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MORTGAGE
RESOURCES
Islamic Halal Plan
for Mosques, Community Centers and Schools
The purchase, construction
or refinance of Mosques, Islamic schools and community centers can be easily
accomplished through the lease-acquisition program under guidelines similar to
the program for residential purchases. This "interest-free" financing
vehicle is fully compliant with the dictates of Shari'ah.
Basics:
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A master or net
lease is arranged between the Bank acting as lessor and the purchasing
entity which will be the lessee.
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A promise to purchase
the property for the original purchase price (minus the on-going equity
build up) is specified on the part of the lessee.
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The Bank purchases the
property on behalf of the prospective purchaser.
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Title passes from the
Bank to the purchaser (lessee) upon fulfillment of the promise.
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The initial loan term
is five years and extendable according to mutual agreement.
Payments:
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A payment schedule is
calculated according to a 20 to 25 year amortization period in order to
fully pay the initial obligation.
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Lease payments are
based upon LIBOR (London Interbank Offered Rate), plus a reasonable spread
(as low as 2%) representing the Bank's profit and include payments for
applicable real estate taxes and property insurance.
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The basic lease payment
(excluding taxes and insurance, which may vary) can be fixed for as long as
five years.
Miscellaneous Factors:
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Prepayment Penalty -
None! The entire lease contract, or any portion thereof, may be paid at any
time.
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Costs and Fees -
Relatively minimal costs are incurred compared to normal commercial
transactions. Costs include an acceptable appraisal report, environmental
survey, legal review fee and normal title and escrow expenses. An
origination fee of 1% of the lease contract is paid to the Bank for setting
up the account.
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Lease contract to
property value - The maximum amount funded is 75% of the current appraisal
for existing properties, for either a purchase or a refinance. For new
construction, the maximum amount is 65% of certified construction costs.
Documentation
Requirements:
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Business or development
plans for the organization.
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Three years financial
statements for the principals or business entity.
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A written analysis of how
funds are raised (donations, tithes, fund-raising, etc.)
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An estimate of the number of
members or supporters within the community who will be the financial
supporters of the organization.
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If available, recent
appraisals, environmental studies or other pertinent third party reports.
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Financial statements for all
potential guarantors.
Locating the Property
| Disclosure of Information |
Process
| Applicant Requirements |
Plan Details
| Comparison to Conventional Home Finance
| Our Role | On-Line Lease
Application
Mortgage Resources
Rick Keltner -- Broker
/ Owner
or Riaz
Hasan -- Senior Loan Officer
- Telephone
- 408-356-1448
- 800-779-LOAN (800-779-5626)
- FAX
- 408-358-4059
- Postal address
- 5553 Del Oro Drive
- San Jose, CA 95124
- Electronic mail
- General Information: rick@mtg-res.com
Main Page Web Address: http://www.mtg-res.com
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