Podcast Episode 1: Fiqh of Home Financing with Mufti Ikram-ul-Haq


Direct Download Link (mp3) 

Episode 001

This episode is sponsored by MuslimMatters.org – because Muslims matter.

Mufti Ikram ul Haq is a well-known scholar who specialized in Islamic jurisprudence. He currently serves as the resident Imam of Masjid Al-Islam (Rhobe Island, USA) and as Mufti at Darul-Ifta of Rhode Island, where he delivers weekly lectures, holds classes, provides Shari`ah counseling, responds to request for fatwas, etc.

Mufti Ikram ul Haq also completed an intensive course on Islamic Banking and Finance from the Center for Islamic Economics (Karachi, Pakistan). He has licenses (ijazah) in Prophetic traditions (hadith) from multiple world-renowned Hadith scholars.

In this episode we discuss:

  • Why the debate over Islamic mortgages is aactually a cause for optimism.
  • The difference between conventional financing and Islamic financing.
  • Understanding the basic models of finance – ijarah, murabahah, musharakah.
  • Are some Islamic companies violating the Islamic prohibition of having “2 sales in 1” with a lease to own contract?
  • Can a bank sell me a house at markup before they actually take ownership of the house? This is in reference to a prohibition against selling something you do not own.
  • Learn why Islamic banks favor the musharakah model over the other models.
  • Should Islamic banks who finance through co-ownership share in the costs of home maintenance, property taxes, insurance and other expenses?
  • If you sell your home at a profit, should the Islamic bank get an increased profit?
  • Should the Islamic bank share in the loss of a house if the value goes down, or foreclose on you?
  • What should you look for when picking an Islamic finance company? How do you weed out the deceptive companies from the legitimate ones?

Links from this episode:

Mufti Ikram’s Website: http://askamufti.com
Mufti Ikram on Twitter: https://twitter.com/AskaMufti
AAOIFI (Auditing organization for Islamic financial institutions)- http://www.aaoifi.com/
Straightway Ethical Advisory: http://www.straightwayethical.com/
Mufti Ikram’s Book: Companion of Hajj


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Check out this episode!


Omar Usman

Omar Usman is a founding member of MuslimMatters, Qalam Institute, Muslim Strategic Initiative, and Debt Free Muslims. He is a regular khateeb and has served in different administrative capacities in various national and local Islamic organizations. You can follow him on Google+ or on Twitter @ibnabeeomar. Check out his latest project at Fiqh of Social Media.


  1. Meraj Mustafa Siddiqui
    February 25, 2014

    Assalamoalekum Warehmatullah Omar & Team at Debt free Muslims,

    I sincerely appreciate your effort, May Allah reward the entire team and keep all of us rightly guided.
    I did listen to the entire episode, one question remain unanswered, the loss sharing model – where indeed most of these Islamic financing entities (I can comment on ones here in Canada), place 80% responsibility (profit and loss) from day 1, and 90% after an individual has acquired 50% shares and they have big scholarly names attached, and their argument is that since they do not partner in the profit and therefore no partnership in loss.
    My concern is that if I am exposed to 80% risk from day one, where is the Islamic jurisprudence? Add to this the higher rent (7.5% per 100K invested), taxes, fees, maintenance, etc the numbers just don’t justify.

    I would prefer renting than buying a home through this model.

    Please let us know, if you or Mufti Ikram know of a model which contradicts what I have stated above. As Mufti Ikram stated in the podcast he is not aware as to how the financial institutions word it, I would recommend him to please check for community’s sake. Here is an example of the organization in Montreal:
    Profit/Loss sharing model as stated in this link, please look under disposition header:


  2. March 3, 2014

    Please sign up on Stitcher for ease of listening for Android users, please!


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