Current conventional guidelines, updated from one source.
One guideline source feeds every number here, and the page updates when the source does. These are purchase and refinance parameters; the leverage table underneath covers occupancy by occupancy, and the status lines cover insurance, gifts, and the first-time-buyer programs.
First-time buyer; 5% standard; 97% loan-to-value at the top
The agencies set the floor at 3% down for a first-time buyer and 5% for a repeat buyer, on a principal residence; the whole down payment may be a gift from a relative on a one-unit home, and twenty percent down removes mortgage insurance from the payment entirely.
Priced on the score; no agency minimum with an automated approval
The wholesale programs behind these pages start at a 620 decision score. The agencies themselves set no minimum for an automated approval and ask for 620 on a manually underwritten fixed-rate loan and 640 on an adjustable; the score prices the loan and the insurance more than it gates them.
Required above 80% LTV; removed at 80% by request, 78% automatically
Private mortgage insurance applies above 80% loan-to-value. Fannie Mae’s 2022 figures put the annual cost in a range of 0.58%–1.86%, depending on the score and the leverage. It ends by request at 80% of the original value, automatically at 78%, and no later than the midpoint of the term.
With an automated approval; 36% to 45% on a manual file
An automated approval allows a total debt-to-income ratio up to 50%; a manually underwritten file is held to 36%, or 45% when credit score and reserves meet the agencies’ matrix. The ratio divides total housing payment plus other monthly obligations by gross income.
| Purpose | Occupancy and program | Maximum LTV |
|---|---|---|
| Purchase | One-unit principal residence, first-time buyer (fixed rate) | 97% |
| Purchase | One-unit principal residence, standard | 95% |
| Purchase | HomeReady / Home Possible (income limits apply) | 97% |
| Purchase | Two- to four-unit principal residence | 95% |
| Purchase | Second home | 90% |
| Purchase | Investment property, one unit | 85% |
| Purchase | Investment property, two to four units | 75% |
| Refinance | Limited cash-out (rate-and-term), one-unit principal residence | 95% |
| Refinance | Cash-out, one-unit principal residence | 80% |
| Refinance | Cash-out, two to four units, second home or investment | 75% |
| Combined LTV | Maximum contribution |
|---|---|
| above 90 percent | 3% of the sales price |
| 75.01 to 90 percent | 6% of the sales price |
| 75 percent or less | 9% of the sales price |
| investment property (any) | 2% of the sales price |
| Event | Waiting period |
|---|---|
| Chapter 7 or 11 bankruptcy | four years from discharge or dismissal (two years with documented extenuating circumstances) |
| Chapter 13 bankruptcy | two years from discharge; four years from dismissal (two with extenuating circumstances) |
| Multiple bankruptcy filings | five years when more than one filing within the past seven years |
| Foreclosure | seven years (three with extenuating circumstances, then limited to a principal residence or second home at 90 percent LTV, purchase or limited cash-out) |
| Deed-in-lieu, short sale or mortgage charge-off | four years (two with extenuating circumstances) |
Mortgage insurance: Fannie Mae reports that private mortgage insurance typically ranged from 0.58%–1.86% of the loan amount a year; the premium on a specific loan is priced by the insurer on the score, the leverage, and the coverage, and is never quoted here. Gifts from relatives may fund the entire down payment on a one-unit principal residence. HomeReady and Home Possible lend to 97% with income at or below 80% of the area median; HomeOne lends to the same leverage with a first-time buyer and no income limit.
Current conventional snapshot · updated October 3, 2026 · principal residences occupied within sixty days, second homes, and one- to four-unit investment properties · conforming limits apply by county and are confirmed by a Lendmire loan officer · above the limit, see the jumbo program · no prepayment penalty · Lendmire is a broker, never the lender.
Program guidelines only, not an offer of credit. The leverage, credit floor, mortgage insurance thresholds, ratio maximums, contribution caps, and waiting periods on this page are agency parameters and lender overlays subject to change without notice and to full underwriting of the borrower and the property. Mortgage insurance premiums are priced by the insurer and are not quoted here. Lendmire is a broker, not a lender. Licensed in sixteen states for consumer mortgages. NMLS #2371349.
What a conventional loan is — and how the file is qualified.
The difference between a conventional loan and a government loan is who stands behind it. No agency insures a conforming loan; a private insurer covers the top slice above the threshold, and the agencies buy the loan on their rules. That structure explains each of the four pieces below for a Kelso buyer.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in Washington; for the mortgage insurance cancellation rules, see the CFPB.
Leverage by occupancy and buyer
The down payment a Kelso buyer needs depends on three things: whether the home is a principal residence, a second home, or a rental; whether it is one unit or several; and whether the buyer counts as a first-time buyer. The snapshot table gives the answer for every combination the program allows.
Credit scores and automated underwriting
The automated system, DU on the Fannie Mae side and LPA on the Freddie Mac side, reads the whole credit file rather than a single number: the score, the depth of history, the recent events, and the seasoning after any derogatory event. The score it uses with more than one borrower is the average of the median scores.
Mortgage insurance that cancels
Twenty percent down means no mortgage insurance at all, and anything less means insurance for a while. The calculator on this page shows the Kelso payment with the estimated premium and the payment after it ends, along with the month on the amortization schedule when the request and automatic thresholds arrive.
Ratios, reserves, and the DU finding
Total debt-to-income is the ratio that counts: the full housing payment, insurance included, plus every monthly obligation, against gross income. Automated approvals reach the higher ceiling in the snapshot; manual files are held to the lower pair, with the higher of the two needing the matrix’s credit and reserve criteria.
None of this is a decision. The appraisal can come in under the price, the rate is set at lock, the premium is set by the insurer, and the automated finding sets the reserves. What stays fixed is the structure the calculator reproduces: price, down payment, leverage, insurance, payment.
Where Kelso buyers borrow — and how a conforming loan fits.
Conventional loans are sized against a local market, and these are Kelso’s numbers from the U.S. Census Bureau: how many households own, what a typical home is worth, and what households earn. Together they set the scale of a typical down payment, loan, and insurance premium.
Market context only. Income sets the ratio, value sets the loan and the premium, and the down payment sets the leverage. The Census describes the first two for the market; the file supplies all three for the borrower.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Kelso neighborhoods, distinct conventional files.
One program, several Kelso submarkets: the cards below describe the housing stock, the price range, and the conventional question that comes up most often in each.
Established close-in neighborhoods
The Kelso blocks nearest the core carry the oldest houses, and a conventional appraisal reads them for value first and condition second: no HUD or VA property standard, but the home must be safe, sound, and marketable, and a failing roof or system still draws a condition note. Median household income in Kelso sits near $66,751 on the latest Census estimate.
Higher-value homes
On Kelso’s higher-value homes, a conventional loan hits the conforming limit first. Buyers over it can bring a larger down payment to fit under it, use the high-balance range where the county has one, or choose the jumbo program. A loan officer confirms the current limit before the offer. Kelso is home to about 13K people and sits within the Longview-Kelso, WA area.
Investor and second-home purchases
Kelso rentals and pied-à-terre purchases run on conventional loans because FHA and VA finance principal residences only. Conventional terms include investment and second-home leverage in the snapshot, reserves for each financed property, and adjustments for the occupancy. The median owner-occupied home value in Kelso runs near $337,600 on the latest Census estimate.
Newer infill and recent construction
A newer Kelso home rarely draws condition notes; the file turns on the limit and the ratio at the higher price, with the insurance premium added to the payment where the leverage runs above the threshold. On a one-unit principal residence at Kelso’s median value, the first-time buyer’s minimum down payment comes to about $10,100 and the standard minimum to about $16,900 — before closing costs, and before the mortgage insurance that comes with either; a second home, a multi-unit home, or a rental starts higher, as the leverage table shows.
Two-to-four-unit homes
Kelso duplexes and small apartment houses are conventional purchases at the multi-unit leverage in the snapshot when the buyer occupies one unit, with rent from the other units counted toward qualifying under the agencies’ rules. About 44% of Kelso’s households rent — roughly 2,384 renter households on the latest Census estimate.
