So, Whereas I pay a fee for the use of the bank's money in the form of interest which means I pay out of pocket apporximately twice the purchase price of the home, they merely pay the purchase price over time? Or am I missing something?
Naw, you missed it. I had to read it several times. See post 8.
Works like this:
Muslim finds a house for sale; price $100K
goes to bank and strikes a deal with or without down payment.
Bank buys house for 100K and leases to Muslim.
Muslim pays bank $1000.00 a month rent of which $278.00 is set in savings for the Muslim.
Muslim pays for 30 years and the house is his.
The bank has recovered its 100K from the savings account, has had the tax write off for the house for 30 years and has a significant proffit from the actual $722 rental it received.
The proposition is on the order of a contract for deed or a very prolonged lease with purchace option.