Do condos have an LLPA?
Yes, on conforming conventional loans above 60% LTV. The condo LLPA varies by LTV — typically 0.25-0.75 points at higher LTVs. The LLPA reflects the additional risk of condo collateral (project-level concerns) compared to single-family.
What this actually means.
Fannie/Freddie LLPAs include a condo adjustment that scales with LTV. At 80%+ LTV, condo LLPAs can add 0.5-1%+ in equivalent pricing. Below 60% LTV, the condo LLPA may be eliminated. Project-warrantability issues (Florida insurance/reserves concerns since 2022 statutory changes) can compound into additional pricing or denial. Subject to Fannie/Freddie matrices and project review.
Where this can move.
Fannie Mae and Freddie Mac LLPA matrices update periodically. Credit, LTV, occupancy, property type, and loan purpose all stack.
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More conventional questions on LLPAs.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.