Islamic Financing Alternatives for Residential Properties

Ijara Community Development Corp. in Ann Arbor, MI is your reliable source for Sharia-compliant financing options. Through our licensed providers, we offer Islamic funding solutions in the USA and Canada. We take great pride in helping you get your dream home without having to worry about Riba.

Why Buy a Home Through Islamic Financing

Purchasing a house for you and your family using a Riba-free financing alternative has plenty of advantages.

Let Us Help You

Our business focuses on providing you with Sharia-compliant financing alternatives so that you can purchase the real estate you want. The following are what sets us apart from our competition:

  • Excellent investors who offer competitive fees and rates
  • User-friendly online application process
  • Professional advice and guidance from experienced Islamic financing experts
  • Transparent transactions
  • Easy to get in touch with
  • Rent-to-own payment options that help gain equity without excessive interest

We know that it is important for you to stay on budget when purchasing a commercial or residential property. That is why we will comprehensively calculate your household income and expenses to help you live within your means.


Our Residential Loan Programs

A residential mortgage loan is made primarily for personal, family, or household use and is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a house.

As a community-oriented organization, we would never recommend unusual programs, such as NINA, NINJA, or SISA loans. The financial regulations of today have virtually eliminated such dodgy programs. Home financing programs are now known as full documentation loans and require the following:

  • Verification of Employment
  • Verification of Income
  • Verification of Assets
  • Verification of Large Deposits
  • One to four units
  • Owner-occupied — up to 30 years with 3.5% minimum down payment depending on the circumstances
  • Owner-occupied — rural housing or military benefits with as little as 0% down payment
  • Investment — up to 30 years with 20-25% down payment; may require proof of financial reserve that can last for about 6 -12 months; up to 10 properties per customer with conventional terms; unlimited properties with portfolio terms
  • Loan Amounts — most of our investors offer to finance around $50,000 to $2 million
  • Available for properties under construction or renovation
  • Specialty Halal Medical Financing with 0% down payment
  • Specialty Stated Income Investment Property
  • Five or more units are considered commercial real estate

Application Requirements for US Customers

For individuals who are W-2 employees:

  • W-2 forms and Federal Income Tax Returns from all employment sources of the borrowers for the last two years
  • Paycheck stubs for the last two months
  • Bank or investment statements for the last two months
  • Copy of ID and work authorization in the US (passport, social security card, driver’s license, visa, etc.)
  • Copy of purchase agreement (if available)

For people with self-employment income:

  • Same items as above
  • Personal and Business Federal Income Tax Returns for the last two years
  • Bank statements of your business for the last two months
  • CPA Letter
  • One to four units
  • Owner-occupied — up to 25 years with 5% minimum down payment depending on the circumstances
  • Investment — up to 25 years with 25-30 % down payment; may require proof of financial reserve that can last for about 6-12 months
  • Loan Amounts — most of our investors offer to finance around $100,000 to $2 Million
  • One to five-year terms only
  • Private investor financing is available
  • Five or more units are considered commercial properties

Application Requirements for Canadian Customers

For employed individuals:

  • Most recent letter of employment (dated within the last 30 days)
  • Three or four of the most recent pay stubs
  • Bank statements of at least the last three months that show money is being deposited there
  • How much is the down payment and where it is? If the down payment is in the Registered Retirement Savings Plan (RRSP), other investments, or a bank account, show the latest three months' history of those deposits.
  • Agreement of Purchase and Sale (if you have already bought the house)
  • Notices of Assessment and T4 slips for the last two years

Please note that the minimum down payment is 5%.

For self-employed people, business owners, taxi or truck drivers, and store owners:

  • Self and business account statements for the last three months
  • T1 general tax forms of yourself for the last two years
  • Statement of Business or Professional Activities for the last two years
  • Notices of Assessments for the last two years
  • Copy of business license (must be at least 2 years old) (lenders make an exception in some cases)
  • Copy of Articles of Incorporation (if this is a corporation)

Note: The minimum down payment for self-employed individuals is 10%.

  • All pages of statements must be included if they have a page number (even if it is blank or have generic text).
  • Whenever possible, please scan and e-mail documents. Send single-sided copies of the documents and do not staple the papers if you are mailing files.
  • It is always best to scan IDs to get a clearer image since faxing a copy of a driver’s license makes the picture unviewable and the text hard to read.

Learn More About Refinancing

There are many different reasons why a homeowner would consider refinancing. You might want to have a lower monthly payment or make your loan term shorter so the equity builds up more quickly. It is also possible to use the money you get from a refinance to pay off a credit card or other types of debt.

We can help you decide if it is the right time for you to consider this option. Keep in mind that the interest from your mortgage is often completely tax-deductible. Consumer debt interest, on the other hand, is not.