Why Millennial Home Buyers Should Choose Shariah Compliant Home Financing
If you are a millennial planning to buy your first home in 2016 here are three reasons to consider Shariah compliant home financing:
- Less debt equals less stress: A research study conducted by The Wall Street Journal last year revealed that a staggering 81% of millennials in the U.S. have at least one source of outstanding long term debt and 30% have more than one source. Carrying high debt can create psychological pressure that is harmful to one’s well-being. Unfortunately a majority of the students suffer from high debt after graduation due to college loans and credit cards. Buying a home adds to that loan burden. There IS however, an alternative. Guidance Residential’s Declining Balance Co-ownership Program is a smart, low stress way to grow home owners’ equity and fulfill 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: In all three Abrahamic faiths (Judaism, Christianity, and Islam), charging usury or interest is a prohibited act. Our Shariah-compliant home financing program has been developed under the supervision of leading scholars of Islamic Finance and with leading financial institutions like Freddie Mac. With Guidance Residential’s home financing program, faithful communities who deeply care about their religious tradition can exercise their right of home ownership without compromising their values.
- Social Justice is a critical need: 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, or Shariah-compliant finance, leapt 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. Shariah-compliant home financing programs avoided the speculative and unfair practices that were prevalent in the housing market. As a result, the Islamic home financing market thrived even during the global financial crisis. Since its inception in 2002, Guidance Residential has grown to fund over $3.5 billion in home financing and is the largest Shariah-compliant home financing provider in the U.S.