HUD HOUSING COUNSELOR ACTUAL COMPREHENSIVE
QUESTIONS AND ANSWERS FIRM A+
✔✔Which situation most likely indicates a loan modification scam?
A- The client receives a letter from a housing counseling agency explaining possible
workout options
B- The client receives a letter from a company guaranteeing a loan modification
C- The client's lender defers some principal so monthly payments are reduced
D- The client's lender offers to reinstate the loan by establishing an affordable monthly
payment plan - ✔✔A- The client receives a letter from a housing counseling agency
explaining possible workout options
✔✔Housing counselors should refer clients to other agencies when they seek which
type of
advice?
A- Advice on where to look for affordable housing
B- Advice on where to find emergency rental assistance
C- Advice on suing their landlord
D- Advice on whether they might be eligible for a reasonable accommodation - ✔✔C-
Advice on suing their landlord
NOTE: Housing counselors should refer clients to legal aid providers when clients need
legal advice. Housing counselors are expected to provide advice on what might qualify
as a reasonable accommodation and where to find affordable housing and rental
assistance.
Reference: Module 6.2 Eviction
Page Number 13 to 13
✔✔he client earns $3,000 in wages per month and will receive $700 per month in child
support, once an agreement is finalized, has $2,000 in savings. She wants to by within
6 months, and plans to obtain FHA financing, which requires a 3.5% down payment, the
average price of homes in the area is $100,000. She qualifies for a local down payment
assistance program which pays for closing costs and prepaid expenses up to $4,000.
She had a Chapter 7 bankruptcy discharged successfully 18 months ago, and she
recently paid off an auto loan and student loans, her credit score is 620, her lease
expires in two months, but
the property manager will allow for a six-month lease extension. Which aspect of this
client's situation requires her to wait six months before she can purchase a home?
A- The client's current housing ratio is 36%.
B- The client's credit score is 620.
C- The client's child support cannot be counted as income unti - ✔✔D- The client's
bankruptcy was discharged 18 months ago.
, NOTE: The client's credit score of 620 could qualify her for a mortgage, and her rental
housing ratio is not a determining factor for mortgage qualification. Typically, in order to
qualify for a mortgage, the client's Chapter 7 bankruptcy must have been discharged for
at least two years, and she needs to save enough money for down payment and closing
costs. The client has two months left on her lease and seeks a six-month extension.
There is no indication that it will take longer than eight months after the divorce for the
child support to be finalized, so it can be counted as income.
Reference: Module 1.4 Protecting Assets
Page Number 11 to 18
✔✔How much should a housing counselor recommend the client save in an emergency
fund?
A- 2% of net income
B- 10% of net income
C- 1 to 2 months of living expenses
D- 3 to 6 months of living expenses - ✔✔D- 3 to 6 months of living expenses
✔✔A client who is a single mother of two young children meets with a housing
counselor to create a spending
plan that helps her manage her finances better and improve her credit score. She has
been employed at her job for two years. She works 40 hours per week and earns $12
per hour. She does not receive child support and her monthly income barely covers her
monthly expenses, so she is unable to save. She has one secured credit card and
$5,000 of bad debt, which has been in collection for three years. She also has an
outstanding judgment for $1,800 from a previous landlord when she was evicted three
years ago. She has a credit score of 580. Due to her past credit history, she is renting
from a private landlord.
Which is the maximum amount that this client could afford for monthly rental payment
(rounded to the nearest dollar)? - ✔✔$624 per month
NOTE: An affordable rental payment should be no higher than 30% of client's gross
income.
$12/hr x 40 hrs per week equals $480/week multiplied by 52 weeks; divided by 12
months equals $2,080 monthly gross income; 30% of $2,080 equals $624
✔✔Which step would most likely prevent future rental disputes?
