Any idea ,How it works?
What are the risks involved?
who are agency providing it in USA?
Will love to hear any first hand experience. I am in house buying market and any help will be appreicated.
Try Ameen Housing
They are based in the Bay Area. No first hand experience, though. Although, I have heard that they are pretty selective (limited cash), and have high d/p requirements (20%).
A friend of mine financed through Bank of Kuwait (since then the bank moved out of US into UK). According to him, he had a horrible experience. The house was in the name of the bank, and the person pays rent+principle. The bank had no clue on required insurances and other matters and the person had to educate them every step of the way, and still they were in default most of the time. The ‘loan’ was much expensive compared to normal mortgages. Fortunately for him, he was able to sell his vested options (he worked for Cisco) and pay off the house as soon as possible.
If I find more resources, I will let you know.
Re: Islamic Loans
[QUOTE]
*Originally posted by fair_&_balance: *
Any idea ,How it works?
What are the risks involved?
who are agency providing it in USA?
Will love to hear any first hand experience. I am in house buying market and any help will be appreicated.
[/QUOTE]
No way Jose,
Its the west Buddy, you get nothing for free, when I was buying my house in 1999, believe you me I tried every gimmic, so much so I have a very good friend working at Habib American Bank, and their reply was we dont do loans. Apart from the above I tried some other venues too, with no success whatsoever.
Bottom line, they may say intrest free, but the fees and title of the house will be so screwed up. you would be better off financing elsewhere.
Consider yourself warned!!!
Aejaz
Thanks Faisal Bhai.
This page helped me understand how it works.
http://www.ameenhousing.com/coop/why_halal.html
Please let me know if you have more info.
Aejaz Bhai,
why jose? 
Thanks for info. I have not yet decided about it. I was just trying to know the process. Your experience will certainly help.
I know HSBC offer islamic mortgages in the UK - as they are in the US , they may also offer it over there too- it is worth asking them.
Generally they work out to be a lot more expensive. I know some people who looked into it and decided against it.
I have financed my loan via http://www.lariba.com
Thee guys are based out of pasadena, CA. I know many people who have financed their homes through lariba. Last time i checked, you could purchase a house for as less as 5% down.
F&B
I put a bunch of money (for investment purposes, not to buy a house), in the ISNA housing co-op out of Toronto. I think it is called Al-Ansar, I can get you more information if you want. Though I should warn you, I've heard buying a hourse from them is more expensive than getting a mortgage.