Your Options at 620
| Loan Type | Min Score | Key Consideration |
|---|---|---|
| Conventional (Fannie/Freddie) | 620 | LLPAs add ~0.25–0.50% effective rate; no MIP if 20%+ equity |
| FHA Rate & Term | 580 | MIP required; no LLPAs; often better under 20% equity |
| FHA Streamline | 580 (lender) | Existing FHA loans only; no appraisal required |
| VA IRRRL | 620 (most lenders) | Veterans only; typically lowest overall cost |
| USDA Streamline | 640 | Rural properties; not available at 620 |
For a broader view of credit score thresholds and which options open at each level, see our bad-credit refinance guide.
Understanding LLPAs at 620
LLPAs (Loan-Level Price Adjustments) are fees Fannie Mae and Freddie Mac charge lenders based on credit score and LTV. Lenders pass them through as higher rates. A 620 borrower with 80% LTV (20% equity) pays roughly 1.75% of the loan amount in LLPAs — on $300,000 that is $5,250, which typically translates to about 0.25–0.375% higher interest rate.
LLPA Cost by Credit Score (80% LTV, illustrative)
| Credit Score | LLPA (%) | Cost on $300K | Rate Impact |
|---|---|---|---|
| 620–639 | 1.75% | $5,250 | +0.375% |
| 640–659 | 1.50% | $4,500 | +0.25–0.375% |
| 660–679 | 1.00% | $3,000 | +0.125–0.25% |
| 680–699 | 0.50% | $1,500 | +0.125% |
| 700+ | 0–0.25% | $0–$750 | Minimal |
FHA vs. Conventional at 620: Which Is Better?
The answer depends on your equity position:
- Under 20% equity: FHA is usually cheaper. FHA MIP at 0.55% annually beats conventional PMI + LLPAs at the 620 score level. The FHA rate itself will also often be lower because FHA pricing doesn't use LLPAs.
- 20%+ equity: Conventional wins because you can eliminate mortgage insurance entirely. Despite LLPAs, no PMI at 20% equity makes conventional the better long-term deal.
- Existing FHA loan: FHA Streamline is almost always the fastest and cheapest path — no appraisal, no full income documentation, and the same MIP structure you already have.
Use the FHA Refinance Calculator to compare your MIP costs, then model the conventional alternative against it.
Improving From 620 Toward 660+
Every 20-point improvement above 620 saves real money on conventional loans. These steps have the fastest impact:
- Lower utilization first — Get every card below 30%, then target under 10%. This is the fastest scoring lever.
- Dispute errors — Check AnnualCreditReport.com for incorrect late payments or accounts that aren't yours. Disputes can resolve in 30 days.
- Authorized user strategy — Ask a family member to add you to an old account with a perfect payment history. Their history gets blended into your score.
- No new credit — Avoid applications for 90+ days before your refinance to prevent inquiry drops.
Getting from 620 to 660 typically takes 60–90 days with focused effort and saves significantly on LLPAs. Getting to 700 reduces conventional pricing to near-par.
The Full LLPA Grid at 620: Cost by Score and LTV Tier
LLPAs are not a flat fee — they vary by both your credit score and your loan-to-value ratio. Understanding the full grid helps you decide whether it makes financial sense to improve your score before applying, and whether your equity position changes the calculus significantly.
LLPA Adjustment Rates by Credit Score and LTV (Conventional, 2026)
The table below shows the LLPA percentage fee added to the loan amount based on credit score and LTV. Lenders typically convert these into a rate increase (roughly 0.125–0.25% higher rate per 0.5% in LLPAs, depending on loan duration and market conditions).
| Credit Score | LTV 60–70% | LTV 70–75% | LTV 75–80% | LTV 80–85% | LTV 85–90% |
|---|---|---|---|---|---|
| 620–639 | 1.50% | 1.75% | 2.00% | 2.25% | 2.75% |
| 640–659 | 1.25% | 1.50% | 1.75% | 2.00% | 2.25% |
| 660–679 | 0.75% | 1.00% | 1.00% | 1.25% | 1.75% |
| 680–699 | 0.375% | 0.50% | 0.625% | 1.00% | 1.25% |
| 700–719 | 0% | 0.25% | 0.25% | 0.625% | 0.875% |
| 720–739 | 0% | 0% | 0.125% | 0.25% | 0.375% |
| 740+ | 0% | 0% | 0% | 0% | 0% |
Note: LLPA schedules are set by Fannie Mae and Freddie Mac and updated periodically. Actual fees may vary slightly. LTV refers to the new loan-to-value after refinancing.
Dollar Cost and Rate Impact at Common Loan Sizes
| Score | LTV | LLPA % | Cost on $250K | Cost on $400K | Cost on $600K | Approx. Rate Impact |
|---|---|---|---|---|---|---|
| 620–639 | 80% | 2.00% | $5,000 | $8,000 | $12,000 | +0.375–0.50% |
| 640–659 | 80% | 1.75% | $4,375 | $7,000 | $10,500 | +0.25–0.375% |
| 660–679 | 80% | 1.00% | $2,500 | $4,000 | $6,000 | +0.125–0.25% |
| 680–699 | 80% | 0.625% | $1,563 | $2,500 | $3,750 | +0.125% |
| 700–719 | 80% | 0.25% | $625 | $1,000 | $1,500 | Near-zero |
| 740+ | 80% | 0% | $0 | $0 | $0 | None |
Key Inflection Points
620 → 640: LLPA drops from 2.00% to 1.75% at 80% LTV — saves $625 on $250K, $1,000 on $400K. Marginal improvement.
