Islamic Compliant Mortgages
Many people interested in Islamic Compliant Mortgage Loans simply need some information to make an informed decision. While there are some similarities between these mortgages and traditional ones, there are key differences that set them apart. We aim to be your informational resource, helping you make an educated decision that fits your personal needs.
Islamic Compliant Mortgage Characteristics
1) It involves a lease-to-own transaction.
2) A trust is established to hold the property
3) The borrower enters into a lease-to-own agreement with the trust.
4) The trust purchases the property, the borrower provides the down payment which serves as an advance rent payment – to the trust. The borrower pays a percentage of the price every month as rent until they have paid off the purchase price (if they do not sell the property before then). The borrower’s percentage of ownership increases each month.
5) When the borrower requests to move out of the subject property, the Trust is obligated to sell the property to the borrower under the terms of a promise to purchase; the borrower then becomes the sole owner. The borrower is entitled to purchase the property but is not obligated to do so.
6) Since the borrower is paying for usage of the property, not paying for the usage of funds/ money the transaction is Sharia compliant.
7) It's important to carefully consider the pros and cons before deciding if it's the right option for you.
5) Reverse mortgages can be used to supplement retirement income, pay off debt, or cover unexpected expenses.
6) Homeowners must continue to pay property taxes, insurance, and maintenance costs while they have a reverse mortgage.
7) It's important to carefully consider the pros and cons of a reverse mortgage before deciding if it's the right option for you.
© Copyright 2024 Loans by Loubna, Powered By E Mortgage Capital. All rights reserved
.Loans by Loubna, Powered By E Mortgage Capital
. - NMLS # 1416824 | 18071 Fitch Ste. 200 Irvine, CA 92614
.
Notice To Texas Loan Applicants: Consumers wishing to file a complaint against a mortgage banker, or a licensed mortgage banker residential mortgage loan originator, should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, TX 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov
.
A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov