The AMJA fatwa on halal home financing

The Assembly of Muslim Jurists of America (AMJA) is one of the main bodies of scholars giving rulings for Muslims in the US. For years, its guidance on buying a home has been the first thing many families read before deciding what to do.

What AMJA's guidance has said about home financing

Since 2014, AMJA has published guidance on the home financing options available in the US. Many of those options were accepted only with conditions or caveats, and some only in cases of need. That's why so many families have felt unsure even after choosing an Islamic option: the ruling they relied on came with an asterisk.

What "permissible in need" means

Some rulings say a product is permissible only when there's a genuine need and no better alternative. It's a concession, not an endorsement. If a better option exists, the concession may no longer apply.

A ruling of "permissible" without that condition means the structure itself is considered sound, whether or not you're in need.

What AMJA has looked for in co-ownership models

AMJA has reviewed several co-ownership (musharakah) models offered in the US. Where a model was sound in general but didn't share maintenance, property tax and insurance by each side's share of ownership, AMJA allowed it only in the face of need. Where the contracts were found consistent with Islamic law, as with Ameen Housing, AMJA ruled them permissible.

How AMJA ruled on Neeyah

In 2026, AMJA's committee reviewed Neeyah's diminishing partnership, ending in full ownership, and found it acceptable under Islamic law. It ruled buying a home with Neeyah permissible, not just "permissible in need", and urged investors who want to provide an Islamic alternative to contribute and invest. You can read the full fatwa on AMJA's site.

Why the structure passes

The ruling comes down to the same principle behind all halal finance: to earn a reward, you share in the risk. With Neeyah:

  • you and Neeyah buy the home together, and both own it
  • you pay rent only on the part Neeyah owns, based on the market
  • you buy more of the home over time at its market value
  • property tax, insurance and major repairs are shared by ownership
  • if the home loses value, Neeyah's share loses value too
  • there are no late fees and no foreclosure
  • the home is never sold to Fannie Mae or Freddie Mac

If you want the reasoning behind that principle, start with halal finance, back to basics, or watch Shaykh Umer Khan go through AMJA's findings in our session How halal are Islamic mortgages?

Our ongoing review

A fatwa looks at a model at one point in time. Our Shariah advisor, Shaykh Umer Khan, first confirmed the model in a compliance letter in 2024, and every year he reviews our contracts and operations again to make sure what we do in practice still matches what was approved.