We have a large refugee population in Buffalo, and we're discovering that some of the more settled residents in Muslim communities have started thinking about homeownership. We're running into a major issue, though--many won't take out traditional mortgages, because the interest is haraam. Instead, they're looking for fee-based loans, wherein the bank and the homeowner buy the home together with the homeowner paying a (significant) fee up-front, and gradually buying more of the home over time from the bank until they own it.
No banks in Buffalo will offer these loans. We've looked it up, and there appear to be some national companies who offer them (such as this one), but we don't know whether we can trust them or recommend them to homebuyers. Does anyone have experience with this issue?
Lastly, I would check out this article for possible leads too: