What is Guidance Residential’s relationship with Freddie Mac & Fannie Mae?
Guidance Residential partners with Freddie Mac and Fannie Mae to benefit its customers.
Freddie Mac and Fannie Mae are not banks, nor are they lending institutions. They are government-owned corporations that help support the home financing market.
The ability to buy and sell assets that we own — in this case, an ownership stake in a property — to any suitable buyer is permissible and adheres to our commitment to Islamic finance principles.
Here’s how it works:
- Guidance Residential partners with home buyers to buy a home together as co-owners.
- Freddie Mac or Fannie Mae makes investments to take a co-ownership stake in properties financed under the program.
- This enables Guidance Residential to use the funds to assist more home buyers.
- The contracts remain the same — completely halal.
This arrangement has been evaluated and approved as halal by our independent shariah supervisory board. The result is peace of mind for our customers, the homeowners.