To pay installments for buying a resale home in the United States, buyers typically use mortgage financing, seller payment plans, or home equity loans. Mortgage financing involves securing a loan from a bank or mortgage lender, with terms ranging from 15 to 30 years. Fixed-rate mortgages offer predictable monthly payments, while adjustable-rate mortgages (ARMs) start with lower rates that may increase over time. Seller payment plans allow buyers to make partial payments upfront and installments directly to the seller, often with interest. Home equity loans or lines of credit (HELOCs) let homeowners borrow against existing equity to cover purchase costs. Down payments, usually 5-20% of the home price, reduce the loan amount. Closing costs, including origination fees and property taxes, are typically 2-5% of the purchase price.

Mortgage financing dominates U.S. home purchases, with 75% of buyers relying on loans (Federal Housing Finance Agency, 2022). Fixed-rate mortgages account for 65% of loans due to their stability, while ARMs are preferred for short-term savings (U.S. Census Bureau, 2023). Seller payment plans, though less common (5-10% of transactions), appeal to buyers with strong credit but limited savings (National Association of Realtors, 2021). HELOCs are used by 15% of homeowners to finance purchases, leveraging existing equity (Federal Reserve, 2023). Down payment requirements vary: first-time buyers average 13%, while repeat buyers pay 20% (Fannie Mae, 2023). Default risks rise with smaller down payments, as 20% down loans have a 30% lower default rate than 10% down loans (Consumer Financial Protection Bureau, 2022). Installment plans must comply with the Truth in Lending Act (TILA), mandating clear disclosure of interest rates and fees. Buyers should compare loan estimates from multiple lenders to optimize costs and terms.