Published: October 18, 2026 · By the Chicago Condo Loans Editorial Team
Quick answer Fannie Mae adds a loan-level price adjustment (LLPA) to most conventional purchase loans on attached condo units: 0.125% of the loan amount at 60.01–75% LTV and 0.750% above 75% LTV, under the LLPA Matrix dated September 30, 2026. On a $270,000 loan with 10% down that works out to $2,025, which lenders usually build into the rate or points. It doesn’t apply to detached condos or co-ops, and all LLPAs are waived for HomeReady loans and for first-time buyers with income at or below 100% of area median income.
This is part of our guide to condo down payments and PMI in Chicago.
How much is the condo LLPA?
| Loan-to-value ratio | Condo LLPA (purchase) |
|---|---|
| 60.00% or less | 0.000% |
| 60.01–75.00% | 0.125% |
| 75.01% and above | 0.750% |
LLPAs are calculated on the loan’s principal balance and are cumulative, so the condo LLPA stacks on top of the other adjustments for your credit score, loan-to-value ratio and occupancy. Fannie Mae deducts LLPAs from the lender’s proceeds; how a lender passes the cost on (a slightly higher rate, discount points or a lender credit trade-off) is up to the lender, so compare Loan Estimates.
What does it cost on a typical Chicago condo?
| Down payment on a $300,000 condo | Loan amount | LTV | Condo LLPA | Cost |
|---|---|---|---|---|
| 5% ($15,000) | $285,000 | 95% | 0.750% | $2,137.50 |
| 10% ($30,000) | $270,000 | 90% | 0.750% | $2,025 |
| 20% ($60,000) | $240,000 | 80% | 0.750% | $1,800 |
| 25% ($75,000) | $225,000 | 75% | 0.125% | $281.25 |
| 40% ($120,000) | $180,000 | 60% | 0.000% | $0 |
The big step is at 75% LTV. Putting 25% down instead of 20% drops the condo adjustment from 0.750% to 0.125%. Whether that is worth it depends on your cash, your other options and how your lender prices the change.
Who doesn’t pay it?
- Detached condos and co-ops: the matrix says the condo LLPA is not applicable to co-ops or detached condo units.
- Townhomes in a PUD: the matrix has no PUD adjustment; see condo vs. townhome (PUD) financing.
- First-time buyers with qualifying income at or below 100% of area median income (120% in high-cost areas): all LLPAs are waived, except the minimum mortgage insurance coverage LLPA if it applies.
- HomeReady loans and loans that meet Fannie Mae’s Duty to Serve criteria: all LLPAs waived on the same terms.
- FHA and VA loans: these aren’t Fannie Mae loans, so the Fannie Mae condo LLPA doesn’t apply, though the building still needs FHA or VA approval.
Investment and second-home condos pay much larger occupancy LLPAs on top of the condo row: 3.375% at 75.01–80% LTV, for example. See investment and second-home condo loans.
Frequently asked questions
What is the Fannie Mae condo LLPA?
A loan-level price adjustment Fannie Mae applies to purchase loans on attached condo units: 0.125% at 60.01 to 75% LTV and 0.750% above 75% LTV under the September 30, 2026 LLPA Matrix. It is a percentage of the loan amount.
How can I avoid the condo LLPA?
Putting 40% or more down brings it to zero, and 25% down cuts it to 0.125%. It is waived on HomeReady loans and for first-time buyers with qualifying income at or below 100% of area median income, and it does not apply to detached condos, co-ops, or FHA and VA loans.
Does the condo LLPA apply to refinances?
This post covers the purchase table. The matrix has separate tables for limited cash-out and cash-out refinances, so ask your lender for the refinance figures.
Is the condo LLPA paid at closing?
Fannie Mae deducts LLPAs from the lender’s proceeds. Lenders usually pass the cost to the borrower through the interest rate or points, which shows up on the Loan Estimate.
Sources
- Fannie Mae Loan-Level Price Adjustment Matrix (Sept. 30, 2026)
- Fannie Mae Selling Guide B2-3-01, General Property Eligibility (09/03/2025)
Educational content only. We are not a lender or broker, and this is not lending, legal or financial advice. Rules change; confirm details with your lender and attorney.