bismillah
1-866-484-3262

Unique benefits of the program

Guidance Residential offers 6 unique benefits that distinguish it from other home financing providers. These benefits provide a transparent, consumer friendly home financing and is consistent with the Muslim faith’s strict prohibition on riba (usury).

co-ownership

Co-ownership

Guidance Residential and home buyers each own a percentage as co-owners. Home buyers increase their share over a period of time through a monthly payment.

risk-sharing

Risk sharing

Guidance Residential shares the risk with the home buyer in case of natural disasters, eminent domain or foreclosure.

riba-free

Riba-free

The Declining Balance Co-ownership Program, does not involve payment of interest. It is 100% riba-free.

penalty

No pre-payment penalty

There is no pre-payment penalty required by Guidance Residential when a home buyer wants to pay ahead of the agreed schedule.

late-payment

Capped late payment fees

In case of late payments, Guidance Residential charges only a capped fee equaling $50 or less, exclusively meant to cover the expenses involved in administering a late payment, rather than the standard 5% penalty.

non-resource

Non-recourse commitment

In the event of payment default, Guidance Residential does not pursue any of the home buyer’s other assets.

The Guidance Residential Difference

A comparison of Musharaka or Declining Balance Co-ownership Program to a conventional mortgage.

Shariah-Compliant

(Declining Balance Co-ownership Program)

Conventional Mortgages

buyer-coowner

The home buyer and Guidance Residential agree to be co-owners in the property.

1
buyer-lender

The home buyer arranges a loan from a bank or mortgage company according to a fixed or floating interest rate.

ownership

The two parties buy the home and the ownership of the property is determined by each party’s down payment.

2
ownership-and-loan

The home buyer purchases the home.

45-55

The home buyer makes monthly payments to Guidance Residential. Part of the payment is a utility fee for full use of the home and the rest is a payment to increase the buyer's ownership in the property.

3
100-per-loan

The home buyer makes monthly payments to repay principal and interest on the loan.

100-per-home

Over the course of the arrangement, the home buyer purchases all of Guidance Residential’s ownership stake and becomes the sole owner of the property.

4
paid-off-loan

Over the course of the loan, the home buyer repays the debt in full.

Endorsements from eminent thinkers

Find out more about what scholars in Islamic doctrine have to say about Guidance Residential’s Declining Balance Co-ownership Program

Fatwa or certifications of the program

Learn more about the legal opinion provided by the independent Shariah Board on our program

Facebook

45,000 and growing. Come join us and stay connected.

Join Us
Please wait
Loading...