Loan-Level Price Adjustment (LLPA)
Loan-Level Price Adjustments are risk-based pricing fees applied to conventional loans by Fannie Mae and Freddie Mac based on specific borrower and loan characteristics.
LLPAs are determined by factors such as credit score, loan-to-value ratio, property type, occupancy type, and loan purpose. The adjustments are added to or subtracted from the base loan pricing — meaning borrowers with higher risk profiles may receive higher rates or additional fees.
LLPAs are not lender-imposed charges. They are set by the agencies that purchase the loans and are applied uniformly across the industry. A borrower with a 780 credit score and 20% down will receive better pricing than a borrower with a 660 score and 5% down.
Why This Matters: LLPAs directly affect the rate and cost of your loan. Understanding how your credit score, down payment, and property type impact pricing gives you the ability to improve your position before you lock.
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