Under the new loan-level price adjustment (LLPA) rules, is it true that borrowers with lower credit scores now get better rates or pricing than those with higher scores?

No. Worse credit never gets you a better mortgage. The myth grew out of a real change that got badly explained. No bill passed and no law changed; the FHFA directed Fannie Mae and Freddie Mac to restructure their loan-level price adjustments, the pricing add-ons that raise your cost for things like a lower credit score or a smaller down payment. The new grids took effect for loans acquired on or after May 1, 2023. What the restructure did: - Shrank the penalty that lower-credit, lower-down-payment borrowers used to pay. - Raised costs somewhat for some higher-credit, larger-down-payment borrowers. - Split the top of the grid into new tiers: 740-759, 760-779, and 780-plus. So the gap between strong and weak credit narrowed. It didn't flip. Only a couple of narrow spots on the grid price two different profiles the same, and on conventional loans weaker credit also carries a much higher mortgage-insurance rate. Deliberately tanking your score to game the grid would cost you every time. The useful takeaway: on conventional financing, top-tier credit is still rewarded, just less than it once was. And for many first-time buyers putting the minimum down, FHA often comes out cheaper on both cash to close and monthly payment, even after accounting for FHA's upfront mortgage-insurance premium. If you want conventional and FHA priced side by side against your own numbers, that's exactly what the free Roadmap conversation covers.