Ijara Home Financing

The Islamic home financing program is based on Ijara wa Iqtina, a lease followed by an acquisition. This is a straightforward process that begins when you select the property and an independent Trust acquires it and rents it to you. At closing, you make your down payment toward the acquisition price. This is your initial payment on-account, which may be as low as 30% or as high as suits your circumstances.

Your payment on-account represents your beneficial rights in the property. Your monthly payments include rent and further payments on-account, thereby increasing your beneficial rights. You can acquire full title to the property when the sum of your payments on-account equals the original purchase price. The original purchase price is the goal toward which you are always working; we do not adjust it over the life of the lease. This eliminates gharar (doubtful practices), or any uncertainty when it comes to your financial arrangement.

UIF accepts applications up to $1,300,000 with a minimum initial payment on account of 30%. Final approval will take place once UIF receives your completed application package and supporting documentation. A deposit is required to cover the cost of the credit report.

Visit our Ijara FAQ page to learn more Ijara Home Financing.