Sharia Financing Allows US Muslims to Achieve Home Ownership Dream

Home ownership has long been an important part of the American dream. But some devout Muslim-Americans shy away from buying a home because the interest paid on a conventional mortgage is considered wrong in Islam. VOA’s Mana Rabiee reports on a growing trend in Islamic financing which is making the dream of home ownership come true for Muslims in America.

Nabby sahak bought this house in virginia in 2010 for his mother khadijah a practicing muslim from afghanistan he always wanted to buy a home for his parents but avoided the purchase for many years that’s because paying interest on money as in the conventional mortgage loan is not allowed in strict islamic practice everybody in our family was in one way or another

Against the idea of conventional mortgages musculus available to himself will not the problem is that we are muslim and it is considered a sin muscle thence ahac told his parents about a lending company called a jar alone spaced in michigan one of several islamic finance companies in the united states they cater to a niche market of muslim american home buyers by

Providing home ownership products which comply with islamic principles they got really excited when they heard that there was in that they were able to still buy a house and not compromise the religious values that was a big day for them guidance residential based in the virginia suburbs of washington is one such company whose sample table is its spokesman for the

Majority it’s a relief to know that this actually does exist we are in a sense impacting the home ownership rates of muslim americans in a positive way companies like guidance sell homes through ownership contracts that are shariah compliant and do not charge interests in the conventional sense are you instead says georgetown university law professor bob acaba

He the arrangement is either a type of sale or rent contract or a partnership agreement in the same contract the islamic bank would go out and purchase the asset and sell it to its customer at a markup or rented in a rent-to-own type agreement in a partnership type both bank and the customer go and purchase the asset together the customer of a little by little

Gradually purchased the bank share and at the and would be the owner of the of the acid good to go the arrangement works because islam does allow making a profit on a trade transaction or the sale of a commodity in this case the house the consumer never feels that they’re actually paying interest on a monetary loan you serve those that america they found out that

We are very comfortable here we are at peace everywhere we go we tell people we got an islamic loan and are very happy justin sharia financing in the us has accounted for less than three billion dollars in home sales over the past ten years a small fraction of the total us housing market but islamic finance companies are helping more and more practicing muslims

Like the seahawks buy into a piece of the american dream mana rabi voa news sterling virginia

Transcribed from video
Sharia Financing Allows US Muslims to Achieve Home Ownership Dream By Voice of America