POST TAGSFinancial Planning Purchase
Blog posted On March 10, 2022
The Halal Financing Program is a home buying solution that can offer more buyers a path to homeownership. Through our partnership with the Ijara Community Development Corporation, we are one of the only companies in the nation to offer Islamic-compliant lending.
Here’s how it works:
What’s the main benefit of Halal Financing?
Islamic-compliant financing uses a long-established process called Ijara-wa-Iqtina (lease and ownership). Through this process, borrowers have a rent-to-own agreement. By making rent payments to a non-mortgage company (in this case, the Ijara Community Development Corporation), the home buyer does not make interest payments. Then, Ijara Community Development Corporation will make appropriate payments to the mortgage lender. The Ijara Community Development Corporation also handles servicing, insurance, and property taxes. With each rent payment to the Corporation, the homeowner gains equity the same way any borrower would by paying their mortgage.
If you would learn more about out Halal Financing Program, let us know!
Sources: Ijara CDC