Mubarak Mortgage Murabaha Home Financing (Purchase & Refinance)
Halal Home Financing in Ohio
Mubarak Mortgage, a DBA of HomeMac, LLC (NMLS #1165808), offers Murabaha cost-plus-sale home financing for purchases and refinances in 25 states from Santa Ana, California. Mubarak buys the property and resells it to you at a fixed, fully disclosed price paid in equal installments - you sign a Murabaha contract rather than a promissory note with an interest rate, and title is recorded in your name at closing. Down payments start at 3% for qualified borrowers, the recommended credit floor is 620, pre-approvals take 24-48 hours, and the AMJA Resident Fatwa Committee has reviewed the Murabaha contract and found it Sharia-compliant, alongside a 2023 SHAPE Knowledge Services fatwa.
Mubarak Mortgage is the clearest Murabaha-only option in US halal home finance: one fixed price, title in your name at closing, 3% down for qualified buyers, and a licensed direct lender (HomeMac, LLC) doing the underwriting and funding. The scholarly record is real but thin compared with Guidance or UIF - an AMJA committee review and a SHAPE fatwa, with a single endorsing scholar rather than a standing board that AMJA itself advised Mubarak to appoint. Read the seller-facing Faith Based Financing Disclosure before you assume the purchase-and-resale changes the legal mechanics of closing, and ask how your contract is handled if sold. For buyers in its 25 states who prefer a fixed-price sale over a co-ownership or lease structure, it belongs on the shortlist.
Pros
- 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
- Backed by a licensed direct lender (HomeMac, LLC) rather than a broker - processing, underwriting, and funding are in-house
- Refinance path for Muslims who want out of a conventional mortgage
Cons
- Sharia program available in 25 states - not nationwide, and not yet in NY or MD
- 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
- SHAPE's fatwa is written for institutions that hold the Murabaha asset on balance sheet to maturity, while the intake describes eligible contracts entering the secondary market - ask how your contract is treated if sold
- Young brand (2022) - the site cites 15+ years of HomeMac industry experience, not Islamic-finance track record
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Product Details
Structure
Murabaha (cost-plus sale)
Features
Murabaha only: the company buys the home and resells it to you at a fixed, disclosed price paid in equal installments - no promissory note with an interest rate, Title recorded in your name at closing; Mubarak retains a security interest until paid off, Down payments as low as 3% for qualified borrowers (site and intake), Pre-approval in 24-48 hours; site advertises fundings in as little as 10 days, Purchase and refinance, including converting an existing conventional mortgage to Murabaha, No prepayment penalty (site and intake), AMJA Resident Fatwa Committee reviewed the Murabaha contract and found it Sharia-compliant; SHAPE Knowledge Services fatwa dated Oct 24, 2023, Operates as a DBA of HomeMac, LLC (NMLS #1165808), a state-licensed direct lender headquartered in Santa Ana, CA, Licensed Islamic Mortgage Advisors with published NMLS IDs; Head of Sharia Affairs and Director of Islamic Finance on staff, Support in English, Arabic, Urdu, Spanish, and Somali (per intake), $50 late fee donated to Islamic schools, not retained as profit (per intake)
Min Credit Score
620
Down Payment
As low as 3% for qualified borrowers (site and intake)
Mubarak Mortgage in Ohio
With Ohio's median home price at ~$241,000 (FHFA/Zillow, 2025), Mubarak Mortgage's Murabaha (cost-plus sale) structure provides a halal path to homeownership. A typical 20% down payment in Ohio would be ~$48,200. Median household income in Ohio is $67,769 (87% of the national median - U.S. Census Bureau, 2023 ACS), which shapes the price-to-income ratio families should factor into any halal home-financing decision. Ohio is home to an estimated ~120K Muslims (1% of the population) (World Population Review, 2020 estimates). Mubarak Mortgage serves 25 states, including Ohio.
Our Take on Mubarak Mortgage
Mubarak Mortgage is the US market's clearest Murabaha-only home financier: one fixed price, equal payments, title in your name from closing, and a licensed direct lender behind the funding. The AMJA committee review and SHAPE fatwa are genuine third-party endorsements, but governance is a single named scholar rather than a standing board - something AMJA itself told Mubarak to fix - and the Faith Based Purchase disclosure makes clear the Murabaha sits on top of an ordinary regulated closing. Within its 25 states, it is a credible fixed-price alternative to Guidance's and UIF's co-ownership programs; compare quotes and read both fatwas before signing.
