Conventional and Islamic finance of home purchase : Shari’ah compliant home purchases

Fatawa Question

Assalamu' Alaykum, My name is Reshad, formerly from southern California but now living in the bay area. Masha Allah I've known Ammar through Hawthorne and Yaman through MAS Orange County for some time. May Allah protect and reward them both. I've also read up on some of the material you have published and may Allah reward you for your work. I am writing to you on the subject below because I highly value your opinion and expertise on this subject. Recently I have been looking into the prospect of purchasing a condo while i live here in the bay area with my wife. I was introduced to Guidance Residential and the idea of Shari’ah compliant home purchases. Alhamdulillah I've heard about these organizations and other (La Riba) and have always been in favor of Shari’ah compliance. However, after learning about their practice of co-partnership vs. interest based loans, at some level they 2 practices almost seem the same. The overall amount a person pays could even out in the end. Of course Allah has made business transactions Halal and interest haram (as stated in the Quran). So the question arises as to what makes a transaction Shari’ah compliant. I've tried to do my own reading on fatwas and sites (ex. Qaradawi's Fatwa allowing interested based loans in need-based situations, etc.) my goal in speaking with you is to understand the concept of Shari’ah-based financing and economics further. Many people I know and deal with on a daily basis are skeptics of the "Islamic" way of things. And Alhamdulillah I do my best to convey the message and correct practice of Islam as much as I can. When it comes to economics and finances I am less versed in this subject. I would love the opportunity to speak with you over the phone or email or even if you just have a few references for me that would be greatly appreciated. Jazaka Allahu Khair and thank you for your time. Assalamu 'Alaykum, Reshad

Fatwa

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Publication Date

2010-08-31

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Housing
• Financing
• Purchasing
• Provisions of sharia
• Taboos
• Usury
• Transactions
• al-Halal and al-Haram

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-734965

• APA
• MLA
• AMA