Condominiums and townhomes
Townhomes in Kelso finance like houses when they are fee simple and like condominiums when they are organized as one; the lender settles which before the appraisal, and the leverage follows the occupancy either way. Roughly 3,051 Kelso households own their homes on the latest Census estimate — 56% of all households, the pool a conventional purchase joins.
Neighborhood sets the price, the property type, and often the occupancy; the agencies set the rest. The leverage table, the insurance thresholds, the ratio ceiling, and the waiting periods apply identically on every Kelso file.
Four ways Kelso buyers put a conforming loan to work.
The conventional loan is one of the broadest mortgage programs there is: it buys a first home with a small down payment, a move-up home with cancellable insurance, a second home, and a rental, and it refinances all of them. The cards below are the uses that bring Kelso borrowers to it most.
Refinance or take cash out
A Kelso owner can refinance a conventional loan two ways: a limited cash-out refinance to the rate-and-term leverage in the snapshot, or a cash-out refinance to the lower cash-out leverage after the seasoning period, on a principal residence, second home, or rental at each occupancy’s own limit.
Buy with twenty percent down and no insurance
The move-up Kelso buyer selling one home and bringing twenty percent to the next usually lands here: no mortgage insurance, the strongest cost tier the score earns, and a loan the automated system reviews with the equity brought forward counted in the file.
Buy an investment property
The rental purchase is inside the conventional program at a lower leverage than a principal residence: a Kelso buyer uses the agencies’ rules for counting rental income, shows reserves for every property financed, and accepts loan-level adjustments that reflect the occupancy.
Buy a condominium in a warrantable project
Condominiums are a common first purchase in Kelso, and a warrantable project is financed like a house with the dues in the ratio; a project that fails the review is outside the conforming program and goes to a portfolio lender instead.
Estimate the payment on a Kelso price before requesting a quote.
Enter a Kelso price, the down payment, and the buyer type, choose a term, and the calculator returns the loan and its loan-to-value, principal and interest, the estimated mortgage insurance while the loan is above the threshold, taxes and insurance, the payment after the insurance ends, and the ratio if you enter income. It also shows the month the balance reaches the cancellation thresholds. The rate field holds the weekly Freddie Mac benchmark as a market reference, never a quote.
Kelso conventional payment estimate
Seeded with a Kelso price and the first-time buyer’s minimum down; every field updates the result as you type.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a conventional loan quote.
Estimate seeded at the low end of Fannie Mae’s published range (0.58%–1.86% a year); the insurer prices the actual premium on the score and the leverage. Applies only above 80% loan-to-value.
Illustrative starting assumptions: a $340,000 price near Kelso’s median owner-occupied home value, the first-time buyer’s minimum down payment, a thirty-year term at the current Freddie Mac benchmark, mortgage insurance at the low end of Fannie Mae’s published range, property taxes and insurance estimated for Washington (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a conventional loan quote; your rate is set by the lender at lock. The mortgage insurance figure is an editable estimate seeded from Fannie Mae’s published typical range, not a premium quote; the insurer prices the actual premium, and the cancellation month assumes scheduled payments with no extra principal and no change in value. Taxes, insurance and dues are editable estimates; closing costs are not included. Conforming loan limits apply by county. Licensed in sixteen states for consumer mortgages.
Same buyer, three very different closings.
The score, the down payment available, VA eligibility, and the expected length of the loan decide which program wins. Here are the three, one next to the other.
Conventional, FHA, or VA.
This program offers a low down payment for first-time buyers, insurance set by the score and removed once the balance falls below the threshold, and no upfront premium on the monthly structure. Of the three programs compared here, it alone finances second homes and investment property. The cost is a credit standard that prices a weak score heavily.
Where conventional prices the score, FHA prices by schedule. FHA fits the buyer whose score would be priced heavily on a conventional loan, or who needs the room FHA’s ratio tiers allow; it rarely wins for a Kelso buyer with strong credit and a down payment above the minimum. See Lendmire’s FHA loan program.