How Mubarak Mortgage Works
Free consultation and application
Speak with a licensed Islamic Mortgage Advisor (Find an Advisor page lists ten with NMLS IDs); your advisor sends the online application link.
Pre-approval and Wakala agreement
Mubarak underwrites before issuing pre-approval (intake) and returns a pre-approval letter in 24-48 hours together with the agency (Wakala) agreement.
Find your home
Shop with your realtor and submit the residential purchase agreement; the seller signs Mubarak's Faith Based Purchase Agreement acknowledgement.
Mubarak purchases the property
After underwriting, Mubarak purchases the property from the seller as part of the Murabaha transaction.
Murabaha sale and closing
Mubarak sells the property to you at a fixed total price (cost plus disclosed profit) on an installment schedule; you pay the down payment, take title, and sign the Murabaha contract instead of an interest-bearing note.
Fixed payments
Equal periodic payments for the full term to Mubarak's in-house servicing team (intake); early payoff allowed with no prepayment penalty.
Financing Structure
Murabaha (cost-plus sale), used exclusively. Step 1: you sign a Wakala agreement appointing Mubarak as your agent to facilitate the purchase. Step 2: Mubarak purchases the property. Step 3: Mubarak sells it to you under a Murabaha agreement at the purchase price plus a disclosed profit, with a fixed total price and equal installments over your chosen term. At closing you pay the down payment and take title; Mubarak keeps a security interest until the balance is paid. There is no promissory note with an interest rate and the total price cannot change. Because the deal is a sale rather than a partnership or lease, you - not Mubarak - own the home from day one and bear taxes, insurance, and maintenance as any owner would.
In-Depth Analysis
Mubarak Mortgage is a DBA of HomeMac, LLC (NMLS #1165808; the Faith Based Purchase disclosure also names the entity as Home Mortgage Alliance Corporation, HMAC), a state-licensed mortgage lender headquartered at 4 Hutton Centre Dr., Suite 500, Santa Ana, CA 92707. HomeMac is licensed to lend in 48 states; Mubarak's intake states its Sharia financing program is approved in 25 of them and should not be described as available nationwide. The brand was founded in 2022 per the intake; the About page cites '15+ years' of industry experience, which refers to the HomeMac platform rather than the Islamic program.
The product is Murabaha only. Per the FAQ: you enter a Wakala (agency) agreement appointing Mubarak to facilitate the purchase; Mubarak purchases the property from the seller; it then sells it to you under a Murabaha agreement in which the original purchase price and profit margin are fully disclosed, a fixed total price is agreed upfront, and an installment plan is set for your chosen term. At closing, title transfers to you and Mubarak retains a security interest. The Programs page states you do not sign a promissory note with an interest rate; you sign a Murabaha contract for the balance due.
Mubarak's own disclosures add important context. The seller-facing Faith Based Financing Disclosure (PDF, linked from the Programs page) explains that the seller executes a Faith Based Purchase Agreement, that 'the contractual obligations of the Buyer and Seller under the laws of the United States do not change,' and compares the arrangement to a religious wedding versus a legally binding marriage. The structures page confirms borrowers still receive a Loan Estimate and Closing Disclosure. Buyers should understand the Murabaha is layered on a standard regulated closing, and ask their advisor to walk through the deed and security documents.
Sharia review is documented in three layers on the Fatwas & Endorsements page. The AMJA Resident Fatwa Committee's resolution states it reviewed the Murabaha contract and believes it is Sharia-compliant, while advising Mubarak to appoint an independent Sharia supervisory board. A SHAPE Knowledge Services fatwa dated October 24, 2023, signed by Sh. Abubakar Mohamed Musa, Mufti Ibrahim Issa, and Abdulkader Thomas, finds the SHAPE Installment Credit Sale Contract (Murabahah) and Security Instrument compliant, notes it is suitable for institutions holding the asset on balance sheet to maturity, and commits SHAPE to an implementation review within a year of launch. Imam Dr. Syed Alnajjar is the named endorsing scholar. The intake describes him as 'Mubarak Shariah Board'; the public site shows one scholar, not a multi-member board.
