What Is an LLPA? How Loan-Level Price Adjustments Change Your Mortgage Price
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An LLPA, or loan-level price adjustment, is a fee Fannie Mae and Freddie Mac charge on a conventional loan based on its risk, mostly your credit score and your down payment. On Fannie Mae's LLPA Matrix dated Sept. 9, 2026, a buyer with a 780 score and 20% down pays 0.375% of the loan, while a buyer with a 640 score pays 2.250%. Your lender pays it to Fannie Mae, then sets your price, so it can show up in your rate or your closing costs.
That gap is why two buyers can get different prices on the same house on the same day. Here is how LLPAs work, what the 2026 grid says, and who gets them waived.
What is an LLPA on a mortgage?
An LLPA is a one-time, upfront charge set by Fannie Mae and Freddie Mac. It is figured as a percent of your loan amount. The higher the risk the loan looks like on paper, the higher the percent.
Fannie Mae's matrix says the fee is ""drafted from the lender's account"" on loans sold into securities, or ""deducted from the loan net proceeds"" on loans Fannie buys outright. In plain words, the lender pays it. How your lender passes it to you is up to the lender, so ask whether it is built into your rate or charged at closing.
LLPAs apply to conventional loans sold to Fannie Mae or Freddie Mac. The pricing rules are overseen by their regulator, the Federal Housing Finance Agency (FHFA). On Jan. 19, 2023, FHFA announced ""redesigned and recalibrated upfront fee matrices for purchase, rate-term refinance, and cash-out refinance loans,"" which took effect May 1, 2023.
How does your credit score change your LLPA?
The biggest part of the matrix is a grid that matches your credit score with your loan-to-value (LTV). Fannie Mae's grid applies to purchase loans ""with terms greater than 15 years."" Here are some of the cells from the Sept. 9, 2026 matrix:
Credit score | 75.01-80% LTV (about 20% down) | 85.01-90% LTV (about 10% down) | 90.01-95% LTV (about 5% down) | Over 95% LTV |
|---|---|---|---|---|
780 or higher | 0.375% | 0.250% | 0.250% | 0.125% |
740-759 | 0.875% | 0.750% | 0.625% | 0.500% |
720-739 | 1.250% | not shown here | not shown here | not shown here |
680-699 | 1.750% | 1.500% | 1.375% | 1.125% |
640-659 | 2.250% | not shown here | not shown here | not shown here |
Two things stand out. First, the fee climbs fast as your score drops. Second, a smaller down payment does not always mean a bigger LLPA. In this grid, many of the over-90% LTV cells are lower than the 80% cells. But loans over 80% LTV usually need mortgage insurance, which is a separate cost, so compare the full payment.
How much can an LLPA cost on a real loan?
Here is an EXAMPLE only, on a $320,000 loan (a $400,000 home with 20% down), using the 75.01-80% LTV column above:
Credit score | LLPA percent | LLPA on a $320,000 EXAMPLE loan |
|---|---|---|
780 or higher | 0.375% | $1,200 |
740-759 | 0.875% | $2,800 |
720-739 | 1.250% | $4,000 |
680-699 | 1.750% | $5,600 |
640-659 | 2.250% | $7,200 |
The jump from the 740-759 row to the 720-739 row is $1,200 on this example loan. A few points on your score can land you in a different row.
For context, Freddie Mac's survey put the 30-year fixed average at 7.18% for the week of Nov. 5, 2026, down from 7.24% the week before. That average does not show what LLPAs add for you. Your Loan Estimate does.
What other LLPAs can show up?
The credit score grid is not the only line. Fannie Mae's matrix adds more fees for certain loans. On purchase loans:
Condos. 0.750% when LTV is over 75%. The matrix says this does not apply to co-ops or detached condos.
Second homes and investment homes. These carry much bigger add-ons, up to 4.125% at higher LTVs.
Subordinate financing. A second loan behind your first can add 0.625% to 1.875%, depending on LTV.
2-4 unit homes. 0.625% once LTV is over 75%.
