How does a shariah-compliant mortgage work? Is it as competitive as conventional interest-based mortgages?

Assalamu Alaikum, WR WB





I know Guidance is the best Shariah Mortgage co., It uses the current market interest based Mortgage.





It has Principal not to charge extra in the name of Loan Origination Fee like all other Mortgage Loan officers do. Agent gets set fees only.





They make a contract of partnership on one property. If you loose that property, they bear the loss as you do. But they do not go after your other properties because they do not give you loan to buy a property. They are your partners in one property or in each property as a separate contract.





I know little bit about Guidance because my younger brother is Regional Manager of Guidance and covers entire west coast including sate of Washington, Oregon and entire California.





He explained that you can have a child by having intercourse with any woman. You can also have a child by marrying a woman. But first way is haram and second is Halal in Islam.





The difference is how a contract is written.


Contract to buy a property complying Sharial Laws is in the best interest of the purchaser of property. Not a single property purchased with the help of Guidance was ever foreclosed. Whereas economy of entire USA and almost all countries are in trouble because of malpractices of Mortgage lenders in USA allowing frauds to their agents. But Guidance has certin Principlas which they never compromise. If they relax the rules, it will not comply Sharial Laws.





If you want to know details about Guidance contact the area representative of Guidance. If you live in west coast, I can get you in touch with my brother. My e-mail is available in my profile.





Wassalam, Abdul MajeedHow does a shariah-compliant mortgage work? Is it as competitive as conventional interest-based mortgages?
Many banks offer Islamic loans in U.S. Habib Bank is an original one. It is a simple process. You pay a predetermined price for a house. Fees and services are calculated. Rates are not any better when you compare the overall rates with other banks. LOL. It is a funny way to get around interest.How does a shariah-compliant mortgage work? Is it as competitive as conventional interest-based mortgages?
From what I've read no they are not but i dont really understand how this islamic mortgage stuff works . I'm very much in doubt as to wether it really is islamic. So I'm staying away from it.
muslims aren't allowed to collect or pay interest but they are allowed to collect rent on the money at the same rate. homes are sold at the price of interest included.