Housing Counselor Exam Prep Questions & Answers 2023/2024

Housing Counselor Exam Prep Questions & Answers 2023/2024 Default - ANSWER-When no payments made after 60 to 90 days... 30 for FHA loans Front-End Ratio Equation - ANSWER-Monthly housing expenses/gross monthly income Front-End Ratio maximums - ANSWER-28% or less - conventional loan 31% or less for FHA, 30% or less for rentals Back-End Ratio (Debt-to-Income) Equation - ANSWER-total monthly debt expenses/gross monthly income Back-End Ratio Caps - ANSWER-36% for conventional loans and renters, 43% for FHA, 45% for Energy Efficiency Mortgage loan Four C's of Credit - ANSWER-Character, Capacity, Capital, Collateral Monthly housing expenses - PITIA - ANSWER-Principal, Interest, Taxes, Insurance, Association dues and special assessments Interest only Terms - ANSWER-Only pay interest in monthly payments - good for fluctuating income, but can make payments on principal when they can FHA loans good for: - ANSWER-those who do not qualify for conventional because of flawed credit history, bankruptcy, high debt-to-income ratios, or limited funds for down payment & closing costs USDA loans - ANSWER-United States Department of Agriculture - Rural development program