Minnesota state agency offers Islamic mortgages

4EvrLearning · 03-10-2009, 05:43 PM

emphasis in bold added by 4EvrLearning

Minnesota state agency offers Islamic mortgages

MINNEAPOLIS (AP) - For many Minnesota Muslims, it's been virtually impossible to buy a home, because Islamic law forbids the paying or charging of interest. To help close the home ownership gap among Muslim immigrants, the state's housing agency has launched a new program offering Islamic mortgages.

Islamic law does make exceptions to the ban on interest, if one's family is at stake. But the exceptions are open to interpretation and for many observant Muslims, conventional mortgages are strictly taboo.

Nawawi Sheikh is one of them. The Somali-American said he and his wife just couldn't go against their beliefs, even if it meant giving up their dream of owning a home. Still, he grew tired of moving from one rented apartment to another.

"One thing I hated was moving. I don't like to move all the time," he said.

He has no plans to move again anytime soon. Sheikh is the first home buyer to get a loan through the state's New Markets Mortgage Program. That's because, program manager Nimo Farah said, he has all the makings of a successful homeowner.

"I had lots of applications, but he's the first one, because really, he was ready. He has been working at the same job for quite a while; he took care of his credit; he had the right size family, and he had all his documents together," she said. "He was basically ready to go."

The program is targeted at low-to-moderate income families. Qualified applicants have to complete first-time home buyer education classes. The goal is to help Muslim home buyers build wealth and reap the benefits of home ownership.

Here's how the mortgage, known as Murabaha financing or "cost plus sale," works:

The state buys a home and resells it to the buyer at a higher price [emphasis added]. The down payment and monthly installments are agreed to up front at current mortgage rates.

The deal is identical to a thirty-year fixed-rate loan, except there's no additional interest, because the higher up-front price factors in payments that would have been made over the life of a traditional mortgage.

A handful of private banks and lending institutions offer Islamic mortgages in the U.S., but Minnesota Housing is the first state agency to offer such a product. The program is the brainchild of Hussein Samatar, director of the African Development Center in Minneapolis.

"The process is different, but the outcome will look the same," Samatar said. "We wanted to be as conventional as possible, while respecting the tenets of Islam."

Samatar, who used to work for Wells Fargo, tried for years to launch Islamic financing. He said the fact that Minnesota Housing has agreed to participate is a nod to the Muslim community's growing economic power.

Chicago-based Devon Bank is underwriting the loans for the New Markets program. Devon is one of the largest Islamic lenders in the country. Corporate Counsel David Loundy said he expects the demand for Islamic financing to grow as more Muslims make their home in the U.S. Loundy said Muslims tend to be good risks.

"If they worked so hard to get to this country, they don't want to screw it up now that they are here, so they tend to pay their debts pretty promptly," said Loundy. "In addition, you have a population that is religiously and culturally predisposed against having debt, so they want to pay down their debts as quickly as they can."

The numbers back this up. In its five and a half years offering Islamic lending, Loundy said Devon Bank hasn't lost a penny, though he admits the recession could make that record difficult to sustain as more borrowers face job loss.

But the bad economy is also offering opportunity. With housing prices at rock bottom, officials say the timing couldn't be better to match first-time Muslim buyers with foreclosures that need new owners.

Nawawi Sheikh's new three-bedroom south Minneapolis home is a former foreclosure. The African Development Center's Hussein Samatar said there are thousands more potential buyers like Sheikh out there. He said the New Markets Mortgage Program will help the Minnesota Muslims community put down strong roots.

"It is great news for the country, and it really sends a great signal that the United States is our country," he said.

bcj1755 · 03-10-2009, 05:48 PM

THEY get special mortgages because of their religion but yet I'm still renting because I can't get a freaking mortgage?!?!

I have just about have f****** ENOUGH of this bulls***!!!!!!!

4EvrLearning · 03-10-2009, 05:56 PM

bcj.....the end net result will be the same; i.e., they'll end up after 30 years paying what you and I would pay, principal and interest combined--they just are paying it as a flat monthly payment (my interpretation). That being said, it's almost a game of semantics then, isn't it?

Regardless, the other issue here is "Murabaha financing"....which I'm guessing (haven't researched this) is another way of saying "Shariah financing"?

More concessions....

bcj1755 · 03-10-2009, 06:00 PM

Quote:

Originally Posted by 4EvrLearning

bcj.....the end net result will be the same; i.e., they'll end up after 30 years paying what you and I would pay, principal and interest combined--they just are paying it as a flat monthly payment (my interpretation). That being said, it's almost a game of semantics then, isn't it?

