Alternatives to interest home financing : buying houses directly from builders

Fatawa Question

As-Salamu Alaykum ! Would you please give us an answer to the following question in regard to mortgage. Is buying a home from a company (USA) that "provides both home services (houses), financial services (mortgage) allowed in Islam ? The question is about buying houses from companies that specialized in "building and related services : Home building, home services, financial services, contracting and construction services, investment real estate" is permissible in Islam ? In other words, buying a home from a company that provides both houses and the mortgages. "No banks are involved and owned fully by the same people" Some might say this kind of trade / transaction is allowed since : 1-That company owns the property and they sell it to consumer through their own mortgage 2-There is not third-party (bank) involved, 3-The buyer dose not pay interest on the money but rather on the house purchased Jazakallahu Khairan

Fatwa

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Publication Date

2003-01-10

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Housing
• Financing
• Purchasing
• Architects

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-725391

• APA
• MLA
• AMA