Some fees are gone. FHFA said on May 10, 2023 that it ""has rescinded the upfront fees based on borrowers' DTI ratios."" So your debt-to-income ratio is no longer its own LLPA line.
Who gets LLPAs waived?
This is the part most buyers never hear. Fannie Mae's matrix says ""All LLPAs will be waived"" for these loans:
HomeReady loans. Fannie Mae's program for buyers at or under 80% of area median income.
First-time homebuyers ""with qualifying income ≤100% area median income (AMI) or 120% AMI in high-cost areas.""
Duty to Serve loans in certain groups, such as manufactured housing and high-needs rural areas, with income at or under 100% of AMI.
One fee can still apply: the matrix says Minimum MI Coverage Option LLPAs are still charged when used.
Fannie Mae's Selling Guide defines a first-time homebuyer as someone who will live in the home and ""had no ownership interest (sole or joint) in a residential property during the three-year period"" before the purchase. So you may count as first-time even if you owned a home long ago.
Do 15-year loans have LLPAs?
Fannie Mae's credit score grid is labeled for loans ""with terms greater than 15 years."" So a 15-year loan does not use that grid. Other lines on the matrix, like the condo fee, can still apply. Ask your lender to price both terms.
For reference, Freddie Mac's survey had the 15-year fixed average at 6.57% for the week of Nov. 5, 2026. Our 15-year vs 30-year mortgage guide runs the payment math.
Do FHA and VA loans have LLPAs?
LLPAs come from Fannie Mae and Freddie Mac, so they apply to conventional loans sold to them. FHA and VA loans run on their own fee rules, such as FHA mortgage insurance and the VA funding fee. Ask your lender to compare total costs across loan types, not just the rate.
How can you lower your LLPA?
You cannot negotiate the matrix, but you can change which box you land in:
Raise your score before you apply. Paying down card balances can move you into a better row.
Look at the LTV breaks. Putting a little more down to go from 80.01% to 80% LTV, or from 75.01% to 75%, moves you into a different column.
Check the waivers. If your income is at or under 100% of AMI and you are a first-time buyer, ask about the waiver or HomeReady.
Compare a 15-year term if the payment works for you.
What this means for new-construction buyers
New homes often take months to finish. Your LLPA is set by your credit score and LTV when the loan is priced, so a drop in your score during the build can move you into a higher row. Avoid new debt, keep cards paid down, and ask before you open any new account.
If the builder offers to pay points or closing costs, that help still has to fit under the program's concession limits. A builder credit does not change your LLPA percent, but it can cover part of the cost. Ask your lender for a Loan Estimate that shows the LLPA cost, the rate and any builder credit side by side.
For today's builder offers and numbers on a real home, call 561-704-0091.
Common Questions
What does LLPA stand for?
LLPA stands for loan-level price adjustment. It is a fee Fannie Mae and Freddie Mac charge on conventional loans. It is based on risk factors such as your credit score and loan-to-value.
Who pays the LLPA?
Fannie Mae collects it from the lender. The lender then sets your price. It may show up in your rate or in your closing costs, so ask your lender how it is handled.
How much is the LLPA with a 740 credit score?
On Fannie Mae's Sept. 9, 2026 matrix, a 740-759 score on a purchase loan over 15 years is 0.875% at 75.01-80% LTV. It is 0.625% at 90.01-95% LTV. Other add-ons can apply.
Are LLPAs waived for first-time buyers?
They can be. Fannie Mae waives all LLPAs for first-time buyers with qualifying income at or under 100% of area median income, or 120% in high-cost areas. Minimum MI Coverage Option LLPAs still apply.
Is there still an LLPA based on debt-to-income ratio?
No. FHFA rescinded the upfront fees based on debt-to-income ratios on May 10, 2023.
Do condos have an extra LLPA?
Yes. Fannie Mae's matrix adds 0.750% on condo purchase loans when loan-to-value is over 75%. It does not apply to co-ops or detached condos.
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Related reading: What credit score do you need to buy a house? · How to buy down your interest rate · HomeReady income limits · APR vs interest rate
This is general information, not financial, tax or legal advice. Figures checked November 6, 2026.