The Guidance Residential Declining Balance Co-Ownership program offers some advantages you won’t find in most other financing programs.

FIXED LATE PAYMENT FEE

Traditionally, late fees are calculated by conventional providers as a percentage of the late monthly amount due from the customer and are often realized as profit. No interest on late payments is charged under our program. With our Sharia Supervisory Board’s approval, late payments are only subject to a fixed fee that covers the expenses involved in administering a late payment. Under Sharia principles, profiteering off of such a situation is prohibited.

SHARED RISK

If a natural disaster or a public service project initiated by the government forces you out of the property, Guidance will share in the monetary loss that may occur. In a situation where the proceeds provided by insurance or government fall short of the original property value, those proceeds would be shared based upon the percentage of ownership at the point of the loss. In a similar situation, conventional providers will most likely demand repayment of the full financing amount provided.

NON-RECOURSE COMMITMENT

In many conventional programs, other assets, which may include your various investments, such as personal savings accounts, pensions, college funds, and the like, are all subject to seizure in the event of a default. The Declining Balance Co-Ownership Program has a non-recourse clause, meaning that in the event the customer defaults, Guidance does not have recourse against the customer’s other assets. The customer is only at risk for his/her equity position in the property.

NO PRE-PAYMENT PENALTY

There is no pre-payment penalty in our program. If you make advance payments, your ownership will increase more rapidly, and you will shorten the remaining term of the contract. At any point in time, you can fully acquire Guidance’s share and become sole owner of the property without worrying about financial penalties that are occasionally found in conventional contracts.