[Islamic home finance in America]

Fatawa Question

As-Salam `Alaykum ! In the US we have the Islamic mortgage companies that claim their co-ownership programs to be Halal. In this program you must pay mortgage payment that is interest free, but you must also pay co-ownership fee and fair market rent. At the end of the year the IRS sends you a 1099 to claim the co-ownership fee as a tax deduction (this is the same as the deduction for regular interest gaining mortgages.) two questions please : isn't this co-ownership fee another way of earning interest (Riba) by another name ? Given the exorbitant amount of money that one has to pay per month (rent, loan payment and fees) would not that also be considered usury (Riba) as well ? Thank You !

Fatwa

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Publication Date

2008-03-12

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Housing
• Financing
• Resale on profit
• Usury
• Subprime mortgage

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-732559

• APA
• MLA
• AMA