What is an LLPA? How Fannie Mae and Freddie Mac price a conventional loan
A loan-level price adjustment, or LLPA, is a pricing charge that Fannie Mae and Freddie Mac apply to a conventional mortgage based on the loan's risk features: the borrower's credit score, the loan-to-value ratio, the loan purpose, how the home will be used, and the property type. It is stated as a percentage of the loan amount. The lender usually builds it into the rate or the points, so you will not find a line called "LLPA" on your Loan Estimate.
This page shows the current purchase grid as published, the attribute adjustments that stack on top of it, what one cell comes to in dollars on a $382,500 sample loan, where the adjustment lands on a Loan Estimate, and which loans the matrix waives or excludes. Every figure was checked cell by cell against the Fannie Mae LLPA Matrix dated 09.30.2026 and Freddie Mac Exhibit 19.
Who sets LLPAs and which loans get them
Fannie Mae and Freddie Mac buy a large share of the conventional mortgages that lenders make. When a lender sells them a loan, the agency charges the lender every LLPA that applies and deducts the total from what it pays for the loan. Fannie Mae's matrix describes the charges as "assessed based upon certain eligibility or other loan features" and says they are "cumulative." The lender knows those charges before it quotes you, so it prices them into the offer.
That is why two buyers can get different rate quotes from the same lender on the same day for the same house. Their adjustments differ.
LLPAs apply to conventional loans that will be sold to Fannie Mae or Freddie Mac. A loan the lender keeps on its own books, or a jumbo loan above the conforming limit, is priced by whoever holds it. FHA, VA and USDA loans are excluded entirely, which is covered below.
What moves an LLPA
Six things set the adjustment: the grid's two axes set the base, and four other features add rows on top.
- Credit score. Nine bands, from 780 and above down to 639 and below. Since September 30, 2026, one grid serves both scoring models the agencies accept; the column header reads "Classic FICO or VantageScore 4.0."
- Loan-to-value ratio. Nine bands, from 30 percent and below up to over 95 percent. Your down payment sets this. A 20 percent down payment is an 80 percent loan-to-value, which the matrix places in the 75.01 to 80.00 percent band.
- Loan purpose. Purchase, limited cash-out refinance and cash-out refinance each have their own grid. The same borrower pays more on a cash-out refinance than on a purchase. In the 740 to 759 row at 75.01 to 80.00 percent loan-to-value, purchase is 0.875%, limited cash-out refinance is 1.125%, and cash-out refinance is 2.375%.
- Occupancy. A second home or an investment property adds its own row, and those rows are the largest on the sheet.
- Property type. Condos, manufactured homes and two- to four-unit properties each carry a row. A townhome has no row of its own and prices like a single-family house.
- Loan features. An adjustable rate, a second mortgage at closing (subordinate financing) and a high-balance loan amount each add a row.
The purchase grid: credit score by loan-to-value
Fannie Mae's purchase grid and Freddie Mac's purchase grid are identical cell for cell as of the current versions, so one table serves both. Each cell is a percentage of the loan amount. The matrix header says the grid is "Applicable for all loans with terms greater than 15 years."
To read it, find your credit score row, then your loan-to-value column. The cell is your base adjustment before any attribute rows.
