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Conventional mortgage

   Also found in: Wikipedia 0.01 sec.
Conventional mortgage
A loan based on the credit of the borrower and on the collateral for the mortgage.


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The key differentiator between an Islamic and conventional mortgage is the process which the financing is offered.
Where conventional mortgage banks profit from interest, Islamic home finance companies derive revenues from co-ownership agreements in which rent -- in return for the client-partner's ability to live on the property -- is paid to the finance company on its portion of the property.
Well, there are creative ways of obtaining 100% financing such as Vendor Take Back's (the Seller holds the mortgage on the property); Obtaining a conventional mortgage (80% loan to value) thru a bank or lender and then obtaining a 2nd mortgage from either the Vendor or a private lender and registering it after you purchase the property (you must still have the 20% down payment upon closing); or using your line of credit for the 20% down payment.
 
 
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