Dinning Out VS. Cooking at Home
Dinning Out VS. Cooking at Home

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What does UIF stand for?
o UIF stands for University Islamic Financial.

Is UIF reviewed and certified by AMJA in the US?
o Yes, UIF previous Murabaha program was reviewed by AMJA (Assembly of Muslim Jurists of America) in the US. Current UIF Musharaka (partnership) program has not been reviewed by AMJA. UIF adheres to AAOIFI standards as those are considered the strongest in the Islamic finance industry.

Can I get a home loan from UIF/Devon using bank statements instead of tax returns and W2?
o No, UIF does not offer a program for bank statements only. Need to reach out to UIF or Devon to qualify.

Do you work with Fannie Mae and Freddie Mac, and if so, how is this halal?
o UIF and Devon do work with Fannie Mae and Freddie Mac, but they have a Shariah-compliant structure in place to ensure that the transactions are halal. Freddie and Fannie are investors and buy Islamic contracts. They are not banks and do not lend out money.

Do we get any tax benefits using UIF & Devon mortgage programs?
o Yes, borrowers can benefit from tax deductions on their mortgage interest payments similar to conventional mortgage tax breaks.

After the initial contract, is the loan sold to conventional banks?
o NO, UIF does not sell the contract to conventional banks, but does sell to investors like Freddie Mac and Fannie Mae and they maintain a Shariah-compliant structure to ensure the transaction is halal. Our scholars have approved of this relationship as it does not alter the Islamic contract.

How is the early payoff calculated?
o Is the incorporated profit reduced for early payment? The early payoff calculation is based on the outstanding principal balance, and the incorporated profit is reduced for early payment.

I have assets but cannot get financing without showing income. What can I do?
o UIF does not offer a bank statement only program. Income verification via tax returns and/or W2s is required.

What investment options are available?
o UIF offers halal savings accounts and time deposit accounts (similar to a bank cd). You can also purchase investment properties with UIF 1-4 units. As well as commercial real estate.

Are Shariah-compliant loans just wrappers over traditional interest-based financing from Freddie/Fannie?
o No, UIF's Shariah-compliant contracts are not just wrappers over traditional interest-based financing. They have a unique structure that ensures compliance with Shariah principles.

Does the contract get revised to include Freddie Mac if they become a shareholder?
o No, the contract does not get revised to include Freddie Mac as an owner because UIF/Devon sells only their share to the outside companies. The buyer contract with UIF/Devon never changes.

How does making a large payment towards the principal affect the monthly payment and overall profit?
o Making a large payment towards the payoff balance reduces the outstanding balance, which will reduce the overall profit owed.

Is the profit or rent the same each month for 30 years, or does it decrease over time like interest?
o The profit or rent decreases over time as the outstanding principal balance decreases.

How is the profit calculated? Is it based on the current federal interest market rate?
o The profit is calculated based on the outstanding principal balance and the agreed-upon profit rate, which is not directly tied to the federal interest market rate.

What is the foreclosure process in case of default?
o The foreclosure process is similar to conventional financing, but UIF/Devon works with borrowers to try to avoid foreclosure.

Why do profit rates and interest rates move together?
o Profit rates and interest rates tend to move together due to market forces and the competitive nature of the financial industry.

If extra payments are made monthly, does it reduce the principal and profit percentage, allowing for early payoff?
o By making extra payments you can reduce the principal but not the profit percentage. To change the profit rate you would need to refinance.

Is there an equivalent of an amortization schedule available?
o Yes, UIF/Devon provides an amortization schedule equivalent for their Shariah-compliant contracts.

Do payments depend on credit score and current interest rates?
o Yes, payments depend on credit score and down payment.

How is UIF free from the Riba lending system if Freddie Mac gets involved later?
o UIF's Shariah-compliant structure ensures that the transaction remains halal, even if Freddie Mac gets involved later. Freddie Mac is an investor that purchases UIf’s share in the home allowing UIF to pull out its money to help other Muslim home owners. The contract remains the same as when it was originally signed and is not altered.

How does profit-sharing work in case of bankruptcy and home sale at a loss?
o If the customer stops making monthly payments and violates the terms of the contract, UIF has the right to foreclose on the property and sell it in the open market, which could result in a loss.

What is the difference between a bank and UIF if UIF takes all the sold amount in case of bankruptcy and home sale at a loss?
o If the home is sold at a loss then both sides could share in the loss depending upon the price the home is sold.

What is the difference between Murabaha and Musharaka financing?
o Murabaha financing is a cost-plus-profit agreement, where the financier purchases an asset and sells it to the borrower at a marked-up price. Musharaka financing is a partnership agreement, where the financier and the borrower form a partnership to purchase an asset together.

Does Islam permit conventional mortgages in US?
o No, Islam does not permit conventional mortgages in the US because they involve the charging of interest, which is prohibited in Islam.

Aren't Islamic financiers simply changing labels, replacing "interest" with "rent"? What's the difference?
o No, Islamic financiers are not simply changing labels. In Islamic financing, the transaction is structured in a way that complies with Sharia principles, such as profit-sharing or cost-plus-profit agreements, which are fundamentally different from interest-based transactions.

Can you explain how profit rates are determined in Islamic financing?
o Profit rates in Islamic financing are determined based on the market conditions, the cost of funds, and the expected return on investment.

What are the common challenges people face when applying for Islamic loans, and how can they be overcome?
o Some common challenges include a lack of understanding of Islamic financing, difficulty in providing proof of income, and the limited availability of Islamic financing options. These challenges can be overcome by educating oneself about Islamic financing, working with a reputable Islamic financier, and providing alternative forms of income verification.

How does Islamic financing handle late payments or defaults?
o Islamic financing handles late payments or defaults by working with the borrower to find a solution, such as restructuring the loan or offering a payment plan. However late payments are charged but are donated to charity per recommendation of the sharia board.

