Posted by: islamicfinancingnews | August 4, 2012

Islamic mortgages need certain elements to finance commercial properties

Many people avoid investing in commercial real estate because they don’t think they have enough money or believe the commercial market is too complicated. While there are elements that make Islamic mortgages for commercial properties different from traditional residential mortgages, there are benefits to expanding your real estate holdings into larger commercial properties.

Of course, there are certain things that you’ll need to produce to qualify for the type of Islamic loans necessary to purchase a commercial property. For example, an appraisal by a qualified property appraiser will be required to assess the condition of the commercial property and determine its market value. In addition to a sizeable down payment and a good credit history, a lender will also need to see details of your income and assets to make sure you have enough capital and can afford to meet the monthly mortgage payments on these higher priced properties.

Before you start, it’s a good idea to get advice from people who have invested in the same type of commercial property you are considering and can give you some pointers on the process. You should also look to your Islamic finance lender for guidance on ways to improve your chances to qualify for commercial loans.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: