Do LLPAs change for investment property?
Yes, materially. Investment property and second home each hit their own LLPAs on top of credit/LTV adjustments. Investment property LLPAs can add 2-5%+ in points equivalent compared to primary residence at the same credit and LTV.
What this actually means.
Occupancy LLPAs: primary residence (no occupancy LLPA), second home (modest LLPA), investment property (largest occupancy LLPA, often 1-3%+ in points equivalent). On top of that, condo, multi-unit, and cash-out refinance each have their own LLPAs. The matrix can stack to a significant total adjustment. Subject to current Fannie/Freddie LLPA matrices.
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.