Barakah Mortgage vs Mubarak Mortgage
Barakah Mortgage and Mubarak Mortgage both offer home financing. This page lines up 15 listed data points side by side, with 8 differences, so you can see exactly where they part ways before you request quotes.
Built from each provider's listed data · provider data last verified Oct 2026
At a glance
- Barakah Mortgage uses Murabaha (Cost-Plus Sale); Mubarak Mortgage uses Murabaha (cost-plus sale).
- Shariah oversight: Barakah Mortgage discloses Formal Board; Mubarak Mortgage discloses Third-Party Certified.
- HalalWallet Index: Barakah Mortgage holds a B-; Mubarak Mortgage holds a A-.
- On measurable rows, Barakah Mortgage has the better listed value on 0 and Mubarak Mortgage on 2.
- They differ on 8 of the 15 data points we list for home financing.
No editorial verdict has been written for this pair yet. The side-by-side below is the full data view; where we have written one, you'll find it under Compare.
Barakah Mortgage vs Mubarak Mortgage: the full side-by-side
15 data points from each provider's published materials, lined up row by row. They differ on 8.
States covered
Barakah Mortgage: Not listedMubarak Mortgage: 26 states
Minimum down payment
Barakah Mortgage: Not listedMubarak Mortgage: As low as 3% for qualified borrowers (site and intake)Prepayment penalty
SameBarakah Mortgage: NoMubarak Mortgage: NoLate payment policy
Barakah Mortgage: Per the FAQ, a small late-payment fee is applied and donated to charity; the buyer's equity share is unaffected and the team agrees a recovery plan without punitive penalties.Mubarak Mortgage: $50 late fee, donated to Islamic schools and not retained as profit (per provider intake; not published on the site)
Minimum credit score
Barakah Mortgage: Not listedMubarak Mortgage: 620Financing purposes
Barakah Mortgage: Purchase, RefinanceMubarak Mortgage: Purchase, Refinance (conventional-to-Murabaha conversion)Property usage
Barakah Mortgage: Not listedMubarak Mortgage: Primary residence, Second / vacation home, Investment / rental property
Structure
Barakah Mortgage: Murabaha (Cost-Plus Sale)Mubarak Mortgage: Murabaha (cost-plus sale)Shariah oversight
Barakah Mortgage: Formal BoardMubarak Mortgage: Third-Party CertifiedShariah board / scholar
Barakah Mortgage: formal_boardMubarak Mortgage: Imam Dr. Syed Alnajjar (endorsing scholar); SHAPE Knowledge Services fatwa (Sh. Abubakar Mohamed Musa, Mufti Ibrahim Issa); AMJA Resident Fatwa Committee reviewPublished fatwa / certificate
SameBarakah Mortgage: YesMubarak Mortgage: Yes
Products listed
SameBarakah Mortgage: Murabaha Home Financing (Purchase & Refinance)Mubarak Mortgage: Murabaha Home Financing (Purchase & Refinance)Best for
Barakah Mortgage: Buyers wanting big-lender speed and infrastructure with Murabaha financingMubarak Mortgage: Buyers and refinancers in Mubarak's 26 states who want a fixed-price Murabaha with title in their own name and as little as 3% down
HalalWallet Index grade
Barakah Mortgage: B-Mubarak Mortgage: A- EdgeFounded
Barakah Mortgage: 2025Mubarak Mortgage: 2022 Edge
Edge marks the side with the better listed number on measurable rows (lower fee, wider coverage, higher grade). It is not a verdict - a provider can win more rows and still be the wrong fit for you.
Strengths and trade-offs
Barakah Mortgage
- Institutional scale: operates on the licensing, capital, and technology of Rate (Guaranteed Rate, Inc., NMLS #2611, founded 2000)
- Named scholar bench: Joe Bradford (CSAA, AAOIFI-accredited), Sheikh Hassan Jama, and Shaykh Abdullah Ashraf, with credentials published
- Published Murabaha mechanics: Wakala separation, genuine ownership and risk transfer to Barakah, strict sequencing with wa'ad, and disclosed cost plus profit
- Speed few halal providers match: approval in one business day and closing in as few as 10 days for qualified customers
- No prepayment penalty; small late fees donated to charity rather than kept as revenue
- Launched October 2025, so there is no track record yet; parts of the site still show placeholder testimonials and unfilled statistics counters
- The Fatwa page publishes scholar biographies but no signed fatwa document
- No published rates or fees; profit margins are quoted individually and benchmarked to conventional market rates
- No Barakah-specific state list published, and New York applications are not accepted through the site
- Parent company Rate is a conventional lender; Barakah is its Islamic brand rather than a standalone Islamic institution, which matters to some buyers
Mubarak Mortgage
- Fixed total price from day one - Murabaha payments cannot reset, unlike benchmark-linked rent or usage fees
- Title in your name at closing with no LLC or trust layer
- Two independent scholarly reviews on the public record: AMJA Resident Fatwa Committee and a SHAPE Knowledge Services fatwa
- Low entry: 3% down for qualified buyers and a 620 credit floor, with fast pre-approval
- Processing, underwriting, closing, and funding run through HomeMac, LLC's lending platform, with Freddie Mac integration (per intake)
- Licensed in 26 states - not nationwide, and not yet in New York
- No cash-out refinancing (per intake)
- Oversight is a single named scholar plus third-party fatwas; AMJA explicitly advised Mubarak to appoint an independent Sharia supervisory board and no multi-member board is published
- No published profit rates or term lengths - every file is individually quoted (intake range on record: 6-8%)
- The seller signs a Faith Based Purchase Agreement, and Mubarak's own disclosure states the buyer's and seller's obligations under U.S. law do not change - the Murabaha purchase-and-resale sits on top of a standard regulated mortgage closing with a Loan Estimate and Closing Disclosure
Not sure which is right? Compare all home financing providers.
Browse all Home Financing optionsHow do Barakah Mortgage and Mubarak Mortgage compare for home financing?
Barakah Mortgage and Mubarak Mortgage both offer home financing. This page lines up 15 listed data points side by side, with 8 differences, so you can see exactly where they part ways before you request quotes.
- Barakah Mortgage uses Murabaha (Cost-Plus Sale); Mubarak Mortgage uses Murabaha (cost-plus sale).
- Shariah oversight: Barakah Mortgage discloses Formal Board; Mubarak Mortgage discloses Third-Party Certified.
- HalalWallet Index: Barakah Mortgage holds a B-; Mubarak Mortgage holds a A-.
Source: HalalWallet (halalwallet.us)
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Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-30
How to cite this page
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For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
How to use this comparison: Scholars rule; we organize the evidence. HalalWallet is an independent educational comparison platform - by design, we do not issue fatwas or provide financial, legal, or tax advice. We do the research homework so your final checks are quick and personal. Where our role ends and who takes over.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider - their quote is final.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
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