U.S. mortgage finance company Freddie Mac on Monday said it would buy a Muslim home financing product from Chicago’s Devon Bank that conforms to Islamic rules against paying interest.
The product allows observant Muslims in 10 states served by privately held Devon Bank to buy a home through a “murabaha” transaction, which is similar to a conventional fixed-term mortgage and involves a purchase and deferred payment resale.
Freddie Mac’s agreement will ensure Devon’s ability to offer the financing, the bank said.
For this complete story, please visit Freddie Mac to Buy Muslim Home Financing from Bank.
