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928gt
25 Posts |
 Posted - 11/05/2009 : 09:18:33 AM
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| I have a client of Islamic faith, who is looking for a loan to purchase a coin laundry in SF,CA, He ownes 3 right now and will use as additional collateral. Purchase price is about 140K, he has 35k down payment. No realestate is involved. Buyer has excellent credit and assests. please feel free to contact me at 415-439-4914 |
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mcmoney
743 Posts |
Posted - 11/05/2009 : 09:42:38 AM
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| This would likely be a SBA 7(a). |
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KHufford
10407 Posts |
Posted - 11/05/2009 : 09:54:59 AM
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Are you seriously classifying loans based on religious beliefs, thats highly illegal - I recommend you change your posting.
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928gt
25 Posts |
Posted - 11/05/2009 : 10:03:32 AM
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| Kyle I have never ran into a client with these special request either, but he say you just can't charge interest, but can include it into the loan. I have done alot of loans in 20years but never of heard this. |
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KHufford
10407 Posts |
Posted - 11/05/2009 : 10:16:29 AM
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quote:
Originally posted by 928gt
Kyle I have never ran into a client with these special request either, but he say you just can't charge interest, but can include it into the loan. I have done alot of loans in 20years but never of heard this.
His loan request has nothing to do with being "of Islamic Faith"....why would you even put that in your post. Are you going to post scenarios about "gay guy wants FHA loan"? Come on man...
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dtabar
1149 Posts |
Posted - 11/05/2009 : 10:23:05 AM
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| Although I don't agree with the title. His loan request has everything to do with his faith. |
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jon.bodan@theper
118 Posts |
Posted - 11/05/2009 : 10:37:56 AM
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| No, he's right. There's an Islamic sect that has a hangup about that. There used to be some lender out there that did the deal differently to adhere to it. Strange but true.... |
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eh6794
1036 Posts |
Posted - 11/05/2009 : 10:58:18 AM
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quote:
Originally posted by 928gt
Kyle I have never ran into a client with these special request either, but he say you just can't charge interest, but can include it into the loan. I have done alot of loans in 20years but never of heard this.
thats an islamic thing that they cant charge interest. i think the titles fine because its what the buyer requested, but you may want to change the title to make Kyle happy.
And FYI, the guy wants a free loan because according to my muslim friends, a muslim can not charge another muslim interest or a fee to do a loan... or, nobody should have to be charged to borrow money |
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cspatmon
5364 Posts |
Posted - 11/05/2009 : 11:04:35 AM
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OP are you a fool? I'm certain that you're familiar with the laws that govern lending. If not than I would categorize you as what's wrong with our industry! |
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liverichly
6079 Posts |
Posted - 11/05/2009 : 11:06:00 AM
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They are commonly called as "Sharia Mortgages" or "Sharia Law Mortgages"
http://www.usatoday.com/money/industries/banking/2008-03-26-islamic-finance-sharia_N.htm
http://en.wikipedia.org/wiki/Islamic_banking
http://www.lariba.com/knowledge-center/articles/freddie-mac-usatoday.htm
Now that knowledge has been shared, you can stop speculating and actually converse about the program. |
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eh6794
1036 Posts |
Posted - 11/05/2009 : 11:07:53 AM
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quote:
Originally posted by cspatmon
OP are you a fool? I'm certain that you're familiar with the laws that govern lending. If not than I would categorize you as what's wrong with our industry!
i kind of dislike it when people like you jump on the bandwagon and criticize guys like this when you have no idea what youre talking about... google and research.
are you being racist yourself? why dont you apologize |
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calendinggroup
185 Posts |
Posted - 11/05/2009 : 11:08:52 AM
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No Ticket....No Laundry....Good Joke of The Day.
Is business Slow? |
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MastaOfDaMoney
99 Posts |
Posted - 11/05/2009 : 11:12:42 AM
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LOL at Khufford and all the other 'politically correct' fellas who jumped all over you 928gt.
I know the loan you are looking for, but I don't know anyone offering them anymore.
What they do, to avoid 'charging interest', is they calculate what the interest would be IF they charged it, and then just lend the guy the total amount (but only GIVE HIM the amount BEFORE the interest calculation) and he pays it back over whatever term was agreed on. 0% interest rate.
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KHufford
10407 Posts |
Posted - 11/05/2009 : 11:14:45 AM
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Ok, well after further review it appears I wasnt clear on the loan request. I didn't realize he was looking for some specific loan related to Sharia laws, in the US no less. The OP didnt even mention anything specifically relating to a special loan type with no interest however...I guess we are all to assume we know what he means. My bad.
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cspatmon
5364 Posts |
Posted - 11/05/2009 : 11:14:51 AM
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| Please, give us updated information that will work in our current environment. This antiqued info. is the very reason we're being re-tested nationally. |
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eh6794
1036 Posts |
Posted - 11/05/2009 : 11:18:32 AM
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quote:
Originally posted by cspatmon
Please, give us updated information that will work in our current environment. This antiqued info. is the very reason we're being re-tested nationally.
As of at least 2008 Devon Bank did these loans, youre not able to accept youre wrong |
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eh6794
1036 Posts |
Posted - 11/05/2009 : 11:21:46 AM
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quote:
Originally posted by cspatmon
Please, give us updated information that will work in our current environment. This antiqued info. is the very reason we're being re-tested nationally.
I imagine Devon bank is still in business
http://www.devonbank.com/cf_faithbasedfinancing.html
Faith-Based Financing
The caring community bank envisioned by our founders is embodied by both our business and philanthropic commitments. Whether an individual needs a business loan, a home mortgage or car loan, or an organization like a religious or a social service group wants to finance a new facility, we go that extra mile to help everyone achieve their financial objectives.
Devon Bank, one of the top providers of faith-based residential and commercial loans in the United States, offers financing options in 31states. Some of our faith-based initiatives were created to respond to community demands in the ethnically diverse neighborhoods in which we are located. Click here to learn more
Our products consist of real estate financing covering real estate purchase, refinance, construction, and lines of credit, as well as business and trade goods financing. Additionally, because we are locally owned and managed, Devon Bank is, in some cases, able to individually tailor products to accommodate specific customer needs—flexibility that is otherwise largely unavailable in the U.S. finance marketplace. |
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mcmoney
743 Posts |
Posted - 11/05/2009 : 11:24:49 AM
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I am aware that Islamic law prohibits charging interest.
Here's what is COMPLETELY ABSURD: To "avoid 'charging interest', they calculate what the interest would be IF they charged it, and then just lend the guy the total amount (but only GIVE HIM the amount BEFORE the interest calculation) and he pays it back over whatever term was agreed on. 0% interest rate." I'm not making fun of the poster that wrote this, as this does happen. It is still an absurd way of "not paying interest".
Call it what you want, if you borrow $100 and pay back more than $100, you are charging interest. If it looks like a duck, quacks like a duck, walks like a duck....
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liverichly
6079 Posts |
Posted - 11/05/2009 : 11:26:26 AM
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quote:
Originally posted by cspatmon
Please, give us updated information that will work in our current environment. This antiqued info. is the very reason we're being re-tested nationally.
How about you do the work and research yourself? Here's a website that will help, it actually contains information on any subject you can think of, but it only works if you know how to use it.
http://lmgtfy.com/ |
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eh6794
1036 Posts |
Posted - 11/05/2009 : 11:35:04 AM
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quote:
Originally posted by cspatmon
Please, give us updated information that will work in our current environment. This antiqued info. is the very reason we're being re-tested nationally.
heres a better link
http://wiki.answers.com/Q/Why_do_people_stereotype_and_judge_others |
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KHufford
10407 Posts |
Posted - 11/05/2009 : 11:45:49 AM
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quote:
Originally posted by eh6794
quote:
Originally posted by cspatmon
Please, give us updated information that will work in our current environment. This antiqued info. is the very reason we're being re-tested nationally.
