Frequently Asked Questions
Answers to the most common questions about halal home financing and our services.
Who is responsible for selecting the Property?
The customer identifies the property they wish to purchase.
What makes your financing Sharia-compliant?
Our financing uses the Murabaha contract structure, which is based on cost-plus-profit sales rather than interest-bearing loans. This has been certified as fully Sharia-compliant by AMJA (Assembly of Muslim Jurists of America).
Agency Appointment (Wakala Agreement)
You enter a Wakala (Agency) Agreement appointing Mubarak Mortgage to facilitate the purchase of the property on your behalf.
How is this different from conventional mortgages?
Instead of lending money with interest, we purchase the property and sell it to you at a profit, which you pay over time. This eliminates riba (interest) while still allowing you to own a home.
How does Mubarak acquire the Property?
Mubarak Mortgage purchases the property directly from the seller taking legal ownership. This step ensures the transaction complies with the principles of Islamic finance and Sharia law.
What credit score do I need?
Generally, we recommend a credit score of 620 or higher, though we evaluate each application individually based on various factors including income, debt-to-income ratio, and down payment.
What is a Murabaha (Cost-Plus Sale) Agreement?
We then sell the property to you under a Murabaha Agreement where: - The original purchase price and profit margin are fully disclosed - A fixed total price is agreed upfront - A clear installment plan is established based on your selected term
How long does the approval process take?
Most pre-approvals are completed within 24-48 hours. Full approval typically takes 2-3 weeks, depending on documentation and property appraisal completion.
How does Closing work and who has ownership of the property?
At closing, the title to the property is transferred to the customer making the customer the legal owner. Mubarak mortgage retains security interest in the property until the financing is fully repaid.
What is AMJA and why is their endorsement important?
AMJA (Assembly of Muslim Jurists of America) is a respected Islamic scholarly organization that reviews and certifies financial products for Sharia compliance. Their endorsement ensures our contracts meet strict Islamic finance standards.
How Long is the Repayment Period?
You make fixed, periodic payments according to the agreed schedule. The total amount does not change over time providing clarity and stability.
Can I refinance my existing conventional mortgage?
Yes! We specialize in helping families transition from conventional mortgages to Islamic financing. We'll guide you through the entire process and may be able to lower your monthly payments as well.