What does LPA approve mean?

The loan meets Freddie Mac guidelines. Lenders still verify documentation and may have conditions.

How is LPA different from DU?

LPA is for Freddie Mac; Desktop Underwriter (DU) is for Fannie Mae. Both evaluate conventional loans but use different guidelines.

Do lenders use both DU and LPA?

Yes. Lenders may run both to find the best fit. They sell loans to either Fannie or Freddie.

What Is Loan Product Advisor?

Disclaimer: This website provides general mortgage and financial information for educational purposes only. It does not constitute financial, legal, or mortgage advice. Housentia is not a licensed mortgage broker, lender, or loan originator.

This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.

Introduction

Loan Product Advisor (LPA) is Freddie Mac's automated underwriting system for conventional loans. Lenders submit application data and LPA returns a decision. See What Is Automated Underwriting, What Is Desktop Underwriter, and Conventional Loan.

Frequently Asked Questions

What is Loan Product Advisor?: Freddie Mac's automated underwriting system. It evaluates conventional loan applications and returns approve, refer, or ineligible.
What does LPA approve mean?: The loan meets Freddie Mac guidelines. Lenders still verify documentation and may have conditions.
How is LPA different from DU?: LPA is for Freddie Mac; Desktop Underwriter (DU) is for Fannie Mae. Both evaluate conventional loans but use different guidelines.
Do lenders use both DU and LPA?: Yes. Lenders may run both to find the best fit. They sell loans to either Fannie or Freddie.

Educational Disclaimer

This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.

Housentia is not a lender, mortgage broker, or loan originator.

Guidelines change.