NON QUALIFIED MORTGAGE LOAN

Murabaha Home Financing: This is a cost-plus-profit arrangement where the financial institution purchases the home and sells it to the buyer at a markup. The buyer then pays the purchase price in installments.

Ijara Home Financing: In this lease-to-own arrangement, the financial institution purchases the home and leases it to the buyer for a fixed period. The buyer makes regular lease payments, and at the end of the term, the ownership of the property is transferred to the buyer.

Diminishing Musharakah: This is a co-ownership arrangement where the financial institution and the buyer jointly purchase the property. The buyer gradually buys out the financial institution’s share, eventually becoming the sole owner.

Lease-to-Own (Rent-to-Own): Some Islamic financing programs offer a lease-to-own option where the buyer rents the property with the intention of purchasing it later. This allows individuals to accumulate equity over time.

Islamic Cooperative Financing: Cooperative housing models, where members collectively own and manage properties, can be structured in a way that complies with Islamic principles. Members contribute to a pool of funds to acquire and manage properties.

Islamic Real Estate Investment Trusts (REITs): While not a direct financing option, Islamic REITs allow investors to participate in real estate investments without violating Shariah principles. Investors earn returns from rental income and property appreciation.