I imagine Devon bank is still in business
http://www.devonbank.com/cf_faithbasedfinancing.html
Faith-Based Financing
The caring community bank envisioned by our founders is embodied by both our business and philanthropic commitments. Whether an individual needs a business loan, a home mortgage or car loan, or an organization like a religious or a social service group wants to finance a new facility, we go that extra mile to help everyone achieve their financial objectives.
Devon Bank, one of the top providers of faith-based residential and commercial loans in the United States, offers financing options in 31states. Some of our faith-based initiatives were created to respond to community demands in the ethnically diverse neighborhoods in which we are located. Click here to learn more
Our products consist of real estate financing covering real estate purchase, refinance, construction, and lines of credit, as well as business and trade goods financing. Additionally, because we are locally owned and managed, Devon Bank is, in some cases, able to individually tailor products to accommodate specific customer needs—flexibility that is otherwise largely unavailable in the U.S. finance marketplace.
Wouldn't this be illegal and against fair housing discrimination laws in the US??
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cspatmon
5364 Posts |
Posted - 11/05/2009 : 11:47:24 AM
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| Information by definition is great but the OP probably will benefit best finding a lending source in this environment. How many can you direct him lenders that is....and know matter how you cut it "I have a client of Islamic faith" is a turn off..... |
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KHufford
10407 Posts |
Posted - 11/05/2009 : 11:47:36 AM
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quote:
Originally posted by mcmoney
I am aware that Islamic law prohibits charging interest.
Here's what is COMPLETELY ABSURD: To "avoid 'charging interest', they calculate what the interest would be IF they charged it, and then just lend the guy the total amount (but only GIVE HIM the amount BEFORE the interest calculation) and he pays it back over whatever term was agreed on. 0% interest rate." I'm not making fun of the poster that wrote this, as this does happen. It is still an absurd way of "not paying interest".
Call it what you want, if you borrow $100 and pay back more than $100, you are charging interest. If it looks like a duck, quacks like a duck, walks like a duck....
That is completely ridiculous...but what do you expect from the religious types....par for the course if you ask me.
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eh6794
1036 Posts |
Posted - 11/05/2009 : 11:49:58 AM
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quote:
Originally posted by KHufford
quote:
Originally posted by eh6794
quote:
Originally posted by cspatmon
Please, give us updated information that will work in our current environment. This antiqued info. is the very reason we're being re-tested nationally.
I imagine Devon bank is still in business
http://www.devonbank.com/cf_faithbasedfinancing.html
Faith-Based Financing
The caring community bank envisioned by our founders is embodied by both our business and philanthropic commitments. Whether an individual needs a business loan, a home mortgage or car loan, or an organization like a religious or a social service group wants to finance a new facility, we go that extra mile to help everyone achieve their financial objectives.
Devon Bank, one of the top providers of faith-based residential and commercial loans in the United States, offers financing options in 31states. Some of our faith-based initiatives were created to respond to community demands in the ethnically diverse neighborhoods in which we are located. Click here to learn more
Our products consist of real estate financing covering real estate purchase, refinance, construction, and lines of credit, as well as business and trade goods financing. Additionally, because we are locally owned and managed, Devon Bank is, in some cases, able to individually tailor products to accommodate specific customer needs—flexibility that is otherwise largely unavailable in the U.S. finance marketplace.
Wouldn't this be illegal and against fair housing discrimination laws in the US??
I would think (i said THINK) it would be OK if an islam loan was given to a christian. it may be nicknamed Islam loan, the website doesnt say Islam loan |
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eh6794
1036 Posts |
Posted - 11/05/2009 : 11:52:39 AM
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quote:
Originally posted by cspatmon
Information by definition is great but the OP probably will benefit best finding a lending source in this environment. How many can you direct him lenders that is....and know matter how you cut it "I have a client of Islamic faith" is a turn off.....
huh? i read this four times... i dont get it |
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liverichly
6079 Posts |
Posted - 11/05/2009 : 11:54:30 AM
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| Cecelia Stitt-Patmon, you have a lot of solid posts on this forum... but your responses in this thread are actually turning me off. |
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nw@8brook
538 Posts |
Posted - 11/05/2009 : 12:56:26 PM
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| try www.guidanceresidential.com I know exactly what the op was asking about when I saw the title. If done their way, you can figure out the interest rate is quite high, but it conform to their religious beliefs. |
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mcmoney
743 Posts |
Posted - 11/05/2009 : 1:06:11 PM
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quote:
Originally posted by nw@8brook
try www.guidanceresidential.com I know exactly what the op was asking about when I saw the title. If done their way, you can figure out the interest rate is quite high, but it conform to their religious beliefs.
By raising the amount financed to an amount higher than what is received by the borrower, and then calling it zero interest?
Sorry, still doesn't make it zero interst.... |
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inhouseLO
108 Posts |
Posted - 11/05/2009 : 1:08:57 PM
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I've never come across the need for one, but yes, these are a legit type of loan.
And as has been pointed out, some folks jumped the gun pretty quick calling the OP racist, etc, without all the facts, saying he doesn't know the job. Maybe everyone here should remember that NO ONE here knows everything about mortgages!
http://www.thetruthaboutmortgage.com/islamic-mortgage/
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mcmoney
743 Posts |
Posted - 11/05/2009 : 1:13:32 PM
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quote:
Originally posted by inhouseLO
I've never come across the need for one, but yes, these are a legit type of loan.
And as has been pointed out, some folks jumped the gun pretty quick calling the OP racist, etc, without all the facts, saying he doesn't know the job. Maybe everyone here should remember that NO ONE here knows everything about mortgages!
http://www.thetruthaboutmortgage.com/islamic-mortgage/
My personal favorite from this site:
"Because Islamic mortgages tend to be more straightforward than some of the exotic offerings seen in traditional Alt-A and subprime lending, the borrower default rate is probably a lot lower. The lack of trickery and bait-and-switch has also encouraged more Muslims to consider an Islamic mortgage, as it further justifies the choice."
So..... They structure the deal to make you repay more than the original purchase price under the guise of zero interest. Well thank the diety of your choice for the lack of trickery!!!!!! And the default rate is PROBABLY a lot lower ?!?!?!
Wow. Just wow.
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cspatmon
5364 Posts |
Posted - 11/05/2009 : 1:14:39 PM
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| Shane Milne, this was not my intent. It was meant only to bring out how offensive it may be for someone stating the clients religious faith and lending in the same sentence. OP could have worded his post regarding the program and not the religion of his client. Such as: Faith base programs would have been kinder and gentler. Believe it or not tone and the language you use will dictate how long you'll survive in this lending climate. |
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velecico
5315 Posts |
Posted - 11/05/2009 : 1:33:52 PM
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quote:
Originally posted by liverichly
Cecelia Stitt-Patmon, you have a lot of solid posts on this forum... but your responses in this thread are actually turning me off.
Ditto , I am getting Ravicth vibes |
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cspatmon
5364 Posts |
Posted - 11/05/2009 : 2:22:44 PM
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| Noticed Ravtch no longer post here....like so many others I wonder why? Not..... |
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CoralSnake
12474 Posts |
Posted - 11/05/2009 : 2:48:11 PM
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quote:
Originally posted by 928gt
Kyle I have never ran into a client with these special request either, but he say you just can't charge interest, but can include it into the loan. I have done alot of loans in 20years but never of heard this.
I think its only that Muslims cannot charge interest to another Muslim- but a bank can.
And there are ways that the Muslims get around it as well when lending money. |
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Cooperga
28 Posts |
Posted - 11/05/2009 : 2:53:19 PM
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From my understanding there are several Banks in the UK that offer this type of loan. It became pretty popular about 2 years ago in London. HSBC was one of the first in the UK to have it, maybe your client can check on HSBC's website.
