Buying a home in Massachusetts is hard enough. Greater Boston prices are among the highest in the country, bidding wars are common, and the paperwork never seems to end. For many Muslim families there is one more question on top of all that: can we buy without an interest-bearing mortgage?

The good news is that you don't have to leave the state, or wait for a local option, to find one. As of Oct. 13, 2026, three established Islamic home financing companies say on their own websites that they finance homes in Massachusetts, and a fourth organization structures riba-free deals nationwide through partner lenders. Here is what each one offers, how the structures differ, and what to check before you sign anything.

Why this matters

Riba, usually translated as interest, is prohibited in Islam, and a conventional mortgage is a loan that charges it. Islamic home financing replaces the loan with a different kind of contract: a partnership, a lease that ends in ownership, or a sale at an agreed markup. The monthly payment often ends up in the same range as a conventional mortgage, but the legal relationship behind it is different, and that difference is the whole point.

Scholars do not all agree on every product, and this guide is not a religious ruling. Each provider below publishes the names of the scholars who review its contracts. Read them, and talk to an imam you trust before you commit.

The options that serve Massachusetts

Guidance Residential (co-ownership)
Guidance Residential uses what it calls a Declining Balance Co-ownership Program, based on diminishing musharakah, or partnership. You and Guidance buy the home together. Each month you pay a usage fee for living in Guidance's share of the home, plus an amount that buys more of that share, until you own 100 percent. Guidance holds Massachusetts Mortgage Lender license ML2908 and was first licensed by the state Division of Banks in 2002. It says it has no physical office in Massachusetts and asks local buyers to call its New York office at 516-986-9644. Website: guidanceresidential.com.

UIF Corporation (partnership and other programs)
UIF, a Michigan-based faith-based subsidiary of University Bank, lists Massachusetts among the states where it offers home financing, and says its Partnership program is available here. It holds Massachusetts Mortgage Lender license ML93460, and its programs are approved by an independent Sharia Supervisory Board. UIF notes that it is not itself a bank and does not take deposits. Website: myuif.com.

Devon Bank (murabaha)
Devon Bank, a Chicago bank, has offered Islamic financing since 2003. It lists Massachusetts among the states where it offers murabaha financing for home purchases and for refinancing out of a conventional loan. In a murabaha, the financier buys the property and sells it to you at an agreed price that includes its profit, which you pay over time. Toll-free: 866-683-3866. Website: devonbank.com.

Ijara CDC (lease to own)
Ijara Community Development Corporation is a Michigan nonprofit that says it works in all 50 states. It is not a lender. It structures deals and works with licensed lenders and brokers. In its Ijara model, a trust buys the home and leases it to you, and part of each monthly payment goes toward ownership. At the end of the term, title passes to you. Ijara CDC lists down payments starting at 3.5 percent for owner-occupied homes, and it advertises programs for buyers without an established credit history and for veterans. Website: ijaracdc.com.

Co-ownership, murabaha or lease: what is the difference?

With co-ownership, you and the financier own the home together, and your share grows every month.

With murabaha, the financier buys the home and sells it to you at a fixed, marked-up price paid in installments.

With a lease to own, a trust owns the home while you rent it and build toward ownership, and the title transfers at the end.

None of these is automatically cheaper. The only way to compare them is to get written quotes from more than one provider for the same home, the same down payment and the same term, and to look at the total cost over the life of the deal, not just the monthly payment.

Five steps before you sign

Verify the license. Every company that makes home loans in Massachusetts has to be licensed by the state Division of Banks. You can look up any company or loan officer by name or by NMLS number for free at nmlsconsumeraccess.org. Guidance's NMLS number is 2908, and UIF's is 93460.

Get pre-approved early. In a competitive Boston-area market, sellers expect a pre-approval letter with your offer. Islamic providers can take longer than a big bank, so start weeks before you begin touring homes.

Tell your agent and your closing attorney. Many Massachusetts real estate agents have never worked with Islamic financing. Let them know up front that the paperwork will look different, so nobody is surprised at closing.

Ask about every fee. Request the application fee, appraisal cost, any late-payment charges and early-payoff terms in writing, and compare them line by line.

Read the scholars' approval. Ask for the fatwa or Sharia board certificate that covers the exact product you are signing, and read it with someone you trust.

The bottom line

Massachusetts Muslims have more choice than many people realize. At least three licensed or bank-based providers and one nationwide nonprofit say they finance homes here, using three different structures. Shop around, verify every license, and get your questions answered before you fall in love with a house.

Have you bought a home in Massachusetts with Islamic financing? Tell us what worked, and what you wish you had known, at masshalal.com/contact. We may share your story in the Journal. And if you are house hunting, browse masjids, halal markets and restaurants by town at masshalal.com.

This article is general information, not financial, legal or religious advice. Product availability, terms and licenses can change, so confirm the details directly with each provider.