HUD HOUSING COUNSELOR CERTIFICATION
PRACTICE UPDATED EXAM SCRIPT WITH
COMPLETE ANSWERS
◉ Track Income (what not to include).
Answer: -pre-tax payroll deductions
-retirement fund contributions
-expenses (flexible spending account contributions)
-credit score
◉ Documents to use for client action plan (income).
Answer: -paychecks, direct deposit slips
-if self-employed, income and expenses sheet
-additional income checks or cash
-government benefits letters (SSI, unemployment, etc)
◉ Track Expenses (what to include).
Answer: -all bills
-all fixed monthly expenses
-all cash expenses
,-seasonal or annual expenses (car registration, gifts, tax preparation
fees, vacations, or expenses related to the holiday season)
◉ Documents to use for client action plan (expenses).
Answer: -utility, insurance, and other bills
-bank statements
-credit card statements
-records about car registration or school supplies for estimated
amount of expected periodic expenses
◉ Importance of tracking income and expenses.
Answer: it helps show clients that they spend less on some expenses
than they think
◉ How to increase income.
Answer: -find second job
-work overtime
-negotiate higher salary/wage
-sell assets (e.g, car)
-hold a yard/garage sale
-teach a skill/craft/activity
-sell a craft (jewelry or carpentry)
,-charge rent (if adult dependents in home)
-evaluate tax withholdings
◉ Decrease Expenses and debt.
Answer: -prioritize "needs" over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services
-limit miscellaneous spending
-stick to a shopping list
-reduce debt (pay off a loan or credit card)
-move to more affordable housing
-change insurance coverage for lower premiums, but don't cancel
◉ Credit History.
Answer: - determines a clients ability to achieve personal and
financial goals
- each lender you speak to will pull your credit report in order to
examine your credit history
you may not qualify for housing if you have:
- low credit score
- collection accounts
, - judgments
- liens
◉ credit report contains.
Answer: -personal information
-account/trade line info
-public records
-inquiries
-consumer rights
◉ payment history.
Answer: -timely payment history demonstrates reliability
-late payment history demonstrates higher risk of future
delinquencies
◉ capacity used.
Answer: -low credit utilization demonstrates good financial
management
-high credit card balances demonstrate poor financial management
(maxed out credit card)
PRACTICE UPDATED EXAM SCRIPT WITH
COMPLETE ANSWERS
◉ Track Income (what not to include).
Answer: -pre-tax payroll deductions
-retirement fund contributions
-expenses (flexible spending account contributions)
-credit score
◉ Documents to use for client action plan (income).
Answer: -paychecks, direct deposit slips
-if self-employed, income and expenses sheet
-additional income checks or cash
-government benefits letters (SSI, unemployment, etc)
◉ Track Expenses (what to include).
Answer: -all bills
-all fixed monthly expenses
-all cash expenses
,-seasonal or annual expenses (car registration, gifts, tax preparation
fees, vacations, or expenses related to the holiday season)
◉ Documents to use for client action plan (expenses).
Answer: -utility, insurance, and other bills
-bank statements
-credit card statements
-records about car registration or school supplies for estimated
amount of expected periodic expenses
◉ Importance of tracking income and expenses.
Answer: it helps show clients that they spend less on some expenses
than they think
◉ How to increase income.
Answer: -find second job
-work overtime
-negotiate higher salary/wage
-sell assets (e.g, car)
-hold a yard/garage sale
-teach a skill/craft/activity
-sell a craft (jewelry or carpentry)
,-charge rent (if adult dependents in home)
-evaluate tax withholdings
◉ Decrease Expenses and debt.
Answer: -prioritize "needs" over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services
-limit miscellaneous spending
-stick to a shopping list
-reduce debt (pay off a loan or credit card)
-move to more affordable housing
-change insurance coverage for lower premiums, but don't cancel
◉ Credit History.
Answer: - determines a clients ability to achieve personal and
financial goals
- each lender you speak to will pull your credit report in order to
examine your credit history
you may not qualify for housing if you have:
- low credit score
- collection accounts
, - judgments
- liens
◉ credit report contains.
Answer: -personal information
-account/trade line info
-public records
-inquiries
-consumer rights
◉ payment history.
Answer: -timely payment history demonstrates reliability
-late payment history demonstrates higher risk of future
delinquencies
◉ capacity used.
Answer: -low credit utilization demonstrates good financial
management
-high credit card balances demonstrate poor financial management
(maxed out credit card)