Can Islamic financing be used for refinancing an existing mortgage?
o Yes, Islamic financing can be used for refinancing an existing mortgage, as long as the new financing complies with Sharia principles.

How does UIF/Devon Bank ensure compliance with Sharia principles?
o UIF ensures compliance with Sharia principles by adhering to the guidelines set by AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) and working with Sharia scholars to review and approve their financing products. They are also a member of AAOIFI since 2007, which further ensures their commitment to Sharia compliance.

What is happening with mortgage rates in the near future?
o Mortgage rates are subject to market fluctuations, and UIF/Devon Bank offers competitive rates to their customers. It's essential to stay informed about market trends and work with a knowledgeable financing specialist to get the best rates.

What paperwork do we need for investment financing? What is the downpayment requirements?
o The paperwork required for investment financing with UIF/Devon Bank typically includes financial documents, such as bank statements and income verification. The downpayment requirements vary depending on the specific financing product and the borrower's creditworthiness. It's best to consult with a UIF/Devon Bank representative to determine the exact requirements for your investment financing needs.

What are the housing market trends for 2024?
o The housing market trends for 2024 are expected to be shaped by various factors, including interest rates, economic growth, and demographic changes. According to industry experts, the market is expected to remain competitive, with a continued demand for housing, particularly in areas with strong job growth and limited inventory. It's essential to stay informed about local market trends and work with a knowledgeable financing specialist to navigate the market effectively.

Key Market Takeaways

Rent Increase Caps
* President Biden proposed national rent control to cap annual rent increases at 5% for landlords with over 50 units, threatening the loss of federal tax write-offs for non-compliance.
* The initiative aims to address high housing costs and improve Biden's voter support but faces challenges in a GOP-controlled Congress and a closely divided Senate.
* Exemptions include new constructions and substantially renovated units.
* Industry leaders criticize the proposal as ineffective, while advocates like the National Low Income Housing Coalition view it as a crucial step against corporate rent gouging.
* The White House fact sheet highlights:
1. Legislation to cap rent increases or risk losing federal tax breaks.
2. Repurposing public land for 15,000 additional affordable housing units in Nevada.
3. Rehabilitating distressed housing and revitalizing neighborhoods, including in Las Vegas.

Single-Family Rentals
* For the fifth straight quarter, SFR operating costs met or exceeded the growth in rental rates, according to the NRHC’s Single-Family Rental Market Index.
* Rising operating costs are challenging providers, with increases in all aspects of the business.
* CoreLogic reports a 3% increase in single-family rental gains in April from a year ago, while attached properties saw a 0.5% decline.
* St. Louis led annual rent growth at 6.3%.
* Zillow data shows a 39.6% increase in single-family rents since March 2020, with a 4.7% rise in June compared to last year.
* ATTOM Data Solutions projects an average annual three-bedroom gross rental yield of 7.55% in 2024, driven by rents rising faster than home prices.

Inflation Data
* The NAHB reports an overall cooling of consumer prices in June, with gasoline prices declining but shelter costs increasing.
* Federal Reserve data suggests a potential interest-rate cut in September, with consumer prices showing a slight decline.
* Despite a slowdown, shelter costs continue to exert upward pressure on inflation, rising by 5.2% from a year ago.
* The Federal Reserve is cautious about waiting too long to cut rates, noting ongoing effects from current tightening measures.

Real Estate Investors
* Investor activity accounted for 14.8% of home purchases in Q1 2024, the highest level ever seen.
* Smaller investors made up 62.6% of purchases, while larger investors pulled back amidst higher rates.
* The Home Purchase Sentiment Index (HPSI) rose to 72.6 in June, with increased optimism about home buying and selling.
* Redfin reports a significant drop in apartment construction, with developers obtaining permits for fewer multifamily units due to high borrowing costs and an influx of new units.
* Zillow highlights a resurgence in rent growth, with annual rental price increases at their fastest pace in nearly a year.
* Lower rates and rising supply could provide more options for property acquisition in the coming months, increasing purchasing power for buyers.

This data has been curated from multiple different sources. The goal is by reading these updates you can keep up with what is happening in the market.

5 Surefire Ways to Stay Poor

I've often shared advice on how to invest smart, make money, and get rich. But today, let me share 5 foolproof ways to ensure you stay poor! Yes, you read that right! Follow these 5 steps and trust me, you'll never see your wealth grow.

1. Binge-Watch Netflix and TV Spend hours every day glued to your screen. Who needs productivity when you have endless episodes and movies to watch?
2. Stay in Your Comfort Zone Never push yourself to try new things or take risks. The comfort zone is cozy and safe, and it'll keep you exactly where you are???stuck.
3. Never Invest or Save Money Live for today and forget about tomorrow. Spend every penny you earn and avoid any form of saving or investing like the plague.
4. Avoid Learning New Skills or Doing Extra Work Stick to what you know and never bother improving yourself. Extra skills and hard work are for those who want to succeed???definitely not for you.
5. Max Out Your Credit Cards on Parties and Shopping Accumulate as much debt as possible by indulging in shopping sprees and extravagant parties. Financial responsibility is overrated.

Trust me, if you follow these pieces of advice blindly, you'll be guaranteed to stay poor for the rest of your life. Embrace these habits, and financial failure??will??be??yours!

The National Study of Millionaires

Dave Ramsey has the largest published study of millionaires.

93% of millionaires said they got their wealth because they worked hard, not because they had big salaries.

Only 31% averaged $100,000 a year over the course of their career, and one-third never made six figures in any single working year of their career.

The top five careers for millionaires include engineer, accountant, teacher, management and attorney.

https://www.ramseysolutions.co....m/retirement/the-nat

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