Regardless, the other issue here is "Murabaha financing"....which I'm guessing (haven't researched this) is another way of saying "Shariah financing"?

More concessions....

Yeah, I'm not mad at the fact they they'll pay the same amount over a 30 year period, that's the good part of this. I'm mad because it's another way that the gov't and the institutions in the country are bending over backwards to appease them and they kepp demanding more and more special treatment because of their religion!! That's what has me so angry about this.

ponycar17 · 03-10-2009, 06:06 PM

Do they offer a clause that the loan may be forgiven if the home is destroyed in the event of Jihad?...

/Ducks and Hides/

cycloneman · 03-10-2009, 06:25 PM

thats enough.

jacksonco · 03-10-2009, 06:33 PM

I don't see a problem here. I doesn't sound like we are subsidising the loan. The family was granted permision to live here or were born here. In all honesty if this is all there is to it I don't have any reservations about the program.

bcj1755 · 03-10-2009, 07:00 PM

Quote:

Originally Posted by jacksonco

I don't see a problem here. I doesn't sound like we are subsidising the loan. The family was granted permision to live here or were born here. In all honesty if this is all there is to it I don't have any reservations about the program.

It's a state housing agency program that's giving a group of people special treatment because of their religion; i.e., using taxpayer money to buy houses for someone based on their religion.

pinecone70 · 03-10-2009, 07:18 PM

Just one more clue that MN is a little bit whacked.

Lori Mick · 03-10-2009, 07:23 PM

I heard on the news today there's going to be a HUGE protest in CT because they want to do away with religion. The basic message was that they want us to give up on God and just bow to the government for our salvation.
God Help us All!

cycloneman · 03-10-2009, 07:35 PM

Quote:

Originally Posted by jacksonco

I don't see a problem here. I doesn't sound like we are subsidising the loan. The family was granted permision to live here or were born here. In all honesty if this is all there is to it I don't have any reservations about the program.

to me its the fact that someone walked into a bank and said my religion will not let me do that. WTF. what is upsetting is that these people believe their chit dont stink. and thats the truth. they believe they are better than everyone else. the other upsetting part is that some air head bent over backwards.

now I ask all how are reading this.

WHEN THE **** HAS ANYONE DONE THIS FOR YOU?!!!!!!!!!
Go ahead give me your answer. Because I remember.

NO
ONE
HELPED
ME.

Vladimir · 03-10-2009, 08:25 PM

Don't like it, stop electing the officials responsible. Funny how as conservatives who rally around personal responsibility are so quick to point the finger at other people... *finger waving* "you damn government people," yadda, yadda. It's the curse of democracy.

Marlin T · 03-10-2009, 10:14 PM

Quote:

Originally Posted by Vladimir

Don't like it, stop electing the officials responsible. Funny how as conservatives who rally around personal responsibility are so quick to point the finger at other people... *finger waving* "you damn government people," yadda, yadda. It's the curse of democracy.

You are correct James, the curse of democracy. To bad our republic is going down the drain.

Bruce FLinch · 03-10-2009, 11:40 PM

Mn already has legal Pot & Prostitution. They're just trying to be the PC Capital of the USA...Frigging Humprey lovers...

1shot1k · 03-10-2009, 11:40 PM

I wonder if anyone besides myself...has considered forming a new ( yet prebased ) legal , fully ordained , tithe paying , record keeping National ( and international's can join ) fully sanctioned all out , barn burnin good old Religionious Sect.

Primary religious beliefs - God (each to his own SINGULAR ALL POWERFULL ENTITY ) , Our Nations 2nd Amendment , and the general and overall protection of our Constitution and Armed Forces.

The tax issues (ammo/weapons..faith?) would be interesting. The Separation Religion/State issues would be also.

This is not inconceivable...would there be enough to sway constituants...probably not....

Only tricky part is keeping 2nd and New "church" governmental attributes from discretion. My first thoughts are along "U.S. born inallienable inherited right "
However...a Georgia boy could have said that about slavery before Civil War...more thought needed....

However..such a religion sect would put ACLU more on our side......

just thinkin......

As to "monkeys" in story thread....many well off Muslims in DFW area...many in fine houses...am sure either paid cash or received permision from religious leader to add all interest up...and "in their heads and hearts " considered this as also with "negotiated " final deal.

This isolated story does not seem important to me. A whoring bank or its lobbyists worth their salt will find any way to make a deal loaning money........

45nut · 03-11-2009, 08:17 AM

Quote:

Originally Posted by bcj1755

It's a state housing agency program that's giving a group of people special treatment because of their religion; i.e., using taxpayer money to buy houses for someone based on their religion.

