We currently offer our products in the following states: Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Michigan, Minnesota, Missouri, North Carolina, Ohio, Oregon, Texas, Virginia, Utah and Wisconsin. Please contact an Islamic Finance Representative for more details.
Nazir Gurukambal, Vice President
Saed Alsaadi, Finance Specialist
Badih S. Alkhatib, Islamic Financing Originator
Do you offer Islamic Lending/Loans?
We offer Islamic Financing.
Is this a loan?
No, because this is an installment sale.
Can I refinance an existing conventional mortgage?
Yes. See Pricing for more information.
Can I prepay in full or in part?
An Ijara or a Murabaha can be prepaid at any time without complication. For a Murabaha transaction, the issue is more complex. Islamic law provides that once a deal is made it cannot be changed. The financier (the Bank) may forgive a portion of the debt at its discretion. It is not permissible for us to agree to a discount of the Murabaha debt in advance. It is our policy and past practice to discount the Murabaha debt to match the payments on an equivalent interest-bearing loan in exchange for early payment, within the dictates of banking regulations and good business practices.
Who has approved of your documents?
Our documents have been drafted in consultation with local religious authorities. We have received the Fatwa of the Shariah Supervisory Board of America (Mufti Nawal-ur-Rahman). We also have the approval of Dr. Main Al-Qudah, who has researched Islamic mortgages and published a paper (available from the Assembly of Muslim Jurists of America). Other assorted religious leaders have examined our practices and found them acceptable.
Is there a minimum down payment required?
Yes. Please call for additional information.
Why are your costs higher than conventional loans?
To be Shariah-compliant, our costs must be related to our actual expenses. Our products have a higher documentation fee due to the extra work in product design and assembling documents for a closing—it is not an automated process as it is for a conventional loan. Our profit rate is otherwise the same as an equivalent traditional mortgage. There are a few transaction costs that are higher because of the dictates of the specific deal structure needed to satisfy the requirements of an Islamic financing transaction, such as two deeds to record instead of one. Otherwise, all our costs are the same as a traditional mortgage. We do not charge a premium for religious accommodation.
Is there a penalty for late payments?
Yes. Some interpretations of Islamic law allows the imposition of a late payment to motivate prompt payment-- it does not, however, allow us to keep the payments to the extent they exceed our costs. We deposit collected late payments into an account, offset our costs, and donate any funds left over to charity. Islamic law does not allow the imposition of a late payment for a customer in financial hardship. If you can prove that you are a hardship case, no late payment is assessed.
Will I have to pay two transfer taxes?
Maybe. Because the various transaction forms involve two sales, two transfer taxes may be owed. The possibility of a second tax varies based on location.
Are your products available in all states?
Please see the top of this page for availability.
DEVON BANK NMLS ID#412368