VA beats conventional on the principal residence for nearly every eligible borrower; conventional beats VA on everything VA does not touch: second homes, rentals, and buyers without the certificate. The two often sit side by side in one Kelso household. See Lendmire’s VA loan program.
Conventional for the solid score, the move-up buyer, the second home, and the rental; FHA for the modest score and the small investment; VA for the eligible borrower buying a principal residence. The Kelso file is priced on all three before one is recommended. Above the conforming limit, see the jumbo loan program.
What to prepare for a Kelso scenario review.
Gather these before a Kelso review: the ordinary mortgage documents, plus the pieces that settle the first-time-buyer question and the occupancy.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the automated underwriting finding, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
The percentages tell only part of the story. What a Kelso conventional loan actually becomes depends on the score, the appraisal, the project review, and the automated finding, and these are the details that move it.
Use these checks to keep the Kelso file clean and fundable.
A Kelso file that is ready to review has already answered three questions: what leverage and therefore what insurance, what score and therefore what price, and whether the home is inside the agencies’ rules.
- Plan the insurance: it cancels on request at the request threshold and automatically at the termination threshold.
- Confirm the score: the lender’s report sets the decision score; multiple borrowers use the average of the median scores.
- Match the occupancy: a principal residence is occupied within sixty days of closing.
Mortgage insurance: how much, and until when
The premium on a Kelso loan can be paid monthly, paid by the lender in exchange for a different price, paid as a single premium at closing, or split. The monthly structure cancels under the federal rules, and the others are set by the lender. The calculator shows the monthly structure and the month the thresholds arrive on scheduled payments.
The score sets the cost
The decision score comes from the lender’s report, and with multiple borrowers the automated system uses the average of the median scores. On a Kelso conventional file the score rarely ends eligibility, but it sets the loan-level adjustments and insurance premium, so a few points can change monthly cost.
Occupancy and its leverage
Each occupancy has its own leverage limit and loan-level adjustments: a principal residence occupied within sixty days of closing reaches the top of the table, a second home is lower, an investment property lower still. A Kelso buyer who states one occupancy and uses another has misrepresented the loan.
Seller contributions and the down payment
Sellers and other interested parties may pay closing costs, prepaids, and other concessions up to a cap set by the combined loan-to-value, as the snapshot table shows; above the cap the excess reduces the price for sizing the loan. The down payment cannot come from the seller, but a relative’s gift can fund it on a one-unit principal residence.
Ratios, reserves, and the finding
The total ratio counts the full housing payment, insurance included, plus every other obligation, against gross income, up to the automated ceiling in the snapshot; a manual file is held to the lower pair. The finding also sets the reserves, and a Kelso buyer with other financed properties carries more of them.
From a Kelso pre-approval to keys in hand.
Underneath, the Kelso process is any mortgage process; what makes it conventional is the automated finding, the project review where it applies, the leverage by occupancy, and the insurance threshold. Each step below says what happens and what the buyer does.
Pre-approval
Start with the score, the income, the down payment, and the occupancy. A Lendmire loan officer runs the automated system, confirms the leverage and the insurance for the down payment chosen, checks the loan against the conforming limit, compares the structure with FHA and VA on the same numbers, and provides the terms in writing.
Contract and appraisal
With the contract signed, the lender orders the appraisal, or accepts the value the automated system offers where a waiver applies. Seller contributions are checked against the cap for the leverage, and a condominium’s project documents are collected for review before the file moves on.
Underwriting
The underwriter verifies what the automated finding assumed: income, assets and reserves, credit and any seasoning, occupancy, and the property. A manual file follows the lower ratio pair instead. Conditions are issued, documented, and cleared before final approval.
Closing
At closing the loan funds at the chosen leverage, mortgage insurance starts with the first payment if the loan is above the threshold, and escrows for taxes and insurance are set up. A Kelso buyer signs the note and security instrument, occupies the home within the occupancy window, and the agency buys the loan.
A brokerage that prices the whole market.
