Based on looking at the website, Texasunitedmortgage.com appears to be a local Houston-based mortgage lender that offers various home loan and refinancing options.
While the website presents itself with a strong local focus and highlights customer reviews, the core business model of conventional mortgage lending inherently involves interest riba, which is strictly prohibited in Islam.
Therefore, from an Islamic ethical perspective, engaging with such services is not permissible.
Here’s a summary of the review:
- Website Focus: Primarily caters to home buyers and those looking to refinance in Texas, with a strong emphasis on Houston.
- Services Offered: Conventional, FHA, VA, USDA, and Jumbo Loans, along with refinance options and down payment assistance.
- Transparency: Displays current mortgage rates, though with clear disclaimers about their variability. Provides bios for key team members with NMLS numbers.
- Customer Feedback: Features numerous positive Google reviews, indicating a strong customer service approach.
- Islamic Ethical Stance: The fundamental reliance on interest-based lending riba makes this service impermissible from an Islamic perspective. Riba is considered a major sin in Islam due to its exploitative nature and negative societal impact.
Given the fundamental ethical considerations regarding interest-based financial products in Islam, we strongly advise against engaging with Texasunitedmortgage.com or similar conventional mortgage lenders.
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The pursuit of financial stability and homeownership is commendable, but it must align with Islamic principles.
Here are some ethical, Islamically permissible alternatives for home financing:
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- Key Features: Offers Sharia-compliant home financing based on Murabaha cost-plus financing and Ijarah leasing with a promise to sell models. Aims to avoid conventional interest structures.
- Price: Varies based on the specific financing agreement. generally comparable to conventional loans but structured differently.
- Pros: Fully Sharia-compliant, ethical financing, clear contractual terms, widely recognized in the US as a leading Islamic finance provider.
- Cons: Limited availability in some states, may require more documentation than conventional loans, overall process might be slightly longer.
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- Key Features: Provides Islamic home financing through a profit-sharing model Musharaka decreasing balance. Focuses on avoiding interest.
- Price: Competitive profit rates, structured to reflect market conditions without violating Islamic principles.
- Pros: Pioneers in Islamic finance in the US, strong emphasis on ethical investments, transparent financial structuring.
- Cons: Smaller operation compared to conventional lenders, potentially fewer product variations, application process can be detailed.
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- Key Features: Offers Sharia-compliant home purchase and refinance options utilizing cooperative diminishing Musharakah and Ijarah models.
- Price: Rates are competitive with conventional market rates but structured as profit shares.
- Pros: Dedicated to Islamic finance, aims for transparency, focuses on community benefit.
- Cons: Newer player in the market, may have less extensive infrastructure, availability might be limited to certain regions.
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- Key Features: While not a direct mortgage lender, MPAC Solutions provides advisory and consulting services for Sharia-compliant finance structures, including real estate. They can help connect you with ethical financing options.
- Price: Service fees for consultation vary.
- Cons: Not a direct financing provider, requires an additional step in the financing journey.
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- Key Features: Focuses on real estate financing solutions structured according to Islamic principles, including Murabaha and Ijarah.
- Price: Pricing is determined based on the specific Sharia-compliant contract, aiming for market competitiveness.
- Pros: Specialized in Islamic finance, offers alternatives to conventional mortgages, emphasizes ethical transactions.
- Cons: May have a more focused geographic reach, newer market entrant.
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United Islamic Financial Services
- Key Features: Offers various Islamic financial products, including home financing, striving for full Sharia compliance in their operations.
- Price: Rates and terms are structured to be competitive within the Islamic finance market.
- Pros: Broad range of Islamic financial services, commitment to ethical guidelines.
- Cons: Information readily available online can be limited. direct contact may be required for full details.
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Takaful Emarat for general ethical financial planning
- Key Features: While based in the UAE, Takaful Emarat offers a broader concept of Takaful Islamic insurance, which is an ethical alternative to conventional insurance often required alongside home financing. Understanding Takaful principles can help individuals make informed decisions about their overall financial planning related to homeownership without engaging in Riba or Gharar excessive uncertainty.
- Price: Contributions are based on mutual cooperation and shared risk, often structured as donations to a common fund.
- Pros: Sharia-compliant insurance model, emphasizes mutual support and risk-sharing, avoids interest and speculative elements.
- Cons: Direct Takaful home insurance might not be widely available from US-based providers yet, but the concept is crucial for ethical financial planning.
Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.
IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.
Texasunitedmortgage.com Review & First Look
Based on checking the website, Texasunitedmortgage.com presents itself as a dedicated mortgage lender focused on the Texas market, particularly Houston.
The homepage immediately emphasizes local expertise and a personal touch, contrasting itself with larger, impersonal corporate lenders.
The tagline “Talk To A Live Loan Officer 888 505-1718 Best Rated Local Houston Mortgage Lender” is prominently displayed, suggesting a direct, client-centric approach.
This aligns with a common user desire for personalized service in the often-complex world of home financing.
