Residential - ijaraCDC

Residential

The Halal Residential loan programs generally available in USA or Canada are described below:

Residential Programs in USA

Islamic Halal Sharia Compliant Finance USA

Islamic Finance in USA

  • 1 – 4 Units
  • Owner Occupied – up to 30 year with 3.5% minimum down payment possible in some circumstances
  • Owner Occupied – Rural housing or Military benefits (VA) as little as 0% Down
  • Investment  – up to 30 years with 20 – 25% down payment, may require proof of 6-12 months of reserves, up to 10 properties per customer with conventional terms, unlimited properties with portfolio terms.
  • Loan Amounts –  most investors are offering financing in the range of $50,000 – $2 Million
  • Construction/Renovation available
  • Specialty Halal Medical Financing with 0 down
  • Specialty Stated Income Investment Property
  • 5 or more units is commercial
  • GET STARTED FOR FREE

Residential Programs in Canada

Islamic Halal Sharia Compliant Finance Canada

Islamic Finance Canada

  • 1 – 4 Units
  • Owner Occupied – up to 25 year with 5% minimum down payment possible in some circumstance
  • Investment  – up to 25 years with 25-30 % down payment, may require proof of 6-12 months of reserves
  • Loan Amounts –  most investors are offering financing in the range of $100,000 – $2 Million
  • 1-5 year terms only
  • Private investor financing available
  • 5 or more units is commercial
  • GET STARTED FOR FREE

Most States define Residential Property as Real property with a dwelling on the property with accommodations for four or less separate households, basically any structure of 1-4 units that can be occupied as a residence.  By general definition a Residential Mortgage Loan is a  loan made primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate upon which is constructed or intended to be constructed a dwelling.  Any building that is 5 units or more is considered commercial.

Prior to the 2008 financial crisis, there were many exotic loan programs that allowed for No documentation (NINA or NINJA loans) or Stated income (SISA).  Some even allowed for variable monthly payments that would result in an increase in the loan balance (option ARM).  As a community organization IjaraCDC never recommended such exotic programs and as a result only a handful of our customers ended up defaulting on their loans.  Today, the financial regulations have virtually eliminated these exotic and dangerous loan programs.  Home financing programs today are known as Full Documentation loans and require:

  • Verification of Employment
  • Verification of Income
  • Verification of Assets
  • Verification of large deposits