South Burlington, Vermont – NorthCountry Federal Credit Union has partnered with Guidance Financial to provide home financing that aligns with Islamic principles, opening a clear path to home ownership for many Muslims in Vermont.
The Declining Balance Co-ownership Program is based on an equitable co-ownership model rather than a traditional lender-borrower relationship. This unique structure allows homebuyers to enter a fair partnership contract and enjoy the full benefits of homeownership without compromising values-based principles, specifically adhering to the prohibition of interest (riba) as required by Islamic faith.
“Our community partnerships are vital to ensuring we are creating long-lasting solutions. The Islamic Society of Vermont helped us understand the need for this product – that Muslims were leaving Vermont because a Sharia compliant mortgage did not exist. They introduced us to Guidance Residential and have worked tirelessly with us to bring this to fruition,” says Jeff Smith, NorthCountry’s Senior VP of Lending.
The Islamic Society of Vermont expressed its sincere thanks and gratitude to Guidance Residential, in partnership with NorthCountry Federal Credit Union, for launching the Sharia-compliant co-ownership program. This unique home-financing option enables community members to purchase a home in accordance with their faith. It is a valuable opportunity for Muslims who have long been waiting for an Islamic mortgage program.
The home financing program was created under the guidance of seven globally renowned Islamic scholars and 18 U.S. law firms to ensure it strictly adheres to the legal jurisprudence of the Islamic faith and conforms to U.S. legal and regulatory requirements.
“Partnering with NorthCountry to introduce Islamic home financing to Vermont is a milestone we are truly excited about,” says Hussam Qutub, Senior Vice President and National Sales Manager, Guidance Residential, LLC. “Together, we’re helping more families achieve homeownership in a way that aligns with their values.”
Guidance Residential is the #1 provider of U.S. Islamic home financing, having provided more than $10 billion in financing to more than 40,000 families since 2002.