Your path to halal homeownership
Faith-based financing options for Muslim homebuyers
Our Commitment
For millions of Muslims in the United States, achieving homeownership can be a challenge. In the Islamic faith, charging or paying Riba, or interest, is prohibited, making traditional mortgage products an unsuitable option. We believe that everyone deserves the opportunity to own a home, and that your beliefs should not be a barrier.
Our Solution: The Murabaha Transaction
A Murabaha transaction is a financing method that has custom documents supported by a Fatwa that meets the requirements of Sharia law. Instead of a traditional mortgage, this transaction is a “cost plus profit sale” structured as an installment credit sale contract for real property.
How it works:
- Buyer works with an agent on behalf of the financier to find and acquire a home
- Under a Temporary Agency agreement, the Consumer will identify a home, negotiate the price and take title on behalf of Citywide
- The transaction’s economics are similar to traditional mortgage, but the approach is adjusted to be Shariah compliant
The result is a Murabaha transaction option that works in accordance with Shariah law.
Key Benefits
- Shariah compliant: A home financing option that has custom documents supported by a Fatwa
- Simple and straightforward: Customized to align with the Murabaha transaction
Next Steps
Ready to take the first step on your homebuying journey? Our Financiers are here to guide you through the process and answer all your questions.
The Murabaha mortgage product option entails qualified buyers entering into a Temporary Agency agreement with the financier. The buyer makes monthly payments of cost plus profit on an installment loan, but does not pay interest. The custom documentation used includes an Installment Credit Sale Contract and Security Instrument. The transaction will still require all other state and federally required documents. Buyer is subject to credit and underwriting approval. Restrictions apply.