Ameen Housing Co-operative (Ameen Housing) is an Islamic co-operative financial institution that offers shariah compliant solutions for home financing and replacing existing mortgage. Ameen Housing also provides it's members with investment opportunities to earn halal dividends...
One of the primary condition that makes any financial contract acceptable, from the Shariah perspective, is that, "the parties involved agree to participate in both the GAIN and the LOSS that may result from such an investment". Any contract that is missing this clause is "not acceptable" from a Shariah...
It’s a big temptation to fall into interest “Riba” bearing financial transactions, a trap fraught with perils in this life and the Here- After. In general, it is not permissible for Muslims to invest in treasury bonds, money market funds, certificate of deposits, and other such investments due to the element of interest.
Interest and usury in the USA - By Shaikh Main AlQudah. Lecture in 2013 at MCA Santa Clara
Addendum about Ameen Housing contract (As for Jan 2015).
All praise be to Allah, the Lord of the Worlds, and may the blessings and peace be upon the final Prophet and upon all of his family and Companions.
The Fiqh Committee of AMJA had issued a declaration explaining the issues in the contracts of the Islamic Home Financing Companies in the United States. That ruling was based on the contracts that they used at the time of the issuing of that declaration. With respect to Ameen Housing, two issues were of major concern. One was the late payment fee when a person paid his rent late and the other was the issue of the cost of maintenance being properly distributed between the two parties wherein Ameen returned a fix percentage of the rent to the buyer/renter regardless of the actual amount of maintenance expenses.
After the issuing of that declaration, Ameen Housing—may Allah reward them for responding positively to that declaration—have now discontinued their late payment fee policy and have clarified to the Committee that the distribution of the maintenance expenses is handled in a way that is just.
Based on the above, the Fatwa Committee now rules that the contracts that Ameen Housing is now using are consistent with the laws of the Shareeah. We have now no Shareeah objection to their practice and it is permissible for Muslims to purchase homes through them.