Devon Bank is one of the few traditional banks in the United States offering Islamic financing programs designed to comply with Sharia principles. Through its Devon Islamic Finance division, the bank provides financing products structured to avoid conventional interest-based lending.
The program includes Islamic home financing, refinancing, and certain commercial financing options structured using Islamic finance concepts such as Murabaha and Ijara.
For Muslim consumers searching for halal financing options in the United States, Devon Bank is sometimes considered alongside providers such as Guidance Residential, Ijara CDC, and LARIBA.
If you want a broader overview of Islamic home financing in the United States, see:
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What Is Devon Islamic Finance?
Devon Bank is a Chicago-based community bank founded in 1945. In addition to its traditional banking services, the institution operates Devon Islamic Finance, a program designed to offer Sharia-compliant financing options.
Unlike some Islamic financing companies that operate as specialized financial institutions, Devon Islamic Finance is offered through a regulated U.S. bank.
The program provides several financing options including home purchase financing, home refinancing, and commercial real estate financing.
Devon Bank Home Financing Structure
Devon Islamic Finance structures most residential home financing using Murabaha, a cost-plus sale structure widely used in Islamic finance.
Under a Murabaha home financing arrangement, the financial institution purchases the property and then sells it to the buyer at a pre-agreed price. The buyer repays that price over time through scheduled payments.
Because the total purchase price is agreed upon at the beginning of the contract, the transaction is structured as a sale rather than a loan with interest.
You can learn more about this structure here:
Commercial Financing: Ijara Structure
For certain commercial real estate transactions, Devon Islamic Finance may use an Ijara structure, which is a leasing-based financing model.
In an Ijara arrangement the financing institution purchases the asset and leases it to the customer, who makes lease payments for the use of the asset. Depending on the agreement, the customer may eventually purchase the asset.
Ijara is commonly used in Islamic finance for commercial real estate and large asset purchases.
Shariah Board Oversight
Devon Islamic Finance operates with oversight from a Shariah advisory board responsible for reviewing and approving the financing structures used by the program.
Islamic financial institutions often rely on scholars specializing in Islamic finance to evaluate whether financial products comply with Sharia principles.
Where Devon Islamic Home Financing Is Available
Devon Islamic Finance offers residential home financing in many U.S. states.
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According to the bank’s program information, home purchase financing may be available in the following states:
- Alabama
- Alaska
- Arkansas
- Arizona
- California
- Colorado
- Connecticut
- Florida
- Georgia
- Illinois
- Indiana
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Nebraska
- New Hampshire
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- Wisconsin
Availability may vary depending on the property type, borrower qualifications, and specific financing program.
How Devon Bank Compares to Other Islamic Mortgage Providers
Devon Islamic Finance is one of several organizations offering Islamic home financing in the United States.
Other providers use different Islamic financing models. For example, Guidance Residential uses a Diminishing Musharaka co-ownership structure while Ijara CDC uses a lease-to-own Ijara model.
To compare providers operating in the United States see:
Application Requirements
Like conventional mortgage lenders, Devon Bank evaluates applicants based on financial stability and documentation.
Applicants typically need to provide documentation such as income verification, tax returns, bank statements, credit history, and a property purchase agreement.
Frequently Asked Questions
Is Devon Bank halal?
Devon Islamic Finance structures its products using Islamic finance concepts such as Murabaha and Ijara, with oversight from a Shariah advisory board.
What structure does Devon Bank use for home financing?
Devon Islamic Finance primarily uses a Murabaha cost-plus sale structure for residential home purchases.
Does Devon Bank offer Islamic refinancing?
Yes. Devon Islamic Finance offers refinancing programs structured using Islamic finance models.
The Bottom Line
Devon Bank’s Islamic Finance program is one of the few offerings in the United States provided through a traditional bank while attempting to structure transactions around Islamic finance principles.
The program uses Murabaha for home purchase financing and Ijara for certain commercial financing structures.
Because Islamic financing structures vary significantly between institutions, many buyers compare multiple providers before choosing a financing program.
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See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
To learn more about halal mortgage options see:
