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    Question ID: 156046Country: United States

    Title: Ruling on home loan

    Question: We live in the USA and willing to buy a home. We want to get home loan since we don't have any money on hand. My question is can we get the home loan from mortgage companies? We don't have any Islamic banking available in the state where we live in. I have heard fatwas about buying a first home with loan is permissible as far as you don't have enough money and you live in rented place. We tried to save money from last four years and we were not able to save any money because of personal problems. Now, we want to get a house and thinking to get a home loan and we will pay as early as possible. Are we allowed to take home loan in the situation where we don't have any Islamic banking available? If we wait, we won't be able to buy a house ever in our life. We think that we are just wasting our money by paying high rental amount every month. Please advise us how should we proceed?

    Answer ID: 156046

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 216/225/SN=3/1439)


    Receiving and giving interest is sternly prohibited. According to Shariah, it is not lawful to take interest based loan without a very dire need. In the above mentioned case, since you have proper arrangement to live though in rented house, hence you should not take home loan. Try to buy house by saving from your income or by some other lawful means. Almighty Allah says in the Holy Quran:


    أَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا [البقرة : 275]

    وفى الأشباه: ما حرم أخذه حرم إعطاؤه كالرباء مهرالبغى الخ . (1/32، القاعدة الرابعة عشرة)

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India