| Credit score | 30% or less | 30.01 to 60% | 60.01 to 70% | 70.01 to 75% | 75.01 to 80% | 80.01 to 85% | 85.01 to 90% | 90.01 to 95% | Over 95% |
|---|---|---|---|---|---|---|---|---|---|
| 780 and above | 0.000% | 0.000% | 0.000% | 0.000% | 0.375% | 0.375% | 0.250% | 0.250% | 0.125% |
| 760 to 779 | 0.000% | 0.000% | 0.000% | 0.250% | 0.625% | 0.625% | 0.500% | 0.500% | 0.250% |
| 740 to 759 | 0.000% | 0.000% | 0.125% | 0.375% | 0.875% | 1.000% | 0.750% | 0.625% | 0.500% |
| 720 to 739 | 0.000% | 0.000% | 0.250% | 0.750% | 1.250% | 1.250% | 1.000% | 0.875% | 0.750% |
| 700 to 719 | 0.000% | 0.000% | 0.375% | 0.875% | 1.375% | 1.500% | 1.250% | 1.125% | 0.875% |
| 680 to 699 | 0.000% | 0.000% | 0.625% | 1.125% | 1.750% | 1.875% | 1.500% | 1.375% | 1.125% |
| 660 to 679 | 0.000% | 0.000% | 0.750% | 1.375% | 1.875% | 2.125% | 1.750% | 1.625% | 1.250% |
| 640 to 659 | 0.000% | 0.000% | 1.125% | 1.500% | 2.250% | 2.500% | 2.000% | 1.875% | 1.500% |
| 639 and below | 0.000% | 0.125% | 1.500% | 2.125% | 2.750% | 2.875% | 2.625% | 2.250% | 1.750% |
Two things stand out once the grid is in front of you. The adjustment peaks in the 75.01 to 85.00 percent columns and comes back down above 90 percent; loans above 80 percent usually also carry private mortgage insurance, which is separate from this grid. And a score of 780 or higher with 25 percent down or more pays no base adjustment at all.
Attribute adjustments that stack on top
The rows below are added to the base cell. They are the same on the purchase and limited cash-out grids. The two lowest loan-to-value columns of the published table carry the same value in every row, so they are shown here as one column with no value changed.
| Loan attribute | 60% or less | 60.01 to 70% | 70.01 to 75% | 75.01 to 80% | 80.01 to 85% | 85.01 to 90% | 90.01 to 95% | Over 95% |
|---|---|---|---|---|---|---|---|---|
| Second home | 1.125% | 1.625% | 2.125% | 3.375% | 4.125% | 4.125% | 4.125% | 4.125% |
| Investment property | 1.125% | 1.625% | 2.125% | 3.375% | 4.125% | 4.125% | 4.125% | 4.125% |
| Two- to four-unit property | 0.000% | 0.375% | 0.375% | 0.625% | 0.625% | 0.625% | 0.625% | 0.625% |
| Condo | 0.000% | 0.125% | 0.125% | 0.750% | 0.750% | 0.750% | 0.750% | 0.750% |
| Manufactured home | 0.500% | 0.500% | 0.500% | 0.500% | 0.500% | 0.500% | 0.500% | 0.500% |
| High-balance, fixed rate | 0.500% | 0.750% | 0.750% | 1.000% | 1.000% | 1.000% | 1.000% | 1.000% |
| High-balance, adjustable rate | 1.250% | 1.500% | 1.500% | 2.500% | 2.500% | 2.500% | 2.750% | 2.750% |
| Subordinate financing | 0.625% | 0.625% | 0.875% | 1.125% | 1.125% | 1.125% | 1.875% | 1.875% |
| Adjustable-rate mortgage | 0.000% | 0.000% | 0.000% | 0.000% | 0.000% | 0.000% | 0.250% | 0.250% |
Notes from the matrix footnotes: the condo row does not apply to co-ops or detached condo units. The subordinate financing row is charged when the combined loan-to-value is greater than the loan-to-value, and the undrawn portion of a home equity line is not counted. High-balance rows apply only to loan amounts above the baseline conforming limit, and the cash-out refinance versions of those rows are higher.
Turn it into dollars
The matrix speaks in percentages of the loan amount. One line of math turns a cell into a dollar figure.
LLPA in dollars = loan amount × the grid percentage
Sample loan. Conventional purchase, $382,500 loan on a $478,125 price, so 20 percent down and an 80 percent loan-to-value. Credit score 740 to 759. Primary residence, single-family home, fixed rate.
| Step | Value |
|---|---|
| Grid row | 740 to 759 |
| Grid column | 75.01 to 80% (80.00% falls inside this band) |
| Base purchase LLPA | 0.875% |
| Attribute rows | None. Primary residence, one unit, not a condo, not manufactured, no second lien, fixed rate, inside the conforming limit. |
| Total LLPA | 0.875% |
| In dollars on $382,500 | $382,500 × 0.875% = $3,346.88 (rounded to the cent from $3,346.875) |
On this sample, the agency charges the lender $3,346.88 when it buys the loan. The borrower never sees that number printed. The lender recovers it through the rate it quotes, through points, or through some mix of the two, and that choice belongs to the lender.
