HUD Certification 90 QUESTIONS WITH COMPLETE SOLUTIONS

Which document is most important when working with a client to develop an initial budget as part of a Client Action Plan? Pay stub Retirement plan statement List of assets Current lease Correct Answer: Pay stub A client would like purchase a home within one year. The client is motivated to increase household income as a way to save for a down payment and qualify for a loan. Which is the best solution for the client to reach this goal? Find a second job Borrow from retirement fund Sell major assets Find a temporary job through a staffing service Correct Answer: Find a second job A credit report may contain which information? The number of accounts in collection status A history of payments on an electric bill Income history Criminal record Correct Answer: The number of accounts in collection status A credit report contains inaccurate information. Which action item should the counselor include in the Client Action Plan? -Attach a letter to mortgage applications explaining the inaccuracies. -Investigate the reasons why the inaccuracies occurred to determine the responsible party. -Include a personal consumer statement on the credit report. -File a dispute with the appropriate credit reporting agency. Correct Answer: File a dispute with the appropriate credit reporting agency. Six months ago a client left a job as a reporter to start a business in the retail industry. To prepare to buy a house, the client closed credit card accounts and has been using savings to pay down credit card debt and collections. The client has not been able to save much for a down payment with all the debt payments but knows about an affordable home-ownership program that only requires a 1% down payment with an FHA loan. What might result from the client closing the credit card accounts? -It decreases credit utilization, causing a negative impact on the credit score. -It increases credit utilization, causing a negative im