Islam is based on a foundational principle of establishing justice in all matters. When it comes to financial transaction, Islamic Law mandates that risk must be equally shared so that both parties enjoy the benefit of the transaction without exploitation by either party. This is the very reason why Riba is prohibited in Islam, because through Riba money is used to create more money out of thin air which creates societal imbalance and perpetuates income inequality. Guidance Residential's Declining Balance Co-ownership program is an
ethical and participatory financial transaction where money is used to purchase real asset and the risks are shared
in a just and equitable manner between Guidance and its customer.
Homeownership is an essential part of the American Dream. Guidance Residential makes this dream a reality for Muslim-Americans by offering a Declining Balance Co-ownership Program that establishes an equitable co-ownership between the customer and Guidance Residential.
The agreement makes the transaction a form of partnership rather than an interest-bearing loan as in the case of a conventional mortgage program. While adhering to the principles of the Muslim-Americans, Guidance Residential is helping all consumers achieve their goal of homeownership and gain protections and competitive benefits that are not available with conventional mortgages.