How can you buy a house without using interest based loans?
Aren’t the Islamic mortgage groups borrowing money from a regular bank ?
I doubt that there is any crowdfunding going on…
Someone please explain
+ how did you pay off your “mortgage” if you have one??
I am familiar with it, and could speak to my exposure, but I am no Islamic scholar.
There are Islamic financing mortgage firms in the US incl. LaRiba in CA [ lariba.com/site/index.html], Guardian residential in VA [ guidanceresidential.com/], and a few others in Chicago IL. Do read upon the literature on their portal, which speaks as to the
qui quad.
From what I recall when researching it as an option some moons ago, instead of interest, they calculate risk, which is very much at the same rate at the interest rate [
borrowing rate with inflation being adjusted], borrow from high street banks, and in return lend to consumers. I struggle as to that could be classified as Islamic financing, when merely rebranding the financial instrument from 'interest' to 'risk'.
Is the property you wish to purchase for own use, or for commercial? If the former, then according to Islamic scholars in Egypt, you are better off opting for a traditional financing, which is permissible, but if for the latter, then impermissible, it definitely is.