Halal Home & Business Financing
Zero-interest, trust-based lease-to-purchase financing — available in all 50 states. Down payments as low as 3.5%.
50
States
Nationwide coverage
3.5%
Min Down
Residential programs
300+
Funding Partners
Banks, CUs & investors
0%
Interest
Zero riba — ever
Why Families Choose IjaraCDC
What sets them apart from other halal financing providers.
Not a Bank
501(c)(3) nonprofit — mission-driven, not profit-maximizing.
All 50 States
One of the only halal financing providers with true nationwide coverage.
300+ Funding Partners
100+ residential and 200+ commercial sources — wide access to capital.
Pay Ijara, Not a Bank
Monthly payments go through a trusted organization, not a conventional bank.
Trust-Based Structure
You are the trustee and beneficiary. No interest is charged — ever.
No/Low Credit Options
Programs for buyers other providers may decline.
3.5% Down Payment
Residential programs with down payments as low as ~3.5%.
Residential + Commercial
Homes, businesses, apartments, professional practices — one provider.
How It Works
6 steps from application to move-in.
Pre-Qualify
Submit your info for a quick assessment — no obligation.
Find a Property
Work with any real estate agent. Submit the purchase agreement.
Get Approved
Ijara coordinates underwriting with their funding partners.
Islamic Contracts
Trust, Lease Agreement, and Promise to Purchase — all scholar-reviewed.
Close & Move In
Property placed in trust. You're the trustee and beneficiary.
Monthly Payments
Pay Ijara via ACH. Extra payments allowed anytime — no penalty.
Residential Financing
Owner-occupied homes, investment properties, renovation & construction — in all 50 states.
Key Terms
Programs
Ijara vs. Conventional Mortgage
IjaraCDC | Conventional | |
|---|---|---|
| Structure | Lease-to-purchase (Ijara) | Interest-based loan |
| Interest (Riba) | None — zero interest | Interest charged on principal |
| Who holds title | Trust (you are trustee) | Lender holds lien |
| Monthly payment to | Ijara (trusted org) | Bank / mortgage servicer |
| Early payoff | Allowed — no penalty | May have prepayment penalty |
| Sharia oversight | Scholar-reviewed contracts | None |
| Availability | All 50 states | All 50 states |
Commercial & Business Financing
Unlike most halal providers, IjaraCDC also structures financing for businesses, investors, and commercial real estate.
Small Business
Offices, restaurants, warehouses, gas stations, hotels
Professional Practices
Medical, dental, CPA, and other professional offices
Investors (1–4 Units)
Residential rentals and portfolios
Multifamily (8–300 Units)
Apartment complexes
Large Commercial
Office buildings, retail centers, industrial
Need Commercial Financing?
Acquisitions, equipment, inventory, working capital & renovations.
Learn MoreSharia Compliance
How IjaraCDC ensures adherence to Islamic principles
Sharia Advisory Board
Supervised by scholars including Mufti Muneer Akhoon and Mufti Mohammed Umer Esmail. Expanding with U.S. and international scholars.
Contract Review
All contracts reviewed and approved by qualified scholars. Residential financing always uses the Ijara (lease-to-purchase) model; commercial transactions may also use other Sharia-compliant structures.
Zero Interest Structure
Property placed in trust — no interest charged at any point. It's a lease with a promise to purchase.
Trust-Based Servicing
Payments go through Ijara as a trusted organization rather than a conventional bank, maintaining Sharia integrity through the contract.
Ready to Get Started?
Start your pre-qualification in minutes — no obligation.
Available in all 50 states for residential and commercial financing.
Frequently Asked Questions
Is Ijara a bank or a lender?
No. Ijara Community Development Corporation is a 501(c)(3) nonprofit organization — not a bank, lender, or broker. They structure Sharia-compliant financing through partner financial institutions, coordinating the Islamic contracts and administering monthly payments.
Who owns the home during the contract?
The property is held in a grantor trust. You are the initial trustee and beneficiary. Ijara is co-trustee and manages the trust but does not hold title to the property. You use your own SSN/tax ID for the trust.
Why do monthly payments go to Ijara instead of the bank?
This is a key differentiator. Monthly payments go to Ijara via ACH, and Ijara administers servicing. This trust-based structure means you interact with a trusted organization rather than a conventional bank for your ongoing payments.
Can I make extra payments or pay off early?
Yes. Extra payments are allowed at any time after closing with no prepayment penalty. This lets you reduce your total cost and complete the lease-to-purchase arrangement sooner.
What if I default on payments?
In the event of default, the investor or funding institution (not Ijara) has the legal right to foreclose. Ijara coordinates between the parties but does not hold the foreclosure authority.
Does Ijara finance investment and commercial properties?
Yes. Ijara structures financing for investment properties (1–4 units), multifamily apartments (8–300 units), small businesses, professional practices, and large commercial real estate — from $250K to $25M.
What about buyers with no or limited credit?
Ijara offers no/low credit programs for residential financing — serving buyers that other providers may decline. Specific terms vary by funding partner.
How does Ijara ensure Sharia compliance?
Ijara has been supervised by a Sharia advisory board including Mufti Muneer Akhoon and Mufti Mohammed Umer Esmail. They are currently expanding their board to include both U.S. and international scholars. Residential financing always uses the Ijara (lease-to-purchase) model. Commercial transactions primarily use Ijara but may also use other Sharia-compliant structures depending on the deal.
Is Ijara available in my state?
Ijara operates in all 50 states for residential financing with 100+ residential and 200+ commercial funding partners nationwide.
How is this different from a conventional mortgage?
A conventional mortgage is an interest-based loan. With Ijara, the property is purchased and placed into a trust, and you make lease payments to Ijara. No interest is charged — the arrangement is structured as a lease with a promise to purchase, fully avoiding riba.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
How to cite this page
Preferred format:
For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.