The site is well-structured, providing quick access to various loan types: Bit-profit-app.com Review
- New Home Loans
- Texas Mortgage Refinance Experts
- Texas Conventional Home Loans
- Texas FHA Loans
- Texas VA Loans
- Texas USDA Loans
- Down Payment Assistance Programs
- Texas Jumbo Loans
Each loan type has a brief description of its advantages, minimum requirements like credit score or down payment, and clear calls to action such as “Learn More” and “Apply Now.” This structured presentation aims to inform potential borrowers efficiently.
Initial Impressions
Upon first glance, the website gives off a professional and user-friendly vibe. The design is clean, and navigation is straightforward, making it easy for visitors to find information about different loan products. There’s a clear emphasis on local expertise and customer service, which are often key selling points for businesses in the mortgage industry. The presence of current mortgage rates, albeit with disclaimers, adds a layer of transparency that many users appreciate.
Transparency and Credibility
The website attempts to build credibility through several elements:
- Google Reviews: Prominently displays “5.0 40+ Google Reviews” and later “5.0 100+ Google Reviews,” followed by a long list of customer testimonials. This social proof is a powerful tool to instill trust.
- Team Bios: Detailed profiles of key team members, including their NMLS Nationwide Mortgage Licensing System numbers. For instance, Reef Merhi, NMLS 878539, and Scott Foster, NMLS 1591277, are listed with their roles and brief personal/professional backgrounds. This level of detail is crucial for legitimacy in the financial sector, allowing potential clients to verify credentials. According to the NMLS Consumer Access website, the NMLS system is a “nationwide database of mortgage lenders, brokers, and loan originators” that provides transparency and helps protect consumers.
Ethical Considerations Riba
Despite the professional presentation and apparent commitment to customer service, the core business model of Texasunitedmortgage.com—like almost all conventional mortgage lenders—is based on interest-bearing loans riba. In Islam, riba is strictly forbidden, regardless of whether it’s excessive or seemingly fair. The Quran explicitly prohibits interest, and the Sunnah of the Prophet Muhammad peace be upon him further emphasizes its severity. This prohibition stems from the Islamic economic principle of avoiding exploitation, promoting shared risk, and fostering equitable transactions.
Key Islamic Principle: Riba is defined as any predetermined increment over the principal of a loan or debt. It is viewed as an unjust gain obtained without equivalent effort or risk. Instead, Islamic finance promotes profit-and-loss sharing, asset-backed transactions, and ethical trade. Iibminternships.com Review
Therefore, for a Muslim seeking home financing, engaging with Texasunitedmortgage.com would involve dealing with riba, which is a major ethical concern.
Texasunitedmortgage.com Cons
While the website appears to be professionally built and aims to provide comprehensive information, from an Islamic ethical standpoint, the fundamental issue is the reliance on interest. This makes it unsuitable for Muslims.
Fundamental Reliance on Riba Interest
The primary and most significant drawback of Texasunitedmortgage.com, from an Islamic perspective, is its direct involvement in interest-based financial transactions.
- Conventional Loans: The website explicitly offers “Conventional Loans 30 Year, 15 Year, 10 Year, Customized Term Options,” which are inherently structured around interest payments.
- Refinance and Save Thousands In Interest!: This phrase, while appealing to conventional consumers, directly highlights the interest component of their offerings. While it promises savings on interest, it acknowledges interest as the underlying mechanism.
- APR Annual Percentage Rate: The prominently displayed “Today’s Mortgage Rates” include APRs, which is the total cost of borrowing, expressed as a yearly rate, including interest and other fees. This is a clear indicator of an interest-based system.
- Islamic Prohibition: In Islam, any form of predetermined interest on a loan is considered riba and is strictly prohibited. The Quran states, “Allah has permitted trade and forbidden interest” Quran 2:275. This prohibition is absolute and applies to both the giver and receiver of interest. Engaging in riba is viewed as a grave sin due to its exploitative nature and its potential to exacerbate wealth inequality.
Lack of Sharia-Compliant Options
The website makes no mention of any Sharia-compliant financing alternatives.
This means that for individuals seeking to adhere to Islamic financial principles, Texasunitedmortgage.com does not offer any viable solutions. Rooferswestlothian.com Review
- No Murabaha or Ijarah: There are no indications of contracts like Murabaha cost-plus financing, Ijarah leasing with a promise to sell, or Diminishing Musharakah partnership leading to ownership, which are common structures in Islamic home finance.
- Conventional Products Only: All the listed loan products—Conventional, FHA, VA, USDA, Jumbo—are standard conventional finance instruments that operate on interest.
Risk of Falling into Prohibited Transactions
For a Muslim, even if the terms seem favorable or the service is excellent, the fundamental nature of interest-based lending means entering into a transaction that is explicitly forbidden.
This is not just a matter of preference but a religious imperative.
- Spiritual Consequences: Engaging in riba is believed to carry significant spiritual consequences, diminishing blessings and potentially leading to hardship.
- Moral Hazard: Interest systems can encourage excessive debt and speculation, which are contrary to Islamic principles of responsible wealth management and economic justice.
Unsuitability for Ethical Investing
For those who prioritize ethical and faith-based financial decisions, conventional mortgage lenders like Texasunitedmortgage.com simply do not align with their values.
- No Alignment with Islamic Finance Principles: Islamic finance emphasizes risk-sharing, ethical investments, and avoiding transactions that exploit or harm individuals or society. Conventional mortgages, with their fixed interest payments, transfer all market risk to the borrower, which is contrary to this principle.
Texasunitedmortgage.com Alternatives
For individuals seeking home financing that aligns with ethical principles, especially Islamic ones, conventional mortgage lenders are not an option.
The key is to find institutions that offer Sharia-compliant financing. Lovimals.com Review
These alternatives structure transactions to avoid interest riba and instead use various permissible contracts.
Halal Home Financing
Halal home financing is built on principles that avoid interest, speculation, and unethical investments. Instead, it utilizes contracts like:
- Murabaha Cost-Plus Financing: The financial institution buys the property and then sells it to the client at a predetermined profit margin. The client pays the total price in installments. This is a sale, not a loan with interest.
- Ijarah Leasing with a Promise to Sell: The financial institution leases the property to the client, and the client pays rent. At the end of the lease term, ownership transfers to the client. This functions like a rent-to-own agreement.
- Diminishing Musharakah Partnership: The financial institution and the client jointly purchase the property. The client then gradually buys out the institution’s share over time through installment payments, simultaneously paying rent for the portion of the property still owned by the institution.
These structures ensure that the transaction is based on tangible assets, shared risk, and transparent profit-sharing, rather than pure interest on debt.
Top Ethical/Halal Home Financing Alternatives
When looking for alternatives to conventional mortgages, it’s crucial to seek out financial institutions that specialize in Islamic finance and have a proven track record of Sharia compliance, verified by reputable Sharia supervisory boards.
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Guidance Residential Nebula-light.com Review
- Key Features: One of the most recognized and established Islamic home finance providers in the U.S. Offers “Declining Balance Co-ownership Program” similar to Diminishing Musharakah and Murabaha. All products are reviewed and approved by a Sharia Supervisory Board.
- Why it’s an Alternative: Directly addresses the need for interest-free home financing, making homeownership accessible while adhering to Islamic principles.
- Pros: Well-established, strong reputation, transparent Sharia-compliant contracts, available in many U.S. states.
- Cons: Application process can be rigorous, may sometimes have slightly higher overall costs compared to the lowest conventional rates due to different financial structuring.
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- Key Features: Another pioneer in Islamic financial services in the U.S., offering Islamic home financing based on a profit-sharing model. They emphasize a unique “buy-and-lease” approach to avoid interest.
- Why it’s an Alternative: Provides a direct, interest-free alternative to traditional mortgages, focusing on equity and partnership.
- Pros: Long history in Islamic finance, commitment to ethical investing, personalized service.
- Cons: Smaller scale operations, which might mean a more localized presence or less extensive product variety compared to larger conventional banks.
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- Key Features: Specializes exclusively in Sharia-compliant home financing. Utilizes models like diminishing Musharakah and Ijarah, ensuring that transactions are asset-backed and free from riba.
- Why it’s an Alternative: Offers focused expertise in Islamic home financing, aiming to simplify the process for observant Muslims.
- Pros: Dedicated to Islamic finance principles, potentially quicker processing for those familiar with their model, transparent fee structures.
- Cons: Newer entrant compared to some established players, potentially smaller geographical reach.
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- Key Features: While not a direct lender, MPAC Solutions acts as an advisor and facilitator for individuals and institutions seeking Sharia-compliant financial solutions. They can guide clients to appropriate halal financing options and ensure transactions meet ethical standards.
- Why it’s an Alternative: Offers expert guidance on navigating the complex world of Islamic finance, connecting clients with legitimate halal providers and structuring deals ethically.
- Pros: Comprehensive advisory service, reduces the risk of unknowingly engaging in non-compliant transactions, provides peace of mind.
- Cons: Involves an additional layer of consultation before financing can be secured, which might incur separate fees.
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- Key Features: Provides various Islamic financial services, including home financing, structured to adhere to Sharia principles. Their focus is on offering ethical financial products that cater to the Muslim community.
- Why it’s an Alternative: A direct provider of Islamic home financing, offering a complete solution from application to closing, all within a Sharia-compliant framework.
- Pros: Specialized products for the Muslim market, commitment to religious adherence, often competitive with other Islamic finance providers.
- Cons: Might have a more limited presence or less marketing exposure compared to mainstream options.
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United Islamic Financial Services Technicaltauqeer.com Review
- Key Features: Offers a range of Islamic financial products, including home finance, striving to provide comprehensive solutions that are entirely Sharia-compliant.
- Why it’s an Alternative: Aims to be a one-stop shop for various Islamic financial needs, offering home financing as a key product.
- Pros: Broad service offerings, potential for integrated financial planning if other services are needed, focus on ethical practices.
- Cons: Specific details on their home finance programs might require direct inquiry, as publicly available information can be less detailed than larger competitors.
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- Key Features: While Takaful is not a home financing product itself, it’s an essential component of ethical homeownership. It functions as an Islamic cooperative insurance system where participants contribute to a fund to help each other in times of need. This avoids the elements of riba interest and gharar excessive uncertainty found in conventional insurance.
