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HUD PRACTICE TEST EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST 2025 ALREADY GRADED A+
Which document is most important when working with a client to develop an
initial budget as part of a Client Action Plan? - (answers)Pay Stub
A client would like to 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? - (answers)Find a second job
A credit report may contain which information? - (answers)The number of
accounts in collection status
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 homeownership
program that only requires a 1% down payment with an FHA
loan. What might result from the client closing the credit card
accounts? - (answers)It increases credit utilization, causing a negative impact on
the credit
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score.
Which action would a client take to improve a credit score? - (answers)Pay
delinquent accounts
A client does not receive a written monthly statement from the credit card
company. Which credit law could this omission violate? - (answers)Fair Credit
Billing Act
A client shopping for a mortgage loan presents a housing counselor with an offer
from a local mortgage lender. The interest rate on the offer is 7.5% for a 30-year
fixed rate mortgage with a 20% down payment required. The counselor reviews
the client file and determines the client's credit score is 725 and the client's total
debt-to-income ratio is 20%. - (answers)"I am unable to determine whether the
loan is predatory, but I suggest you shop around with other lending sources."
Which action should a counselor recommend a client take first after discovering
identity theft? - (answers)File an identity theft report
In which situation would a client's responsibilities, recurring costs, and upfront
costs be evaluated? - (answers)When weighing housing options
A client works 40 hours a week making $15 an hour. What is the highest monthly
mortgage the client can afford based on income if the client secures a
conventional loan? - (answers)$728
HUD PRACTICE TEST EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST 2025 ALREADY GRADED A+
Which document is most important when working with a client to develop an
initial budget as part of a Client Action Plan? - (answers)Pay Stub
A client would like to 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? - (answers)Find a second job
A credit report may contain which information? - (answers)The number of
accounts in collection status
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 homeownership
program that only requires a 1% down payment with an FHA
loan. What might result from the client closing the credit card
accounts? - (answers)It increases credit utilization, causing a negative impact on
the credit
, 2|Page
score.
Which action would a client take to improve a credit score? - (answers)Pay
delinquent accounts
A client does not receive a written monthly statement from the credit card
company. Which credit law could this omission violate? - (answers)Fair Credit
Billing Act
A client shopping for a mortgage loan presents a housing counselor with an offer
from a local mortgage lender. The interest rate on the offer is 7.5% for a 30-year
fixed rate mortgage with a 20% down payment required. The counselor reviews
the client file and determines the client's credit score is 725 and the client's total
debt-to-income ratio is 20%. - (answers)"I am unable to determine whether the
loan is predatory, but I suggest you shop around with other lending sources."
Which action should a counselor recommend a client take first after discovering
identity theft? - (answers)File an identity theft report
In which situation would a client's responsibilities, recurring costs, and upfront
costs be evaluated? - (answers)When weighing housing options
A client works 40 hours a week making $15 an hour. What is the highest monthly
mortgage the client can afford based on income if the client secures a
conventional loan? - (answers)$728
