Frequently asked questions

IjaraCDC (Ijara Community Development Corp) is a 501(c)(3) nonprofit that provides sharia-compliant, riba-free financing for home purchases, commercial properties, and auto conversions. IjaraCDC is not a bank or a lender — it is a nonprofit structured specifically to serve Muslim families and businesses who need financing that complies with Islamic law. IjaraCDC is licensed to operate in all 50 US states and Canada and works with a network of 300+ funding partners.

No. IjaraCDC programs are open to any applicant who wants a sharia-compliant, riba-free financing structure. Our programs are designed to serve Muslim families and communities, but eligibility is not restricted by religion.

No. IjaraCDC is a 501(c)(3) nonprofit — not a bank, not a mortgage company, and not a lender in the conventional sense. IjaraCDC purchases property on behalf of the applicant and enters into a lease-to-own (ijara) agreement with them. This structure is what makes the transaction sharia-compliant — IjaraCDC holds title during the lease period, eliminating the need for a riba-bearing arrangement.

IjaraCDC is licensed to provide halal financing in all 50 US states and Canada. Separate application processes are available for US and Canadian applicants. Call 1-877-86-IJARA or visit our Apply page to get started.

Yes. IjaraCDC’s lease-to-own (ijara) structure has been reviewed and approved by a qualified Sharia advisory board. A formal fatwa confirming that IjaraCDC’s programs comply with Islamic law was issued in 2012. The fatwa is available to download on IjaraCDC’s Sharia Compliance page. IjaraCDC is a 501(c)(3) nonprofit and does not charge riba in any of its programs.

IjaraCDC’s fatwa was issued by qualified Islamic scholars and is available for download on the Sharia Compliance page. You are welcome to share it with your local imam, Islamic scholar, or legal counsel for independent review. IjaraCDC encourages applicants to seek their own scholarly guidance — the fatwa is published specifically to support that process.

Yes, absolutely. IjaraCDC encourages applicants to have their lawyer or Islamic scholar review all documents before signing. Contact us at 1-877-86-IJARA to request a copy of the agreement for independent review before you submit an application.

No. The distinction is structural, not just a matter of language. In a conventional arrangement, a lender provides money and charges interest on the balance owed — this is riba, which is prohibited under Islamic law. In IjaraCDC’s ijara structure, IjaraCDC purchases the property outright and leases it to the applicant under a lease-to-own agreement. The profit rate is a pre-agreed, fixed payment built into the lease terms — it does not compound, does not change, and is not charged on borrowed money. IjaraCDC holds title to the property during the lease period, which is a fundamentally different legal and financial structure. This distinction has been reviewed and confirmed by IjaraCDC’s Sharia advisory board.

In a conventional mortgage, a bank lends money and charges riba on the outstanding balance. The buyer holds title from day one and pays riba throughout the term. In IjaraCDC’s ijara structure, IjaraCDC purchases the property and leases it to the applicant under a lease-to-own agreement. The applicant makes fixed monthly payments — a portion goes toward the purchase price and a portion is the lease payment. The profit rate is fixed and disclosed upfront. IjaraCDC holds title during the lease period; full ownership transfers to the applicant when all payments are complete.

A credit score of 680 or above generally qualifies for the most favorable terms. Applicants with scores below 680 may still qualify depending on income, employment history, down payment, and other factors. IjaraCDC reviews each application on a case-by-case basis. Contact us at 1-877-86-IJARA to discuss your situation.

Down payments for residential home financing start from 3.5%. Requirements vary by program, property type, and applicant profile. Your IjaraCDC representative will confirm the exact requirement for your application.

Down payment assistance eligibility depends on the specific program and the source of the assistance funds. Contact IjaraCDC at 1-877-86-IJARA to discuss whether a specific down payment assistance program is compatible with your application.

IjaraCDC’s funding partners generally prefer two or more years at the same employer, or a consistent record in the same field. Self-employed applicants are evaluated based on two years of tax returns and a year-to-date profit and loss statement. Each application is reviewed individually — contact us to discuss your employment situation.

A typical residential transaction takes 14 to 21 business days from application to closing. Commercial and investment property applications may take longer depending on the property type and financing amount. IjaraCDC will keep you informed at every stage of the process.

You can sell the property at any time during the lease period. Any increase in property value belongs entirely to you — IjaraCDC is only owed the remaining balance on your lease. For example, if your remaining balance is $330,000 and you sell the property for $500,000, the full $170,000 difference is yours. IjaraCDC’s structure is specifically designed so that the applicant receives 100% of any gain in property value.

No. There is no prepayment penalty on any IjaraCDC program. You may pay off your lease early at any time without any additional fees.

Yes. IjaraCDC offers a refinance and conversion program for homeowners who want to move their existing financing into a sharia-compliant ijara structure. Contact IjaraCDC at 1-877-86-IJARA or visit the Apply page to start the process.

Contact IjaraCDC as early as possible if you anticipate difficulty making a payment. IjaraCDC is a 501(c)(3) nonprofit and works with applicants to find solutions. Call 1-877-86-IJARA to speak with a representative about your situation.

Monthly payments in an IjaraCDC lease-to-own agreement are fixed. Each payment includes a lease component (equivalent to the profit rate) and a purchase component (reducing your outstanding balance). The profit rate is agreed upon at signing and does not change over the life of the lease — there is no variable rate and no compounding.

Yes. Monthly payments are processed via ACH (Automated Clearing House) — a direct bank transfer that is initiated each month. ACH is a standard electronic payment system used across the US banking system. You will receive full details on the payment setup process when your agreement is finalized.

ACH stands for Automated Clearing House — it is the electronic network used for direct bank-to-bank transfers in the United States. IjaraCDC uses ACH to process monthly lease payments directly from your bank account. This eliminates the need for paper checks and ensures payments are processed reliably each month.

IjaraCDC is transparent about all fees. Any applicable fees — including closing costs and administrative charges — are disclosed in full before you sign your agreement. There are no hidden fees and no prepayment penalty. Contact IjaraCDC at 1-877-86-IJARA for a full breakdown of costs for your specific program.

The Auto Conversion Program converts an existing conventional auto financing agreement into a sharia-compliant Murabaha (Installment Sale) structure. IjaraCDC restructures your transaction from a riba-based (riba-bearing) arrangement to a halal Installment Sale — without changing your monthly payment amount. The one-time conversion fee is $295, with a $7.50 monthly admin fee. The program is available in the US and Canada.

No. The auto conversion does not change the economics of your existing financing. Your monthly payment stays exactly the same. What changes is the legal and financial structure of the transaction — from riba-bearing to a halal Murabaha (Installment Sale).

The IjaraCDC Auto Conversion Program costs $295 as a one-time conversion fee, plus $7.50 per month in admin fees. No new financing is required.