I live in new hampshire and intend to buy a condo for 150k. According to AMJA there are three islamic models they accept as islamic. Only one of those banks finance in new hampshire. The nature of this transaction means two transactions from seller to the bank and from the bank to me. There are other unusual things as prepaid mortgage insurance for the entire loan. This really baloons the closing cost. Obviously the islamic financing is more expensive then traditional interest based loans from big banks. I have been in the usa for 5 years and have never paid or earned a single cent in interest. I drive used cars, all my investments are in stocks and rented till now and was smart with my finances to avoid interest. I can't decide what to do in this scenario. Do i go thousands in loss to stick to my islamic principles? Wasn't the whole concept of making interest unlawful to relieve financial burden? Is it really islamic if it provides more financial hardship than interest? Would love it if fellow muslims/jews can share their experience and what they did? Saving up for home while renting is obviously the worst decision financially. Tc 75k
If it’s burdensome then don’t take it. Simple. Nobody is forcing you to do this. FYI I think 🤔 Islamic loan is a scam. It’s the same thing wrapped in religious bullshit.
A lot of reasons why interest is unlawful.. but to your point, why not just keep renting?
Interest isn’t unlawful in the US, welcome There’s no way a third party can give you lower cost since they’ll need to pay interest themselves.
Stick to your principles. InshaAllah if you stick to your principles there will be Baraka in the house, and for those who live in it. Not to mention in the long run you will inshaAllah look back favorably on your decision. MashaAllah you have managed to live a righteous life for the most part thus far based on your post... Don't waste your previous sacrifices at this time. Lastly, remember what the prophet (Saw) said about the one who deals in interest. It is as if he has taken up arms against Allah and his prophet. Think about what that means. When you pray to him, when you're desperate and need something beyond your control, that you will have to ask the One against whom you have taken up arms.
Thanks for your reply. It does make sense to make one more sacrifise. Good day to you
There's no Baraka in doing this. Everyone I know who adheres strictly to Islamic teachings is worse financially than their peers. People buy homes for 2-4% interest rate while Muslims pay 7%+ just because it's labeled "halal mortgage". Wake up. Rules are made to help us and protect us, not to hinder our financial well being.
What is this Islamic model? You're allowed to get loans only from those who follow the model? Even if it makes no sense to you financially? 🤯
The model is really just don't deal with interest... Everything else is just trying to accustom to that in a capitalistic society, since it's all interest here
Yes and it doesn’t translate well on a country that runs on borrowing at interest
This sounds like a religious question, not a financial one. Go ask your local imam
I agree. Just wanted to learn from people who had a similar experience in the past
I thought it was only you couldn’t stand to gain interest from others but should be fine borrowing from others. It’s also ironical that there’s a thing that’s Islam loans and the interest is higher than standard commercial loans. Haha 😆 Can you borrow interest free from your mosque? Why not?
I'll look into that. It's highly unlikely they would have such a thing. I mean they are always asking for donations for their new mosque 😆
If you think about it, renting is a type of interest payment, isn't it?
OP, don't you _receive_ interest on your savings? Or do you refuse to accept that money?
Follow up question Are you taking the condo to the grave?