Our Halal Financing Program Increases Homeownership Opportunities
In Islam, homeownership looks different. Islamic faith approaches financial matters in a specific way that doesn’t necessarily match up with typical lending procedures in the U.S.
At MortgageDepot, we believe that matter our background, culture or faith, we all deserve a chance at homeownership. That’s why we offer accessible homeownership for all through our Halal financing program.
What is Halal Financing?
Our Halal financing program offers our clients a Sharia-compliant alternative to traditional home loans. While it’s targeted at those of the Islamic faith, it is open to any interested buyers who qualify.
To remain in step with Sharia, or Islamic Law, a home loan program must have these characteristics:
- Money cannot be made from money, so the loan program cannot charge interest.
- Loan money cannot be used to fund activities violating Islamic beliefs, such as gambling or alcohol consumption.
- The lending process includes a specific Sharia-compliant contract.
- The transaction must be equitable and transparent under Islamic Law.
How Does Halal Financing Work?
Our Halal financing program brings homeownership opportunities to the Islamic community. If you’re interested in this accessible program, here’s what you need to know about the process:
- Your loan will close with an inter-vivos revocable trust, and you will act as the trustee.
- The Ijara Community Development Corporation will manage loan servicing, mortgage insurance, property taxes and other aspects of your loan.
- You will submit loan payments to the Ijara Community Development Corporation, and with each payment made, you will gain equity in your home.
- You’ll make payments according to an agreed-upon schedule, similar to a mortgage.
- With each monthly payment, you’ll submit an additional fee that covers the costs of living in the home, such as rent.
Contact Us Today
Are you holding back on your homeownership dreams because there isn’t a loan program that aligns with your faith? At MortgageDepot, we won’t ask you to compromise your values to experience the benefits of owning a home. Contact MortgageDepot today to learn more about our Halal financing program!
Connect with one of our loan consultants for more information.
