Minnesota state agency offers Islamic mortgages

Discussion in 'General Discussion' started by 4EvrLearning, Mar 10, 2009.

  1. 4EvrLearning

    4EvrLearning New Member

    Feb 27, 2009
    Left Coast
    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.
  2. :mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:
    THEY get special mortgages because of their religion but yet I'm still renting because I can't get a freaking mortgage?!?!:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad: I have just about have f****** ENOUGH of this bulls***!!!!!!! :mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

  3. 4EvrLearning

    4EvrLearning New Member

    Feb 27, 2009
    Left Coast
    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....
  4. 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.
  5. ponycar17

    ponycar17 Active Member

    Feb 17, 2005
    South Carolina
    Do they offer a clause that the loan may be forgiven if the home is destroyed in the event of Jihad?...

    /Ducks and Hides/ :(
  6. cycloneman

    cycloneman Well-Known Member

    Dec 16, 2008
    thats enough.
    Last edited: Mar 10, 2009
  7. jacksonco

    jacksonco New Member

    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.
  8. 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.
  9. pinecone70

    pinecone70 Active Member

    Jul 30, 2008
    Minnesota Gal!
    Just one more clue that MN is a little bit whacked.
  10. 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!
  11. cycloneman

    cycloneman Well-Known Member

    Dec 16, 2008
    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.

    Go ahead give me your answer. Because I remember.

  12. Vladimir

    Vladimir New Member

    Jan 29, 2008
    Issaquah WA
    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.
  13. Marlin T

    Marlin T Well-Known Member

    Jul 8, 2005
    New Mexico

    You are correct James, the curse of democracy. To bad our republic is going down the drain.
  14. Mn already has legal Pot & Prostitution. They're just trying to be the PC Capital of the USA...Frigging Humprey lovers...:mad:
  15. 1shot1k

    1shot1k Former Guest

    Nov 9, 2008
    Fort Worth, Texas

    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........
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