Terms on the public record: down payments as low as 3% (Programs page and intake), a recommended 620 credit score (FAQ), pre-approval in 24-48 hours, and no prepayment penalties. The homepage advertises '10 Day Fundings' and the halal mortgage guide says Mubarak 'has funded homes in as little as 10 days', while the FAQ says full approval typically takes 2-3 weeks and the first-time buyer checklist says most buyers close in 30-45 days; the intake separately cites 17 days and a 10-30 day window. Treat 10 days as a best case. Rates are not published; the intake gives a 6-8% profit rate range, a $0 application fee, a $1,500 processing fee, a 43% maximum DTI, and a $50 late fee donated to Islamic schools.
Refinance is a core use case: the Refinance page markets converting a conventional mortgage to Sharia-compliant financing, lower payments, debt consolidation, and 'cash-out options available' - note the intake marked cash-out as not supported, so confirm with an advisor. The intake also lists second homes and investment properties as eligible usages, accepts W-2, self-employed, retirement, Social Security, investment, and rental income, allows cosigners, and requires two years of residence history.
The team is unusually transparent for a young brand: the Find an Advisor page lists ten licensed Islamic Mortgage Advisors with NMLS IDs, including Faye Safi (Director of Islamic Finance, NMLS #630552, licensed in 27 states), Eddie Eid (Head of Sharia Affairs, NMLS #1561012), and advisors covering CA, IL, MN, OH, OR, and WA. Support is offered in English, Arabic, Urdu, Spanish, and Somali per the intake, and the careers page lists Farsi as a plus. The site also runs community events (e.g., Arabica Connect, Fountain Valley, Oct 2026) and a realtor partner program.
Overall: a credible, well-documented Murabaha option with real third-party review and a licensed direct lender behind it. The gaps are governance (no standing board), quote-only pricing with no published term lengths, a 25-state footprint, and a short Islamic-finance track record. Compare Mubarak's fixed-price Murabaha quote against Guidance and UIF co-ownership quotes in your state; outside its footprint, IjaraCDC remains the nationwide fallback.
Shariah Compliance Details
- AMJA Resident Fatwa Committee (resolution on US Islamic home financing companies): 'The committee has reviewed the murabaha contract submitted by Mubarak Mortgage and believes that it is Sharia-compliant.' The committee advises Mubarak to appoint an independent Sharia supervisory board per the OIC Islamic Fiqh Academy's 19th-session recommendations.
- SHAPE Knowledge Services fatwa dated October 24, 2023 on the SHAPE Installment Credit Sale Contract (Murabahah) and Security Instrument, signed by Sh. Abubakar Mohamed Musa, Mufti Ibrahim Issa, and Abdulkader Thomas (industry expert). States the documents are suitable for institutions holding the Murabahah asset on balance sheet to maturity or early curtailment, and that SHAPE will review implementation within one year of launch. Published on the Fatwas & Endorsements page as an image.
- Named scholar: Imam Dr. Syed Alnajjar - college professor at the Islamic University, religious director of a major mosque in Washington state, Al-Azhar alumnus, BA/MBA in the Islamic Economic System (City University of Seattle), Ph.D. in Islamic Studies. Interview video linked from the site. Eddie Eid is Head of Sharia Affairs (NMLS #1561012).
- No multi-member Shariah supervisory board is published. The intake lists Dr. Alnajjar as 'Mubarak Shariah Board' with status active and cites ongoing contract review; HalalWallet classifies oversight as third-party certified plus named scholar until a standing board is published.
- Structure disclosures: the seller-facing Faith Based Financing Disclosure (PDF) states that executing the Faith Based Purchase Agreement does not alter the buyer's or seller's obligations under U.S. law; the Halal vs Conventional page confirms borrowers receive a Loan Estimate and Closing Disclosure. Licensing footer: 'Programs, terms and interest rates are subject to change' (standard HomeMac disclosure language).
- Late fees ($50) are donated to Islamic schools and not retained as profit, and there is no prepayment penalty - per the provider intake; the late-fee policy is not published on the site.
- Secondary market: the intake states eligible transactions may enter the secondary mortgage market and that a sale does not change the customer's executed Murabaha terms, and cites a Freddie Mac relationship; neither is published on the site. The SHAPE fatwa's balance-sheet scope makes this worth asking about directly.