Good luck. |
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jacksdaddy
158 Posts |
Posted - 11/05/2009 : 3:55:07 PM
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| Hufford, why dont you take a few breaths before you post in the future? You are always up someones a**. You dont know everything as your post in this thread shows. You tried to get on my a** about the GMAC correspondent issue and had to eat crow there. |
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eh6794
1036 Posts |
Posted - 11/05/2009 : 6:01:38 PM
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| ? |
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velecico
5315 Posts |
Posted - 11/05/2009 : 6:27:21 PM
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quote:
Originally posted by cspatmon
Noticed Ravtch no longer post here....like so many others I wonder why? Not.....
perhaps because she never had a post that added anything of value |
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Coffee Is 4 Clos
1739 Posts |
Posted - 11/05/2009 : 6:50:02 PM
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| KHufford is totally incorrect and obviously he does not work near a major city where ethnic arab and islamic groups reside. In Chicago we have several arab neighborhoods and banks that tailor to their needs... and the Islamic Loan is very real. Since the paying of interest is against the Islamic religion, a mortgage as we know it will not work. Freddie Mac used to have something years ago... but it dried up with everything else. Many local banks in Chicago offer a product where the bank purchases the property at the contract price and then sells it to the borrower at almost double the amount (replacing the interest) and then the buyer pays the bank directly based on an 30 year payment schedule... yes, it sounds stupid since really the interest is masked with the price the bank is selling it to the customer... but it acomplishes the goal. Let me know if you are interested in a bank or two - likely they will only secure loans in Illinois but you can give it a shot if needed. |
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johnnyboy38109
4363 Posts |
Posted - 11/06/2009 : 06:38:33 AM
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You folks need to calm down.
The poster needs to re-word (or re-title) his post, but the caveat dealing with the borrower's Islamic faith is both true and nearly impossible to deal with.
Candidly, and call me racist if you want, but I'd walk away from this deal. The customer will never understand the terms of the deal and will insist only on his method calculating cost.
Even if the customer momentarily agrees to go along with the financing stating clearly an interest rate, even despite his religious convictions, just to get his loan closed and his CL done, eventually he will change his mind, claim the terms violate his religious convictions, that the LO nor anyone else made terms clear or misled him, etc.
Just walk away, stating "we dont grant credit on the terms requested".
Mercury Finance in Louisiana tried to disguise finance charges the same way, by just showing the total of payments on the loan @ 30% to be the purchase price of the car.
Got caught, got fined, went of business. |
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homebroker@sbcgl
7371 Posts |
Posted - 11/06/2009 : 07:33:08 AM
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They usually have bad term like a 2-3 year FULL payoff. Some Christian organizations have some loans that are similar.
quote:
Originally posted by liverichly
They are commonly called as "Sharia Mortgages" or "Sharia Law Mortgages"
http://www.usatoday.com/money/industries/banking/2008-03-26-islamic-finance-sharia_N.htm
http://en.wikipedia.org/wiki/Islamic_banking
http://www.lariba.com/knowledge-center/articles/freddie-mac-usatoday.htm
Now that knowledge has been shared, you can stop speculating and actually converse about the program.
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nw@8brook
538 Posts |
Posted - 11/06/2009 : 07:53:14 AM
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different strokes for different folks. as long as they're happy paying close to 8% on a 30 yr fixed program, who am I to judge? I am curious though if the lender sell the loan to secondary market or it's all portfolio
quote:
Originally posted by mcmoney
quote:
Originally posted by nw@8brook
try www.guidanceresidential.com I know exactly what the op was asking about when I saw the title. If done their way, you can figure out the interest rate is quite high, but it conform to their religious beliefs.
By raising the amount financed to an amount higher than what is received by the borrower, and then calling it zero interest?
Sorry, still doesn't make it zero interst....
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Pat
932 Posts |
Posted - 11/06/2009 : 10:39:04 AM
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It's unfortunate to read the amount of ignorance and/or intolerence in some of these posts in regards to the Sharia laws.
Whether you can't pay interest on a loan, don't do work on the Sabbath or eat fish on Fridays during Lent... it's all the same. Respect people's convictions.
For those of you that say "it's crazy", I can reference plenty of Catholics that eat something with fish by-products on Fridays during Lent and Jewish people that figure out a way to cook food, etc. on the Sabbath. Many people do the best that they can to apply their historical beliefs in the modern world. |
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