Main Line Homes Blog

head_left_image

A different form of financing

I recently took the e-PRO course and in the process came across a very interesting issue that I had no idea existed in regards to financing.

The Muslim faith does not allow its followers to pay interest. So how do they purchase a home? Either they have to break the religious doctrine and take a normal mortgage, rent or look for an alternative. There are apparently alternatives which have been accepted by leading Imams and which can be obtained throughout America, not everywhere but maybe in your market.

This link will lead you to an article on the Freddie Mac site about a bank in Illinois, Devon Bank that has set up a variety of different finaincing options that allow Muslim consumers to purchase a home and not break the tenents of their faith.

http://www.freddiemac.com/news/archives/afford_housing/2005/20050110_devonbank.html

The gist of one of these is that the bank purchases the property and sells it to the consumer at a higher price that is then split into equal payments over the term of the loan with zero percent interest. But please read the article and use this link to read more about the options available on the banks site:http://www.devonbank.com/islamic/. There are some additional charges but everything has been approved by Islamic Religious leaders and will be a help for your client.

I found this very useful, not realizing this was an issue, hope it helps you be more prepared if your client or a consumer expresses a need for help in this direction.

If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you,  contact us or connect

  Twitter link  Linked in linkl our blog RSS feed of MainLineHomes Blog

Feel free to subscribe to our blog to stay up to date with our latest posts and information on the Tredyffrin Easttown and Main Line Real Estate Market. 

 

Comment balloon 1 commentNick & Trudy Vandekar, 610-203-4543 • February 08 2007 03:29PM
A different form of financing
share
I recently took the e-PRO course and in the process came across a very interesting issue that I had no idea existed in regards to financing. The Muslim faith does not allow its followers to pay interest. So how do they purchase a home? Either they… more
Tredyffrin Police alert
share
Last Tuesday afternoon, one of our neighbors found that her son's Nintendo DS toy and games and her "Chanel" (knock-off) sunglasses were missing from her car. Her garage door was open, but she was at home or at the bus stop waiting for her… more
New listings viewed today
share
Definitely there were fewer listings to preview today. We also saw far fewer agents out and about today, maybe it was the extreme cold, this is not Florida, although I wish it was. Anyway, we saw several homes however the one that stood out most was… more
Does anyone have any original ideas for marketing their listings?
share
I was just reading a short article in Realtor Magazine on line about agents hosting 11 joint progressive open houses in the evening with prizes for those who attend all 11 homes, or hosting a cocktail party at their listing. These seem original and… more
Superbowl Sunday Open House well attended
share
I sat an Open House yesterday for an agent in my office. I thought as the game was in the evening there most likely would be buyers out looking in the afternoon. The sunday paper also listed a lot of Open Houses from all the local brokerages, so… more
Is an Employer Assisted Housing program right for your company?
share
Nowadays one of the biggest problems buyers have is finding enough money for a down payment and the closing costs. Several companies are stepping in and helping through an Employer Assisted Housing (EAH) program. Montgomery County in Pennsylvania is… more
Urban Myth or Truth
share
This might be "urban myth ", but I recently received these home uses for a product among a list of 43 in total. See if you can work out what it is. The answer is at the end. Gives floors that "just waxed" sheen without making… more
1031 Exchanges
share
If you are holding a property as an investment then using a 1031 exchange can help you trade up or change the type of investment. For example you can change from a residential property to a commercial or a mix of properties. There are just some… more
Yes… there are buyers out there!
share
Both Trudy and I held Open Houses for listings on Sunday. We both had excellent traffic with many buyers. I passed a new construction site on my way as well and noticed a parking lot full of cars. The week before I had visited another new… more
What the changes to the Pennsylvania Mechanics Lien Laws mean to you.
share
This year changes have been made to the laws relating to Pennsylvania Mechanics Liens and this has resulted in Title Insurance companies not covering new construction for protection from Mechanics Liens. You as a buyer of new construction or a home… more