Kodiak is committed to providing accessible housing to members of the Muslim community who wish to be home owners. We understand the challenges that Muslims face with respect to paying interest on money borrowed at traditional lending institutions and therefore we are proud to have a financial arrangement that is compliant with the Islamic faith.
Our Islamic Mortgage is based on both a Muslim and Kodiak having shared ownership in the property. Each party contributes to the initial purchase of a home and thus a share in the property. The Muslim must contribute at least 20% of the purchase price as well as pay all closing costs incurred to purchase the home, and Kodiak will handle the rest.
By entering into a contract with Kodiak you have the option to purchase the home over an agreed upon period of time and for an agreed upon price that is determined at the signing of the contract. During this time you have the exclusive right to live in the dwelling as well as treat it as your home. This means you can make improvements or changes to the home as you wish in order to make it feel more like it truly is your place. In return for this right you agree to pay Kodiak a yearly Service Fee in order to provide you this opportunity.
At any point until the end of the contract you have the choice to complete the purchase and be the sole owner of the home. If you choose not the exercise your option to purchase then Kodiak has the choice to either buy your share in the home or to sell the property and split the profit with you.
The Islamic Mortgage is an excellent example of how Kodiak is creative in meeting the needs of the diverse community we all live in today.