What is Murabaha home financing?
Murabaha is a cost-plus sale: Barakah buys the home you choose and sells it to you at a fixed total price (cost plus a disclosed profit), paid in monthly installments.
Murabaha FAQ
Murabaha questions, answered
Barakah offers one product, Murabaha home financing. Here are straight answers before you apply.
Reviewed by Resident Advisory Board · Updated 2026-10-25
All questions
Is Barakah's Murabaha halal?
Our financing is reviewed by our Resident Advisory Board, and both signed fatwas (August 1, 2025 and December 10, 2025) are published in full in our Fatwa center.
How is Murabaha different from a conventional mortgage?
With a conventional mortgage you borrow money and pay a charge on the balance over time. With Murabaha, Barakah buys the home and sells it to you at one price set at signing, and that price does not grow.
Do I own the home at closing?
Yes. Title is in your name at closing, and you pay the fixed sale price in monthly installments.
Can my price go up later?
No. The total sale price is agreed at signing and does not compound.
Is Barakah only for Muslims?
No. We welcome every home buyer. Many choose us for halal financing, others for a fixed, transparent price.
Which states do you serve?
We serve [Licensed states], starting with Texas. Pick your state on Meet the Team to see advisors licensed there.
Can I refinance from a conventional mortgage into Murabaha?
Yes. Choose "Refinance" when you apply, and an advisor licensed in your state will review your options.
Can I use Murabaha for a new construction home?
Yes. See our builder partners or choose "Build or buy new construction" when you apply.
What documents will I need?
Usually a government ID, proof of income (pay stubs or tax returns), recent bank statements and your purchase contract. Your advisor confirms the list.
How long does closing take?
[Typical timeline, compliance to confirm]. Your advisor gives you a target date after you apply.
Can I pay off early?
[Early payoff policy, compliance to confirm].
What happens if a payment is late?
[Late payment policy, including charity donation of late fees, compliance to confirm].
What profit rate will I get?
Your profit rate and any fees depend on your application and are disclosed before you sign. An advisor can walk you through current terms.
How do I apply?
Tap Apply now: one short form, about 5 screens. Pick your Barakah advisor or let our team match you. We'll tell you before any credit check.
Can I talk to someone first?
Yes. Call our team line at 1-833-786-7099, or call or email any advisor directly from Meet the Team.