KTAALGSTO

ampaterry · 03-11-2009, 09:45 AM

I have no problem with banks, state agencies, etc., doing business with Moslems in accordance with Shoresh law, provided they follow it COMPLETELY.
Late payment? Cut off a hand.
Default? Cut off a head.

Seriously, this is frightening; I read about the BANK that did this and even that rankled me. For a STATE AGENCY to do it is absolutely unbelievable!

mrkirker · 03-11-2009, 11:13 AM

4evr,
When I first did my quick morning scan of the new topics, my bleery eyes read, "Minnesota state agency offers ICELANDIC mortgages." I thought, "Hey, good idea! Way to go, Pinecone!"

pawn · 03-11-2009, 11:15 AM

I'm not very surprised by this...

RunningOnMT · 03-11-2009, 11:18 AM

Actually I think it's kind of funny. The banks are saying "Alright Mr. Muslim (dumbass), you don't want to pay interest on your loan, we wont charge you interest." "We'll just charge you three times the the price up front." If only everything was this simple.

4EvrLearning · 03-11-2009, 11:20 AM

Quote:

Originally Posted by mrkirker

4evr,
When I first did my quick morning scan of the new topics, my bleery eyes read, "Minnesota state agency offers ICELANDIC mortgages." I thought, "Hey, good idea! Way to go, Pinecone!"

lol mrkirker!!

You know, come to think of it, Iceland might be a nice getaway place! I bet they have some reasonable beachfront properties...

mrkirker · 03-11-2009, 11:25 AM

reasonable beachfront properties
Yes, all with STEAM HEAT!

pinecone70 · 03-11-2009, 11:48 AM

OMG...Icelandic....
I could use the steam heat here today, for sure.

03-10-2009, 05:43 PM	#1
4EvrLearning Advanced Senior Member Join Date: Feb 2009 Location: Left Coast Posts: 1,449	Minnesota state agency offers Islamic mortgages emphasis in bold added by 4EvrLearning Minnesota state agency offers Islamic mortgages MINNEAPOLIS (AP) - For many Minnesota Muslims, it's been virtually impossible to buy a home, because Islamic law forbids the paying or charging of interest. To help close the home ownership gap among Muslim immigrants, the state's housing agency has launched a new program offering Islamic mortgages. Islamic law does make exceptions to the ban on interest, if one's family is at stake. But the exceptions are open to interpretation and for many observant Muslims, conventional mortgages are strictly taboo. Nawawi Sheikh is one of them. The Somali-American said he and his wife just couldn't go against their beliefs, even if it meant giving up their dream of owning a home. Still, he grew tired of moving from one rented apartment to another. "One thing I hated was moving. I don't like to move all the time," he said. He has no plans to move again anytime soon. Sheikh is the first home buyer to get a loan through the state's New Markets Mortgage Program. That's because, program manager Nimo Farah said, he has all the makings of a successful homeowner. "I had lots of applications, but he's the first one, because really, he was ready. He has been working at the same job for quite a while; he took care of his credit; he had the right size family, and he had all his documents together," she said. "He was basically ready to go." The program is targeted at low-to-moderate income families. Qualified applicants have to complete first-time home buyer education classes. The goal is to help Muslim home buyers build wealth and reap the benefits of home ownership. Here's how the mortgage, known as Murabaha financing or "cost plus sale," works: The state buys a home and resells it to the buyer at a higher price [emphasis added]. The down payment and monthly installments are agreed to up front at current mortgage rates. The deal is identical to a thirty-year fixed-rate loan, except there's no additional interest, because the higher up-front price factors in payments that would have been made over the life of a traditional mortgage. A handful of private banks and lending institutions offer Islamic mortgages in the U.S., but Minnesota Housing is the first state agency to offer such a product. The program is the brainchild of Hussein Samatar, director of the African Development Center in Minneapolis. "The process is different, but the outcome will look the same," Samatar said. "We wanted to be as conventional as possible, while respecting the tenets of Islam." Samatar, who used to work for Wells Fargo, tried for years to launch Islamic financing. He said the fact that Minnesota Housing has agreed to participate is a nod to the Muslim community's growing economic power. Chicago-based Devon Bank is underwriting the loans for the New Markets program. Devon is one of the largest Islamic lenders in the country. Corporate Counsel David Loundy said he expects the demand for Islamic financing to grow as more Muslims make their home in the U.S. Loundy said Muslims tend to be good risks. "If they worked so hard to get to this country, they don't want to screw it up now that they are here, so they tend to pay their debts pretty promptly," said Loundy. "In addition, you have a population that is religiously and culturally predisposed against having debt, so they want to pay down their debts as quickly as they can." The numbers back this up. In its five and a half years offering Islamic lending, Loundy said Devon Bank hasn't lost a penny, though he admits the recession could make that record difficult to sustain as more borrowers face job loss. But the bad economy is also offering opportunity. With housing prices at rock bottom, officials say the timing couldn't be better to match first-time Muslim buyers with foreclosures that need new owners. Nawawi Sheikh's new three-bedroom south Minneapolis home is a former foreclosure. The African Development Center's Hussein Samatar said there are thousands more potential buyers like Sheikh out there. He said the New Markets Mortgage Program will help the Minnesota Muslims community put down strong roots. "It is great news for the country, and it really sends a great signal that the United States is our country," he said. __________________ *"Until God is finished with me, I am immortal." Jonathan Edwards, American Theologian (1703-1758)* -->

