When it comes to buying a home, most first-time home buyers are overwhelmed with the process and turn towards the option of a more traditional route. For most, this usually means obtaining a loan from either a bank or other lender. While this method may work for some, there are many potential benefits to approaching the purchase of a first home via the path of a phased approach (PHA).

A phased approach (PHA) is a process whereby a home buyer enters an agreement with a lender and purchases a portion of a property first, with the option of purchasing the remainder of the property down the road. This type of purchase offers an alternative to the traditional “all-or-nothing” approach to buying a home. With a PHA, the buyer purchases what’s known as a “property interest” and this consists of a down payment, as well as some rights to ownership of the property. For example, the buyer may have rights to occupy the property for a certain period of time, to influence improvements in the home, and to make alterations to the interior of the home.

The primary benefit of a PHA is that it can help buyers become more financially prepared for the