What is the ruling on building a house with mixed funds that include ill-gotten (haram) money, then renting out part of it, living in it, and taking the rental income?
A Muslim is obligated to seek out lawful earnings and avoid unlawful ones. If someone earns unlawful money, mixes it with his lawful money, and builds a house with it, he must repent to Allah and dispose of the unlawful money by returning it to its owner if found, or by giving it as charity to Muslims if the owner is not found. The house built with mixed funds is not forbidden to live in, and it is permissible to benefit from renting it out, because the unlawful aspect relates to the financial liability (dhammah), not to the specific physical asset itself.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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