Where to Find an Islamic No-Riba Mortgage

Do you want to buy a home, but without violating Islamic laws against usury (riba')? The following banks and brokerage institutions offer Islamic, or no riba', home mortgages which are compliant with Islamic law. This is not a trivial business practice - the Prophet Muhammad is said to have cursed the consumer of interest, the one who pays it to others, the witnesses to such a contract, and the one who records it in writing. These financing companies refrain from such transactions in favor of financing structures which are compliant with Islamic principles, such as lease-to-own and cost plus financing.

Each company has its own mortgage model, pricing structure, geographic area, eligibility requirements, and application process, so the consumer is advised to engage in independent research. Most importantly, seek advice from a real estate lawyer, accountant, and tax professional before committing to any purchase plan or signing any documents.

Lariba - American Finance House

Headquarters: Pasadena, California, USA
Region(s) Served: All U.S. States -- either directly or through an affiliate, Bank of Whittier
Toll-Free Phone Number: 1-888-LARIBA1
Types of Property: House, condominium, townhouse

Guidance Residential

Headquarters: Reston, Virginia, USA
Region(s) Served: CA, CT, FL, GA, IL, MA, MD, MI, MN, MO, NC, NJ, NY, OH, OR, PA, SC, TN, TX, VA, WA, WI
Toll-Free Phone Number: 1-866-GUIDANCE
Types of Property: Single Family, Townhouse, Condominium, Multi-Unit Dwelling, Investment Property

University Islamic Financial

Headquarters: Ann Arbor, Michigan, USA
Region(s) Served: CA, CT, IL, IN, MD, MI, NJ, NY, OH, PA, TX, VA
Toll-Free Phone Number: 1-800-916-UIFC
Member FDIC: Yes
Types of Property: New & Existing Single Family Home, Condominium, Manufactured Home, Multi-Unit Dwelling

Assiniboine Credit Union - Islamic Mortgage Program

Headquarters: Winnipeg, Manitoba, Canada
Region(s) Served: Manitoba, ACU members only
Toll-Free Phone Number: 1-877-958-8588
Types of Property: Existing property to be used as a primary residence

Al Rayan Bank

Headquarters: UK
Region(s) Served: England, Wales, Scotland

United National Bank

Headquarters: UK
Region(s) Served: England, Wales, Scotland
Types of Property: Home and business

HSBC Amanah

Region(s) Served: Saudi Arabia, Malaysia

UM Financial

Headquarters: Toronto, Ontario, Canada

This company stands as testimony to why one must be careful when securing financing, whether through an Islamic financial company or any other source. UM Financial built up a reputation as a premier Islamic financing company from its founding in 2004 up until it collapsed in 2011. The company was ordered into receivership by the courts, several hundred homeowners were left in limbo, and the former executive was charged with theft, fraud, and money laundering.

Halal Inc.

Headquarters: Virginia
Region(s) Served: Northern Virginia
Phone Number: 1-703-755-0678

Islamic or Pseudo-Islamic?

In the search for Islamic financing, there are many options available. Most claim to be "shariah-compliant" with the support of renowned scholars. In 2014, AMJA (the Assembly of Muslim Jurists of America) evaluated the legal contracts of many of these programs and issued a company-by-company opinion about their compatibility with Islamic principles. Do your homework and learn about the programs before considering how and where to invest.

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Huda. "Where to Find an Islamic Mortgage." Learn Religions, Aug. 26, 2020, learnreligions.com/where-to-find-an-islamic-mortgage-2004115. Huda. (2020, August 26). Where to Find an Islamic Mortgage. Retrieved from https://www.learnreligions.com/where-to-find-an-islamic-mortgage-2004115 Huda. "Where to Find an Islamic Mortgage." Learn Religions. https://www.learnreligions.com/where-to-find-an-islamic-mortgage-2004115 (accessed March 3, 2021).