HUD Certification Questions and Answers
(2026) | Latest Test Bank with Verified
Solutions | Grade A+
• Budgeting -✓✓helps client figure out where they can increase income and
decrease expenses
• Track Income (what to include) -✓✓-regular salary
-Temporary Jobs
-unemployment compensation
-public assistance
• Track Income (what not to include) -✓✓-pre-tax payroll deductions
-retirement fund contributions
-expenses (flexible spending account contributions)
-credit score
• Documents to use for client action plan (income) -✓✓-paychecks, direct deposit
slips
-if self-employed, income and expenses sheet
-additional income checks or cash
-government benefits letters (SSI, unemployment, etc)
• Track Expenses (what to include) -✓✓-all bills
-all fixed monthly expenses
-all cash expenses
-seasonal or annual expenses (car registration, gifts, tax preparation fees, vacations,
or expenses related to the holiday season)
• Documents to use for client action plan (expenses) -✓✓-utility, insurance, and
other bills
-bank statements
-credit card statements
-records about car registration or school supplies for estimated amount of expected
periodic expenses
,• Importance of tracking income and expenses -✓✓it helps show clients that they
spend less on some expenses than they think
• How to increase income -✓✓-find second job
-work overtime
-negotiate higher salary/wage
-sell assets (e.g, car)
-hold a yard/garage sale
-teach a skill/craft/activity
-sell a craft (jewelry or carpentry)
-charge rent (if adult dependents in home)
-evaluate tax withholdings
• Decrease Expenses and debt -✓✓-prioritize "needs" over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services
-limit miscellaneous spending
-stick to a shopping list
-reduce debt (pay off a loan or credit card)
-move to more affordable housing
-change insurance coverage for lower premiums, but don't cancel
• Credit History -✓✓- determines a clients ability to achieve personal and financial
goals
- each lender you speak to will pull your credit report in order to examine your
credit history
you may not qualify for housing if you have:
- low credit score
- collection accounts
- judgments
- liens
• credit report contains -✓✓-personal information
-account/trade line info
-public records
-inquiries
-consumer rights
,• payment history -✓✓-timely payment history demonstrates reliability
-late payment history demonstrates higher risk of future delinquencies
• capacity used -✓✓-low credit utilization demonstrates good financial
management
-high credit card balances demonstrate poor financial management (maxed out
credit card)
• length of credit history -✓✓+ longer credit history provides more information for
lenders, which means lower risk
- shorter credit history provides little to no information for lenders, which means
higher risk (no credit history)
• type of credit used -✓✓+ different types if credit show variety. Variety shows
lenders that consumers can manage different types of credit.
- fewer types of credit shows limited profile information to lenders, which means a
higher risk (only having student loans or only having credit cards)
• new credit -✓✓+ credit applications can lead to new credit accounts or loans,
which can establish history overtime.
- too many inquiries or new credit accounts in a short period of time will raise
questions for lenders (new inquiry each month or several new lines of credit within
a few months)
• account information example (credit report) -✓✓student loan
• public records (credit report) -✓✓bankruptcy
• inquiries (credit report) -✓✓show recent attempts to open a credit card (any
authorization a client gives to check his/her credit profile)
• consumer rights (credit report) -✓✓information about disputing incorrect
information and other consumer rights protected by law)
, • credit score -✓✓a numerical interpretation of a consumer's credit worthiness
based on information in his/her credit report
• FICO score -✓✓-Fair Isaac Corporation score; the most widely used credit score,
based off information in the credit reports produced by the three credit bureaus
(TransUnion, Equifax, and Experian)
-range from 300 -850 where higher is better
• 5 main components that determine credit score -✓✓- 35% account history
- 30% amounts owed
- 15% length of credit history
- 10% new credit
- 10% types of credit used
• account history -✓✓The payment history of an account over a specific period of
time, including the number of times the account was past due, delinquencies,
judgments, and liens
• Liens -✓✓A charge or claim which one person has upon the property of another
as security for a debt or obligation
• amounts owed -✓✓portion of score based on the ratio of total credit extended to
the amount of credit owed
• where to request 1 free credit report every 12 months? -
✓✓www.annualcreditreport.com
• Credit Report -✓✓-helps us identify potential issues and know what to focus on
to improve credit standing
-doesn't include credit score
• method to improve credit score -✓✓- incorrect information on credit report
(review credit report and dispute inaccuracies: notify credit reporting agencies of
inaccuracies and provide supporting documentation to correct error; keep records