Lendmire never lends. It reads a Kelso file against conventional, FHA, and VA, matches the program to the profile, and keeps the premium, the cost tier, and the conforming limit in front of the buyer before anything is signed.
Several programs, one set of numbers
Before any recommendation, the Kelso file is priced across the wholesale programs Lendmire works with and run against FHA and VA on the same price, score, and down payment. The buyer sees the payment, the insurance line, and the cash to close for each, and the choice follows the figures.
The insurance explained before the offer
The premium and its exit are decided by the leverage and the score, and a buyer should know both before signing a contract. Lendmire states the structure for the Kelso purchase, shows the payment before and after cancellation, and explains the request and automatic thresholds.
Licensed, consumer-purpose, in writing
What this page shows are the agencies’ parameters and the wholesale overlays; what a specific Kelso loan gets is a written set of terms from a licensed loan officer after the review. Lendmire is a broker, never the lender.
Trusted by buyers & families alike.
Kelso conventional loan FAQs
The questions below come up on nearly every Kelso conventional conversation. The answers are general; the figures in the snapshot above are the program’s current parameters.
What is a conventional loan, and who is it for?
Conventional means conforming: a loan inside the conforming limit, qualified by an automated underwriting system against the agencies’ rules. A Kelso buyer applies through a lender or broker, the lender follows the guides, and the agency buys the loan.
How much do I need to put down on a conventional loan in Kelso?
The snapshot shows the minimums: one for the first-time buyer, one for everyone else, both on a principal residence. The calculator applies either to a Kelso price, and the leverage table gives the figure for second homes and investment property.
What credit score do I need for a conventional loan?
The snapshot shows the floor. More useful than the number is what sits around it: a seasoned derogatory event is inside the rules after its waiting period, a thin file may need manual underwriting with tighter ratios, and the score drives the insurance premium on a Kelso loan.
How does private mortgage insurance work, and when does it end?
The premium is a percentage of the loan a year, divided into the monthly payment, and it is set by the insurer on the score and the leverage rather than by a government schedule. It cancels: by request at the request threshold, automatically at the termination threshold, and no later than the midpoint of the term.
What is the conforming loan limit in Kelso?
There is a county limit, revised annually, and some counties carry a high-balance range above the standard figure. The loan officer confirms the current limit at pre-approval; above it, the jumbo program takes the file.
What debt-to-income ratio does a conventional loan allow?
Up to the automated maximum in the snapshot for a file the automated system approves, measured as the total housing payment, insurance included, plus every other monthly obligation against gross income; a manually underwritten file is held to the lower pair, with the higher figure needing the credit and reserve criteria of the agencies’ matrix. The finding also sets the reserves.
What are HomeReady, Home Possible, and HomeOne?
Three routes to the lowest conventional down payment. HomeReady and Home Possible are for moderate-income buyers, with income limits set against the area median; HomeOne is for first-time buyers at any income. A Kelso loan officer checks which, if any, fits the file.
Can I take cash out with a conventional refinance?
Cash-out is a full refinance at the snapshot’s cash-out leverage, available on a principal residence, a second home, or a rental at each one’s limit. Twelve months on the mortgage being paid off, note date to note date, and six months on title is the general seasoning rule, with exceptions for delayed financing and inheritance.
Is a conventional loan assumable?
Conventional loans are generally not assumable because of the due-on-sale clause. The exception is a subset of adjustable-rate loans, and the loan documents govern.
What happens after my Kelso offer is accepted?
The file moves into appraisal and underwriting, and the calendar is set by the appraisal and the conditions the underwriter adds. No page can promise a date, and this one does not.
Buy in Kelso with a low down payment and insurance that ends.
Ask for a Kelso scenario review to confirm the leverage, the insurance and its exit, and the loan the program supports. Lendmire is a broker licensed in sixteen states for consumer mortgages and is never the lender.
This guide covers Kelso — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Washington, part of Lendmire’s conventional loan program.
Nearby markets in Washington: Longview · Vancouver · Tumwater · Olympia · Lacey · Lakewood · Tacoma · Ocean Shores
Related programs: FHA Loans · Jumbo Loans · Refinance Loans