Abrahamic / Middle Eastern Islam Where to Find an Islamic Mortgage Banks and Brokerage Firms That Offer No-Riba Home Mortgages Share Flipboard Email Print Joe Raedle / Staff / Getty Images Islam Important Principles Prayer Salat Prophets of Islam The Quran Ramadan and Eid Al Fitr Hajj and Eid Al Adha By Huda Islam Expert M.Ed., Loyola University–Maryland B.S., Child Development, Oregon State University Huda is an educator, school administrator, and author who has more than two decades of experience researching and writing about Islam online. our editorial process Huda Updated April 01, 2018 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, USARegion(s) Served: All U.S. States -- either directly or through an affiliate, Bank of WhittierToll-Free Phone Number: 1-888-LARIBA1Types of Property: House, condominium, townhouse Guidance Residential Headquarters: Reston, Virginia, USARegion(s) Served: CA, CT, FL, GA, IL, MA, MD, MI, MN, MO, NC, NJ, NY, OH, OR, PA, SC, TN, TX, VA, WA, WIToll-Free Phone Number: 1-866-GUIDANCETypes of Property: Single Family, Townhouse, Condominium, Multi-Unit Dwelling, Investment Property University Islamic Financial Headquarters: Ann Arbor, Michigan, USARegion(s) Served: CA, CT, IL, IN, MD, MI, NJ, NY, OH, PA, TX, VAToll-Free Phone Number: 1-800-916-UIFCMember FDIC: YesTypes of Property: New & Existing Single Family Home, Condominium, Manufactured Home, Multi-Unit Dwelling Assiniboine Credit Union - Islamic Mortgage Program Headquarters: Winnipeg, Manitoba, CanadaRegion(s) Served: Manitoba, ACU members onlyToll-Free Phone Number: 1-877-958-8588Types of Property: Existing property to be used as a primary residence Al Rayan Bank Headquarters: UKRegion(s) Served: England, Wales, Scotland United National Bank Headquarters: UKRegion(s) Served: England, Wales, ScotlandTypes 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: VirginiaRegion(s) Served: Northern VirginiaPhone 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.