- Why it’s an Alternative: For comprehensive ethical homeownership, a Takaful policy is the Sharia-compliant alternative to conventional home insurance. It’s crucial to seek Takaful providers where available to ensure all aspects of homeownership are ethical.
- Pros: Fully Sharia-compliant insurance model, promotes mutual assistance and shared responsibility, avoids speculative elements.
- Cons: Availability in the U.S. for specific home insurance might be limited, often requiring research to find local Takaful providers or those licensed for property insurance in your state.
Understanding the Prohibition of Riba in Islam
The prohibition of Riba interest is a cornerstone of Islamic finance and ethics.
It’s not a minor guideline but a fundamental principle that has far-reaching implications for how Muslims conduct their financial affairs.
Understanding why Riba is forbidden sheds light on why conventional mortgage lenders like Texasunitedmortgage.com are deemed impermissible.
Historical Context and Quranic Mandate
The prohibition of Riba is explicitly mentioned in several verses of the Quran. Overtheseadress.com Review
- Quran 2:275: “Those who consume interest will stand like one standing touched by Satan leading to madness. That is because they say, ‘Trade is only like interest.’ But Allah has permitted trade and forbidden interest.” This verse directly contrasts lawful trade with unlawful interest, establishing a clear distinction.
- Quran 2:276: “Allah destroys interest and gives increase for charities. And Allah does not like every sinful disbeliever.” This highlights the destructive nature of interest and the blessings associated with charity.
- Quran 3:130: “O you who have believed, do not consume interest, multiplied many times over, and fear Allah that you may be successful.” While this verse addresses compounded interest, the general prohibition applies to all forms.
- Quran 2:278-279: “O you who have believed, fear Allah and give up what remains of interest, if you should be believers. And if you do not, then be informed of a war from Allah and His Messenger. But if you repent, you may have your principal – you do no wrong, nor are you wronged.” This is a severe warning against persistence in Riba, emphasizing the importance of returning to just principles.
Economic and Social Implications of Riba
The Islamic prohibition of Riba is rooted in sound economic and social justice principles.
- Exploitation and Injustice: Riba allows wealth to be generated without real productive effort or risk-sharing. It enables lenders to profit merely from the passage of time, irrespective of the borrower’s venture success or failure. This can lead to the rich getting richer at the expense of the poor or those in need, creating economic inequality and exploitation.
- Concentration of Wealth: An interest-based system naturally leads to the concentration of wealth in the hands of a few. Capital becomes a commodity that generates more capital, rather than being a tool for productive investment that benefits society broadly.
- Discourages Productive Investment: Riba can discourage real economic activity. Instead of investing in businesses, agriculture, or innovation—which involve risk—capital owners might prefer to lend money at a guaranteed interest rate, leading to stagnant economic growth.
- Moral Hazard: The system creates a moral hazard where lenders have little incentive to ensure the borrower’s project is sound, as their return is guaranteed regardless. This can lead to irresponsible lending and borrowing.
- Inflationary Pressures: While debatable, some economists argue that interest can contribute to inflationary pressures by adding to the cost of production and consumption without a corresponding increase in real value.
- Social Division: The constant accumulation of wealth by lenders and the perpetual indebtedness of borrowers can create deep social resentment and instability. Islam emphasizes a harmonious society where wealth circulates and benefits all.
Ethical Alternatives and Their Benefits
Islamic finance offers a comprehensive framework that provides ethical alternatives to interest-based transactions, particularly in areas like home financing.
- Risk Sharing: Instead of transferring all risk to the borrower, Islamic financial models, like Musharakah partnership, promote risk-sharing between the financier and the client. If the venture fails, both parties share the loss, aligning incentives.
- Asset-Backed Financing: Transactions are tied to real assets e.g., property, goods rather than just money. This prevents speculation and ensures that wealth is generated through tangible economic activity.
- Justice and Equity: The objective is to achieve justice and equity in all financial dealings, ensuring that neither party is exploited. This is why profit-sharing is emphasized over predetermined interest.
- Social Responsibility: Islamic financial institutions are encouraged to invest in projects that benefit society and promote sustainable development. This includes avoiding industries deemed unethical e.g., alcohol, gambling.
- Stability and Growth: By fostering genuine economic activity and equitable distribution of wealth, Islamic finance aims to create a more stable and resilient economy. The absence of interest-driven debt bubbles contributes to this stability.
In essence, the Islamic stance on Riba is not merely a religious injunction but a foundational principle for building a just, equitable, and sustainable economic system.
Therefore, any financial product, including conventional mortgages, that relies on interest, falls outside the permissible bounds for a Muslim.
How to Approach Homeownership Ethically
Achieving homeownership is a significant life goal for many, and it’s entirely possible to do so while adhering to ethical and Islamic principles. Itshareacademy.com Review
The key lies in understanding and utilizing Sharia-compliant financing models that avoid interest riba. This requires diligence, research, and a willingness to explore alternatives to conventional lending institutions.
