to the muslims wanting to buy a home

[sereia 0]

Got this bulletin in email and thought I would pass it onto my religious Muslim friends here on VJ!

FANNIE MAE PRESS RELEASE

PASADENA, CALIFORNIA -- Islamic finance institution American

Finance House LARIBA has entered into a partnership with Fannie Mae

(FNM/NYSE), the nation's largest source of financing for home

mortgages, to enable more American-Muslim families to purchase a home

in the U.S. while abiding by the Islamic religious prohibition against

usury. Fannie Mae has committed to invest $10 million in home

financings originated by American Finance House LARIBA.

The patented LARIBA home financing model, which is available in 29

states, enables observant Muslims to purchase a home while recognizing

the prohibition of Islamic Law on paying or collecting interest on

mortgages and other types of debt. The LARIBA model is based on the

actual market rent of a similar property in the neighborhood. The amount

of the monthly payments by homeowners under the LARIBA home

financing model is made to be very comparable to a conventional, market-

rate, fully amortizing mortgage.

"Fannie Mae recognizes the growing needs of observant American

Muslims who want to achieve the dream of homeownership and the

unique religious sensitivities that, in the past, have kept so many from

being able to own a home of their own," said Julie Gould, vice president

for community lending at Fannie Mae.

-4-

"The flexibility of the unique Islamic home financing model created by

American Finance House LARIBA allows a faithful and observant

Muslim to purchase a home in accordance with the precepts of Islamic

law," said Gould. "We will assist by providing much needed liquidity to

make sure that the Islamic lender can meet the demands of the growing

Muslim community in the U.S."

"Today's news is another historic step in the development of non-interest-

based financing. Our new partnership with Fannie Mae adds more energy

to the quest of trying to meet the demand of those Americans who want to

abide by the prohibition of interest laws that were ordained in Judaism,

Christianity and Islam," said Dr. Yahia Abdul-Rahman, founder and Shari'

a (Islamic Law) supervisor of American Finance House LARIBA. "Many

American-Muslim families have stayed out of the housing market for

years because they are not allowed by Islamic law to pay, receive, or be

charged interest."

Under the LARIBA model, an agreement is made between American

Finance House LARIBA and the prospective homeowner that establishes

jointly negotiated maximum monthly payments based on the property's

sale price and fair rental value that serves as marking the property to the

market. Using that agreed upon payment, LARIBA calculates the "implied

interest rate" which represents the rate of return on the transaction. The

transactions use standard real estate financing documents and are serviced

like conventional Fannie Mae mortgages, which make them comply with

U.S. real estate laws and suitable for mortgage markets.

The American Finance House LARIBA mortgage is currently available in

the following states: Alaska; California; Colorado; Connecticut; Florida;

Georgia; Kentucky; Illinois; Indiana; Iowa; Kentucky; Maryland;

Massachusetts; Michigan; Minnesota; Missouri; Nebraska; Nevada; New

Jersey; New Mexico; North Carolina; Ohio; Oklahoma; Oregon; South

Carolina; Texas; Virginia; Washington; and Wyoming.

For more information on American Finance House LARIBA, prospective

home buyers can contact 1-888-LARIBA-1 (888-527-4221), or go to

http://www.LARIBA.com.

Fannie Mae's participation with American Finance House LARIBA's

Islamic home financing model is part of the company's American Dream

Commitment® to provide $2 trillion in affordable mortgage financing to

increase homeownership nationwide among minorities, low- and

moderate-income families, women-headed households, and others whose

homeownership rates lag the general population by the end of the decade.

For more information on Fannie Mae's American Dream Commitment or a

list of local lenders, consumers may call Fannie Mae's Consumer Resource

Center at 1-800-7FANNIE (1-800-732-6643), Monday through Friday,

6:00 a.m. to 2:00 p.m. PST.

-5-

Fannie Mae is a New York Stock Exchange company and the largest non-

bank financial services company in the world. It operates pursuant to a

federal charter and is the nation's largest source of financing for home

mortgages. Fannie Mae is working to shrink the nation's "homeownership

gaps" through a $2 trillion "American Dream Commitment" to increase

homeownership rates and serve 18 million targeted American families by

the end of the decade. Since 1968, Fannie Mae has provided over $4

trillion of mortgage financing for 47 million families.

The American Dream Commitment is a registered mark of Fannie Mae.

Unauthorized use of this mark is prohibited.

Style Usage: Fannie Mae's Board of Directors has authorized the company

to operate as "Fannie Mae," and the company's stock is now listed on the

NYSE as "Fannie Mae." In order to facilitate clarity and avoid confusion,

news organizations are asked to refer to the company exclusively as

"Fannie Mae."

