Islamic financiers pushing Koran-compliant homeloans

U.S. Muslims long shut out of the American dreams of the two-bedroom, two-bathroom house may soon find themselves on the road to homeownership.

According to a Reuters story, until recently, mortgages were a religious obstacle to observant Muslims who wanted to buy a home. Muslims must be sure that home mortgages comply with Islamic (Sharia) law ? and the biggest problem is that Muslims are prohibited from paying or collecting interest on loans. Now, observant Muslims have the chance to purchase houses via an interest-free mortgage.

To avoid the issue of paying interest, Muslim mortgages usually involve the bank purchasing the house or property, and then allowing the purchaser to buy it from them using a ?rent-to-own? model at a slightly increased price.

“I’m so happy I can have my own place now and still be on the right side of God,” Khalil Madun told Reuters.

You can read more about this story at Islamic financiers sell Koran-compliant American dream.