Is Guidance Residential Muslim owned and managed?

Yes. Guidance Residential is Muslim owned and managed, so the company's values and mission are aligned with the needs of the Muslim community.

Is Guidance Residential a bank?

No. Guidance Residential is a non-bank, Shariah-compliant home financing provider that is not affiliated with a bank or riba-based lender. Many providers that label products as Islamic are affiliated with banks that earn money through riba.

Is Guidance Residential's home financing riba-free?

Yes. The Declining Balance Co-ownership Program does not involve the payment of interest, and the entire institution is 100% riba-free.

What is the authentic Musharakah model?

Guidance Residential's Declining Balance Co-ownership Program is a Musharakah, or equity partnership, in which homeowners receive the benefits of ownership while making acquisition payments. It conforms to the Islamic principle of sharing risk and reward, unlike Ijarah (rent-to-own) or Murabaha (mark-up resale) models, and it does not create debt.

How is real co-ownership created?

An LLC is formed to establish Guidance Residential's co-ownership in the property. This lets Guidance Residential avoid trading in debt and offer a truly Shariah-compliant contract with real risk-sharing.

If the property is lost through a natural disaster or eminent domain and there is a shortfall in the insurance or government proceeds, the loss is shared based on each party's percentage of ownership. Conventional providers first pay off the loan before sharing any remaining proceeds with the homeowner.

Does Guidance Residential have an independent Shariah Board?

Yes. Guidance Residential has a large, diverse, independent Shariah Board of globally recognized scholars, headed by Justice Muhammad Taqi Usmani, who also chairs the Shariah Board for the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

What is the non-recourse commitment?

If the customer defaults, Guidance Residential does not pursue the customer's other assets such as personal savings, pensions, or college funds. The customer is only at risk for their equity position in the property.

What is community-conscious financing?

Unlike banks that will finance any qualified applicant, including businesses that harm society, Guidance Residential does not support causes that run contrary to its values or harm the community.

How does Guidance Residential keep wealth circulating in the community?

Guidance Residential is the largest corporate sponsor of Muslim American nonprofits, helping Muslim wealth stay within the community through a circular economy rather than enriching riba-based lenders.

The Guidance Difference

Explore the difference between Guidance Residential's Declining Balance Co-ownership Program and other home financing options.

Comparison of Guidance Residential's Declining Balance Co-ownership Program against conventional banks or mortgage companies and subsidiaries of banks or mortgage companies, across Muslim ownership, non-bank status, riba-free structure, the authentic Musharakah model, real co-ownership via an LLC, risk sharing, an independent Shariah Board, non-recourse commitment, and community-conscious financing.
	Conventional Banks or Mortgage Companies		Subsidiaries of Banks or Mortgage Companies
Muslim Owned & Managed	No	Yes	No
Not A Bank	No	Yes	No
Riba-Free	No	Yes	No
Authentic Musharakah Model	No	Yes	No
Real Co-Ownership Created via LLC	No	Yes	No
Risk Sharing	No	Yes	No
Diverse, World-Renowned Shariah Board	No	Yes	No
Non-Recourse Commitment	Variable	Yes	Variable
Promotes Community-Conscious Financing	No	Yes	No
Promotes Circulation of Wealth Within Community	No	Yes	No
	Switch to guidance	Pre Qualify Now	Switch to guidance

Understanding the Guidance Difference

What each point in the comparison above means.

Is Guidance Residential Muslim owned and managed?: Yes. Guidance Residential is Muslim owned and managed, so the company's values and mission are aligned with the needs of the Muslim community.
Is Guidance Residential a bank?: No. Guidance Residential is a non-bank, Shariah-compliant home financing provider that is not affiliated with a bank or riba-based lender. Many providers that label products as "Islamic" are affiliated with banks that earn money through riba.
Is Guidance Residential's home financing riba-free?: Yes. The Declining Balance Co-ownership Program does not involve the payment of interest, and the entire institution is 100% riba-free.
What is the authentic Musharakah model?: Guidance Residential's Declining Balance Co-ownership Program is a Musharakah, or equity partnership, in which homeowners receive the benefits of ownership while making acquisition payments. It conforms to the Islamic principle of sharing risk and reward, unlike Ijarah (rent-to-own) or Murabaha (mark-up resale) models, and it does not create debt.
How is real co-ownership created?: An LLC is formed to establish Guidance Residential's co-ownership in the property. This lets Guidance Residential avoid trading in debt and offer a truly Shariah-compliant contract with real risk-sharing.
How is risk shared?: If the property is lost through a natural disaster or eminent domain and there is a shortfall in the insurance or government proceeds, the loss is shared based on each party's percentage of ownership. Conventional providers first pay off the loan before sharing any remaining proceeds with the homeowner.
Does Guidance Residential have an independent Shariah Board?: Yes. Guidance Residential has a large, diverse, independent Shariah Board of globally recognized scholars, headed by Justice Muhammad Taqi Usmani, who also chairs the Shariah Board for the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Read more about our independent Shariah Board.
What is the non-recourse commitment?: If the customer defaults, Guidance Residential does not pursue the customer's other assets such as personal savings, pensions, or college funds. The customer is only at risk for their equity position in the property.
What is community-conscious financing?: Unlike banks that will finance any qualified applicant, including businesses that harm society, Guidance Residential does not support causes that run contrary to its values or harm the community.
How does Guidance Residential keep wealth circulating in the community?: Guidance Residential is the largest corporate sponsor of Muslim American nonprofits, helping Muslim wealth stay within the community through a circular economy rather than enriching riba-based lenders.

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How does Islamic financing work?

See a side-by-side comparison of Guidance Residential vs UIF on HalalWallet, an independent halal home financing comparison platform.

The Guidance Difference

Conventional Banks or Mortgage Companies

Subsidiaries of Banks or Mortgage Companies

Understanding the Guidance Difference

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