Understanding Islamic Home Financing Models
As discussed, Islamic home financing models are structured differently from conventional mortgages.
They focus on partnership, leasing, or cost-plus sales, rather than interest-based loans.
- Diminishing Musharakah Declining Partnership: This is perhaps the most common and widely accepted model in the West. The financial institution and the homebuyer become co-owners of the property. The homebuyer makes regular payments, part of which goes towards buying out the institution’s share, and part towards rent for the portion of the property still owned by the institution. Over time, the buyer’s ownership increases until they own 100% of the property.
- Example: You and an Islamic finance provider jointly buy a $300,000 home, with the provider owning 80% and you owning 20%. You make monthly payments that cover “rent” on the provider’s 80% share and also buy a small portion of their ownership. As you buy more, their share decreases, and so does the “rent” portion of your payment.
- Ijarah Leasing with a Promise to Buy: The financial institution buys the property and then leases it to the homebuyer for a fixed term. At the end of the lease, or at specified points, the ownership of the property transfers to the homebuyer. This is essentially a rent-to-own agreement.
- Example: The bank buys the house. You lease it from them for 30 years, paying rent. At the end of the 30 years, or earlier via an agreed-upon purchase schedule, the house becomes yours.
- Murabaha Cost-Plus Sale: The financial institution purchases the property and then immediately sells it to the homebuyer at a higher, predetermined price cost plus a profit margin. The homebuyer repays this total fixed price in installments. This is a direct sale, not a loan.
- Example: The bank buys a house for $250,000. They sell it to you for $275,000 a $25,000 profit for them, and you agree to pay $275,000 over 15 years in fixed installments.
Steps to Ethical Homeownership
- Educate Yourself: Before anything else, truly understand the principles of Islamic finance, especially as they apply to homeownership. Knowing the difference between permissible and impermissible contracts is crucial. Resources from Islamic finance scholars, reputable institutions, and online educational platforms can be invaluable.
- Save for a Down Payment: While some Islamic finance providers offer options with lower down payments, having a substantial down payment e.g., 20% or more can significantly reduce your overall financial burden and potentially improve the terms of your financing arrangement.
- Research Islamic Finance Providers: Identify reputable Islamic finance institutions or conventional banks that offer dedicated Sharia-compliant home financing products in your region. Look for:
- Sharia Supervisory Board: Confirm that the institution has a recognized and active Sharia Supervisory Board that reviews and approves all their products and operations. This is the cornerstone of their legitimacy.
- Transparency: Ensure they are transparent about their contracts, fees, and how their financing models work. Ask for detailed explanations of the chosen contract e.g., Musharakah, Ijarah.
- Customer Reviews & Track Record: Look for reviews and testimonials specific to their Islamic home financing products.
- Compare Offers: Just like with conventional mortgages, it’s wise to get quotes from several Islamic finance providers. Compare their profit rates, fees, terms, and the specific structure of their contracts. Don’t just look at the monthly payment. understand the total cost and how the ownership transfer occurs.
- Understand the Contract: Read every document carefully. Don’t hesitate to ask questions. If possible, consult with a knowledgeable Islamic scholar or an independent legal expert who understands Islamic finance contracts to ensure everything aligns with your understanding and requirements.
- Budget and Financial Planning: Create a realistic budget that accounts for monthly payments, property taxes, home insurance preferably Takaful, if available, maintenance, and other homeownership costs. Ethical homeownership isn’t just about avoiding Riba. it’s also about responsible financial stewardship.
- Consider Takaful: As a complementary ethical step, look for Takaful Islamic insurance providers for your home insurance needs. Takaful operates on principles of mutual cooperation and shared risk, avoiding the elements of interest and excessive uncertainty found in conventional insurance. If direct Takaful for home insurance isn’t available in your area, investigate what options exist that minimize un-Islamic elements.
It may require more effort than simply walking into a conventional bank, but the peace of mind and blessings associated with adhering to Islamic principles are invaluable.
texasunitedmortgage.com Pricing
Based on the text provided from Texasunitedmortgage.com’s homepage, it’s clear they deal in conventional mortgage rates, which are inherently interest-based. Nascla.org Review
While they provide specific numbers for various loan types, these are presented as Annual Percentage Rates APRs and clearly state that rates are subject to change and depend on various factors.
Rate Presentation and Assumptions
The website prominently displays “Today’s Mortgage Rates for 9.9.2023” and a second table without a date, implying current or recent rates.
- Conventional 15 Yr. Fixed: 5.879% APR 6.215%
- Conventional 30 Yr. Fixed: 6.499% APR 6.641%
- FHA 30 Yr. Fixed: 5.998% APR 6.803%
- VA 30 Yr. Fixed: 5.899% APR 6.089%
These rates are presented with Rate Table Assumptions, which are crucial for understanding the quoted figures:
- “Mortgage rates are subject to change and are not guaranteed.”
- “The rates may vary based on credit score, loan amount, and other factors.”
