What Renters in the Hampton Roads Area Should Know

If you’ve been renting in the Hampton Roads area, you’ve probably heard this advice before: “You need 20% down to buy a home.”

That may have been true for previous generations, but it’s no longer the rule — especially for first-time buyers.

In fact, many people are purchasing homes with as little as 3%, 1%, or even zero down. The key is knowing what programs are available and whether you qualify.

This article breaks down the most common low down payment options and explains how renters are becoming homeowners with far less than they thought they'd need.

FHA Loans – 3.5% Down

FHA loans are backed by the Federal Housing Administration and are specifically designed to make homeownership more accessible. They’re one of the most popular options for first-time buyers.

• Minimum down payment: 3.5%
  
  
• Typical credit score needed: 580+
  
  
• Who it's for: Renters with steady income but limited savings or lower credit scores
  
  
• Things to know: Mortgage insurance is required for the life of the loan
  
  

This program is widely used across Hampton Roads and is a great option for renters with average credit who want a lower barrier to entry.

Conventional 97 – 3% Down

Many people assume that conventional loans always require a large down payment, but the Conventional 97 program allows qualified buyers to purchase a home with just 3% down.

• Minimum down payment: 3%
  
  
• Typical credit score needed: 620+
  
  
• Who it’s for: Buyers with good credit and a bit of savings
  
  
• Things to know: May offer lower monthly mortgage insurance than FHA, especially with stronger credit
  
  

This is a strong option for renters who have solid financials and want to build equity sooner.

VA Loans – 0% Down (for Those Who Qualify)

Given the strong military presence in the Hampton Roads area, many renters here may be eligible for a VA loan — one of the most powerful financing options available.

• Minimum down payment: 0%
  
  
• Typical credit score needed: No official minimum, but most lenders prefer 620+
  
  
• Who it’s for: Veterans, active-duty service members, and some surviving spouses
  
  
• Things to know: No mortgage insurance required
  
  

If you’re eligible, this loan is often the most cost-effective way to become a homeowner.

1% Down and Local Down Payment Assistance

In some cases, renters can access programs offering 1% down — or even assistance covering part of the down payment entirely. These programs may include:

• Grants
  
  
• Matched savings programs
  
  
• Forgivable second loans
  
  
• State or local down payment assistance funds
  
  

Availability can vary, but there are often options available in the Hampton Roads area. A lender who specializes in first-time homebuyer programs can walk you through what might be available based on your situation.

What If You’re Not Ready to Buy Yet?

If you’re not ready right now, that’s completely fine — but understanding the process ahead of time can make things easier when the timing is right.

Here are a few smart steps renters can take now:

• Review your credit score and start improving it if needed
  
  
• Set a savings goal (even $3,000–$5,000 can go a long way)
  
  
• Learn about first-time buyer loans
  
  
• Get pre-qualified when you're comfortable
  
  
• Use a checklist to stay on track (we have one you can use)
  
  

What Does That Look Like in Real Dollars?

Here’s an example of how a low down payment might apply to a $250,000 home:

If you’re currently paying $1,800–$2,500 per month in rent, your monthly mortgage on a home like this may not be far off — especially with today’s programs.

Final Thoughts

The truth is, many renters are closer to buying a home than they realize. You don’t need perfect credit. You don’t need to have saved 20%. And you definitely don’t need to figure it out alone.

Understanding your options is the first step.

If you're even a little curious about what buying could look like for you, we have two easy ways to help:

• Download our First-Time Buyer Checklist to see what you’d need to get started
  
  

Or reach out and we’ll connect you with a local lender who can give you a no-pressure look at your options