Fatwa: # 26622
Category: Business Matters
Country: United States
Date: 24th August 2013


Is the Guidance Residential home financing facility Shariah compliant?



MashAllah this site has many questions and answers about home financing and I hope I am not repeating any but was unable to find any regarding Guidance Residential.  My question is regarding home financing through Guidance residential.  They are well advertised here in the USA as a Shariah compliant alternative to Home financing.  I know of many respected ulema and pious people who have approved and use Guidance to finance their own homes.   

Despite this, I have still had reservation because some people also say it isn’t legit and there is still some form of interest involved.  Although I have been in a position to buy, I have opted to rent for several years now because of this little doubt and fear.  My wife and I have moved several times and Alhumdulillah, Allah granted us the strength and energy to do so, even though it became stressful at times.  But, Alhumdulillah my family is growing now. 

The cost of rent is rising and we have to keep moving every couple years because of this, it has become a bit fatiguing.  Buying actually works out cheaper and is more stable for us, but I don’t want to compromise my deen for this convenience.  Also, seeing ulema, muftis, alims in our local community that are well known, educated and knowledgeable using Guidance has me believing that it may be legitimate after all.  Is there any updates regarding your research of Guidance or any other Shariah compliant home financing in the USA?   


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

There are many Financial Institutions claiming to be Shariah compliant. If you wish to obtain the view of the Darul Iftaa on a particular product claiming to be Shariah compliant, you may forward us the following:

  1. Detailed explanation on the nature of the product. For example, if it is a home financing product based on a diminishing partnership contract, then explain the details of the contract, the partnership, the sale, the rental and the gradual purchase of the units.
  2. The actual contract that will be used to implement the transaction.

Once the above mentioned is presented to us, the Darul Iftaa can make its observations on the contract.


And Allah Ta’āla Knows Best

Nabeel Valli

Student, Darul Iftaa

Checked and Approved by,
Mufti Ebrahim Desai.






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