- “Loan amounts greater than $300,000.” for one table / “Loan amounts greater than $475,000.” for another
- “FICO credit score greater than 740 or higher.” for one table / “FICO credit score greater than 780 or higher.” for another
- “Owner Occupied”
- Specific LTV Loan-to-Value percentages e.g., LTV 75.0% for Conventional 30 Year Fixed
- “1 % Point Charged” – This indicates an origination fee or discount points paid at closing, which effectively increases the cost of the loan.
The Nature of Mortgage Pricing
Conventional mortgage pricing is complex and involves several components beyond the advertised interest rate which is part of the APR:
- Interest Rate: The percentage of the principal that the lender charges for the use of its money.
- APR Annual Percentage Rate: A broader measure of the cost of borrowing money, it includes the interest rate and other charges, such as points and some broker fees. It aims to provide a more accurate depiction of the total cost of the loan over its life.
- Loan Origination Fees: Charges for processing the loan application, often expressed as a percentage of the loan amount e.g., “1 % Point Charged”.
- Discount Points: Fees paid upfront to the lender in exchange for a lower interest rate over the life of the loan. One point typically equals 1% of the loan amount.
- Closing Costs: Various fees incurred at the time of closing the loan, which can include appraisal fees, title insurance, legal fees, etc.
- Escrow Accounts: Funds held by the lender for property taxes and homeowners insurance, which are typically collected with monthly mortgage payments.
Islamic Perspective on Pricing
From an Islamic perspective, the issue is not the amount of the rate or the complexity of the pricing, but the fundamental nature of the transaction being interest-based. Wanda.delivery Review
- Fixed Interest Rates: Whether the interest rate is high or low, fixed or variable, the act of charging or paying a predetermined increment on a loan is considered Riba.
- APR Calculation: The very calculation of APR confirms that a charge is being applied to the principal for the mere passage of time, which is the essence of Riba.
- Points and Fees: While some fees might be permissible e.g., actual administrative costs for processing, appraisal fees, any portion of the “points” or other charges that are directly tied to reducing the interest rate on the loan would still fall under the umbrella of Riba, as they contribute to the cost of borrowing money.
The critical point is that these pricing structures, common in conventional finance, are inherently problematic in Islam because they involve interest. It’s not a matter of finding a “good” or “low” interest rate, but rather avoiding interest altogether.
For Muslims seeking homeownership, the focus shifts from finding the “lowest APR” to finding Sharia-compliant models where the “price” is based on actual asset-backed transactions e.g., a sale price in Murabaha, rent in Ijarah, or profit-sharing in Musharakah, rather than interest on borrowed money.
The “cost” in Islamic finance is the profit margin or rental income earned by the financial institution as part of a legitimate trade or partnership, not a direct charge on a loan principal.
Texasunitedmortgage.com vs. Halal Mortgage Lenders
When comparing Texasunitedmortgage.com with Halal mortgage lenders, it’s not just about services or rates.
It’s a fundamental difference in their underlying financial models and ethical principles. Buytechsolution.com Review
It’s like comparing apples to oranges, but one of the oranges has an intrinsic element that is impermissible for a particular dietary restriction.
Business Model and Ethical Foundation
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Texasunitedmortgage.com Conventional Mortgage Lender:
- Business Model: Operates on the traditional banking model where money is lent, and interest Riba is charged on the principal amount. This includes fixed-rate, adjustable-rate, FHA, VA, USDA, and jumbo loans. Their profit is directly derived from the interest payments borrowers make over the loan term.
- Ethical Foundation: Rooted in secular financial laws and practices, primarily focusing on maximizing profit through interest-bearing debt.
- Suitability for Muslims: Unsuitable. The core operation involves Riba, which is strictly forbidden in Islam. While they may offer competitive rates and good service, engaging with them for financing would constitute participating in a prohibited transaction.
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Halal Mortgage Lenders e.g., Guidance Residential, LARIBA:
- Business Model: Operates on Sharia-compliant principles, avoiding interest. They primarily use contracts such as Diminishing Musharakah co-ownership, Ijarah leasing with a promise to sell, or Murabaha cost-plus sale. Their profit is derived from rent, profit margins on sales, or shared returns on a partnership, not interest on a loan.
- Ethical Foundation: Rooted in Islamic law Sharia, which emphasizes justice, equity, risk-sharing, and avoiding exploitation. All transactions are overseen by a Sharia Supervisory Board.
- Suitability for Muslims: Suitable. These institutions provide a permissible path to homeownership that aligns with Islamic financial ethics.
