HUD HOUSING COUNSELOR CERTIFICATION PRACTICE
/EXPERT VERIFIED /ACTUAL COMPLETE QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS ) FOR
GUARANTEED PASS 2025/2026 NEWEST!!
The client has recently replaced her sewer lines. Which is the
best information a housing counselor should
provide this client who still worries about sewer backup and is
considering flood insurance to cover potential damage?
A- Homeowners who do not live in designated high-risk flood
zones should not consider purchasing flood insurance.
B- The new sewer lines are covered by a warranty.
C- Flood insurance policies do not cover water that comes from
inside a home. D- The client's contents insurance will cover
her losses. - ANSWER-C- Flood insurance policies do not
cover water that comes from inside a home.
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 - ANSWER-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)? -
ANSWER-$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 - ANSWER-D- Abide by the
lease agreement
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 step should be included in a Client Action Plan to best
help this client qualify for rental housing at an apartment
complex?
A- Pay off the $1,800 judgment
B- Apply for a new job
C- Pay off the $5,000 ba - ANSWER-A- Pay off the $1,800
judgment
NOTE: Paying off the $1,800 judgement most likely will help
improve the client's credit. Given that the judgement was for a
previous eviction, paying it off could also help the client's
chances of getting into a better rental. On the other hand,
closing the secured credit card could actually hurt the client's
credit, because it appears to be the only positive item on the
client's credit report. Also, the client's current employer
indicated the possibility of a promotion; therefore, looking for a
new job may not be a good step. Paying off the $5,000 bad debt
will improve her credit, but that is unrelated to her past rental
history.
Reference: Module 1.1 Budget
Page Number 18 to 20
/EXPERT VERIFIED /ACTUAL COMPLETE QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS ) FOR
GUARANTEED PASS 2025/2026 NEWEST!!
The client has recently replaced her sewer lines. Which is the
best information a housing counselor should
provide this client who still worries about sewer backup and is
considering flood insurance to cover potential damage?
A- Homeowners who do not live in designated high-risk flood
zones should not consider purchasing flood insurance.
B- The new sewer lines are covered by a warranty.
C- Flood insurance policies do not cover water that comes from
inside a home. D- The client's contents insurance will cover
her losses. - ANSWER-C- Flood insurance policies do not
cover water that comes from inside a home.
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 - ANSWER-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)? -
ANSWER-$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 - ANSWER-D- Abide by the
lease agreement
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 step should be included in a Client Action Plan to best
help this client qualify for rental housing at an apartment
complex?
A- Pay off the $1,800 judgment
B- Apply for a new job
C- Pay off the $5,000 ba - ANSWER-A- Pay off the $1,800
judgment
NOTE: Paying off the $1,800 judgement most likely will help
improve the client's credit. Given that the judgement was for a
previous eviction, paying it off could also help the client's
chances of getting into a better rental. On the other hand,
closing the secured credit card could actually hurt the client's
credit, because it appears to be the only positive item on the
client's credit report. Also, the client's current employer
indicated the possibility of a promotion; therefore, looking for a
new job may not be a good step. Paying off the $5,000 bad debt
will improve her credit, but that is unrelated to her past rental
history.
Reference: Module 1.1 Budget
Page Number 18 to 20