03-10-2009, 05:48 PM	#2
bcj1755 Advanced Senior Member Join Date: Jul 2008 Location: A wretched hive of scum and villiany Posts: 4,357	Re: Minnesota state agency offers Islamic mortgages THEY get special mortgages because of their religion but yet I'm still renting because I can't get a freaking mortgage?!?! I have just about have f**** ENOUGH of this bulls*!!!!!!! __________________ History is much like an endless waltz. The three beats of war, peace, and revolution continue on forever. Inter Arma Enim Silent Leges - Cicero If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that ye were our countrymen. - Samuel Adams

03-10-2009, 05:56 PM	#3
4EvrLearning Advanced Senior Member Join Date: Feb 2009 Location: Left Coast Posts: 1,449	Re: Minnesota state agency offers Islamic mortgages bcj.....the end net result will be the same; i.e., they'll end up after 30 years paying what you and I would pay, principal and interest combined--they just are paying it as a flat monthly payment (my interpretation). That being said, it's almost a game of semantics then, isn't it? Regardless, the other issue here is "Murabaha financing"....which I'm guessing (haven't researched this) is another way of saying "Shariah financing"? More concessions.... __________________ *"Until God is finished with me, I am immortal." Jonathan Edwards, American Theologian (1703-1758)*

03-10-2009, 06:06 PM	#5
ponycar17 Advanced Senior Member Join Date: Feb 2005 Location: South Carolina Contributor Posts: 4,884	Re: Minnesota state agency offers Islamic mortgages Do they offer a clause that the loan may be forgiven if the home is destroyed in the event of Jihad?... /Ducks and Hides/ __________________ Arm yourself with intellectual Ammunition! Gunfacts 5.1 Myth-Busting Facts JustFacts.com on Gun Control Stopping Power, the Downloadable Book

03-10-2009, 06:25 PM	#6
cycloneman Advanced Senior Member Join Date: Dec 2008 Location: Louisiana Posts: 7,397	Re: Minnesota state agency offers Islamic mortgages thats enough. __________________ Who are you going to serve today? Last edited by cycloneman; 03-10-2009 at 06:27 PM..

03-10-2009, 06:33 PM	#7
jacksonco Advanced Senior Member Join Date: Jul 2007 Location: Jackson County West Virginia Posts: 2,237	Re: Minnesota state agency offers Islamic mortgages I don't see a problem here. I doesn't sound like we are subsidising the loan. The family was granted permision to live here or were born here. In all honesty if this is all there is to it I don't have any reservations about the program.

03-10-2009, 07:18 PM	#9
pinecone70 Advanced Senior Member Join Date: Jul 2008 Location: Minnesota Gal! Posts: 4,730	Re: Minnesota state agency offers Islamic mortgages Just one more clue that MN is a little bit whacked. __________________ _____________________________________________ "Miss Scarlet, in the library...with a revolver...."

03-10-2009, 07:23 PM	#10
Lori Mick Advanced Senior Member Join Date: Nov 2008 Location: Stuck in Upstate NY for a while Posts: 2,374	Re: Minnesota state agency offers Islamic mortgages I heard on the news today there's going to be a HUGE protest in CT because they want to do away with religion. The basic message was that they want us to give up on God and just bow to the government for our salvation. God Help us All! __________________ It's a Brand New Day! Make it an awesome one! "No one outside myself can rule me inwardly. Knowing this I become wholly free."

