LARIBA

Creativity Counts: New Approaches Help Religious Borrowers

As religious borrowers are not able to pay interest lenders have found alternatives to help them purchase and keep home. American Finance House LARIBA has worked to finance and refinance non-interest or riba free (RF) faith-based mortgages since 1987. These RF programs consist of the bank first determining whether the value of the property accurately reflects the value of other home prices in the area. LARIBA's finance model is based on renting properties, not money, then it invests in the property by lowering the market monthly rent to make the monthly payment competitive with other banks. LARIBA creates a lien with the customer that will progressively apply rent payments to ownership of the property.

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