Note: Lariba, American Finance House: After 8 years of being a voice in

the wilderness and almost closing up shop got a call out of the blue from

Freddie Mac a year and a half ago. They decided to fund LARIBA/AFH

along Islamic lines to boost home ownership among American Muslims.

And here we have just at the end of Ramadan, news that FANNIE MAE,

the other source of major house financing money in the U.S. is also

funding LARIBA/AFH. InshAllah, this will become the norm among the

ever-growing list of IFIs in the United States.

Fannie Mae To Invest $10 Million In Unique Islamic Home Financing

Model With American Finance House LARIBA; Islamic Mortgages

Recognize Qur'an's Restrictions Against Interest Payments

For More information on Islamic Banking go to:

http://www.americanfinance.com/Introduction.htm

[MrsAmera 41]

A friend of mine looked to do this - the downside to this is that the deposit you are required to put down is between 10 -20% of the price of the home. So in a market here - where a simply little 2-3 brd townhouse home sells for 400,000 - the downpayment is 80,000!!! (@ 20%) yikes!!

[UmmSqueakster 54]

Wow, this looks great, thanks! The husband and I were planning on buying a home next year (or by the end of this year so we can get the tax credit), and this is exactly what we should be looking into.

I guess one of the upsides of living in the freakin freezing and miserable midwest is that house prices aren't too bad.

[MrsAmera 41]

You are very right Umm --- Gosh I sure miss my $600 month mortgage on our nice big house!

[Kez/JWolf 6]

A friend of mine looked to do this - the downside to this is that the deposit you are required to put down is between 10 -20% of the price of the home. So in a market here - where a simply little 2-3 brd townhouse home sells for 400,000 - the downpayment is 80,000!!! (@ 20%) yikes!!

That is the same for most home buyers. Truth is if you cant afford the down payment you can afford the home. That is how this home crisis began too many people buying homes on 100% mortgages and having to pay more than 31% of their income on the mortgage.

[sereia 0]

A friend of mine looked to do this - the downside to this is that the deposit you are required to put down is between 10 -20% of the price of the home. So in a market here - where a simply little 2-3 brd townhouse home sells for 400,000 - the downpayment is 80,000!!! (@ 20%) yikes!!

Well when buying a home you should be putting at least 10% down!

[MrsAmera 41]

Well that would mean about 90% of the ppl who live here where I do wouldn't be in a home. It's hard to grapple paying $1500 month rent for a 2 bdr 900 sq ft apartment, and trying to save THAT much money. We dont' even make that much in one year combined.....

[AlHayatZween 2]

This is a great resource!

Thanks, Sereia!!

[sereia 0]

Well that would mean about 90% of the ppl who live here where I do wouldn't be in a home. It's hard to grapple paying $1500 month rent for a 2 bdr 900 sq ft apartment, and trying to save THAT much money. We dont' even make that much in one year combined.....

Well look at it this way... how could you buy a $400,000 townhome with zero money down? You wouldn't be able to afford the monthly payments anyway!

[Henna Rose 0]

Got this bulletin in email and thought I would pass it onto my religious Muslim friends here on VJ!

"Many American-Muslim families have stayed out of the housing market for

years because they are not allowed by Islamic law to pay, receive, or be

charged interest."

I didn't know this...interest ing ! Jen ~ I'm glad you changed your name back

[MrsAmera 41]

Hence why I don't have one

[HLM 1]

Thank you so much for sharing Sereia

[Henna Rose 0]

America could learn a few lessons in this area. I had read before that mortgages didn't exist in this country until after the war and were created to stimulate the economy, of course. Here we are years later stimulating ! I know there was a legitimate crisis w/ mortgages that was not the consumers fault, but so many of us are in trouble from simply over spending I feel so fortunate right now to not have been sucked into an ARM that I would have defaulted on and be losing my home. I really feel for these people who were the victims of predatory lending

There have to be other ways of keeping our economy going without over extending ourselves and racking up piles of debt !

[Sofiyya 1,687]

There have to be other ways of keeping our economy going without over extending ourselves and racking up piles of debt !

Debt has become the norm for making money. That's why the business community labels us "consumers".

[Henna Rose 0]

There have to be other ways of keeping our economy going without over extending ourselves and racking up piles of debt !

Debt has become the norm for making money. That's why the business community labels us "consumers".

Or suckers for the amount of interest we are willing to pay for certain things I am curious tho for Muslims living here and credit so easily accessible in such a consumer driven society, are provisions available for "special circumstances" or emergencies with respect to the interest?