With a growing Muslin population in the US and interest in housing, an age-old dilemma come to the forefront. Purchasing a home with a mortgage is not religiously acceptable. This is because interest is seen as effortless profit.
Without mortgage, the purchase of a home for cash for many Muslims is not possible. In recent years, banks have come up with different solutions that are compliant under Islamic Law.
Avoiding riba or interest payments [Note: Subscription] has made home ownership difficult. One solution has been the lease-to-own model. Another way has been to form a housing coop.
Tags: Bankrate.com, Muslim, Riba