A few years ago, the consensus was that millennials were not buying homes. Now, research shows that the tables have turned and more millennials are finally deciding to achieve this American milestone.
If you’re a millennial who has decided to take the plunge towards homeownership, choosing a home finance provider will be one of the biggest decisions you make because it will impact your livelihood in the long-run.
An alternative option to traditional mortgage providers — such as an Islamic home finance provider — could be a better option for millennial homebuyers who care about social issues and saving money.
Here are three reasons millennial homebuyers should work with an Islamic home finance provider.
Less Debt, Less Stress
No one wants to be burdened with debt, but the truth is, an overwhelming number of millennials in the US have at least one source of outstanding long-term debt, with 30% having more than one source. Buying a home shouldn’t add to that burden, but with most traditional home finance providers, that’s usually the case. Guidance Residential’s Declining Balance Co-ownership Program is a smart, low stress way to grow home owners’ equity and achieve the American Dream. The program is based on the principles of Shariah (Islamic Legal Jurisprudence) which creates a process in which both parties enjoy the benefits of a transaction without exploitation by either party.
Faith and Finance CAN Go Together
Islam, along with Christianity and Judaism, prohibit the use of interest. Faith-conscious consumers who want to enjoy the benefits of homeownership without compromising their religious beliefs will find that Islamic home finance providers provide the opportunity to do so. Guidance Residential’s home finance program was developed under the supervision of leading scholars of Islamic finance and with federally mandated institutions like Freddie Mac to ensure that it meets Islamic principles and U.S. state and federal laws and regulations.
Social And Economic Justice
Social justice is a concern for many Muslim-American communities in the U.S. The 2008 financial crisis in the home mortgage industry gave rise to an unprecedented level of inequality due to unjust financial practices. Islamic finance leaped into the spotlight due to its ethical and values-based principals. Islam is a way of life that upholds justice, equality, social cohesion and ethical practices. Islamic home finance provider programs avoided the speculative and unfair practices that were prevalent in the housing market, and as a result, its market thrived. Since its inception in 2002, Guidance Residential has grown to provide over $4.6 billion in home financing and is the largest Islamic home financing provider in the U.S.