Permissibility of FHA Home Loans in the United States

Everyday Islamic Finance
#1

@Mufti_Faraz_Adam @Mufti_Billal

Assalaamu Alaykum,

Hope all is well. In terms of United States Home Financing options, my understanding is that all lender companies are impermissible to use with the exception of Islamic-Scholar-Approved companies (like Guidance, UIF, etc). I came across this Islamic Scholar video about VA loans being permissible (link below starting at 16:55 mark). It sounds like they are permissible since they are backed by the US Government. I couldn’t get a VA loan because I’m not a military veteran. But there is another type of government backed loan called FHA loans (Link below explaining VA & FHA loans). I’m wondering if it would be permissible for me to get a FHA loan to purchase a home?

  1. Link to Fatwa Video on VA Loans (16:55 mark): https://www.youtube.com/watch?v=Rrh9lMvfc5s&t=1015s

  2. Link to Article Explaining VA & FHA Loans: https://www.rocketmortgage.com/learn/fha-vs-va-loan