HUD Housing Counselor Study for Exam – JLM 2023 (For HUD housing Counselor Exam (in works)) Front end ratio (parts) - Correct Answer Monthly Housing Expense / Gross Income Back End Ratio (parts) - Correct Answer Monthly housing+debt (on credit report - car loan, credit cards & etc) / Gross Income Renter Ratio - Correct Answer 30% / 36% Conventional Ratio - Correct Answer 28% / 36% FHA (Federal Housing Administration) Ratio - Correct Answer 31% / 43% EEM - Energy Efficent Mort - Correct Answer 33% / 45% VA - Correct Answer 41% (must include child care with other debts) MIP - Correct Answer Mortgage Insurance Premium FHA MIP ANNUAL COST - Correct Answer 0.80% TO 1.05% VA MIP ANNUAL COST - Correct Answer NONE USDA MIP ANNUAL COST - Correct Answer 0.50% ANNUAL FEE CONVENTIONAL MIP ANNUAL COST - Correct Answer 0.50% TO 1.50% Home equity loan - Correct Answer Think 2nd mortgage - 1 large expense - closing costs HELOC - Correct Answer Think 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 Loan - Correct Answer Think 1st mortgage + reno costs - must complete in 6 months - Must use a contractor - must be structural - Stream line FHA 203 (k) - Correct Answer Think 1st mortgage + reno costs - must complete in a couple of months - Must use a contractor - must be no structural - can't exceed 35k - 1 / 2
FHA EEM Mortgage - Correct Answer Purchase Energy Efficient Home or Reno - Must use a HERS consultant Title 1 loan - Correct Answer For single unit or up to 5 unit - Repairs up $25,000 Credit Ulitization Ratio - Correct Answer 30% or lower Tracking Expenses - Correct Answer -control your expenses by capturing spending -seasonal distribution of expenses -using budget payment plans tracking income - Correct Answer continuously keeping up with how much money you are earning Maximum Affordable Housing Expense - Correct Answer Front end ratio x Gross Income Debt to Income ratio - Correct Answer Car payment + credit cards + other credit report debt + PITIA / Gross income Civil rights act of 1866 - Correct Answer law that established federal guarantees of civil rights for all citizens Plessy vs. Ferguson - Correct Answer Separate but equal Home Owners' Loan corporation 1933 - Correct Answer HOLC as an effort to avoid foreclosures Redlining - Correct Answer A process by which banks draw lines on a map and refuse to lend money to purchase or improve property within the boundaries.Deed Restrictions 1933 - Correct Answer Clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions— for example, they may limit the density of buildings, dictate the types of structures that can be erected, or prevent buildings from being used for specific purposes or even from being used at all.Shelly v. Kraemer (1948) - Correct Answer Ruled that restrictive covenants (in buying houses) were illegal Brown v. Board of Education 1954 - Correct Answer Overrules Plessy v. Ferguson (no stare decisis). Racial segregation violates 14th Amendment Equal Protection Clause ("separate is inherently unequal") Executive Order 11063 - Correct Answer President John F. Kennedy signed the Executive Order 11063. The order prohibited discrimination in the sale, leasing, rental,
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