HUD Test 1 accurated Questions and Answers

Which document should the counselor review with the client to identify spending habits and track expenses? - ANSWER Bank Statement Which additional information would the housing counselor need to prepare a household budget for this client? - ANSWER Net income Which item in the client's budget is a fixed expense? - ANSWER Car lease payment 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 requirement for down payment assistance programs include which factors? - ANSWER Income, homebuyer education, purchase price The client is considering an FHA mortgage. What is the upfront mortgage insurance premium (UFMIP) for a FHA mortgage? - ANSWER 1.75% (UFMIP) The annual MIP (Mortgage Insurance Premium) for FHA mortgages ranges? - ANSWER between 0.8% and 1.05%. USDA loans charge up front Grantee Fee ? - ANSWER 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? - ANSWER 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? - ANSWER Contact the Federal Trade Commission as the lender's action might violate the Equal Credit Opportunity Act.