To purchase a home in installments in the United States, consider securing a mortgage loan or entering a rent-to-own agreement. For a mortgage, obtain pre-approval, save for a down payment (typically 5-20% of the purchase price), and secure a fixed or adjustable-rate loan through a lender. With a rent-to-own contract, pay an initial option fee (1-5% of the home price) and monthly installments that include rent plus an equity share. After meeting the agreed term, you purchase the home outright. Both options require thorough financial planning, credit checks, and legal counsel to avoid risks like default or market fluctuations.

Mortgage loans remain the primary method due to their structured terms and government-backed programs like FHA loans (3.5% down payment minimum). The U.S. Census Bureau reports 68% of home purchases in 2022 involved mortgages. Rent-to-own agreements, however, are less common (3.5% of transactions in 2021 per the CFPB) due to higher risks. For example, a 2023 Federal Reserve study found 22% of rent-to-own buyers faced default or lost equity during market downturns. Mortgages offer predictable payments and tax benefits, while rent-to-own suits those with short-term financial constraints but requires careful negotiation to avoid hidden fees or balloons. Data from the National Association of Realtors underscores that 63% of first-time buyers use mortgages, highlighting their accessibility despite stricter lending standards post-2008. Both methods demand rigorous budgeting, as missed payments can trigger penalties or loss of investment.