Should I ever pick FHA at 780+ FICO?

Almost never. The 780+ FICO band is the top tier of Fannie Mae LLPA pricing. Conventional PMI runs roughly 0.20 to 0.30 percent, cancels at 78 percent LTV, and the rate sits at or near par. FHA at 0.55 percent annual MIP for life plus 1.75 percent UFMIP destroys $30,000 to $50,000 of equity over a typical hold.

What is the LLPA at 780 FICO?

Per the Fannie Mae LLPA matrix in effect February 2026, 760 FICO and above at 80 percent LTV is the cleanest pricing tier with minimal or zero LLPAs. At 760+ FICO with 60 percent LTV, the LLPA can be a negative credit (price improvement) under HomeReady and Home Possible thresholds.

What PMI rate at 780 FICO with 5% down?

Mortgage insurers typically price 780+ FICO at 0.20 to 0.30 percent annual for 95 percent LTV in mid-2026. Some lenders waive monthly PMI in favour of single-premium financed PMI at 1.0 to 1.4 percent of the loan amount, which can break even in 4 to 5 years.

FHA vs Conventional with a 780+ Credit Score

At 780+ FICO, conventional sits at the top of the Fannie Mae LLPA matrix. PMI is roughly 0.20 to 0.30 percent and cancels at 78 percent LTV. Choosing FHA at this credit profile typically costs $30,000 to $50,000 over a 10-year hold.

Verdict

Conventional. The only scenarios for FHA at 780+ FICO are FHA 203(k) renovation needs or a property already at FHA case-number stage. Standard purchase: always conventional.

$300k home at 780+ FICO, 5% down

Line	FHA 3.5% down	Conventional 5% down
Rate (par, mid-2026)	~6.8%	~6.6%
UFMIP	$5,066	$0
Annual MI	0.55%	0.25%
MI duration	30 years	~Year 8 (HPA auto)
10-year MI total	~$15,800 + UFMIP	~$5,700
30-year MI total	~$47,520 + UFMIP	~$5,700
Net conv savings (30-yr)	~$46,800

What top-tier FICO unlocks beyond LLPA

Lender-paid mortgage insurance (LPMI). Some lenders bake PMI into a roughly 0.20% rate add and waive the monthly. At 780+ FICO this often beats borrower-paid PMI for a 4-to-6 year hold.
Single-premium financed PMI. A one-time premium of approximately 1.0 to 1.4% of the loan amount, financed into the balance. Break-even on a $300k loan is typically year 4 to 5.
Doctor / professional programmes. Lenders such as Truist, BMO, and various regional banks offer 0% to 5% down conventional with no PMI for licensed professionals with 780+ FICO.
Jumbo at near-conforming rates. Loans above the $806,500 conforming limit price within 0.05 to 0.15% of conforming at 780+ FICO and 20% down with most jumbo lenders.

Rate disclaimer

Lender-paid PMI rate adds and single-premium percentages vary materially by lender and insurer. Consult a licensed loan officer.

Sources

Fannie Mae LLPA Matrix: singlefamily.fanniemae.com/media/9391
HUD ML 2024-04 (FHA MIP): HUD ML 2024-04
FHFA 2026 Conforming Loan Limit: FHFA 26 Nov 2025 press release