What is Guidance Residential’s relationship with Freddie Mac & Fannie Mae?

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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.