From UIF's FAQ page: >How is it different from a conventional transaction? A conventional bank issues you a loan of money to buy a house, and then charges interest on the loan. This is not permissible under Islam because it is clear interest. UIF offers an alternative financing model called Musharaka (Partnership). UIF buys the property with you and sells it’s ownership to you and you pay UIF a profit for using the property. There is no interest involved. UIF is simply buying and selling a house to you. It's weird sounding, but at the same time, sounds much better than a mortgage. Reading it several times, it sounds like they are just playing word games.