Verified Internal Sharia Board
IjaraCDC — Ijara Community Development Corp.
4.1
(156 reviews)Michigan-based nonprofit specializing exclusively in the Ijara (lease-to-own) home financing model. Operates as a Sharia compliance structuring organization — not a lender. Covers all 50 US states and Canadian provinces.
Reviewed by Fair Meridian: January 2026
Profit Rate
7% – 8.5%
Min Down
20%
States Served
All 50 States
Overall Rating
4.1/5
About IjaraCDC — Ijara Community Development Corp.
IjaraCDC (Ijara Community Development Corporation) is a Michigan-based nonprofit organization that has provided Sharia-compliant Ijara home financing in the United States since 2005. Unlike most Islamic finance providers, IjaraCDC is not a lender or broker — it is a Sharia compliance structuring and education organization that designs the Islamic financing architecture and then partners with licensed lenders to execute the transaction.
IjaraCDC specializes exclusively in the Ijara wa Iqtina (lease-and-ownership) model. In this structure, IjaraCDC establishes a trust that jointly holds the property with the buyer. The trust leases the property to the buyer, who pays monthly rent. A portion of each payment builds toward full ownership, and the buyer gradually acquires 100% ownership over the financing term — without ever paying interest.
IjaraCDC covers all 50 US states and Canadian provinces, making it one of the widest-coverage Islamic finance organizations in North America. It also offers Sharia-compliant commercial property financing for mosques, Islamic schools, community centers, and businesses — a product type that few other US providers offer.
Important Note: The Assembly of Muslim Jurists of America (AMJA) has expressed concerns about certain aspects of IjaraCDC's financing model, specifically the practice of having homebuyers obtain standard bank loans that are then restructured. Prospective buyers should consult with a qualified Islamic scholar and review IjaraCDC's current contract structure before proceeding.
Founded2005 (21 years in business)
Sharia CertificationInternal Sharia Board
Certified Since2005
HeadquartersLansing, MI
Fair Meridian Analysis
IjaraCDC fills a specific and underserved gap in the US Islamic finance market: Ijara-only home financing with commercial and community institution financing capability.
The nonprofit difference: Unlike Guidance Residential, UIF, or Devon Bank — all for-profit entities — IjaraCDC is a nonprofit. Its mission is explicitly community development, not profit maximization. This shapes its fee structure, its focus on serving lower-income Muslim homebuyers, and its emphasis on education through the Ijara Sharia Homeowner Learning Institute (ISHLI).
The commercial property advantage: IjaraCDC is one of the few US Islamic finance organizations that actively finances mosques, Islamic schools, community centers, and Muslim-owned businesses. This makes it uniquely valuable for community institutions that cannot get conventional financing without paying interest.
The educational mission: Through ISHLI, IjaraCDC provides financial counseling, Sharia mortgage education, and homebuyer workshops. This distinguishes it from purely commercial providers and gives it deep roots in Muslim community organizations across the country.
Scholar concerns: Buyers should be aware that AMJA has raised concerns about IjaraCDC's historical financing structure. We recommend reviewing IjaraCDC's current contract documentation with a qualified scholar before committing. IjaraCDC has responded to these concerns and continues to operate.
Who is IjaraCDC best for? IjaraCDC is best for buyers who specifically want Ijara (not Musharakah) financing, community institutions financing mosques or Islamic schools, and buyers who want extensive educational support alongside their financing.
Analysis updated: January 2026
Products & Financing Structures
mortgagecommercial
Ijara wa Iqtina Residential Home Financing
Trust-based Ijara lease-to-own financing. IjaraCDC establishes a trust that holds the property. You lease from the trust with a portion of each payment building equity until you own 100%. No interest charged — ever. Available in all 50 states.
Profit Rate: 7%–8.5%Min Down: 20%Terms: 10, 15, 20, 30 years
Sharia-Compliant Commercial Property Financing
Islamic financing for mosques, Islamic schools, community centers, and Muslim-owned businesses. One of the only US organizations offering dedicated Sharia-compliant commercial real estate financing for community institutions.
Profit Rate: 7.25%–9%Min Down: 25%Terms: 10, 15, 20 years
Sharia Compliance: All products are structured to avoid Riba (interest), Gharar (excessive uncertainty), and Maysir (speculation) in accordance with Islamic jurisprudence.
Serves All 50 US States
IjaraCDC — Ijara Community Development Corp. is licensed in all 50 US states. See local provider options and state-specific regulations for the most active Islamic finance markets:
Independent Rating Breakdown
Overall Score
4.1
Sharia Compliance
4.0
Transparency
4.2
Customer Service
4.3
Rate Competitiveness
4.0
👍 Recommended
IjaraCDC — Ijara Community Development Corp. scores highly on Sharia compliance verification and product transparency. Independently verified by the Fair Meridian team.
Ratings based on Fair Meridian's independent review process. Not influenced by advertising or provider payments.
Expert Verdict
IjaraCDC is our recommendation for buyers specifically seeking Ijara financing and for community institutions financing mosques, schools, or Islamic centers. Its nonprofit mission and educational focus are genuine differentiators. We recommend verifying current contract compliance with a qualified scholar before proceeding, given AMJA's historical concerns.
Verdict issued: January 2026
Sharia Advisory Board
Sheikh Yusuf Talal DeLorenzo
Sharia Adviser
Leading US Islamic finance scholar; former AAOIFI board member; author of Compendium of Legal Opinions on Islamic Banking
Internal Sharia Review Committee
Ongoing Sharia Oversight
Multi-scholar committee reviewing all IjaraCDC contract structures and financing models
Frequently Asked Questions — IjaraCDC — Ijara Community Development Corp.
IjaraCDC (Ijara Community Development Corporation) is a Michigan-based nonprofit — not a lender or broker. It specializes exclusively in designing Sharia-compliant Ijara (lease-to-own) trust structures and then partners with licensed lenders to execute the financing. Unlike Guidance Residential or UIF, IjaraCDC's mission is explicitly community development. It also offers commercial financing for mosques, Islamic schools, and community centers.
IjaraCDC establishes a legal trust that jointly holds an ownership interest in the property. The trust leases the property to the buyer for a monthly payment. A portion of each monthly payment builds toward the buyer's ownership of the property, while another portion is rental payment on the trust's ownership share. Over time, the buyer acquires 100% ownership. No interest is charged — profit comes from the rental relationship, not money-lending.
The Assembly of Muslim Jurists of America (AMJA) has expressed historical concerns about certain IjaraCDC contract structures, particularly around the use of conventional bank loans that are then restructured. IjaraCDC has responded to these concerns and continues to operate. Fair Meridian recommends that prospective buyers review IjaraCDC's current contract structure with a qualified Islamic scholar before proceeding, and verify the model against current AMJA guidance.
Yes. IjaraCDC is one of the few US Islamic finance organizations that offers Sharia-compliant commercial property financing specifically for mosques, Islamic schools, community centers, and Muslim-owned businesses. Commercial financing minimums start at $200,000. This is a significant differentiator — most US Islamic mortgage providers focus exclusively on residential properties.
IjaraCDC covers all 50 US states as well as Canadian provinces. As a structuring and education organization (not a licensed lender), it partners with local licensed lenders in each jurisdiction to execute the actual financing transaction. Contact IjaraCDC directly to identify the licensed lending partner in your state.
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