Why waiting for the ‘perfect’ market could cost you more than buying today
Marcus had been saving since he was twenty-three. By the time he turned thirty-one, the Norfolk transplant had $28,000 set aside — enough, he thought, to finally stop renting and plant roots in Hampton Roads. Then he sat down with a lender. “Between the down payment, closing costs, and the rate they quoted me, I felt like the finish line had moved,” Marcus said. “I came in thinking I was ready, and I left wondering if I’d ever be ready.”
It’s a story that Douglas Hoven hears constantly. Hoven, a former Navy submariner turned Realtor on RE/MAX Prime’s Ron Sawyer Team, has watched a generation of aspiring homeowners in the Tidewater region talk themselves out of buying — not because they lack the means, but because they lack a clear roadmap. In a market still digesting elevated interest rates and historically low inventory, Hoven says the biggest obstacle first-time buyers face isn’t the economy. It’s the gap between what they assume homeownership costs and what it actually takes.
“The buyers I worry about are the ones who keep waiting for conditions that may never come,” Hoven said. “Rates might soften a little. Prices probably won’t drop. Every year you wait is another year of equity you don’t build.”
The Hampton Roads Advantage: A Market Hiding in Plain Sight
Hampton Roads doesn’t get the same headlines as Northern Virginia or Richmond, but that relative obscurity works in buyers’ favor. The region — spanning Norfolk, Virginia Beach, Chesapeake, Suffolk, Newport News, and Hampton — remains one of the more affordable metro areas on the East Coast for entry-level buyers. Median home prices in many submarkets still land well below the national median, and the steady employment base anchored by Naval Station Norfolk, Langley Air Force Base, and a growing tech-and-defense contractor ecosystem keeps demand relatively stable.
Hoven points to neighborhoods in Chesapeake’s Great Bridge corridor, Suffolk near the Route 58 growth belt, and the older established blocks of Portsmouth as areas where first-time buyers can still find structurally sound homes under $300,000 — with the right representation and patience.
“People think they have to compete with cash buyers and waive every contingency to win here,” he said. “That’s true in certain price ranges and certain zip codes. But there’s a whole inventory of homes that cash investors don’t want, and a prepared buyer with financing can walk right in.”
What ‘Being Ready’ Actually Means
When Hoven sits down with a first-time buyer, the first question he asks isn’t about budget. It’s about credit. He walks clients through a simple framework he calls the “three pillars” of purchase readiness: credit score, debt-to-income ratio, and cash reserves — and he’s candid that all three need to be in order before anyone should be scheduling showings.
A credit score of 620 is the floor for most conventional financing and FHA loans, but Hoven pushes buyers to aim for 680 or higher. Each tier above 680 unlocks meaningfully better rate pricing. On debt-to-income, lenders generally want to see total housing costs — mortgage, insurance, taxes — at or below 43% of gross monthly income, though Hoven says most competitive buyers aim lower. And on cash, he walks through a number that surprises most renters: between the down payment, closing costs (typically 2–4% of purchase price in Virginia), prepaid escrow items, and a modest repair reserve, a buyer purchasing a $275,000 home should expect to bring $18,000–$25,000 to the table even with a 3.5% FHA down payment.
“That number isn’t meant to discourage anyone,” Hoven explained. “It’s meant to stop surprises at the closing table. I’d rather have that conversation early so we can build a real plan.”
VA Loans: The Most Underused Tool in the Market
Given Hampton Roads’ enormous military population, Hoven spends significant time educating eligible buyers — active-duty service members, veterans, and surviving spouses — about VA loan benefits that many aren’t fully utilizing. The VA loan requires no down payment and no private mortgage insurance, the two largest upfront costs that derail first-time conventional buyers. In a market where saving a 20% down payment on a $300,000 home means accumulating $60,000, that difference is transformational.
Marcus, as it turned out, had four years of prior service before his engineering career. Hoven connected him with a VA-approved lender, and his financing picture changed overnight. “I didn’t even know I still had eligibility,” Marcus said. “Once Doug explained it, the whole thing became real.”
Hoven also walks eligible buyers through Virginia Housing first-time buyer programs, which layer on top of federal options. Virginia Housing’s Down Payment Assistance grants and deferred second-mortgage loans can cover part of the down payment and closing costs for income-qualifying buyers — effectively allowing some first-time purchasers to close with very little cash out of pocket.
“Between VA benefits and Virginia Housing programs, there are buyers in this market who genuinely don’t need $20,000 in savings to close,” Hoven said. “But they need an agent who knows how to structure the deal. Not every agent does.”
Making Peace With the Rate — and Planning Around It
Even with VA financing or down payment assistance, today’s interest rates demand a clear-eyed conversation about monthly payment. At 6.7%, a $275,000 loan carries a principal-and-interest payment around $1,780 per month — before taxes and insurance. That’s real money. Hoven doesn’t sugarcoat it.
But he also puts it in context. With rental rates for comparable homes in Norfolk and Virginia Beach routinely exceeding $1,800 per month — and rising — buying at today’s rates can represent a lateral move on monthly cost with a critical difference: the mortgage payment builds equity; the rent check doesn’t. Hoven also encourages buyers to think about rate strategy over time. With analysts projecting 30-year fixed rates could drift toward the low-to-mid 6% range over the next 18–24 months, a buyer who closes today can refinance later. “You’re not marrying the rate,” Hoven says. “You’re marrying the house. Rates can always be renegotiated. The purchase price is forever.”
For buyers whose budgets are genuinely tight, Hoven explores seller-paid temporary buydowns — where the seller contributes a lump sum at closing that effectively reduces the buyer’s interest rate by two points in year one and one point in year two. On a $275,000 loan, that could reduce the first-year payment by nearly $300 per month, providing breathing room during the adjustment period.
The Inspection Is Not the Enemy
One pattern Hoven has noticed among first-time buyers in competitive stretches of the market: the temptation to waive the home inspection to make an offer more attractive. He counsels strongly against it — especially for buyers purchasing older housing stock in established neighborhoods.
Hampton Roads has a significant inventory of homes built between 1960 and 1990. These properties often carry deferred maintenance — aging HVAC systems, original electrical panels, older roofing, and in some areas, crawl-space moisture issues tied to the region’s high water table. An inspection isn’t a transaction obstacle; it’s a negotiating tool. Hoven has helped buyers use inspection findings to negotiate seller credits that paid for a new roof or HVAC system before closing — effectively reducing the true purchase price.
“Skipping an inspection to win a house is like skipping a physical to get life insurance,” Hoven said. “You might get away with it. But the risk isn’t worth it, and you’ll know it the first time something breaks.”
Start the Conversation Before You Think You’re Ready
Marcus closed on a three-bedroom home in Chesapeake eight months after that first discouraging lender meeting. Using his VA benefit, he brought $4,200 to closing — mostly prepaids and a home warranty he purchased for peace of mind. His mortgage payment came in $90 below what he was paying in rent.
“Doug told me in our first meeting that I was closer than I thought,” Marcus said. “He was right. I just needed someone to show me the path.”
That, ultimately, is Hoven’s pitch to first-time buyers in Hampton Roads: don’t self-disqualify. The market is harder than it was in 2021, but it is not closed. Programs exist, tools exist, and inventory — while tight — is there for buyers who come prepared, work with experienced representation, and resist the temptation to wait for a market that may never arrive.
“The best time to buy was three years ago,” Hoven said, with the ease of someone who’s delivered the line many times. “The second-best time is when you’re ready. My job is to help you get ready faster than you think.”