► Kindly, leave us a good review if you enjoyed the episode!► More from PIF: https://linktr.ee/practicalislamicfinanceUnderstanding Islamic Home Financing: A Review of Guidance ResidentialDESCRIPTION OF EPISODEI have critically reviewed Guidance Residential, the leading U.S. Islamic home financing provider, which advocates for its Sharia-compliant "Diminishing Musharakah" co-ownership model.In this model, the homebuyer and Guidance Residential co-own the property, with the buyer gradually purchasing Guidance's share while paying rent for the portion of the house they don't currently own.My observation is that merging a promise to purchase an asset with a rental agreement on the same asset is, in practice, no different from securing a conventional loan with interest, which Islam forbids.I question Guidance Residential’s touted benefits such as co-ownership, being riba-free, having capped late payment fees, non-recourse commitment, risk sharing, and an independent Shariah board.I have provided a comparison table illustrating the many similarities between the Diminishing Musharakah model and a traditional mortgage; the primary difference seems to be in the terminology used - substituting 'interest' with 'rent'.I have extended an open invitation to anyone from Guidance Residential or the 18 law firms they collaborated with to engage in a discussion on my assertions, underscoring that my intention is to remain honest and not to personally attack anyone involved with the company.TIMESTAMPSIntro 0:00What is Reba 1:50How does Reba work 2:36Co-ownership 5:39Reba Free 6:47Non Recourse 7:57Late Payment fees 8:53Risk Sharing 9:22Affiliation 11:22Equity Partnership 12:00Freddie Mac 12:22MJA 13:05LLC 13:32Sharia Compliance 16:30CONTACT [email protected] OUR PODCASTOur podcast is about helping people build wealth in an ethical way. We cover a broad range of topics including stock and crypto investing, product reviews, and general financial well-being.DISCLAIMERAnything you hear in this video is an opinion. It is not personalized financial advice. Make sure you do your own due diligence before making any investment decisions.

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