HUD Housing Counseling Questions and Answers (Graded A+)

Which document should the counselor review with the client to identify spending habits and track expenses? A. Credit report B. Pay stubs C. Bank Statement D. Tax returns - ANSWER-Bank Statement Which additional information would the housing counselor need to prepare a household budget for this client? A. Net Income B. Lease Documentation C. Credit Score D. Bankruptcy Discharge - ANSWER-Net Income Which item in the client's budget is a fixed expense? A. Food B. Gasoline C. Car Lease Payment D. Utilities - ANSWER-Car Lease Payment What is the maximum percent of area median income allowable for household to qualify for a Housing Choice Voucher? - ANSWER-50% Which is the the maximum recommended housing ratio for renting an apartment? - ANSWER-30% Eligibility requirements for downpayment assistance programs include which factors? - ANSWER-Income, homebuyer education, purchase price The client is considering an FHA mortgage. What is the upfront mortgage premium (UFMIP) for a 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 accelerated loan payment? A. Client moves to his wife's home and the townhouse loan is assumed by an eligible buyer. B. Client's wife moves into the townhouse. C. Client moves to his wife's home and rents his townhouse to a tenant. - ANSWER-Client moves to his wife's home and rents his townhouse to a tenant If a 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 for the housing counselor to provide to the client? A. Contact the FTC as the lender's action might violate the Equal Credit Opportunity Act. B. Contact the local fair housing center as the lender's action might violate the Fair Housing