Islamic Financing in the US
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Question
1. Are there any legitimate Islamic Home Mortgages that you are aware of here in the US?
2. The '' Declining Co-ownership'' program that one of the Islamic banks that I am looking into, Guidance Finance Group, uses to finance homes, is that in accordance with the Sharia?
3. Is it ok for them to peg their rate of return to the prevailing interest rates and to borrow money from Financial Institutions like Fannie Mae?
Answer
Assalamu alaykum
In the name of Allah the Inspirer of truth.
The following are some of the companies that have been considered to provide truly Shari'a Compliant Home Loans by some of the great scholars in the field of Islamic Home Finance and we feel comfortable in recommending them.
Guidance Financial and HSBC Amanah Home Finance have been considered to be truly Shari'a compliant by Mufti Taqi and other experts in the field http://albalagh.net/qa/0015.shtml .
Likewise, UM Financial Toronto www.UMFinancial.com is also supervised by an independent board of well known scholars of Toronto.
And Allah knows best.
Wassalam
Abdurrahman ibn Yusuf
This answer was published by SunniPath and is preserved as written. Rulings can depend on circumstances; for your own situation, consult a qualified scholar.
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