Fix and flip financing exists because house flippers need money fast, for a short time, to buy a run-down property, fix it, and sell it. Most of that market runs on hard-money loans with high interest. Ijara Community Development offers a halal alternative: short-term rehab financing priced as risk capital instead of interest.
It is available nationwide. Funding can arrive in as little as 14 days. There is no prepayment penalty, which matters when the whole plan is to sell quickly. Start on the Ijara CDC provider page and the home financing hub.
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Who It Is For
This program is for investors who buy, renovate, and resell. It is not a home you plan to live in, and it is not a long-term rental. Ijara asks for a track record, so it suits people who have done a project or two already, or who partner with someone who has.
- You buy distressed properties to renovate and resell
- You need to close quickly to win deals
- You have a realistic rehab budget and some track record
- You operate through a company or LLC
What You Need to Apply
| Document | Why it matters |
|---|---|
| Rehab budget | Shows what the work will cost |
| Track record | Shows you have finished projects before |
| Bank statements | Shows you have cash for the gap |
| Purchase agreement | Shows the deal you are funding |
| Title insurance | Protects the property as collateral |
| Corporate documents | Shows the company buying the property |
Ijara recommends adding a 15% cushion to your rehab budget. Old houses hide problems, and running out of money halfway through is how flips fail.
How It Differs From Hard Money
| Item | Hard-money loan | Ijara fix and flip |
|---|---|---|
| Return to funder | Interest plus points | Priced as short-term risk capital |
| Speed | Fast | As little as 14 days |
| Collateral | The property | The property |
| Prepayment penalty | Sometimes | None |
| Pricing | Published by many lenders | Individual quote |
From the outside, the process feels similar to hard money. The property secures the financing, and the funder cares most about the deal. The difference is that the return is structured as halal private capital rather than interest.
Run the Numbers Before You Apply
A flip only works if the sale price covers everything: purchase, repairs, financing cost, holding costs, and selling costs. Holding costs are the ones people forget. Property tax, insurance, and utilities keep running every month the house sits.
- Purchase price plus closing costs
- Rehab budget plus a 15% cushion
- Financing cost for the expected hold period
- Holding costs for each month
- Agent commission and closing costs on the sale
If the numbers only work with no surprises, the deal is too thin. Walk away.
Building a Track Record
Ijara asks for a track record, and so does almost every flip funder. Keep a simple file for every project: purchase price, rehab budget, actual spend, time to finish, and sale price. Before and after photos help too.
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If you are new, partnering with an experienced flipper on your first deal can give you both the skills and a project to show next time. Put the partnership terms in writing, including how profit and loss are shared.
If You Plan to Keep the Property
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Some flips turn into rentals when the market shifts. If you might hold the property, look at Ijara's longer-term options, like DSCR financing that qualifies on rent. See halal DSCR financing. If you are buying a fixer-upper to live in, use halal renovation financing instead.
How the Process Usually Runs
- Find the deal and sign a purchase agreement
- Send Ijara your rehab budget, track record, and company documents
- Ijara quotes the financing cost for this project
- Funding can arrive in as little as 14 days
- You renovate, sell, and settle the financing with no prepayment penalty
Frequently Asked Questions
Is house flipping halal?
Buying, improving, and reselling property is ordinary trade, which Islam permits. The problem for most flippers is the interest-based hard-money loan. Halal financing removes that piece.
Is there a halal hard-money loan?
Ijara CDC offers halal fix and flip financing that works like private lending, with the property as collateral, priced as short-term risk capital instead of interest.
How fast can I get halal flip financing?
Ijara says funding can arrive in as little as 14 days.
Do I need experience to get fix and flip financing?
Ijara asks for a track record. If you are new, consider partnering with an experienced investor on your first project.
Is there a penalty for selling early?
No. Ijara's fix and flip program has no prepayment penalty.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
If you flip houses and want to stop paying hard-money interest, send Ijara CDC your next deal. Get the full financing cost in writing. Compare investor options on the home financing hub.
