No, because this is an installment sale or a lease, depending on the transaction form chosen.
Yes. Please contact us so we can assist you with your financing options by calling 888-90-DEVON
Our documents have been drafted in consultation with local religious authorities. We have received the Fatwa of the Shariah Supervisory Board of America (Mufti Nawal-ur-Rahman) and other renowned scholars have examined our financing products and found them acceptable.
Yes. The minimum down payment is 5% of the purchase price.
To be Shariah-compliant, our costs must be related to our actual expenses. Our profit rate is the same as an equivalent traditional mortgage. There are a few transaction costs that are higher because of the dictates of the specific deal structure needed to satisfy the requirements of an Islamic financing transaction, such as two deeds to record instead of one. Otherwise, all our costs are the same as a traditional mortgage. We do not charge a premium for religious accommodation.
Yes. Some interpretations of Islamic law allows the imposition of a late payment to motivate prompt payment– it does not, however, allow us to keep the payments to the extent they exceed our costs. We deposit collected late payments into an account, offset our costs, and donate any funds left over to charity. Islamic law does not allow the imposition of a late payment for a customer in financial hardship. If you can prove that you are a hardship case, no late payment is assessed.
Paying two transfer taxes may be applicable because the various transaction forms involve two sales, hence two transfer taxes may be owed. The possibility of a second tax varies based on location. Please call 888-90-DEVON for details.
We currently offer Murabaha financing in the following states: Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.
A Murabaha is a distinct legal structure different than a conventional loan. Unlike a loan, we must own the property financed and bear certain risks. There are also differences in things such as pre-payments, late payments, and missed payments.
Your payments need to be current with the mortgage company and you will need to provide a statement showing that it has been paid to date. Then you can begin the refinance process.