Is conventional better than FHA at 660 FICO?

It depends on hold period. Conventional PMI at 660 FICO with 5 percent down typically runs 0.70 to 0.90 percent annually, cancellable at 78 percent LTV under the Homeowners Protection Act. FHA MIP is 0.55 percent for life of loan if down payment is under 10 percent. Holds of 8 years or longer typically favour conventional once PMI cancels.

What are the Fannie Mae LLPAs at 660 FICO?

Per the Fannie Mae LLPA matrix in effect February 2026, a 660 FICO borrower with LTV between 80.01 and 85 percent typically incurs a 1.25 point loan-level price adjustment, often paid as a rate add of approximately 0.25 percent. Some adjustments may be waived under HomeReady or Home Possible if income is at or below 80 percent of area median income.

Can I get a HomeReady loan at 660 FICO?

Yes. HomeReady requires a 620 minimum FICO and income at or below 80 percent of area median income. At 660 FICO it can save 0.50 to 0.75 percent in LLPAs versus standard conventional and waives the standard PMI risk add. Compare to Home Possible from Freddie Mac for the same outcome.

FHA vs Conventional with a 660 Credit Score

660 FICO is the genuine toss-up band. Both programmes price within roughly 0.25 percentage points. The right answer depends on down payment, hold period, and your probability of refinancing.

Verdict

Conventional if you can put 5% or more down AND plan an 8-year-or-longer hold. FHA if down payment is under 5% OR hold is under 5 years OR you qualify for HomeReady/Home Possible (income at or below 80% AMI).

The pricing at 660 FICO

Programme	Typical rate add	Annual MI	MI duration
FHA 3.5% down	No risk add	0.55%	Life of loan
Conventional 95% LTV (5% down)	+0.25 to +0.375% (LLPA 1.25)	0.70 to 0.90%	Cancels at 78% LTV
Conventional 97% (3% down)	+0.375% (LLPA 1.5)	0.85 to 1.05%	Cancels at 78% LTV
HomeReady (income at/under 80% AMI)	LLPA cap, often net 0	0.50 to 0.65%	Cancels at 78% LTV

30-year cost on a $300k home at 660 FICO, 5% down

Cost component	FHA 3.5% down	Conventional 5% down
Total MI cost (30 years)	~$47,520 (life of loan) + $5,066 UFMIP	~$13,800 (cancels yr 8)
Year 1 P&I + MI	$2,075	$2,050
10-year MI cost (no refi)	~$15,800 + UFMIP	~$13,800
10-year MI cost (FHA refi to conv yr 5)	~$8,100 + $5,000 refi fees	~$13,800

If you commit to refinancing to conventional at year 4 or 5 (when equity reaches 20% via amortization and appreciation), FHA may be cheaper than conventional even at 660 FICO.

Decision flow at 660 FICO

Income at or under 80% AMI: HomeReady or Home Possible. Standard conventional and FHA both lose to these programmes.
Down payment under 5%: FHA at 3.5% down beats conventional 3% LTV-adjusted pricing in this band.
Hold under 5 years: FHA. The MI cost difference does not compound long enough to matter; cash flow is comparable; FHA assumability is a bonus.
Hold 8 years or longer AND 5%+ down AND no income-limit programme available: Conventional. PMI cancellation matters more than the rate gap.
Property fails FHA Minimum Property Requirements (e.g. older home with peeling paint, missing handrails): Conventional avoids the repair contingency.

Rate disclaimer

PMI factors and LLPAs change. Numbers reflect Fannie Mae LLPA Matrix February 2026 and typical PMI provider rate cards. Consult a licensed loan officer for current pricing.

Sources

Fannie Mae LLPA Matrix: singlefamily.fanniemae.com/media/9391
HomeReady: HomeReady programme
Home Possible: Home Possible programme
HUD Mortgagee Letter 2024-04 (MIP rates): HUD ML 2024-04
HPA 12 USC 4902 (PMI cancellation): 12 USC 4902