What Renters in the Hampton Roads Area Should Know About Credit and Home Loans

One of the most common things I hear from renters is this:

“I’d love to buy a home, but my credit probably isn’t good enough.”

The truth? You don’t need perfect credit to become a homeowner — and you may be much closer than you think.

In this post, we’ll break down what credit score you actually need, which loan programs are available for different credit ranges, and what steps you can take now (even if you’re not ready to buy yet).

Credit Isn’t Everything — But It Does Matter

When you apply for a mortgage, lenders look at a few core things:

• Your credit score
  
  
• Your debt-to-income ratio
  
  
• Your income and job history
  
  
• How much you have saved for a down payment
  
  

Your credit score is important, but it’s just one part of the picture. And different loan programs have different minimum score requirements — some of them are more flexible than you might expect.

Minimum Credit Scores by Loan Type

Let’s look at the most common loan options for first-time buyers and what kind of credit scores they typically require.

FHA Loans – Minimum Score: 580

FHA loans are one of the most accessible loan programs and are often the go-to choice for first-time buyers.

• 580+ credit score allows you to put just 3.5% down
  
  
• Scores between 500–579 may qualify with 10% down, though fewer lenders allow this
  
  
• Designed for buyers with lower credit or limited savings
  
  
• Monthly mortgage insurance is required
  
  

This is a great option if your credit is average or you’ve had some past challenges.

Conventional Loans – Minimum Score: 620

Conventional loans are a great choice for buyers with slightly stronger credit and a bit of savings.

• Minimum score is typically 620 or higher
  
  
• You may qualify with as little as 3% down through Conventional 97 programs
  
  
• Monthly mortgage insurance can be lower than FHA for those with good credit
  
  

If you’ve been paying rent on time and have stable income, you might qualify for this — even if you’ve never owned a home before.

VA Loans – No Official Minimum (Typically 620+)

If you’re a veteran, active-duty military member, or qualifying spouse, a VA loan may be your best option.

• No official credit score minimum (though most lenders prefer 620+)
  
  
• 0% down payment required
  
  
• No private mortgage insurance (PMI)
  
  

Given the strong military presence in the Hampton Roads area, this is an important option to know about.

What If Your Credit Score Is Below 600?

It doesn’t mean you’re out of the game — it just means it may take a little planning.

Many people can raise their credit score significantly in just 3–6 months with a few focused steps:

• Pay down credit card balances to under 30% of your limit
  
  
• Always pay on time (even the minimum)
  
  
• Don’t open or close any credit accounts
  
  
• Monitor your credit reports for errors (and dispute them)
  
  
• Avoid large purchases or new debt while preparing
  
  

Some lenders will even do a soft credit pull (no impact to your score) to help you understand where you stand and what to work on.

Tip: I work with a great local lender who specializes in helping renters prep early — even if they’re 6–12 months away from buying.

Common Misconceptions About Credit and Buying a Home

Let’s clear up a few myths:

Myth #1: You need excellent credit (740+)
Truth: Most first-time buyers purchase with scores between 620–680

Myth #2: A mortgage credit check will hurt your score
Truth: A single check has minimal impact — and rate shopping within 14–30 days only counts once

Myth #3: You can’t qualify if you had a late payment or old collection
Truth: Many buyers qualify with imperfect histories

Myth #4: Credit takes years to improve
Truth: Focused changes can improve your score significantly in just a few months

What Most First-Time Buyers Actually Have

According to national mortgage data, many first-time homebuyers have credit scores in the mid-600s — not perfect, but enough to qualify.

You don’t need to wait until your credit is flawless. You just need to know your options and take the next step at your own pace.

Not Ready Yet? Here’s What You Can Do Now

Even if you're not ready to buy this year, now is a great time to:

• Check your credit (you can do this for free at sites like Credit Karma or AnnualCreditReport.com)
  
  
• Start a simple savings plan
  
  
• Download our First-Time Buyer Checklist to see what you’ll need later
  
  
• Talk to a lender who can give you personalized feedback
  
  
• Stay in the loop with updates and guidance
  
  

The sooner you start preparing, the more confident you’ll feel when you’re ready to move forward.

Final Thoughts: You May Be Closer Than You Think

If you’ve been renting and assuming you don’t qualify to buy — I encourage you to explore your options.

Whether you want to talk to a lender now or simply get a checklist to start planning, I’m happy to help however I can.

There’s no pressure. Just good info.

Want to Learn More?

• Need help checking your credit or seeing where you stand? I can connect you with a lender who works with first-time buyers every day.
  
  
• Want the First-Time Buyer Checklist? Just let me know and I’ll send it over.
  
  

Let’s build a plan that works for you, whether that’s now — or a year from now.