Posted by: islamicfinancingnews | May 3, 2012

Islamic finance makes home ownership possible even in a tough economy

Obtaining the right Islamic finance including Islamic mortgages is necessary for any practicing Muslim that wants to fulfill their dreams of home ownership.

Recently, the Reuters news agency reported the first quarter of 2012 saw the rate of privately owned homes in the U.S. drop to 65.4 percent, its lowest level in fifteen years, as falling house prices combined with a tough economy are forcing younger Americans to rent property on their own or share accommodation with family and friends.

Although employment figures are starting to rise as the economy struggles to improve, many young people, particularly those under the age of 35, do not have sufficient savings or enough job security to put together a deposit for a home.

 

Prerequisites to buying a home include having reasonable credit; sufficient money in current accounts to satisfy the required on-account payment or traditional down payment which can be anywhere from 10% to 20% or higher; closing costs and reserve funds; and enough income to be able to afford the monthly payment.

While the housing market is showing signs of improvement, there is still a long road to recovery. Understanding the different options Islamic finance can offer including Islamic mortgages will give you confidence in taking that first step towards home ownership.

 


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