Buying a home from IHC

• A person applies to become a member of the ISNA Housing Co-operative Ltd. by submitting a membership application, subscribing for and remitting payment for the purchase of at least the required minimum number of five (5) membership shares at $100 each, along with the non-refundable membership fee of $75.

• An eligible member may apply to the Co-operative for the opportunity to select and occupy a residential housing unit. If the member’s application is acceptable and the Co-operative acquires a housing unit for occupancy by the member, the member will enter into an Occupancy Agreement with the Co-operative providing for (a) the member’s occupancy of such housing unit upon specified terms and conditions as stated in the regulations, and (b) an option to purchase the housing unit from the Co-operative at any time in the future.

• An eligible member as per IHC regulations who already owned a house on conventional mortgage or loan may enter into an Occupancy Agreement with Co-operative.

• The member may at any time exercise his or her option to purchase the housing unit occupied by him/her by written notice to the Co-operative. The member can provide funds for such purchase form any source. Upon making such purchase the member will pay to the Co-operative’s Purchase Price, being an amount equal to the original purchase price paid by the Co-operative regardless of any decrease or appreciation in the market value of the housing unit since the time of its purchase by the Co-operative.

• The basic Occupancy Charge will be a proportion of the fair market value rental for such a housing unit. The monthly Occupancy Charge will be recalculated for the following month in which additional shares of one thousand dollars ($1,000) or more are purchased.

  
  

Home Buyers Eligibility Criteria:

• Be a member of the ISNA Housing Co-operative Ltd.

• Purchase minimum shares of aggregate price equal to twenty per cent (20%) of the anticipated purchase price up to $300,000; thirty per cent (30%) of the anticipated purchase price between $300,001 - $500,000, and hundred per cent (100%) of the anticipated purchase price above $500,000.

• Members who own a housing unit through (a) conventional mortgage (b) any other Islamic financial scheme can transfer their house to IHC with the terms and conditions stipulated in IHC regulations.

• If a member purchases more than minimum shares as described above, earlier he/she qualifies to purchase the house.

• Length of membership in the Co-operative: Longer the period elapsed you became a member of the Co-operative higher you are on the waiting list.

• Length of completing the occupancy form: An occupancy form contains information for the prospective property a member intends to purchase; the price, member’s total value of shares before signing the occupancy agreement, and anticipated time of intended purchase of the property.

• Purchase Price of the housing Unit: lower the price of the house better chances to move up on the waiting list. The maximum funds IHC could allocate for the house purchase are $350,000.

• Availability of funds at the time of purchase of housing unit: the sufficient amount of investment funds available with the Co-operative at the time to purchase a house for the potential home buyers quicker it be to meet the requests of members to purchase the house.