Riba-free mortgages – Texas REALTORS®-2021十大正规彩票app

July 01, 2020

What Is a Riba-Free Mortgage?

Traditional mortgage products may not suit adherents of all faiths, and riba-free mortgages are financing products that comply with Islamic banking rules. The Quran prohibits riba, which can refer to the charging of interest on a loan, so riba-free mortgages employ different structures that are certified to comply with Islamic law. For example, a riba-free mortgage may involve the bank and the buyer owning the property in tandem and ownership transferring to the buyer over time with each monthly payment. Differences between loan programs and potentially what is considered riba mean your clients will need to find an option that reflects their values. Islamic banks that specialize in riba-free mortgages exist in Texas and nationwide, and some major banks also offer financing options that comply with Islamic law.

Legal Disclaimer

Texas REALTORS® provides content through various online platforms, including this blog. By interacting with any of our blog posts, you agree to comply with the following terms and conditions:

a. You will not post any defamatory, discriminatory, libelous, threatening, vulgar, sexually explicit, abusive, profane, rude, or obscene content (including comments);
b. You will not use our blog posts or posted content to do anything unlawful, misleading, malicious, or discriminatory; and
c. You will not post content or take any action on our blog posts that infringes someone else’s rights or otherwise violates the law.
d. You will not post any information intended to sell or advertise a business, product, or service.

Texas REALTORS®, in its sole discretion, reserves the right to remove any content you have uploaded, posted, or submitted onto any of our blog posts if we believe that it violates these terms or conditions.

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While Texas REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, Texas REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here. Any legal or other information found on this page or at other sites to which we link, should be verified before it is relied upon.