Fatwa #370678 November 2016United States of America
Guidance Residential
Question
I wanted to know about the home financing through Islamic banking system. i am planning to buy a house through Guidance Residential company and completed their application. There contract seems like a conventional banking system contract. i am in doubt and it feels like it is based on interest as well. I have aked to many people about it and they said, there is no other option in USA to buy house other than interest based loan. All Islamic financial institution in USA have interest based contract in reality.
Please guide me, I am very confused about it. Which company or Islamic back will you recommend me to buy a house in USA which can offer interest free contract. If there is none, should I keep renting a house for whole life ?
Thanks
JAZAKALLAH
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
You may forward a copy of the contract and all related documents and procedures of the house financing contract of Guidance Residential company for our observations. We will study the documents and procedures and advise accordingly.
You may forward the contract to admin@daruliftaa.net
And Allah Ta’āla Knows Best
Syed Haneef
Student Darul Iftaa
New York, U.S.A
Checked and Approved by,
Mufti Ebrahim Desai.