What is the ruling on purchasing a spacious house through Islamic financing, where the house is bought in partnership between the buyer and the financing entity, and the buyer pays his share monthly with a profit to the financing entity, until he fully owns the house?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The participatory method known as diminishing (diminishing partnership) is Islamically permissible if it adheres to the -compliant regulations. These include that neither party commits to purchasing the other party's share at its original value when the partnership is established. Rather, the price is determined by the market value on the day of sale or by agreement at the time of sale.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/180603
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 180603
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy