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To Muslims, Alternatives to riba

mosque [1]

With a growing Muslin population in the US and interest in housing, an age-old dilemma come to the forefront. Purchasing a home with a mortgage is not religiously acceptable. [2] This is because interest is seen as effortless profit [3].

Without mortgage, the purchase of a home for cash for many Muslims is not possible [4]. In recent years, banks have come up with different solutions that are compliant under Islamic Law [5].

Avoiding riba or interest payments [Note: Subscription] [6] has made home ownership difficult. One solution has been the lease-to-own model. Another way has been to form a housing coop. [7]