A- Apply for rental assistance programs
B- Obtain renter's insurance
C- Enter into an oral lease agreement
D- Abide by the lease agreement - ✔✔D- Abide by the lease agreement
QUESTIONS AND ANSWERS FIRM A+
✔✔Which situation most likely indicates a loan modification scam?
A- The client receives a letter from a housing counseling agency explaining possible
workout options
B- The client receives a letter from a company guaranteeing a loan modification
C- The client's lender defers some principal so monthly payments are reduced
D- The client's lender offers to reinstate the loan by establishing an affordable monthly
payment plan - ✔✔A- The client receives a letter from a housing counseling agency
explaining possible workout options
✔✔Housing counselors should refer clients to other agencies when they seek which
type of
advice?
A- Advice on where to look for affordable housing
B- Advice on where to find emergency rental assistance
C- Advice on suing their landlord
D- Advice on whether they might be eligible for a reasonable accommodation - ✔✔C-
Advice on suing their landlord
NOTE: Housing counselors should refer clients to legal aid providers when clients need
legal advice. Housing counselors are expected to provide advice on what might qualify
as a reasonable accommodation and where to find affordable housing and rental
assistance.
Reference: Module 6.2 Eviction
Page Number 13 to 13
✔✔he client earns $3,000 in wages per month and will receive $700 per month in child
support, once an agreement is finalized, has $2,000 in savings. She wants to by within
6 months, and plans to obtain FHA financing, which requires a 3.5% down payment, the
average price of homes in the area is $100,000. She qualifies for a local down payment
assistance program which pays for closing costs and prepaid expenses up to $4,000.
She had a Chapter 7 bankruptcy discharged successfully 18 months ago, and she
recently paid off an auto loan and student loans, her credit score is 620, her lease
expires in two months, but
the property manager will allow for a six-month lease extension. Which aspect of this
client's situation requires her to wait six months before she can purchase a home?
A- The client's current housing ratio is 36%.
B- The client's credit score is 620.
C- The client's child support cannot be counted as income unti - ✔✔D- The client's
bankruptcy was discharged 18 months ago.
, NOTE: The client's credit score of 620 could qualify her for a mortgage, and her rental
housing ratio is not a determining factor for mortgage qualification. Typically, in order to
qualify for a mortgage, the client's Chapter 7 bankruptcy must have been discharged for
at least two years, and she needs to save enough money for down payment and closing
costs. The client has two months left on her lease and seeks a six-month extension.
There is no indication that it will take longer than eight months after the divorce for the
child support to be finalized, so it can be counted as income.
Reference: Module 1.4 Protecting Assets
Page Number 11 to 18
✔✔How much should a housing counselor recommend the client save in an emergency
fund?
A- 2% of net income
B- 10% of net income
C- 1 to 2 months of living expenses
D- 3 to 6 months of living expenses - ✔✔D- 3 to 6 months of living expenses
✔✔A client who is a single mother of two young children meets with a housing
counselor to create a spending
plan that helps her manage her finances better and improve her credit score. She has
been employed at her job for two years. She works 40 hours per week and earns $12
per hour. She does not receive child support and her monthly income barely covers her
monthly expenses, so she is unable to save. She has one secured credit card and
$5,000 of bad debt, which has been in collection for three years. She also has an
outstanding judgment for $1,800 from a previous landlord when she was evicted three
years ago. She has a credit score of 580. Due to her past credit history, she is renting
from a private landlord.
Which is the maximum amount that this client could afford for monthly rental payment
(rounded to the nearest dollar)? - ✔✔$624 per month
NOTE: An affordable rental payment should be no higher than 30% of client's gross
income.
$12/hr x 40 hrs per week equals $480/week multiplied by 52 weeks; divided by 12
months equals $2,080 monthly gross income; 30% of $2,080 equals $624
✔✔Which step would most likely prevent future rental disputes?
A- Apply for rental assistance programs
B- Obtain renter's insurance
C- Enter into an oral lease agreement
D- Abide by the lease agreement - ✔✔D- Abide by the lease agreement