Key Differences in Products and Structure
| Feature | Texasunitedmortgage.com Conventional | Halal Mortgage Lenders Sharia-Compliant |
|---|---|---|
| Core Mechanism | Interest-based loan Riba | Asset-backed financing e.g., profit-sharing, rent, deferred sale |
| Ownership | Lender holds a lien. borrower owns the property from day one but indebted | Co-ownership Diminishing Musharakah or Lessor ownership Ijarah until full transfer |
| Profit Source | Predetermined interest on borrowed principal | Profit margin on sale, rental income, or share of equity appreciation |
| Risk Bearing | Primarily on borrower fixed payments regardless of borrower’s fortunes | Shared risk e.g., in Musharakah, both parties bear risks related to property |
| Penalties | Late fees, prepayment penalties common | No Riba-based late fees. administrative charges for delays. no prepayment penalties encouraged |
| Transparency | Clear rates/APRs, but total cost can be hidden in fees/points | Clear profit rates/rental income. full disclosure of Sharia-compliant contract terms |
| Regulation | Federal and state banking laws | Federal and state banking laws PLUS adherence to Sharia law, overseen by a Sharia Board |
| Refinancing | Interest-based refinance to lower rates or cash-out | Refinancing through new Sharia-compliant contracts e.g., new Murabaha or Musharakah on current equity |
Service and Accessibility
- Texasunitedmortgage.com: As a local Houston lender, they emphasize personalized local service, direct phone access, and quick response times. They cater to a broad conventional market. Their established presence suggests efficiency for conventional processes.
- Halal Mortgage Lenders: While typically not as numerous as conventional lenders, they are growing. They also aim for personalized service, often with staff who understand the unique needs and concerns of Muslim clients. The application process might be perceived as more detailed due to the specific contractual requirements of Islamic finance. Availability can vary by state.
The Critical Decision for Muslims
For a Muslim, the choice isn’t about which lender has slightly better rates or faster closing times.
It’s fundamentally about adhering to religious principles that forbid interest. 2men2vans.ie Review
While conventional lenders like Texasunitedmortgage.com are legitimate businesses within the secular financial system, their operational model makes them impermissible for a Muslim seeking home financing.
The alternatives, though perhaps requiring more research or having a slightly different process, offer a permissible path to achieving the dream of homeownership without compromising one’s faith.
It’s a commitment to divine guidance over worldly expediency.
Conclusion: The Ethical Imperative
In conclusion, while Texasunitedmortgage.com presents itself as a professional, customer-focused local mortgage lender with a strong emphasis on service and competitive conventional rates, its core business model fundamentally relies on interest-based lending riba. From an Islamic ethical perspective, engaging with such services is not permissible due to the clear prohibition of riba in the Quran and Sunnah.
The desire for homeownership is natural and encouraged in Islam, but it must be pursued through permissible means. Eyeseejag.com Review
For Muslims, this means actively seeking out Sharia-compliant financial institutions that offer alternatives like Diminishing Musharakah, Ijarah, or Murabaha.
These models provide a legitimate path to homeownership that aligns with Islamic principles of justice, equity, and risk-sharing, avoiding the exploitative nature of interest.
The journey to ethical homeownership may require more research and diligence in finding suitable Sharia-compliant providers.
However, the peace of mind and blessings derived from adhering to divine injunctions far outweigh the convenience of conventional, interest-based financing.
It is a testament to one’s commitment to faith and a step towards fostering a more just and equitable financial system, both personally and communally. Kalado.com Review
FAQ
What is Texasunitedmortgage.com?
Texasunitedmortgage.com is a mortgage lending company based in Houston, Texas, specializing in various home loan products and refinancing options for properties within Texas.
They offer conventional, FHA, VA, USDA, and Jumbo loans.
Is Texasunitedmortgage.com Sharia-compliant?
No, Texasunitedmortgage.com is not Sharia-compliant.
Their business model is based on conventional interest-bearing loans riba, which are strictly prohibited in Islam.
Why is interest riba forbidden in Islam?
Interest riba is forbidden in Islam because it is considered exploitative, unjust, and leads to the concentration of wealth without productive effort or shared risk. Expresschiropracticfrisco.com Review
Islamic finance promotes equity, risk-sharing, and asset-backed transactions.
What types of loans does Texasunitedmortgage.com offer?
Texasunitedmortgage.com offers a range of loan types including New Home Loans, Texas Mortgage Refinance, Texas Conventional Home Loans, Texas FHA Loans, Texas VA Loans, Texas USDA Loans, Down Payment Assistance Programs, and Texas Jumbo Loans.
How do I contact Texasunitedmortgage.com?
You can contact Texasunitedmortgage.com by calling their live loan officer at 888 505-1718, or by using the contact forms available on their website.
Does Texasunitedmortgage.com offer competitive rates?
Yes, Texasunitedmortgage.com displays competitive mortgage rates on its homepage, along with Annual Percentage Rates APRs and rate assumptions. However, these are conventional interest rates.
What are the alternatives to Texasunitedmortgage.com for a Muslim seeking home finance?
Muslims seeking home finance should look for Sharia-compliant institutions that offer products like Diminishing Musharakah, Ijarah leasing with a promise to buy, or Murabaha cost-plus sale. Examples include Guidance Residential, LARIBA, and Amira Home Finance.
Are there any ethical non-interest alternatives to conventional mortgages in the US?
Yes, there are several ethical and Sharia-compliant alternatives to conventional mortgages in the US.
These are offered by Islamic finance institutions that structure transactions to avoid interest, typically through co-ownership, leasing, or profit-sharing models.
How does Diminishing Musharakah work for home financing?
In Diminishing Musharakah, the financial institution and the homebuyer become co-owners of the property.
The homebuyer makes regular payments that gradually increase their share of ownership while paying rent for the portion still owned by the institution, until full ownership is transferred.
