Conventional and Islamic finance of home purchase : Shari'ah house financing

Fatawa Question

[Question One] : Assalamu Alaykum Wa Rahmatu Allahi Wa Barakatuh. I have a former coworker named Muzzammil who is seeking Shari’ah aligned financing for his real estate investment. He stumbled upon La Riba and was happy to see that Muslims have at least this choice. I understand why you did not make a ruling on the validity of La Riba or guidance residential on the Islamonline.net consultations. However, how can Muzzammil and any brother / sister of humble knowledge make a decision between La Riba [Residential] and Guidance ? what are your thoughts and scholarly absorption on La Riba and Guidance ? are there other choices besides these ? If unfortunately you cannot answer, please direct me towards the necessary logic. Jazaka Allahu Khayran again Wassalam Alaykum Wa Rahmatu Allahi Wa Barakatuh. [Question Two] : Assalamu Alaykum. Jazaka Allahu Khair. I am humbled. I have the perception that both guidance and La Riba use the Declining Balance Musharakah model. As such, is it possible for you tell me on which detail of the model they differ--explaining at a brief top-level treatment and without endorsing either of the institutions ? also, please pray for me and every person who asked Allah with a softened heart for his bounty. Jazaka Allahu Khair Wa Assalamu Alaykum Wa Rahmatu Allahi Wa Barakatuh. Abdelhai

Fatwa

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Publication Date

2008-06-29

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Islam
• Housing
• Financing
• Purchasing
• Real property
• Commercial finance companies
• Subprime mortgage

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-734842

• APA
• MLA
• AMA