LEWISTON, Maine – Community Credit Union is reporting it has officially launched a “groundbreaking” Shariah-compliant homeownership program in partnership with Guidance Residential, LLC, a provider of halal home financing.
“This innovative program provides a long-awaited path to homeownership for Muslim-Americans seeking to avoid interest-based (riba-based) lending in accordance with their faith,” the credit union said.
It is estimated there are approximately 7,000 Muslim-Americans in Maine.
According to Community CU, the launch is the result of nearly ten years of collaboration with the Muslim-American community in Maine, including direct consultation with local Imams. In 2023, Community Credit Union said it worked with the Maine State Legislature to update laws allowing for the temporary holding of property to facilitate these transactions.
‘Didn’t Want to Sacrifice Values’
“Members of our community made it clear they aspired to homeownership—but didn’t want to sacrifice their religious values to achieve it said Jennifer Hogan, president/CEO of Community Credit Union, said in a statement. “We listened and worked to find a solution that honors their beliefs.”
Through the partnership, the $111.7-million Community Credit Union said it originates and processes mortgage applications, closes on the home, and then sells the mortgage and transfers servicing to Guidance Residential.
“This marks the first time Guidance Residential has permitted another financial institution to originate their program,” the credit union said.
It added that Guidance has developed the framework for a Third-Party Origination (TPO) model, which paves the way for other credit unions to offer the Guidance program in their regions via correspondent or broker relationships.
‘Serves as Blueprint’
“We are honored to partner with Community Credit Union to bring values-based home financing to Muslim-American families in Maine,” John Tuma, VP of Strategic Partnerships at Guidance Residential, said in a statement. “This collaboration reflects our shared commitment to expanding equitable access to homeownership while honoring the values and needs of underserved communities. We believe this model can serve as a blueprint for other mission-driven credit unions across the country.”
Soft Launch
Community Credit Union said it is currently in a soft launch phase, focusing outreach through mosques and community leaders. Full-scale marketing is expected later this year.