- Licensing: HomeMac, LLC NMLS #1165808; California DFPI CFL #603L284 and CRMLA #41DBO-134495; state licenses listed at mubarakmtg.com/Licensing (26 states incl. Maryland) and homemac.com (48 states). Sharia program approved in 25 states per intake.
How Mubarak Mortgage Compares
Versus Guidance Residential and UIF, Mubarak is a sale (Murabaha) rather than a declining-balance co-ownership (Musharaka): the total price is fixed at signing instead of a usage payment benchmarked to market rates, and there is no LLC or partnership layer. Guidance and UIF have far deeper governance (multi-member boards chaired by Mufti Taqi Usmani and Sheikh Nizam Yaquby, published fatwa PDFs and audits) and longer track records; Mubarak has an AMJA committee review, a SHAPE fatwa, and one named scholar. Versus IjaraCDC, Mubarak puts title in your name at closing rather than in a trust, but covers 25 states rather than 50.
Guidance's Declining Balance Co-Ownership covers 38 states with a seven-scholar board chaired by Mufti Taqi Usmani and $12B+ funded. Mubarak offers a fixed-price Murabaha with title in your name and 3% down, but a single named scholar and 25 states.
UIF's diminishing Musharaka also puts title in your name from day one with 3% down across 32 states, backed by a board chaired by Sheikh Nizam Yaquby and published audits. Mubarak's Murabaha fixes the total price instead of a usage payment, with lighter published governance.
IjaraCDC's trust-based lease-to-own reaches all 50 states and no/low-credit buyers; Mubarak is a direct sale with title at closing in 25 states and a 620 credit floor.
Bottom Line
Worth a quote if you are in one of Mubarak's 25 states and prefer a fixed-price Murabaha sale with title in your own name over a co-ownership or lease structure. Confirm the term lengths, profit rate, cash-out availability, and what happens if your contract is sold, and read the AMJA and SHAPE rulings alongside the Faith Based Purchase disclosure before signing.
Read full Mubarak Mortgage reviewShariah Compliance & Oversight
Mubarak's Fatwas & Endorsements page publishes three layers of review. (1) The AMJA Resident Fatwa Committee, in its resolution on US Islamic home financing companies, states that it reviewed the Murabaha contract submitted by Mubarak Mortgage and believes it is Sharia-compliant, and advises the company to appoint an independent Sharia supervisory board based on the OIC Islamic Fiqh Academy's 19th-session recommendations. (2) A SHAPE Knowledge Services fatwa dated October 24, 2023 on the SHAPE Installment Credit Sale Contract (Murabahah) and Security Instrument - signed by Sh. Abubakar Mohamed Musa, Mufti Ibrahim Issa, and Abdulkader Thomas as industry expert - finds the documents compliant with Shariah and notes that SHAPE will review implementation within a year of launch; the fatwa is published as an image, not a PDF. (3) Imam Dr. Syed Alnajjar, described as a college professor at the Islamic University, religious director of a major mosque in Washington state, Al-Azhar al-Sharif alumnus, with BA/MBA in the Islamic Economic System and a Ph.D. in Islamic Studies, is presented as the 'Sharia Board Endorsement'. Eddie Eid serves as Head of Sharia Affairs (NMLS #1561012). Honest caveats: only one scholar is named as Mubarak's own; the intake lists him as 'Mubarak Shariah Board' but the public site does not show a multi-member board, and AMJA's advice to appoint an independent board stands on the record.
AMJA Resident Fatwa Committee: contract reviewed, found Sharia-compliant; advised to appoint independent SSB. SHAPE Knowledge Services fatwa (Oct 24, 2023): Sh. Abubakar Mohamed Musa, Mufti Ibrahim Issa, Abdulkader Thomas. Named scholar: Imam Dr. Syed Alnajjar. Head of Sharia Affairs: Eddie Eid.
2026-10-23
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Halal Mortgage Estimate - Ohio
Level-payment estimate for a halal financing structure (Diminishing Musharaka / Ijara). At the same rate, the payment matches a conventional loan - the structure differs, not the math.
Monthly
$2,129
Total Cost
$766,427
Total Profit
$446,427
Illustrative default rate (7.00%, as of 2026-08-23) - not an offer or quote. Adjust to your quoted rate; actual terms vary by provider.
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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.
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