IslamicFinance.de

The Shariah compliant models for financing the purchase of a home are several. However, the model best suited for use in the United States, given the legal and regulatory restraints imposed by the government for the protection of the consumer, is the equity-sharing model in which the home buyer aligns with a partner, such that both parties to the purchase provide cash for the outright purchase of the house. The partnership business model employed by Guidance Residential in the United States was derived from the same models described by the classical jurists in their works of fiqh. In developing its home finance program, Guidance Residential turned to a number of experts.