To secure a down payment loan for a resale home, first research state and federal programs offering grants or low-interest loans, such as FHA loans (3.5% down), VA loans (0% down for veterans), or state-specific initiatives like the CHFA in New York. Save for closing costs and improve your credit score (aim for 620+ to qualify for favorable rates). Explore gift funds from family or employer-sponsored housing programs. Negotiate seller contributions (up to 6% of the purchase price) or use a down payment assistance program that covers up to 5% of the loan.

Resale homes often require larger down payments than new constructions due to market competition and seller expectations. For example, the National Association of Realtors (NAR) reports that first-time buyers typically need a 13% down payment, while repeat buyers require 15%. Federal Housing Administration (FHA) loans, requiring just 3.5% down, are popular for resale properties because they accept lower credit scores (580+) and flexible income sources. State programs like California’s CalHFA offer grants covering up to 3% of the down payment. Data from Experian shows that a credit score above 720 reduces mortgage denial rates by 30%, highlighting the importance of credit repair. Seller contributions, permitted in 40% of U.S. markets, can offset down payment costs, as noted by NAR’s 2023 report. Combining these strategies reduces financial barriers, making resale home purchases accessible despite rising home prices.