Murabaha Contracts Explained
Murabaha is a simple, honest way to buy a home. Here is how it works — in plain words.
What is a Murabaha contract?
Murabaha means "cost-plus sale." It is one of the most trusted tools in Islamic finance.
Here is the simple idea: instead of lending you money, the finance company buys the home first. Then it sells the home to you for the cost plus a clear, agreed profit. You pay that one price in easy monthly payments.
There is no interest. There are no surprises. You know the full price on day one, and it never changes.
How Murabaha works, step by step
You pick a home
You find the home you love, just like any buyer.
We buy it
The finance company buys the home from the seller.
We sell it to you
You buy it from us at cost plus a fixed, fair profit.
You pay over time
Set monthly payments. Same amount. No interest. Ever.
Why is Murabaha Sharia-compliant?
It is a real sale, not a loan
Islam allows trade. The company truly buys the home, then sells it to you. Money is never rented out for interest.
The price is fixed and honest
You see the cost and the profit before you sign. Nothing is hidden. The price can never grow.
Scholars check every contract
Our Murabaha contracts are certified by the Assembly of Muslim Jurists of America (AMJA).
Common Questions About Murabaha
Is Murabaha the same as interest?
No. Interest is a fee for borrowing money. Murabaha is profit from a real sale of a real home. Islam allows fair trade profit, but not interest.
Can my monthly payment go up?
No. Your total price is agreed at the start. Your monthly payments stay the same for the whole contract.
What happens if I pay early?
You can pay off your home early. Ask one of our advisors — they will walk you through how early payoff works.
Do I own the home?
Yes. Once the sale closes, the home title is in your name. You are the owner from day one.
Want to see a Murabaha plan for your home?
Our advisors will show you real numbers with no pressure and no cost.
Talk to an Advisor