LARIBA

American Finance House LARIBA is the Oldest Community-Owned, Riba-Free and Shari'aa Compliant Finance Company Serving the Community in the US since 1987.

The Uniqueness and Primary Differences between us, at LARIBA, and other Riba-Free Models and Riba banks are the following:

We do not Rent Money. We approach each transaction as an investment (using the Lease-to-purchase Model) instead of Lending. We advise you as to whether the transaction is a good investment or it is better to rent.
We never start from an interest rate to calculate your payment. Your payment is based on the market rental value of the property you are seeking to finance. The rental value is determined by mutual agreement between you and us.
We work with clients in a humane and fair way (Tarahum) in times of trouble.

Our Home (Auto, Businesses and Trade) Financing (and Refinancing) Shari’aa Compliant Riba-Free Model is based on the Fatwas Given By Sheikh Qaradawi (Please Click Here to Reach The Fatwas) & His Team of Aalim (Scholars) in 1990 and Justice Sheikh Taqi Usmani fatwa and methodology (Please Click Here for Details). Following are the steps we follow at LARIBA:

LARIBA agrees to form a conceptual partnership with client to buy the property together;
The Partnership rents the property to whoever is interested in renting it, in this case the client out of his/her free will;
LARIBA, in response to client’s expression of intent out of his/her free will, agrees to sell its share to the client over a period of time at the same amount/price LARIBA paid for it at the start WITHOUT CHARGING INTEREST.

PLEASE NOTE THAT THE ABOVE THREE STEPS ARE DONE IN DISTINCTLY SEPARATE AND NOT DEPENDENT STEPS AND NONE OF THEM IS A PRECONDITION FOR THE OTHER TO TAKE PLACE. Doing it this way will render the process NOT SHARI’AA COMPLIANT BECAUSE IT WOULD BE LIKE “Two Sales in One Contract.”

Other Features of the Model:

LARIBA does not encumber the future of your home ownership by placing its name on the Title of Your House. This way the safety of the house of your family will not be compromised and you may not be a part of a dispute in case the company, may Allah forbid, faces trouble.
LARIBA financing allows clients to enjoy the tax advantages of traditional real estate financing while avoiding the Riba aspects.
The repayment terms are structured to fit your cash flow needs with payback periods of up to 30 years.
LARIBA can accept a down payment as low as 5%. Please note that if down payment is less than 20%, you will have to purchase Private Mortgage Insurance ("PMI") until your equity in the property reaches 20%.
You can buy back our share at any time by making additional payments WITHOUT PENALTY.
There is Partnership fees and NO HIDDEN fees.

LARIBA is also unique in the fact that it uses the standard legal documentation required by US Mortgage Industry Procedures and United States Standard Government Mortgage Law and we , at LARIBA, UNIQUELY supplement them with the LARIBA Agreement. This LARIBA AGREEMENT documents the process we used to calculate the payment and the rental value agreed upon. We, at LARIBA, DO NOT BELIEVE IN WHAT OTHERS DO. They replace the word “interest” with the word “rent or profit” to make the transaction appear Riba-free. We CLEARLY DECLARE IN THE LARIBA AGREEMENT THAT Riba / Interest Charging and/or Receiving is Haram.

To start the process, please complete the online application request or download the application package from:

You can also complete the application by phone. If you prefer the phone option; please let us know a suitable time when you’ll have your information ready and will be able to devote about 20 minutes; we will be happy to contact you at that appointed time.

PLEASE CALL US AT LARIBA: 1-888-LARIBA-1