Conventional and Islamic finance of home purchase : Islamic finance is more expenses

Fatawa Question

Dear Dr. Kahf : I am interested in refinancing my house hopefully with Islamic financing. I have checked some Islamic Financing companies. They have all sorts of contracts which make it look as though it is Islamically Ok. Further research revealed that 1. These companies in the end sell the mortgage to other large companies that may be dealing with interest. This means that Islamic financing companies are only servicing the loan or packaging it in way that it looks acceptable, but the source through which money is available may be involving interest. 2. They charge higher rate than the market rate. My question is if these companies are really providing a 'Halal' transaction. Is there a company you know that is free of all these problems ? You have referred to fatwa by Second International Conference on Fiqh that was held in Detroit in the fall of 1999. How can I have access to this Fatwa ? Jazaka Allah Khair for your efforts and time. Abdul Aziz,

Fatwa

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Publication Date

2009-07-25

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

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

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-734909

• APA
• MLA
• AMA