03-10-2009, 08:25 PM	#12
Vladimir Advanced Senior Member Join Date: Jan 2008 Location: Issaquah WA Posts: 3,558	Re: Minnesota state agency offers Islamic mortgages Don't like it, stop electing the officials responsible. Funny how as conservatives who rally around personal responsibility are so quick to point the finger at other people... finger waving "you damn government people," yadda, yadda. It's the curse of democracy. __________________ -JVRR меня зовут Владимир или Джеймс. Я знаю только немного русский язык (я американец, но мой пра дедушка русски). STEAM (CSS, TF2, etc): Ask me! Xbox LIVE! GT: "Vlad is Rad" PS3 PSN: "Vlad_Is_Rad"

03-10-2009, 11:40 PM	#14
Bruce FLinch Advanced Senior Member Join Date: Aug 2005 Location: Bay Point, Kali..aka Gun Point Posts: 5,016	Re: Minnesota state agency offers Islamic mortgages Mn already has legal Pot & Prostitution. They're just trying to be the PC Capital of the USA...Frigging Humprey lovers... __________________ A bad day @ the Range, is better than a good day @ work.

03-10-2009, 11:40 PM	#15
1shot1k Former Guest Join Date: Nov 2008 Location: Fort Worth, Texas Posts: 904	Re: Minnesota state agency offers Islamic mortgages I wonder if anyone besides myself...has considered forming a new ( yet prebased ) legal , fully ordained , tithe paying , record keeping National ( and international's can join ) fully sanctioned all out , barn burnin good old Religionious Sect. Primary religious beliefs - God (each to his own SINGULAR ALL POWERFULL ENTITY ) , Our Nations 2nd Amendment , and the general and overall protection of our Constitution and Armed Forces. The tax issues (ammo/weapons..faith?) would be interesting. The Separation Religion/State issues would be also. This is not inconceivable...would there be enough to sway constituants...probably not.... Only tricky part is keeping 2nd and New "church" governmental attributes from discretion. My first thoughts are along "U.S. born inallienable inherited right " However...a Georgia boy could have said that about slavery before Civil War...more thought needed.... However..such a religion sect would put ACLU more on our side...... just thinkin...... As to "monkeys" in story thread....many well off Muslims in DFW area...many in fine houses...am sure either paid cash or received permision from religious leader to add all interest up...and "in their heads and hearts " considered this as also with "negotiated " final deal. This isolated story does not seem important to me. A whoring bank or its lobbyists worth their salt will find any way to make a deal loaning money........

03-11-2009, 09:45 AM	#17
ampaterry TFF Admin Staff Chaplain Join Date: Dec 2008 Location: West Tennessee Contributor Posts: 6,272	Re: Minnesota state agency offers Islamic mortgages I have no problem with banks, state agencies, etc., doing business with Moslems in accordance with Shoresh law, provided they follow it COMPLETELY. Late payment? Cut off a hand. Default? Cut off a head. Seriously, this is frightening; I read about the BANK that did this and even that rankled me. For a STATE AGENCY to do it is absolutely unbelievable! __________________ A woman who demands further gun control legislation is like a chicken who roots for Colonel Sanders. Larry Elder

03-11-2009, 11:13 AM	#18
mrkirker Advanced Senior Member Join Date: Jul 2007 Posts: 3,067	Re: Minnesota state agency offers Islamic mortgages 4evr, When I first did my quick morning scan of the new topics, my bleery eyes read, "Minnesota state agency offers *ICELANDIC* mortgages." I thought, "Hey, good idea! Way to go, Pinecone!" __________________ *I don't know if dogs have a heaven, but there will be dogs in mine.*

03-11-2009, 11:15 AM	#19
pawn Advanced Senior Member Join Date: Jan 2007 Location: Crossville, TN Posts: 1,469	Re: Minnesota state agency offers Islamic mortgages I'm not very surprised by this... __________________ Take care when you get information. The truth is generally seen, rarely heard. -Balthasar Gracian

03-11-2009, 11:18 AM	#20
RunningOnMT Advanced Senior Member Join Date: Nov 2008 Location: Akron, Ohio Contributor Posts: 4,720	Re: Minnesota state agency offers Islamic mortgages Actually I think it's kind of funny. The banks are saying "Alright Mr. Muslim (dumbass), you don't want to pay interest on your loan, we wont charge you interest." "We'll just charge you three times the the price up front." If only everything was this simple.

03-11-2009, 11:25 AM	#22
mrkirker Advanced Senior Member Join Date: Jul 2007 Posts: 3,067	Re: Minnesota state agency offers Islamic mortgages reasonable beachfront properties Yes, all with STEAM HEAT! __________________ *I don't know if dogs have a heaven, but there will be dogs in mine.*

03-11-2009, 11:48 AM	#23
pinecone70 Advanced Senior Member Join Date: Jul 2008 Location: Minnesota Gal! Posts: 4,730	Re: Minnesota state agency offers Islamic mortgages OMG...Icelandic.... I could use the steam heat here today, for sure. __________________ _____________________________________________ "Miss Scarlet, in the library...with a revolver...."