620 → 660: LLPA drops from 2.00% to 1.00% — saves $2,500 on $250K, $4,000 on $400K. Meaningful breakpoint.
620 → 700: LLPA drops from 2.00% to 0.25% — saves $4,375 on $250K, $7,000 on $400K. Significant; typically worth waiting 3–6 months to achieve if possible.
700 → 740: LLPA drops from 0.25% to 0% — saves only $625 on $250K. Near-zero marginal gain at the upper end.
FHA vs. Conventional at 620: A Full Cost Comparison
The "should I use FHA or conventional at 620?" question is more nuanced than a simple rule. The answer depends on your equity position, loan size, how long you plan to keep the loan, and whether you can eventually exit FHA MIP. Here are two detailed scenarios that show when each product wins.
Scenario A: 10% Equity (90% LTV) — FHA Wins Clearly
| Factor | FHA (620 score) | Conventional (620 score) |
|---|---|---|
| Loan amount | $350,000 | $350,000 |
| LTV | 90% | 90% |
| LLPA | None (FHA has no LLPAs) | 2.75% = $9,625 |
| Rate (illustrative) | 6.75% (FHA market rate) | 7.25%+ (after LLPA impact) |
| Monthly P&I | ~$2,270 | ~$2,388 |
| Mortgage insurance | $160/mo (FHA MIP 0.55%) | ~$210/mo (conventional PMI at 90% LTV, 620 score) |
| Total monthly payment | ~$2,430 | ~$2,598 |
| Advantage | ~$168/mo cheaper |
At 90% LTV and 620 score, FHA is cheaper by approximately $168/month. The combination of heavy LLPAs (2.75% at 90% LTV) and high conventional PMI makes FHA the clear winner. FHA MIP (0.55%) is actually lower than conventional PMI at this LTV and credit score combination.
Scenario B: 22% Equity (78% LTV) — Conventional Wins
| Factor | FHA (620 score) | Conventional (620 score) |
|---|---|---|
| Loan amount | $350,000 | $350,000 |
| LTV | 78% | 78% |
| LLPA | None | 2.00% = $7,000 (rolled into rate) |
| Rate (illustrative) | 6.75% (FHA market rate) | 7.10% (after LLPA rate impact) |
| Monthly P&I | ~$2,270 | ~$2,358 |
| Mortgage insurance | $160/mo (FHA MIP — for life) | $0 (no PMI at 78% LTV) |
| Total monthly payment | ~$2,430 | ~$2,358 |
| Advantage | ~$72/mo cheaper + no lifetime MIP |
At 78% LTV, conventional saves $72/month immediately and continues saving because FHA MIP never goes away (for loans with less than 10% down at origination). Over 7 years, this is approximately $6,048 in insurance savings on top of the lower payment. Despite the LLPA, the elimination of mortgage insurance makes conventional the winner once equity crosses 20%.
The Breakeven Score for Switching to Conventional
The exact breakeven between FHA and conventional at 620 depends on your LTV and loan size, but the general pattern is:
- Under 15% equity: FHA almost always wins at 620 — LLPAs + PMI exceed FHA MIP
- 15–20% equity: Close call — run both scenarios through the calculator
- 20%+ equity: Conventional wins — no PMI eliminates the insurance cost, leaving only the LLPA rate impact
Use the FHA Refinance Calculator to model your specific numbers. Enter your loan balance, current rate, new rate (get actual quotes for both FHA and conventional), and compare total cost including MIP over your expected hold period.
Frequently Asked Questions
Can I refinance with a 620 credit score?
How much do LLPAs cost at 620?
Should I use FHA or conventional at 620?
Will my rate improve from 620 to 640?
What is the fastest way to get from 620 to 660?
Related Calculators and Guides
Use these tools to complete your 620-score refinancing decision:
- Mortgage Savings Calculator — see total monthly and lifetime savings across FHA vs. conventional scenarios
- Break-Even Calculator — with MIP factored in, FHA break-even is often longer; confirm your timeline clears it
- PMI Removal Calculator — once you cross 80% LTV on a conventional loan, PMI drops off; model the timing
- Closing Cost Calculator — compare FHA vs. conventional closing costs by loan size
- Refinance With a 580 Credit Score — if your score is under 620, FHA is still available; see your options
- FHA Refinance Closing Costs — full breakdown of UFMIP, MIP, and lender fees at FHA
Compare FHA vs. Conventional at Your Credit Score
Calculate your exact monthly payment, MIP, and break-even for both options.
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Sources & References
Editor's Note — July 2026: This article was reviewed for accuracy in July 2026. Formulas, program eligibility rules, and guidelines reflect current requirements. For the latest mortgage rates, see Freddie Mac's weekly PMMS survey. Borrowers who locked rates of 6.5%–8.0% in 2022–2023 may find the current environment (6.5%–7.0%) worth running numbers on — use the break-even calculator or the Decision Center.