of dispute documentation)
(2026) | Latest Test Bank with Verified
Solutions | Grade A+
• Budgeting -✓✓helps client figure out where they can increase income and
decrease expenses
• Track Income (what to include) -✓✓-regular salary
-Temporary Jobs
-unemployment compensation
-public assistance
• Track Income (what not to include) -✓✓-pre-tax payroll deductions
-retirement fund contributions
-expenses (flexible spending account contributions)
-credit score
• Documents to use for client action plan (income) -✓✓-paychecks, direct deposit
slips
-if self-employed, income and expenses sheet
-additional income checks or cash
-government benefits letters (SSI, unemployment, etc)
• Track Expenses (what to include) -✓✓-all bills
-all fixed monthly expenses
-all cash expenses
-seasonal or annual expenses (car registration, gifts, tax preparation fees, vacations,
or expenses related to the holiday season)
• Documents to use for client action plan (expenses) -✓✓-utility, insurance, and
other bills
-bank statements
-credit card statements
-records about car registration or school supplies for estimated amount of expected
periodic expenses
,• Importance of tracking income and expenses -✓✓it helps show clients that they
spend less on some expenses than they think
• How to increase income -✓✓-find second job
-work overtime
-negotiate higher salary/wage
-sell assets (e.g, car)
-hold a yard/garage sale
-teach a skill/craft/activity
-sell a craft (jewelry or carpentry)
-charge rent (if adult dependents in home)
-evaluate tax withholdings
• Decrease Expenses and debt -✓✓-prioritize "needs" over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services
-limit miscellaneous spending
-stick to a shopping list
-reduce debt (pay off a loan or credit card)
-move to more affordable housing
-change insurance coverage for lower premiums, but don't cancel
• Credit History -✓✓- determines a clients ability to achieve personal and financial
goals
- each lender you speak to will pull your credit report in order to examine your
credit history
you may not qualify for housing if you have:
- low credit score
- collection accounts
- judgments
- liens
• credit report contains -✓✓-personal information
-account/trade line info
-public records
-inquiries
-consumer rights
,• payment history -✓✓-timely payment history demonstrates reliability
-late payment history demonstrates higher risk of future delinquencies
• capacity used -✓✓-low credit utilization demonstrates good financial
management
-high credit card balances demonstrate poor financial management (maxed out
credit card)
• length of credit history -✓✓+ longer credit history provides more information for
lenders, which means lower risk
- shorter credit history provides little to no information for lenders, which means
higher risk (no credit history)
• type of credit used -✓✓+ different types if credit show variety. Variety shows
lenders that consumers can manage different types of credit.
- fewer types of credit shows limited profile information to lenders, which means a
higher risk (only having student loans or only having credit cards)
• new credit -✓✓+ credit applications can lead to new credit accounts or loans,
which can establish history overtime.
- too many inquiries or new credit accounts in a short period of time will raise
questions for lenders (new inquiry each month or several new lines of credit within
a few months)
• account information example (credit report) -✓✓student loan
• public records (credit report) -✓✓bankruptcy
• inquiries (credit report) -✓✓show recent attempts to open a credit card (any
authorization a client gives to check his/her credit profile)
• consumer rights (credit report) -✓✓information about disputing incorrect
information and other consumer rights protected by law)
, • credit score -✓✓a numerical interpretation of a consumer's credit worthiness
based on information in his/her credit report
• FICO score -✓✓-Fair Isaac Corporation score; the most widely used credit score,
based off information in the credit reports produced by the three credit bureaus
(TransUnion, Equifax, and Experian)
-range from 300 -850 where higher is better
• 5 main components that determine credit score -✓✓- 35% account history
- 30% amounts owed
- 15% length of credit history
- 10% new credit
- 10% types of credit used
• account history -✓✓The payment history of an account over a specific period of
time, including the number of times the account was past due, delinquencies,
judgments, and liens
• Liens -✓✓A charge or claim which one person has upon the property of another
as security for a debt or obligation
• amounts owed -✓✓portion of score based on the ratio of total credit extended to
the amount of credit owed
• where to request 1 free credit report every 12 months? -
✓✓www.annualcreditreport.com
• Credit Report -✓✓-helps us identify potential issues and know what to focus on
to improve credit standing
-doesn't include credit score
• method to improve credit score -✓✓- incorrect information on credit report
(review credit report and dispute inaccuracies: notify credit reporting agencies of
inaccuracies and provide supporting documentation to correct error; keep records
of dispute documentation)