Where an LLPA shows up on a Loan Estimate
There is no "LLPA" line on the Loan Estimate, and the form has no box for one. The adjustment reaches you in one of two places.
Page 1, the Interest Rate line. Lenders usually build the LLPA into the rate they offer. A borrower with a higher adjustment is quoted a higher rate than a borrower with a lower one, and nothing on the page says why. On the sample loan, the Interest Rate box on page 1 reads 7.125%. That figure belongs to the fictional sample and its one date; it is not a quote.
Page 2, Section A, Origination Charges. A lender can also charge some or all of the adjustment up front as points. Points appear in Section A as a line like ".25 % of Loan Amount (Points)." The sample loan shows that line at $956. On the sample it is an optional buy-down the borrower chose, with the LLPA already inside the quoted rate. Your own estimate may show points for either reason, and the form does not label which.
A lender credit (the "Lender Credits" figure on page 1) runs the other way, with a higher rate in exchange for money toward your costs. The LLPA sits underneath the rate, the points and the credit without being named in any of them.
Do Fannie Mae and Freddie Mac charge the same LLPAs?
Yes, as of the current versions. We compared Freddie Mac Exhibit 19 (Bulletin 2026-K, for settlement dates on or after October 1, 2026) against the Fannie Mae matrix dated September 30, 2026, cell by cell across the purchase, no-cash-out and cash-out grids and every attribute row. Zero cells differ.
Freddie Mac uses different words for the same things. It calls them Credit Fees rather than LLPAs, "Number of Units > 1" rather than "Two- to four-unit," and "Super Conforming" rather than "High-balance." Freddie Mac also carries one line Fannie Mae does not have. Its Alt FICO fee of 0.250% applies when the base-grid fee is above 0% and the loan's credit score was selected by a method other than Freddie Mac's standard rule. On purchase and no-cash-out loans it is 0.000% at 30 percent loan-to-value and below and 0.250% in every band above that. On cash-out loans it is 0.250% in all five bands.
Which agency buys your loan is the lender's decision, and for the base grids it does not change the number.
LLPA waivers and credits
The Fannie Mae matrix states: "All LLPAs will be waived for the following loans (Exception: LLPAs for Minimum Mortgage Insurance Coverage Option will be charged if applicable)."
- HomeReady loans.
- "Loans to first-time homebuyers with qualifying income ≤100% area median income (AMI) or 120% AMI in high-cost areas."
- "Loans meeting Duty to Serve requirements (Purchase and limited cash-out refinances, principal residences with total qualifying income ≤100% AMI)." The matrix lists manufactured housing including MH Advantage, loans in high-needs rural regions, loans to Native Americans on tribal lands, loans originated by small financial institutions, and affordable housing preservation loans.
Freddie Mac's Exhibit 19 reaches the same result through a 0.000% Credit Fee Cap for Home Possible mortgages, Duty to Serve loans and first-time homebuyers at the same income limits, with the same carve-out for its Custom Mortgage Insurance Options fee.
The matrix also lists credits, which are fixed dollar amounts rather than percentages. A HomeReady purchase loan to a very low-income borrower (at or below 50 percent of AMI) where at least one borrower is a first-time homebuyer carries a $2,500 credit, in effect for whole loans through February 28, 2027. Housing counseling on a HomeReady loan, HomeStyle Energy, RefiNow and HomePath when an appraisal was obtained each carry a $500 credit, as does Freddie Mac's GreenCHOICE.
Whether a loan qualifies is determined from the borrower's income, the area median income for the property's location, and first-time homebuyer status, and the lender applies the waiver when it delivers the loan. When one applies, the entire grid above reads as 0.000% for that loan, with the one mortgage insurance exception the matrix names.
Which loans have no LLPAs
The first page of the Fannie Mae matrix says that "FHA, VA, Rural Development (RD) Section 502 Mortgages, and HUD Section 184 Mortgages are excluded from these LLPAs."
