{"id":5435,"date":"2023-09-12T09:00:57","date_gmt":"2023-09-12T09:00:57","guid":{"rendered":"https:\/\/www.guidanceresidential.com\/resources\/?p=5435"},"modified":"2024-02-27T18:17:23","modified_gmt":"2024-02-27T18:17:23","slug":"can-muslims-get-a-mortgage","status":"publish","type":"post","link":"https:\/\/www.guidanceresidential.com\/resources\/faith-based-financing\/can-muslims-get-a-mortgage\/","title":{"rendered":"Can Muslims get a mortgage?"},"content":{"rendered":"\n

Is a mortgage allowed in Islam?<\/h2>\n\n\n\n

Islamic scholars generally agree that it is not permissible for Muslims to buy a home using a traditional mortgage loan. That is because at the heart of a traditional mortgage is riba<\/em><\/a>, the practice of lending and borrowing money at interest. <\/p>\n\n\n\n

Some scholars say a traditional mortgage may be permitted under extenuating circumstances, where buying a home is considered a need and no alternative to a mortgage exists. However, Islamic finance<\/a> alternatives to a mortgage now exist in the West. Where reasonable alternatives exist, the exception would not apply.<\/p>\n\n\n\n

For faith-conscious Muslims, Islamic home financing<\/a> is clearly the way to go when buying a house. <\/p>\n\n\n\n

Muslims can get an alternative mortgage if it’s shariah-compliant.<\/h2>\n\n\n\n

Shariah-compliant alternatives to a mortgage<\/a> do exist, and they are now not only accessible in America but competitively priced as well.<\/p>\n\n\n\n

What is an Islamic mortgage?<\/h3>\n\n\n\n

An Islamic mortgage are based on an entirely different foundation from a traditional mortgage loan. A halal mortgage is not a loan at all, but an entirely different type of business transaction based on principles that are acceptable under Islamic law.<\/p>\n\n\n\n

How can you ensure that your home financing is sharia compliant? <\/h3>\n\n\n\n

With a little research, you can ensure that your home financing truly complies with sharia law.<\/p>\n\n\n\n

  • First, choose a home financier that solely provides Islamic home financing. It\u2019s best to avoid choosing a bank that provides so-called Islamic mortgages on the side while engaging in many activities that are not halal. Read more about why below.  <\/li>
  • Then, check that the financier\u2019s services are riba<\/em>-free. The entire foundation of the financing should be structured on sound Islamic approaches. The preferred option in the West is a co-ownership arrangement, known as musharakah<\/em>, in which the customer and financier buy the house together as partners. <\/li>
  • And finally, ensure that the financier is approved by a reputable board of Islamic scholars. <\/li><\/ul>\n\n\n\n
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