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Introduction Towards a LARIBA (Islamic) Mortgage Financing in the United States
Providing an Alternative to Traditional Mortgages

Dr. Yahia K. Abdul-Rahman & Abdullah S. Tug - General Manager, American Finance House LARIBA

The Model Used for Financing Activities:

  1. Does it look like conventional model?
  2. Is it a model that uses interest as a foundation for its calculations?
  3. Is it a model that uses the word "profit" or "rent" instead of "interest’? Many models do that.
  4. Ask if the person (s) making Shari’aa rulings are employed and paid by the finance company for their services.

Remember that paying or receiving interest, regardless what they call it, is not allowed in the LaRiba Islamic Banking & Finance System.

Who are Those Behind the Institution?

  1. Are they involved in the community?
  2. Do they have a record of accomplishment in community service?
  3. Are they experienced in financing, investing and business?
  4. Do they have a vision? What is that vision?
  5. What is the institution’s experience?
  6. Who provides capital to institution?
  7. Are funds from legitimate sources?
  8. What happens to your property if the institution ceases to do business for any reason?
  9. Do the investment returns come back to the community.

Is the Institution Socially Responsible?
  1. Does the institution use intensive marketing concepts’ using religious slogans to justify its operations?
  2. Does the Institution Put their competition down and fiercely tries to take business away without regards to proper Islamic ethics and rules on competition and misrepresentation?
  3. What is the cost of financing and what is the expected return on investment?
  4. Are they competitive?
  5. Does institution speculate & trade in stock markets?