Muslims can buy homes without breaking Quran’s rules

Long Island (NY) Newsday ^ | September 4, 2006 | Katie Thomas

[lowbridge]

Like so many young professionals, Pulak Bhuiya wanted a place he could call his own. He graduated from college, got a decent job as a systems analyst for Credit Suisse Bank in Manhattan and got married.

-snip

But because Bhuiya's Islamic faith prohibits him from taking out an interest-bearing loan, homeownership was out of reach. Then, through friends, Bhuiya, 32, heard about a financing program geared toward Muslims -- one approved by religious scholars and structured to avoid paying interest.

Last year, he closed on a four-bedroom, three-bath ranch in Levittown.

-snip

In 2002, HSBC Bank USA was the first major bank to offer a home-buying program that would satisfy the conditions of the Quran for New York Muslims, and since then at least two other banks have initiated similar offerings in the state. Guidance Financial, a Reston, Va.-based firm, began offering home-buying programs in 2004. About six months ago a Chicago bank, Devon Bank, closed on its first New York transaction.

-snip

One program offered by several banks is known as "murabaha," or "cost-plus" -- a process by which the bank buys a home for its client, adds a profit to the initial price, then sells it to the client in a series of monthly payments that reflect the new, higher price. Because buyers pay the price of the home plus the bank's profit, they avoid their religion's prohibition of taking out interest-bearing loans.

Under another program -- "diminishing musharaka," or "partnership" -- the bank and the buyer become co-owners of the property, and the buyer pays the bank "rent" for the privilege of living in the property. The buyer gradually acquires the bank's share of the house at the same time that the "rent" payments decrease.

[lowbridge]

NOWHERE in the article are any numbers given as to how much they pay for their homes as opposed to conventional mortgages. I assume from that lack of info from the article (Newsday is a very LIBERAL newspaper), they are getting quite a sweet deal.

BTW: The title for this article in their print edition is: "Homeownership in a holy manner"

"The Quran, the Muslims' holy book, says that those who borrow or collect interest will be at war with God,..."

[Ruth A.]

Would that all lenders were so friendly and agreeable. Hah.

[butternut_squash_bisque]

This is so wrong, IMO.

[KarlInOhio]

Allah must be easily fooled by accounting tricks. Is he also tricked by games of three card monte?

[rovenstinez]

Is this for Muslims only? Sounds like a lawsuit if they discriminate in banking by religion, race, creed etc.

[ZULU]

Looks like the U.S. is sliding towards Londonstan - making special allowances in our laws and culture to accomodate a suicidal, anti-western cult masquerading as a religion.

Too bad this guy doesn't pack it up and move back to Saudi Arabia or whatever Islamic "paradise" spawned him and his ancestors.

But he won't.

He won't because he and his kind are here to prselytize and convert America to Islam as his "prophet" commanded - one way or another.

[Texas_Jarhead]

I too would like to see some numbers. Unless the cost is close to double the sales price then I'd say they they are getting a break.

[Sooth2222]

"The Quran, the Muslims' holy book, says that those who borrow or collect interest will be at war with God,..."

Possibly helping to explain why the Islamic world peaked economically around the 12th Cenury and have been working their way backwards ever since.

Might also help explain the philosophical similarities between the National Socialists and Islamofascists.

[RacerX1128]

These friggin people can twist the koran to make it imply anything they damn well please.

you think Christians went out and killed a muslim lady and wounded 5 others at a mosque cause the bible says "eye for an eye"?

[msnimje]

But can they cut off people's heads without breaking Koran Rules?

[ndt]

"Is this for Muslims only?"

I actually checked into this when I first heard about these not a loan loans. They change names from APR to annual rent and the like but in the end you end up paying about the same, it's just a little vocabulary trickery that makes it theologically sound to Muslims. BTW as far a I could tell anyone can apply, but I had no interest in going that far to satiate my curiosity.

[Ganymede]

So I take it they don't get the mortgage interest deduction.

[ThomasPaine2000]

But the Big Question is: Is it tax deductable?, and how does the IRS see this deal??

[Doctor Stochastic]

It was this prohibition of "taking interest" that allowed the Jews to do so well in Europe. Aquinas, Cato, Cicero, and Plato were among those who objected to interest.

Wiki Link

[conservative in nyc]

NOWHERE in the article are any numbers given as to how much they pay for their homes as opposed to conventional mortgages. I assume from that lack of info from the article (Newsday is a very LIBERAL newspaper), they are getting quite a sweet deal.

HSBC is a bank, not a charity, and isn't in the business of giving its borrowers a break, whether the borrowing is through conventional or non-conventional means. I'd be shocked if the Islamic mortgage structures are on better terms than conventional mortgages. I'd expect them to have slightly higher closing costs due to increased paperwork.

[Doctor Stochastic]

But can they cut off people's heads without breaking Koran Rules?

No. That's why those doing so are called terrorists inter alia.

[Boiler Plate]

HSBC is a Chinese/Hong Kong bank.

[Octar]

I look forward to seeing what happens when multitudes of "infidels" try to take advantage of this dunce scam. What a bankrupt "faith". Useless clowns.

[vetvetdoug]

No wonder so many of the Islamofacists live in tents and are so happy to blow up real property.