Assalam o alaikum, Are Ijara Loan sharia compliant? Can someone of finance knowledge please validate this for those of us interested in buying houses in the US? Jazak Allah Khair.

Alhamdu Lillah

No, it is not.

Ijaraloan is a broker in the market and not a financier or a lender. So, the process of financing through this company starts by asking its client to take a conventional loan from the bank that Ijaraloan deals with, and then it gets involved by establishing a “trust” after the Riba-based loan is already taken. Obviously, the Ijara (or the lease) contract is unlawful from a Fiqh perspective because the "trust" is not the real owner of the property. The owner is the client who borrowed with interest.

To permit this mode of finance, the client has to sign one lease contract with the trust, and without having any relationship with the lending bank that Ijaraloan is affiliated with.