Across the United States, a growing number of Muslim-American families aspire to own homes but face a unique barrier: Islamic principles prohibit the payment or receipt of interest (also known as “riba”), making conventional mortgages off-limits. Without a trusted, compliant option, many delay homeownership or turn to alternative financing arrangements outside the credit union system.
For mission-driven credit unions, this gap represents an opportunity to extend financial inclusion, welcome new members, and grow mortgage volume while staying true to cooperative values.
Reserve your spot now for the Sept. 9 webinar to learn how your credit union can offer a Shariah-compliant home financing program with proven demand.
The changing demographics of Muslim communities
According to the U.S. Mosque Survey 2020, published by the Institute for Social Policy and Understanding (ISPU), the number of mosques in the United States grew by 31% from 2010 to 2020. The growth reflects steady population increases among Muslim-Americans, driven by both immigration and birth rates.
The report also describes a geographic shift: mosques are now increasingly found in suburban areas, while their presence in small towns and downtown cores has declined sharply. This means that more Muslim-American households now live and worship in the very communities served by many credit unions.
Perhaps most importantly for long-term member relationships, the Muslim-American population is younger than average. More than half (54%) of adult Muslims are aged 18-34—prime years for buying a first home, starting a family, and building financial relationships.
Why this matters for credit unions
Credit unions exist to meet member needs with fairness and inclusion. By partnering with Guidance Residential to offer a home financing option that aligns with Islamic principles, credit unions can:
- Serve new members who have been unable to use conventional mortgage products.
- Strengthen trust in communities where relationship-building is key to long-term engagement.
- Increase mortgage volume without adding staff, particularly through a streamlined broker model with Guidance.
- Launch quickly with minimal expense, leveraging Guidance’s infrastructure, training, and support.
- Advance financial inclusion goals, including CDFI and LICU missions where applicable.
Ready to explore this opportunity for your credit union?
A proven, compliant model
For more than 20 years, Guidance Residential has been the nation’s leading provider of Shariah-compliant home financing. Developed alongside world-renowned Islamic scholars, Freddie Mac, and 18 U.S. law firms, the company’s Declining Balance Co-ownership Program replaces the interest-bearing loan with a co-ownership structure while adhering to Agency, legal, and Shariah requirements:
- Guidance and the homebuyer purchase the property together, with the down payment determining the buyer’s initial ownership share
- The process follows standard Agency underwriting and closing guidelines
- Monthly payments have two parts: one gradually buys out Guidance’s ownership share; the other is a usage fee in exchange for exclusive use of the home
- The homeowner retains full ownership rights
While based on a co-ownership model rather than a loan, the structure closely resembles a conventional mortgage from the outside—making it easy for consumers to compare options. The program is offered directly by Guidance in 34 states and, for the first time, is now available nationwide through participating credit unions.
Proof in action: Community Credit Union in Maine
In early 2025, Community Credit Union in Lewiston, Maine became the first institution to originate and sell Shariah-compliant home financing contracts through Guidance Residential’s correspondent platform.
After years of conversations with local Muslim residents seeking a home financing option that aligned with their values, Community Credit Union took the initiative to champion the effort. Rather than building a program from the ground up—a long, costly, and complex process—they partnered with an institution that had already refined the model and delivered it successfully to tens of thousands of families nationwide.
By leading the charge locally and working with Guidance, Community Credit Union helped address key hurdles and shape the processes that brought this platform to market. This joint effort marked the debut of Guidance’s national Third-Party Origination (TPO) platform, making the program available to credit unions nationwide through either a correspondent or broker model, while adhering to Fannie Mae and Freddie Mac guidelines.
Learn more—Sept. 9 webinar
On Tuesday, September 9, 2025, Guidance Residential will host a live webinar for credit union leaders:
You’ll learn:
- The size and scope of the Muslim-American homebuyer market.
- The structure and benefits of our Shariah-compliant model.
- How the program works operationally for both correspondent and broker—plus the training, marketing resources, and ongoing support to help your team succeed.
- How a credit union in Maine successfully launched this program.
- Practical next steps to implement the program in a matter of months—without major upfront investment.
Reserve your spot today and join other credit union leaders exploring how to serve this growing market.
The bottom line
Muslim-American communities are growing, moving into credit union service areas, and entering prime homebuying years. They are looking for financing options they can trust. Credit unions that meet this need can earn their mortgage business and build relationships that last across the member’s financial journey.
Register today to take the first step toward serving more members, growing mortgage volume, and making a lasting community impact.
About Guidance Residential
Guidance Residential is the #1 provider of U.S. Islamic home financing, having provided more than $10 billion in financing to more than 40,000 families since 2002.
Its unique Declining Balance Co-ownership Program was created under the guidance of world-renowned Islamic scholars and 18 U.S. law firms to ensure it meets strict adherence to Islamic legal jurisprudence and conforms to U.S. legal and regulatory requirements.
Guidance Residential's program, which is backed by Freddie Mac and Fannie Mae, is based on a co-ownership model rather than a lender-borrower relationship. Unlike traditional home financing, homebuyers enter an equitable partnership contract and enjoy the benefits of home ownership without compromising values-based principles.
For the first time, the program is now available to credit unions nationwide through flexible Correspondent and Broker models.
Source: Institute for Social Policy and Understanding (ISPU), U.S. Mosque Survey 2020. Full report: ispu.org/mosque-survey