Those programs price risk their own way. FHA loans carry an upfront mortgage insurance premium and an annual premium. VA loans carry a funding fee, which some veterans are exempt from. USDA Rural Development loans carry a guarantee fee. None of them use the agency grids, so an FHA or VA offer set beside a conventional one is a comparison of two pricing systems, and the rate and the Section A total carry more information than the labels.
How LoanInspection uses this
When you upload the Loan Estimate your lender sent, the read compares the rate on page 1 with the daily index of rates lenders actually locked, priced for your credit range, your loan-to-value and your loan type using these published adjustments. Fifteen-year and thirty-year conventional fixed rates are read against OBMMI rate locks and Fannie Mae and Freddie Mac's published loan-level price adjustments. The grid in that read was verified cell for cell against the matrix dated 09.30.2026.
The report shows where your rate sits in the range for your scenario, and it notes any points in Section A as optional points that buy the rate down. It does not tell you what to do with what it finds. The full method, including what the tool declines to grade, is on the methodology page.
You pay $29 at checkout.
Upload the Loan Estimate your lender sent. The report explains every fee and grades the Section A total and the rate against public data. Your file is deleted once your report is delivered.
Common questions
What is an LLPA on a mortgage?
A loan-level price adjustment is a charge Fannie Mae and Freddie Mac apply to a conventional loan based on its risk features, mainly credit score and loan-to-value, with extra rows for the loan purpose, occupancy, property type and loan features. It is a percentage of the loan amount. The lender pays it when the loan is sold and builds it into the rate or the points it quotes you.
Who pays the LLPA?
The lender pays it to Fannie Mae or Freddie Mac when it sells the loan; the matrix says the amount is deducted from the loan proceeds. The lender knows the charge before it quotes you and prices it into the rate, the points, or both. It is not a fee you pay directly, and it is not printed on the Loan Estimate.
What is the LLPA for a 740 credit score with 20 percent down?
On a purchase loan, the 740 to 759 row at 75.01 to 80.00 percent loan-to-value is 0.875% in the current matrix. On the $382,500 sample loan on this page, that is $3,346.88, before any attribute rows. A second home, an investment property, a condo, a manufactured home, a two- to four-unit property, a second lien, a high-balance amount or an adjustable rate would each add to it.
Does Freddie Mac have LLPAs, and are they the same as Fannie Mae's?
Yes. Freddie Mac calls them Credit Fees and publishes them in Exhibit 19. As of Bulletin 2026-K, its base grids and attribute rows match the Fannie Mae matrix dated September 30, 2026 cell for cell. Freddie Mac adds one Alt FICO line of 0.250% that Fannie Mae does not have, which applies when the credit score was selected by a method other than Freddie Mac's standard rule.
Who qualifies for an LLPA waiver?
The Fannie Mae matrix waives all LLPAs for HomeReady loans, for first-time homebuyers with qualifying income at or below 100 percent of area median income (120 percent in high-cost areas), and for loans meeting Duty to Serve requirements, with one exception for the Minimum Mortgage Insurance Coverage Option. Freddie Mac applies a 0.000% cap to Home Possible, Duty to Serve and first-time homebuyer loans on the same terms. The lender determines eligibility from income, location and first-time status when it delivers the loan.
Sources
- Fannie Mae, Loan-Level Price Adjustment Matrix, dated 09.30.2026 (Lender Letter LL-2026-06 Reissue): singlefamily.fanniemae.com/media/document/pdf/llpa-matrix-pdf
- Freddie Mac, Single-Family Seller/Servicer Guide Exhibit 19, Credit Fees, Bulletin 2026-K, for settlement dates on or after October 1, 2026: guide.freddiemac.com/euf/assets/pdfs/Exhibit_19.pdf
- Optimal Blue Mortgage Market Indices (OBMMI), published by Optimal Blue, LLC, retrieved via FRED, Federal Reserve Bank of St. Louis: fred.stlouisfed.org. This product uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
- The sample loan on this page is fictional. Its figures are not a quote, offer or commitment to lend.
Last verified: Grids verified against the Fannie Mae LLPA Matrix dated 09.30.2026 and Freddie Mac Exhibit 19 (Bulletin 2026-K).
Reviewed on October 2026.