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Home Financing comparison

Guidance Residential vs Mubarak Mortgage

Guidance Residential and Mubarak Mortgage both offer home financing - Guidance Residential in 38 states, Mubarak Mortgage in 26 states. This page lines up 17 listed data points side by side, with 11 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 Nov 2026

At a glance

  • Guidance Residential lists 38 states; Mubarak Mortgage lists 26 states.
  • Guidance Residential uses Musharakah (Declining Balance Co-Ownership); Mubarak Mortgage uses Murabaha (cost-plus sale).
  • Shariah oversight: Guidance Residential discloses Formal Board; Mubarak Mortgage discloses Third-Party Certified.
  • HalalWallet Index: Guidance Residential holds a A; Mubarak Mortgage holds a A-.
  • On measurable rows, Guidance Residential has the better listed value on 3 and Mubarak Mortgage on 1.
  • They differ on 11 of the 17 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.

Guidance Residential vs Mubarak Mortgage: the full side-by-side

17 data points from each provider's published materials, lined up row by row. They differ on 11.

Guidance Residential - halal finance provider logo

Guidance Residential

A
MM

Mubarak Mortgage

A-

17 of 17 rows

Availability

  • States covered

    Guidance Residential: 38 states Edge
    Mubarak Mortgage: 26 states
Costs & terms

  • Minimum down payment

    Guidance Residential: 5% primary (as low as 3% for qualifying customers); 20% investment properties
    Mubarak Mortgage: As low as 3% for qualified borrowers (site and intake) Edge

  • Terms offered

    Guidance Residential: 15 years, 20 years, 30 years
    Mubarak Mortgage: Not listed

  • Prepayment penalty

    Same
    Guidance Residential: No
    Mubarak Mortgage: No

  • Late payment policy

    Guidance Residential: Late fees capped at $50 - cost-recovery only, based on a STRATMOR Group study of actual collection costs and approved by the Shariah Supervisory Board; Guidance does not profit from late payments
    Mubarak Mortgage: $50 late fee, donated to Islamic schools and not retained as profit (per provider intake; not published on the site)
Eligibility

  • Minimum credit score

    Guidance Residential: Not listed
    Mubarak Mortgage: 620

  • Financing purposes

    Guidance Residential: Purchase, Refinance (mortgage replacement), Cash-out refinance, Mortgage conversion (conventional to halal)
    Mubarak Mortgage: Purchase, Refinance (conventional-to-Murabaha conversion)

  • Property usage

    Same
    Guidance Residential: Primary residence, Second / vacation home, Investment / rental property
    Mubarak Mortgage: Primary residence, Second / vacation home, Investment / rental property
Shariah

  • Structure

    Guidance Residential: Musharakah (Declining Balance Co-Ownership)
    Mubarak Mortgage: Murabaha (cost-plus sale)

  • Shariah oversight

    Guidance Residential: Formal Board
    Mubarak Mortgage: Third-Party Certified

  • Shariah board / scholar

    Guidance Residential: Mufti Muhammad Taqi Usmani, Sheikh Nizam Yaquby, Shaykh Yusuf Talal Delorenzo, Dr. Mohamed A. Elgari, Dr. Imran Ashraf Usmani, Dr. Mohamad Daud Bakar
    Mubarak Mortgage: Imam Dr. Syed Alnajjar (endorsing scholar); SHAPE Knowledge Services fatwa (Sh. Abubakar Mohamed Musa, Mufti Ibrahim Issa); AMJA Resident Fatwa Committee review

  • Published fatwa / certificate

    Same
    Guidance Residential: Yes
    Mubarak Mortgage: Yes
Products

  • Products listed

    Guidance Residential: Home Financing (Purchase & Refinance)
    Mubarak Mortgage: Murabaha Home Financing (Purchase & Refinance)

  • Best for

    Guidance Residential: First-time homebuyers & refinancing
    Mubarak 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
Track record

  • HalalWallet Index grade

    Guidance Residential: A Edge
    Mubarak Mortgage: A-

  • Founded

    Guidance Residential: 2002 Edge
    Mubarak Mortgage: 2022

  • Google rating

    Guidance Residential: 4.8/5 (89 reviews)
    Mubarak Mortgage: Not listed

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

Guidance Residential

  • More than $12 billion funded for nearly 45,000 families
  • 4.8-star Google rating - exceptional service throughout the home buying journey
  • HousingWire Vanguard Award & Freddie Mac Rise Award recipient
  • Risk sharing - Guidance shares risk with the homebuyer in natural disasters, eminent domain, or foreclosure
  • Non-recourse - Guidance will not pursue any of the homebuyer's other assets in a default
  • Not available in roughly 12 states - buyers there need a nationwide provider like IjaraCDC
  • No published rates - quotes are individual and benchmarked to conventional mortgage rates
  • You pay all property taxes and maintenance despite co-ownership (the sole-use rationale under Shirkat-ul-'Aqd)

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
Guidance Residential - halal finance provider logo

Guidance Residential

Visit Guidance Residential Full review
MM

Mubarak Mortgage

Visit Mubarak Mortgage Full review

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How do Guidance Residential and Mubarak Mortgage compare for home financing?

Guidance Residential and Mubarak Mortgage both offer home financing - Guidance Residential in 38 states, Mubarak Mortgage in 26 states. This page lines up 17 listed data points side by side, with 11 differences, so you can see exactly where they part ways before you request quotes.

  • Guidance Residential lists 38 states; Mubarak Mortgage lists 26 states.
  • Guidance Residential uses Musharakah (Declining Balance Co-Ownership); Mubarak Mortgage uses Murabaha (cost-plus sale).
  • Shariah oversight: Guidance Residential discloses Formal Board; Mubarak Mortgage discloses Third-Party Certified.

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: 2026-11-09

How to cite this page

Preferred format (HTML):

According to HalalWallet (“Guidance Residential vs Mubarak Mortgage”, https://www.halalwallet.us/compare/guidance-residential-vs-mubarak-mortgage, retrieved 2026-11-12).

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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