HUD Housing Exam accurate Questions & Answers(RATED A+)

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 medium 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 requirements for down payment assistance programs include which factors? - ANSWER Income, homebuyer education, and purchase price The client is considering an FHA Mortgage. What is the upfront mortgage insurance premium (UFMIP) for an FHA mortgage? - ANSWER 1.75% 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 into wife's home and rents his townhouse to a tenant If the client was denied a mortgage loan and the lender told him to come back after his divorce has been final for three years, what is the best advice the counselor can provide to the client? - ANSWER Contact the Federal Trade Commission as the lender's action might violate the Equal Credit Opportunity Act A question from a lender on which topic would be inappropriate? - ANSWER Medical history Which is a responsibility of a housing counselor? - ANSWER Educate homebuyers about their rights In order to minimize the impact on the client's credit score, what is the maximum time frame within which the client should apply for pre-approval from multiple lenders? - ANSWER 30-day period. Which is a responsibility of a home inspector? - ANSWER A) Evaluate condition of the home B) Examine medical systems C) identify items to be repaired or replaced Which is the best reason a counselor would suggest that client speak to three to five difference lenders before choosing one? - ANSWER So the client can compre loan estimates Which is the best advice that a housing counselor can give to protect against identity theft? - ANSWER Review credit report at least once a year The client tells the lender that he is expecting a raise soon. Which actions should the lender take? - ANSWER Provide a loan estimate without factoring in the raise If the client obtains a mortgage of $100,000 typically how much should he expect to pay for closing costs? - ANSWER $4k - 3-4% on average The client is considering renting an apartment with a different landlord. Which would be an upfront cost of living to the new apartment? - ANSWER Application fee The client is second-guessing his decision to buy a home, so the counselor asks a series of questions. Which response would be best aligned with the homeownership option for this client? - ANSWER Client wants to customize his home with do-it-yourself projects What is the maximum mortgage payment for which this client would qualify using a standard conventional loan? - ANSWER $1,065 - 28% Which steps should the counselor take to assess the client's readiness to purchase a home? - ANSWER A) Assess funda available for upfront costs B) Calculate debt-to-income ratio C) Determine máximum housing payment What is the maximum debt-to-income ratio for an FHA Loan? - ANSWER 43% Debt-to-income ratio: - ANSWER $435 debt payment plus mortgage payment $950 = $1,385 ($1,385/gross monthly income $4,166.67 = 33%) If the client seeks an FHA Energy Efficient Mortgage (EEM) what is the maximum housing payment for which he can qualify? - ANSWER Use front-end ratio for EEM loan which is 31% $4,167 x 31% = $1,292.00 On which factor is a borrower's annual mortgage insurance premium (MIP) based? - ANSWER Current principal balance Which is the upfront mortgage insurance premium if the client purchases a home with an FHA loan amount of $116,000? - ANSWER $2,030 Multiple balance by 1.75% The client only tracks bill payments. Which should the housing counselor recommend to help the client begin planning for a home purchase? - ANSWER Track all income and expenses