To buy a new home with installments, follow these steps: First, secure pre-approval from a lender to determine your budget. Next, negotiate payment terms directly with the seller, including down payment percentage, installment duration, and interest rates. Ensure the contract specifies clear conditions for default, late payments, and property transfer. Secure title insurance and legal counsel to protect your interests. Finally, close the transaction by paying the agreed-upon deposit and initiating regular installments. This method is common in markets with limited mortgage access but requires careful negotiation to avoid predatory terms.

The installment method is less prevalent in the U.S. due to established mortgage systems, but it remains viable for cash-strapped buyers or unconventional markets. According to the U.S. Census Bureau (2022), 72% of home purchases involve mortgages, with median down payments at 13%, compared to 20-30% in installment-based systems. However, in rural areas, 18% of buyers use alternative financing like land contracts or seller financing, often with higher interest rates (Federal Housing Finance Agency, 2021). Installment plans can bypass credit score requirements but expose buyers to risks like rising rates or repossession. For example, a 2023 National Association of Realtors study found that 12% of U.S. buyers used non-traditional loans, with 60% citing affordability concerns. While installment agreements offer flexibility, they demand rigorous due diligence to avoid long-term financial strain. This approach suits short-term buyers or those prioritizing immediate ownership over traditional financing benefits.