Buying a Home the Halal Way

Home. It’s the Most Important Purchase You’ll Ever Make.

At Baraka Residential Homes, we understand that buying a home is more than just a financial decision—it’s a life-changing milestone. That’s why we offer a unique and ethical approach to homeownership through our musharaka or partnership-based purchase modality where you become homeowner through a partnership in a rent-to-own agreement.

In our modality, you, the Buyer, enter and sign a purchase agreement with Baraka Residential Homes (BRH). You bring a down payment, a minimum of 20% - 25% of the purchase price, and up to 5% closing costs. BRH purchases a house of your preference for your residency. You pay for the house with your down-payment and monthly rent in a rent-to-own contract.

As a resident of the house, you make monthly payments to BRH. These payments include the Rent for using our share of the property and a portion to gradually purchase our 80%-75% ownership stake in the home. Over time, as you continue to buy out BRH shares, you move closer to becoming the 100% owner of the property. Once our ownership is fully purchased, the home is entirely yours and the deed is transferred to your name.

In our partnership model, you partner with us to achieve your dream of owning a home in a way that aligns with your values and financial goals. This innovative model ensures a halal, transparent, and collaborative process, making homeownership accessible and stress-free.

Curious to learn more? Read below to discover how it works, and don’t hesitate to reach out to us for a detailed explanation. Let’s take the first step toward your dream home together.

How to buy a musharaka based home?

1. Before You Buy

Before you commit to buying your next dream home, we take the time to walk you through the entire process and all associated costs. We’ll carefully review your financial situation—including your income, debt, and other key factors—to ensure you’re fully prepared for homeownership and that the monthly payments are affordable for you. Once we’ve assessed your finances and approved you for a specific price point, we’ll provide a clear and thorough explanation of all costs involved, empowering you to make a confident and informed decision. When you are ready to move forward, we will sign a purchase agreement with you that specifies the rent-to-own mushareka morality in which we will purchase your next dream home. From the very beginning, we will work closely with you to ensure your financial commitments are transparent, manageable, and aligned with your unique needs, expectations, and circumstances. Our goal is to make your journey to homeownership as smooth, stress-free, and rewarding as possible. With the Baraka Residential Homes Musharaka modality, we’re not just helping you buy a house—we’re partnering with you to build a future you can be proud of.

2. The Home Search

Once we’ve signed a purchase agreement with you, we begin the exciting journey of finding your next dream home in your preferred location. We strive to make this phase of the process enjoyable, stress-free, and memorable for you and your family.

Our team will:

Share listings within your price range that match your criteria.

Review properties with you and schedule in-person tours for the homes you’re most interested in.

Tour homes together, discussing their strengths and potential drawbacks to help you make an informed decision.

When we’ve identified your dream home—based on thorough market research, expert guidance, local market knowledge, and the key factors most important to you—we’ll assist you in crafting a competitive offer. We’ll conduct a detailed comparative market analysis (CMA) to ensure your offer is both strategic and aligned with your financial goals. At every step, we’re here to guide you, keeping your best interests at the heart of the process.

3. Making the Purchase

Once we have identified your preferred dream home, we’ll work together to ensure that we present a purchase price offer that is competitive, well-researched, and aligned with your financial circumstances. At this stage, you will transfer the funds to BRH to further the purchase process. Our ultimate objective is to secure the home on your behalf at the best possible price point. Leveraging BRH’s expertise, advanced tools, and the collaborative strength of Coldwell Banker Elite, we’ll craft offers that are both strategic and in your best interest. Once the offer is accepted, we will work on fulfilling the required contingencies to make sure the house is the best value for our investment. All remedies, if any identified at this stage, will be taken care of in close consultation with you and your approval. We will close the deal on your behalf and at the final step we will sit with you to review the rent-to-own purchase agreement, transfer funds and give you the keys to your next dream home.

Throughout the entire process, the BRH team will be by your side, making your journey to homeownership as seamless, enjoyable, and stress-free as possible.

Contact BRH

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