Walters was born in Boston, Massachusetts, and grew up in Marblehead, Massachusetts. After graduating from high school, he attended New York University and studied film for two years and studied acting at The Actors Space in New York City.
While attending college, he was discovered at a bank by a casting agent who placed him in three high-profile commercials for Levi's 501 Jeans. He then moved to Los Angeles to pursue an acting and musical career. He played a bit role on Everyday Heroes. His film debut came in 1991 with the movie Shout, alongside John Travolta, Heather Graham, and Gwyneth Paltrow. Walters performed the song "Rockin' the Pad" on the Shout soundtrack album.
In 1992, Aaron Spelling cast Walters as the lead on the Fox series The Heights, in which he also sang the theme song "How Do You Talk to an Angel?." The single reached number 1 on the Billboard Hot 100 on November 14, 1992. It was also nominated for an Emmy Award for "Outstanding Individual Achievement in Music and Lyrics". (The award went to Liza Minnelli.) The show was canceled by Fox, but it launched his music career when Atlantic Records took an interest in Walters and signed him to a recording contract.

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