Towards a lariba (Islamic) mortgage financing in the United States: providing an alternative to the traditional mortgages

With the right business model, LARIBA mortgage financing can be a viable option in the United States. It can only be successful if marketed at the local grassroots level to the estimated initial market of 7,500 households requiring about US$200 million of financing. Modeled as an alternative to traditional mortgages, LARIBA is a halal paradigm consisting of two parts. First, the equity stake is repurchased from the LARIBA financier by repaying the amount put forth to assist the buyer with the purchase. Second, payment is made to the LARIBA financier for leasing the portion of the home not yet owned by the buyer during the repayment period. LARIBA frees the buyer from debt much sooner than the traditional model. The LARIBA model not only complies with existing law in the United States, it will actually be more successful as a result of the strict regulation of the industry._x000D_