Guidance Residential's Declining Balance Co-ownership Program is an ethical, equitable and participatory home financing method where real assets are purchased and certain risks are shared with mutual agreement between Guidance and the home buyer.
In the Declining Balance Co-ownership Program, Guidance Residential assumes the role of an equity partner with the home buyer. The fundamental difference between Guidance Residential's Declining Balance Co-ownership Program and a conventional mortgage program is that the former is based on a partnership model while the latter relies on a lender-borrower relationship. In the conventional mortgage system, the home buyer borrows money on interest and enters into a loan contract. In the Guidance Residential's proprietary Islamic Home Financing model, the home buyer enters into an equitable, Shariah-compliant partnership contract and enjoys the benefits of home ownership without compromising faith-based principles.
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.