LA RIBA Mortgage

[truefaith101]

:salam2:
i was googling the other day about Halal Mortage. A website came up saying that it gives halal mortgages up to $3 million. They have their phone number on the website and an application. Should we trust them? Did anyone use that website before? My family cannot pay for renting anymore and the only way we can buy a house is by taking a loan or a mortgage, which are haram and the only option in the U.S. What should we do?
It would help if you have experinced this.
jazakum allhu kheir

 

[muharram23]

salamu alaykum,

i have actually few friends taht already looked into the la riba loan, and they told me that it actually is worse than the kufar loans. It's just interrest in a different form. Allahu alem. Make sure u talk to knowledgeble scholars, before u decide anything.

 

[brachar]

Mortgage ??

Can you please post that website, so we can investigate it. $3million
sound a little too much, It sounds suspicious.
Please never give your personal information online. There is a lot of identity thieves out there. Be very carefull!

 

[hajhajti]

It sounds too good to be true but who knows maybe some wealthy Saudi company or prince has decided to do some good with their oil money.

If you don't get a loan (and pay the interest) you can never own a home. Even the banks in islamic countries like Saudi Arabia and Iran do take interest at times higher than western banks. This is about deciding between bad and worse. The worse for you probably is not to afford the rent and putting your family in need of other people or the state.

 

[nyerekareem]

:salam2:

it's really rough. we as muslims need to enjoy interest like the plague. very often, we americans have a fixed vision on what success here in america means. it usually comprises of having the pretty wife, the two kids, a dog, and a nice home. we as muslims really shouldn't focus so much on the american dream, but we should rather focus on preparing ourselves for jannah. i thought about the issue of mortgage for a long time and i've come to the conclusion that they are haram; so i had to tell myself that a fancy home is out of the question or is it? it is possible to rent a home to own. there are businesses out there, it's just that you have to look hard in finding them. ulitimately it all comes down to whether or not you are going to follow the rules of Allah SWT. i would rather live in a decent apartment my whole life than consume riba and have to answer to Allah SWT for breaking his rules. all i can say is that one should tread carefully.

 

[Redneck]

I have a mortgage from quite a few years ago. When I have sorted things out I shall sell the house and not have another one.

Reasons against:

1. Makes houses very affordable. Everyone theoretically can but one hence the price of housing rockets beyond the price of a first time buyer.

UK: My first house 20K . My son's first house 200K + that is 20 years difference.

2. Had I applied myself I could have saved 20k .

3. You can be out on the streets if you can not keep up the payment. I saw this in the last UK recession when interest rates doubled.

4. I feel very uncomfortable being in debt knowing some of the massive money I am paying goes towards investing in the arms trade and making a small group of people very rich.

5. Why can't we get "Team Islam" working , collectively buy property, and give our children and their families affordable housing? Put any profit back into developing more housing.

 

[Believe2Succeed]

:salam2:
i was googling the other day about Halal Mortage. A website came up saying that it gives halal mortgages up to $3 million. They have their phone number on the website and an application. Should we trust them? Did anyone use that website before? My family cannot pay for renting anymore and the only way we can buy a house is by taking a loan or a mortgage, which are haram and the only option in the U.S. What should we do?
It would help if you have experinced this.
jazakum allhu kheir

WRWB
Dear Brother or Sister,
Be warned of La Riba!
There history is that they were one of the first in the US to offer "islamic financing", however as time and facts have revealed that they are nothing but a regular mortgage house.
If you really want to know about Islamic financing search for information on

1. Ijarah wal iqtinah
2. Musharakah
3. Murahaba
etc.

and you will learn about the various islamic models of deferred payment business transactions which is basically a sale contract in which the payment is delayed or paid in installements. There are other islamic finance houses such as Guidance, SHAPE, AMANAH (HSBC) and a few more in major metro areas of the US (such as Chicago). You have to check and investigate who the lending agencies have obtained their contract models from and if have a fatwa signed by a reliable Quran wa Sunnah scholar. The only one I know from the above is SHAPE who has among others Dr. Shliebak as a shariah consultant for their program and his signature is available. However the shiakh is out of the US right now so I can't tell you to call him and ask. Nizam Yaqoubi and Delarenzo have approved Guidance and Amanah programs as well but I don't trust them.
Its best to do the "Team Islam" or Islamic brotherhood financing where you can save a sizeable portion and then get other brothers to loan you the rest. Then inshAllah return it as soon as possible. You can also check out shape (Thru Univeristy Bank in Ann Arbor, MI - google it to get their link)

Wallahu Alam!

ASAK

 

[truefaith101]

jazakum allhu kheir brothers & sisters;
i guess we'll have to keep renting until we find a solution;
wasslamualkyum everyone

 

[q8penpals]

Assalam aliekum

Even here in Kuwait, if a person uses the "Islamic" bank, you can end up paying MORE in "fees and commissions" than you would in interest - they just use different words and different calculations.

Many American mortgages calculate the interest as you go, so if you pay even as little as $10 extra a month, it can SAVE you a lot of money at by the end of the mortgage.

The Islamic Banks that I have encountered here in Kuwait do not charge "interest", but a "service fee" or "commission" (commission is popular phrasing for car loans). With these, they calculate the ENTIRE amount of the "fee", and even if you paid a 30 year loan off in 1 year, you would pay the ENTIRE fee, whereas the American style mortgage - if you paid off in 1 year, you would only pay the interest for 1 year.

So, I can't answer as to where to get a TRUE Islamic loan, although if they don't exist, they should. I don't really know how to do it though - they have to charge SOMETHING or else how would the place/bank giving the loans pay their employees and bills?

How exactly would a TRUE Islamic loan (without interest) work? I think I confused myself!

Lana