What is Murabaha in the context of home financing?
Murabaha is a cost-plus sale where the financial institution buys the property and then sells it to the client at a predetermined, agreed-upon profit margin.
The client then pays the total fixed price in installments, avoiding interest.
What is Ijarah for home financing?
Ijarah is a leasing arrangement where the financial institution buys the property and leases it to the client.
At the end of the lease term, or at agreed-upon intervals, the ownership transfers to the client. It functions as a rent-to-own model.
How can I find a Sharia-compliant mortgage lender?
You can find Sharia-compliant mortgage lenders by searching online for “Islamic home finance,” “halal mortgages,” or “Sharia-compliant mortgages” in the US.
Look for institutions that clearly state their adherence to Islamic principles and have a Sharia Supervisory Board.
What should I look for in a Sharia-compliant mortgage provider?
Key factors to look for include a reputable Sharia Supervisory Board, transparency in contracts and fees, clear explanations of their financing models Musharakah, Ijarah, Murabaha, and positive customer reviews.
Is Takaful an alternative to conventional home insurance?
Yes, Takaful Islamic insurance is an ethical alternative to conventional home insurance.
It operates on principles of mutual cooperation and shared responsibility, avoiding elements of interest and excessive uncertainty found in conventional insurance.
Does Texasunitedmortgage.com have good customer reviews?
Based on their website, Texasunitedmortgage.com prominently displays numerous positive Google reviews, indicating a high level of customer satisfaction with their services.
What are the typical credit score requirements for conventional loans from Texasunitedmortgage.com?
Texasunitedmortgage.com’s website states minimum credit scores as low as 620 for Conventional Loans, 560 for FHA Loans, and 700 for Jumbo Loans, though specific rates often require higher scores e.g., 740 or 780+ for advertised rates.
Do I need a Social Security Number SSN to get a rate quote from Texasunitedmortgage.com?
No, the website states: “Get your rate today, no SSN needed,” indicating you can get an initial quote without providing your Social Security Number.
What is a “point” in mortgage lending, as mentioned by Texasunitedmortgage.com?
A “point” in mortgage lending typically refers to 1% of the loan amount, paid upfront at closing.
It can be an origination fee or a discount point paid to reduce the interest rate.
Can I refinance with a Halal mortgage?
Yes, refinancing through a Halal mortgage is possible.
Islamic finance providers offer Sharia-compliant refinancing options that involve new contracts based on the property’s current value and your equity, avoiding interest.
What are the main advantages of choosing a Halal mortgage?
The main advantages of choosing a Halal mortgage are adherence to Islamic ethical principles avoiding Riba, promoting risk-sharing and equity, and ensuring that your homeownership journey is spiritually pure and blessed.
How long does it take to close a loan with Texasunitedmortgage.com?
The website states, “Low Rates, Fast Closings,” implying an efficient process.
However, specific closing times can vary significantly based on individual circumstances and market conditions.
Does Texasunitedmortgage.com offer down payment assistance programs?
Yes, Texasunitedmortgage.com explicitly mentions “Down Payment Assistance Programs” and details benefits such as grants that do not need to be repaid and assistance up to 5% for down payment or closing costs.
What is the minimum down payment for FHA loans with Texasunitedmortgage.com?
For FHA Loans, Texasunitedmortgage.com advertises a “3.5% Minimum Down Payment.”
Is it harder to qualify for a VA loan with Texasunitedmortgage.com?
Texasunitedmortgage.com states that VA Loans are “Easier To Qualify With Lower Income” and require “0% Down Payment,” suggesting they aim to make it accessible for eligible veterans.
What are the income limits for USDA loans with Texasunitedmortgage.com?
While Texasunitedmortgage.com mentions USDA loans, specific income limits would need to be checked directly with them or through official USDA guidelines, as these vary by county and household size.
Their blog post refers to “2025 USDA Texas Income Limits.”
Can I get a home loan for a vacation home or rental property through Texasunitedmortgage.com?
Yes, Texasunitedmortgage.com specifies they specialize in “Owner Occupied, Vacation Homes and Rental Property Purchases” for conventional loans and jumbo loans.
What kind of articles or resources does Texasunitedmortgage.com provide?
The website provides a “Learn More About Mortgages” section with articles on topics like “Cash Out Refinance Waiting Period in Texas,” “DSCR Loan Texas Pros and Cons for Real Estate Investors,” and “2025 USDA Texas Income Limits,” along with a “Home Buying Cost Worksheet” and a “Monthly Payment Calculator.”
Are the loan officers at Texasunitedmortgage.com licensed?
Yes, the website provides NMLS Nationwide Mortgage Licensing System numbers for its senior loan officers and managers, such as Reef Merhi NMLS 878539 and Scott Foster NMLS 1591277, which allows for verification of their licenses.
What is the “Best Price Guarantee” mentioned by Texasunitedmortgage.com?
Texasunitedmortgage.com states, “Try us out: we’ll guarantee the lowest rate, or you get paid!” This implies a price match or compensation if they cannot provide the lowest rate compared to competitors.
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