fas fa freporter fto fstart fa fbusiness fin fthe fretail
findustry. fTo fprepare fto fbuy fa fhouse, fthe fclient fclosed fcredit fcard faccounts fand fhas
fbeen fusing fsavings fto fpay fdown fcredit fcard fdebt fand fcollections. fThe fclient fhas fnot
fbeen fable fto fsave fmuch ffor fa fdown fpayment fwith fall fthe fdebt fpayments fbut fknows
fabout fan faffordable fhomeownership fprogram fthat fonly frequires fa f1% fdown fpayment
fwith fan fFHA floan.
What fmight fresult ffrom fthe fclient fclosing fthe fcredit fcard faccounts? f- fCORRECT✅✅
Which faction fwould fa fclient ftake fto fimprove fa fcredit fscore? f- fCORRECT✅✅
A fclient fdoes fnot freceive fa fwritten fmonthly fstatement ffrom fthe fcredit fcard fcompany.
fWhich fcredit flaw fcould fthis fomission fviolate? f- fCORRECT✅✅FCBA
A fclient fshopping ffor fa fmortgage floan fpresents fa fhousing fcounselor fwith fan foffer
ffrom fa flocal fmortgage flender. fThe finterest frate fon fthe foffer fis f7.5% ffor fa f30-year
ffixed frate fmortgage fwith fa f20% fdown fpayment frequired. fThe fcounselor freviews fthe
fclient ffile fand fdetermines fthe fclient's fcredit fscore fis f725 fand fthe fclient's ftotal fdebt-to-
income fratio fis f20%.
, The fclient fasks fthe fhousing fcounselor fif fthe foffer fis fa fcase fof fillegal fpredatory
flending. fHow fshould fthe fhousing fcounselor frespond? f- fCORRECT✅✅I fam funable
fto fdetermine fwhether fthe floan fis fpredatory fbut fi fsuggest fyou fshop faround fwith fother
fledning fsources
Which faction fshould fa fcounselor frecommend fa fclient ftake ffirst fafter fdiscovering
fidentity ftheft? f- fCORRECT✅✅File fan fidentity ftheft freport
In fwhich fsituation fwould fa fclient's fresponsibilities, frecurring fcosts, fand fupfront fcosts
fbe fevaluated? f- fCORRECT✅✅When fweighing fhousing foptions
A fclient fworks f40 fhours fa fweek fmaking f$15 fan fhour. fWhat fis fthe fhighest fmonthly
fmortgage fthe fclient fcan fafford fbased fon fincome fif fthe fclient fsecures fa fconventional
floan? f- fCORRECT✅✅Front fEnd fRatio fFormula
Conventional f= f<28%
Which ftype fof fgovernment finsured floan fwas fcreated ffor ffinancing fhomes fin frural
fareas? f- fCORRECT✅✅USDA
A fclient fkeeps fhaving fbudget fproblems fdue fto funexpected fexpenses. fWhich ffinancial
ftool fwould fbest fassist fthis fclient fto fprepare ffor funexpected fexpenses fand favoid
fincreasing fcredit fusage? f- fCORRECT✅✅Emergency fFund
A fclient fhas fa fmonthly fhousehold fincome fof f$2,300, fmonthly fdebt fpayments fof f$450,
fand fan foptimal fmonthly fhousing fratio fof f32%. fWhat fis fthe fclient's foptimal fmonthly
fhousing fpayment? f- fCORRECT✅✅Front fEnd fRatio fFormula
What fis fthe fback-end fratio ffor fa fclient fwith fa fmonthly fhousing fexpense fof f$1,250, fa
fmonthly ftotal fof f$88 fin fother fconsumer fdebt fpayments, fand fa fgross fhousehold
fincome fof f$4,460 fper fmonth f(rounded fto fthe fnearest fwhole fpercent)? f-
fCORRECT✅✅Debt fto fincome fratio for fback fend fratio
A fclient fearns fa fsalary fof f$45,000 fat fa fjob fheld ffor fthree fyears. fThe fclient fhas fcredit
fcard fbills, fstudent floans, fand fa fcar floan ftotaling f$500 fper fmonth. fThe fclient fhas
falready fsaved f$3,500 ffor fa fdown fpayment fand fis fusing fan fFHA fEnergy fEfficient
fMortgage f(EEM).
