Firms Offer Muslims Alternatives To Mortgages

July 22, 2008

Author: Jamie Tarabay

Source: NPR

Khalid Aqbal's new condo sits in one corner of a quiet leafy square in a northern Virginia suburb. He's 62, and it's the first home he's bought in the U.S. since moving here from Canada. Some of his neighbors' homes are in foreclosure, but Aqbal isn't worried because he didn't take out a high-risk loan.

"I've always bought everything — all the big things — on Islamic finance," he says. "My wife makes sure I pay all my bills on time so there's no interest."

Islamic finance firms help Muslim customers buy homes without compromising their religious principles. This conservative approach to finance keeps the firms clear of the subprime drama and customers like Aqbal in their homes.