HUD Housing Counselor Study for Exam with correct answers- JLM, Exams of Nursing

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HUD Housing Counselor Study for Exam

- JLM

Front end ratio (parts)correct answerMonthly Housing Expense / Gross Income Back End Ratio (parts)correct answerMonthly housing+debt (on credit report - car loan, credit cards & etc) / Gross Income Renter Ratiocorrect answer30% / 36% Conventional Ratiocorrect answer28% / 36% FHA (Federal Housing Administration) Ratiocorrect answer31% / 43% EEM - Energy Efficent Mortcorrect answer33% / 45% VAcorrect answer41% (must include child care with other debts) MIPcorrect answerMortgage Insurance Premium FHA MIP ANNUAL COSTcorrect answer0.80% TO 1.05% VA MIP ANNUAL COSTcorrect answerNONE USDA MIP ANNUAL COSTcorrect answer0.50% ANNUAL FEE CONVENTIONAL MIP ANNUAL COSTcorrect answer0.50% TO 1.50%

Home equity loancorrect answerThink 2nd mortgage - 1 large expense - closing costs HELOCcorrect answerThink line of credit - A home equity line of credit, or HELOC, is a line of credit that you can take from at any time during the draw period, up to your credit limit. Typically, the draw period is 10 years and the repayment period lasts 15 years. FHA 203(k) Rehabilitation Loancorrect answerThink 1st mortgage + reno costs - must complete in 6 months - Must use a contractor - must be structural - Stream line FHA 203 (k)correct answerThink 1st mortgage + reno costs - must complete in a couple of months - Must use a contractor - must be no structural - can't exceed 35k - FHA EEM Mortgagecorrect answerPurchase Energy Efficient Home or Reno - Must use a HERS consultant Title 1 loancorrect answerFor single unit or up to 5 unit - Repairs up $25, Credit Ulitization Ratiocorrect answer30% or lower Tracking Expensescorrect answer-control your expenses by capturing spending -seasonal distribution of expenses -using budget payment plans tracking incomecorrect answercontinuously keeping up with how much money you are earning Maximum Affordable Housing Expensecorrect answerFront end ratio x Gross Income Debt to Income ratiocorrect answerCar payment + credit cards + other credit report debt + PITIA / Gross income Civil rights act of 1866correct answerlaw that established federal guarantees of civil rights for all citizens

Amendment to Fair Housing Act 1978 and 1988correct answerSeven Characteristic - race, color, national orgin, religion, sex, disability, and famillial status LGBT Housing Discrimination - July 1, 2010correct answernew policy that provides for lesbian, gay, bisexual, and transgender individuals and families with assistance when facing discrimination. Judical foreclosurecorrect answerForeclosure is lawsuit, Servicer issues a summons, if contested court date is set Non-Judicial Foreclosurecorrect answerforeclosure that does not require court proceedings or a judgment of foreclosure - the result of the power of sale clause in a deed of trust notice of default (NOD)correct answera document prepared by a trustee at the direction of a lender to begin a non-judicial foreclosure proceeding. After 120 Days delinquency Loss Mitigation Submission Processcorrect answer1. Determine reason

2. Determine if home owner wants to remain
3. Determine the type of mortgage
4. Gather documents
5. Complete forms
6. Submit to servicer
7. Respond to additional requests
8. If request is approved, check for affordability or if denied determine why - escalate if necessary FHA Loss Mitigationcorrect answer1. Attempt to bring current
9. Determine eligibility for informal and formal forbearance
10. Determine eligibility for special forbearance - unemployment
11. Determine eligibility for FHA-HAMP
12. Consider a pre-foresure sale
13. Consider a deed in lieu

Deed in Lieu of Foreclosurecorrect answerA process that allows a homeowner to avoid foreclosure, providing a deed "in lieu" of foreclosure to the lender. Except in certain states or by agreement between homeowner and servicer, the sale does not necessarily satisfy the borrower's debt and may result in a deficiency judgment. Though it helps avoid foreclosure, the process does not allow the homeowner to stay in the home Foreclosurecorrect answerForeclosure A legal process in which mortgaged property is sold to pay the loan of a defaulting borrower. Foreclosure laws are based on the statutes of each state. Fair Housing Assistance Program, or FHAPcorrect answerProviding funding to state and local agencies that enforce these additional fair housing protections, as long as the protections are substantially equivalent to the Fair Housing Act. (for agency) Fair Housing Initiatives Program, or FHIPcorrect answerProvides funding to fair housing organizations and nonprofits that assist people who may have been victims of housing discrimination. Remember Individual HAMPcorrect answerHome Affordable Modification Program, a component of Making Home Affordable HARPcorrect answerHome Affordable Refinance Program, a component of Making Home Affordable HOAcorrect answerHomeowners Association HOEPAcorrect answerHome Ownership and Equity Protections Act Home Equity Line of Credit, or HELOCcorrect answerA home equity line of credit, or HELOC, is a line of credit that you can take from at any time during the draw period, up to your credit limit. Typically, the draw period is 10 years and the repayment period lasts 15 years. Housing Choice Voucher Program (Section 8)correct answerThe Housing Choice Voucher Program, commonly referred to as Section 8, is the federal government's major program for assisting very low- income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Participants are not limited to units located in subsidized housing projects and are free to

4. Right to Cure
5. Foreclosure Sale PITIAcorrect answerPrincipal Interest Taxes Insurance Association dues - HOA fee Closing costscorrect answer3 or 4% Private Subsidized Housingcorrect answerA directory, maintained by HUD, listing privately owned subsidized housing units for low income residents to search for affordable apartments by location. LTVcorrect answerLoan to Value LTV Ratiocorrect answerloan amount/property value Mortgage Payment Late Feecorrect answer4-5% ofmortgage payment & interest Calculate Eligibility for FHA Repayment Plan/Forbearancecorrect answernet income - PITI - Expenses = Surplus Income Surplus income / net income Calculate repayment for FHA Repayment Plan/Forbearancecorrect answerNumbers of months in Arrears X PITI Surplus income X .85 = Arrears / surplus = number of months to cure Modification Needscorrect answerDocument income, expenses, and front end/back end

Lease Typescorrect answerWritten & Oral Contractual Tenancycorrect answerofficial lease signed by a tenant and landlord Tenancy at Willcorrect answerAn arrangement in which the tenant receives permission from the home owner to reside in a home without aformal lease, rent payment or aspecified rental payment Tenancy at Sufferancecorrect answerArrangement in which the tenant is allowed to reside in a home after lease has expired as long as they to meet the conditions of the orginal lease Renter Insurance - Content Coveragecorrect answercovering personal property Renter Insurance - Loss of usecorrect answerCovers temporarily housing Rental insurance - Personal Liabilitycorrect answerfunding for a lawyer if sued Renters Insurance - add on/riderscorrect answerEarthquake Business Merchandise Coverage Incidental Business Liability