If fthe fclient fwants fto fmake fthe fminimum fdown fpayment ffor fa fhome fpriced fat
f$150,000, fhow fmuch fmore fdoes fthe fclient fneed fto fsave? f- fCORRECT✅✅FHA
fdownpayment fis fat fleast f3.5%
Under fwhich fcondition fwould fmost fdown fpayment fassistance fprograms fapprove fa
fwaiver fof fthe fhomeownership feducation frequirement? f- fCORRECT✅✅Most fwill fnot
fwaive fthe fhomeownership feducation frequirement
Detailed Answers
Which fdocument fis fmost fimportant fwhen fworking fwith fa fclient fto fdevelop fan finitial
fbudget fas fpart fof fa fClient fAction fPlan? f- fCORRECT✅✅List fof fAssets
Retirement fplan fstatement
Pay fstub fX
Current flease
A fclient fwould flike fpurchase fa fhome fwithin fone fyear. fThe fclient fis fmotivated fto
fincrease fhousehold fincome fas fa fway fto fsave ffor fa fdown fpayment fand fqualify ffor fa
floan. fWhich fis fthe fbest fsolution ffor fthe fclient fto freach fthis fgoal? f- fCORRECT✅✅
A fcredit freport fmay fcontain fwhich finformation? f- fCORRECT✅✅Income fhistory f
Criminal frecord
# fof faccounts fin fcollection fstatus f
A fhistory fof fpayments fon fan felctric fbill
A fcredit freport fcontains finaccurate finformation. fWhich faction fitem fshould fthe
fcounselor finclude fin fthe fClient fAction fPlan? f- fCORRECT✅✅FIle fa fdispute fwith fthe
fappropaite fcredit freporting fagency
Six fmonths fago fa fclient fleft fa fjob fas fa freporter fto fstart fa fbusiness fin fthe fretail
findustry. fTo fprepare fto fbuy fa fhouse, fthe fclient fclosed fcredit fcard faccounts fand fhas
fbeen fusing fsavings fto fpay fdown fcredit fcard fdebt fand fcollections. fThe fclient fhas fnot
fbeen fable fto fsave fmuch ffor fa fdown fpayment fwith fall fthe fdebt fpayments fbut fknows
fabout fan faffordable fhomeownership fprogram fthat fonly frequires fa f1% fdown fpayment
fwith fan fFHA floan.
What fmight fresult ffrom fthe fclient fclosing fthe fcredit fcard faccounts? f- fCORRECT✅✅
Which faction fwould fa fclient ftake fto fimprove fa fcredit fscore? f- fCORRECT✅✅
A fclient fdoes fnot freceive fa fwritten fmonthly fstatement ffrom fthe fcredit fcard fcompany.
fWhich fcredit flaw fcould fthis fomission fviolate? f- fCORRECT✅✅FCBA
A fclient fshopping ffor fa fmortgage floan fpresents fa fhousing fcounselor fwith fan foffer
ffrom fa flocal fmortgage flender. fThe finterest frate fon fthe foffer fis f7.5% ffor fa f30-year
ffixed frate fmortgage fwith fa f20% fdown fpayment frequired. fThe fcounselor freviews fthe
fclient ffile fand fdetermines fthe fclient's fcredit fscore fis f725 fand fthe fclient's ftotal fdebt-to-
income fratio fis f20%.
, The fclient fasks fthe fhousing fcounselor fif fthe foffer fis fa fcase fof fillegal fpredatory
flending. fHow fshould fthe fhousing fcounselor frespond? f- fCORRECT✅✅I fam funable
fto fdetermine fwhether fthe floan fis fpredatory fbut fi fsuggest fyou fshop faround fwith fother
fledning fsources
Which faction fshould fa fcounselor frecommend fa fclient ftake ffirst fafter fdiscovering
fidentity ftheft? f- fCORRECT✅✅File fan fidentity ftheft freport
In fwhich fsituation fwould fa fclient's fresponsibilities, frecurring fcosts, fand fupfront fcosts
fbe fevaluated? f- fCORRECT✅✅When fweighing fhousing foptions
A fclient fworks f40 fhours fa fweek fmaking f$15 fan fhour. fWhat fis fthe fhighest fmonthly
fmortgage fthe fclient fcan fafford fbased fon fincome fif fthe fclient fsecures fa fconventional
floan? f- fCORRECT✅✅Front fEnd fRatio fFormula
Conventional f= f<28%
Which ftype fof fgovernment finsured floan fwas fcreated ffor ffinancing fhomes fin frural
fareas? f- fCORRECT✅✅USDA
A fclient fkeeps fhaving fbudget fproblems fdue fto funexpected fexpenses. fWhich ffinancial
ftool fwould fbest fassist fthis fclient fto fprepare ffor funexpected fexpenses fand favoid
fincreasing fcredit fusage? f- fCORRECT✅✅Emergency fFund
A fclient fhas fa fmonthly fhousehold fincome fof f$2,300, fmonthly fdebt fpayments fof f$450,
fand fan foptimal fmonthly fhousing fratio fof f32%. fWhat fis fthe fclient's foptimal fmonthly
fhousing fpayment? f- fCORRECT✅✅Front fEnd fRatio fFormula
What fis fthe fback-end fratio ffor fa fclient fwith fa fmonthly fhousing fexpense fof f$1,250, fa
fmonthly ftotal fof f$88 fin fother fconsumer fdebt fpayments, fand fa fgross fhousehold
fincome fof f$4,460 fper fmonth f(rounded fto fthe fnearest fwhole fpercent)? f-
fCORRECT✅✅Debt fto fincome fratio for fback fend fratio
A fclient fearns fa fsalary fof f$45,000 fat fa fjob fheld ffor fthree fyears. fThe fclient fhas fcredit
fcard fbills, fstudent floans, fand fa fcar floan ftotaling f$500 fper fmonth. fThe fclient fhas
falready fsaved f$3,500 ffor fa fdown fpayment fand fis fusing fan fFHA fEnergy fEfficient
fMortgage f(EEM).
If fthe fclient fwants fto fmake fthe fminimum fdown fpayment ffor fa fhome fpriced fat
f$150,000, fhow fmuch fmore fdoes fthe fclient fneed fto fsave? f- fCORRECT✅✅FHA
fdownpayment fis fat fleast f3.5%
Under fwhich fcondition fwould fmost fdown fpayment fassistance fprograms fapprove fa
fwaiver fof fthe fhomeownership feducation frequirement? f- fCORRECT✅✅Most fwill fnot
fwaive fthe fhomeownership feducation frequirement
