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Fatwa ID: | 78326 |
Title: | Buying a house with a mortgage in the USA |
Category: | Financial Transactions |
Scholar: | Shaykh Waleed Basyouni PhD |
Date: | 03/23/2009 |
Question
Is the mortgage system of buying a house with a loan obtained from a bank in the USA, with its interest-based payments that exceed the original price of the loan, spread over any time period, like 10 to 30 years, permitted according to Islamic teachings?
Answer
Buying a home through the mortgage system is forbidden because it is a clear type of riba (interest, usury) contract. AMJA has issued a detailed fatwa in this regard.