Murabaha is primarily used for home purchases. You select the property, Minnwest Bank buys it, and then sells it to you at a marked‑up price with equal installment payments. You become the sole title holder at closing.

Minnwest Bank seeks to provide its customers with the best pricing structure for their situation. Profit rates are based on market conditions, transaction parameters, and competitive industry pricing. 

A conventional mortgage is a loan with interest. Murabaha is a sale with a defined payment plan — no interest, no promissory note. The Installment Contract reflects a property sale, not a loan. 

 Declining Musharaka involves shared ownership that changes over time. Murabaha is simpler: Minnwest purchases the home and sells it to you outright at a marked‑up price. You hold full title from day one. 

You can put down as little as 5%. Down payments under 20% require Private Mortgage Insurance (PMI), which varies based on credit, income, and loan details. 

Closing costs include appraisal, credit report, title insurance, recording fees and other standard settlement charges. 

There is a flat fee of $75 that is used to compensate for the cost of collection. We do not charge you an arbitrary percentage of your monthly payment as others may.  

Minnwest Bank works very closely with its customers in hardship situations. Our goal is to keep you in the house and work out a potential solution. However, if you cannot make payments and there is no resolution to this matter, Minnwest Bank has the right to foreclose and take possession of the property. 

If you are putting down 20% or more, you have the option to pay taxes and insurance yourself (fees may apply). If you are putting down less than 20% you will be required to escrow taxes and insurance. Minnwest Bank collects taxes and insurance on a monthly basis and pays the appropriate parties on your behalf. This ensures that you are never in default due to a failure to pay taxes or maintain required property insurance. 

 Yes. There are no prepayment penalties. Profit is prorated, and paying early reduces the total profit you pay. 

The Installment Contract is a contract signed by two parties that reflects the nature of the Murabaha, which is the sale of property. There is no note. A note is a promise to pay a loan of money and reflects the nature of a conventional mortgage, which is a loan of money with interest. 

Your Installment Contract payment stays fixed unless your escrowed taxes or insurance change.  If you make a large additional payment you will end up paying the contract earlier than the original term. Making extra payments towards your outstanding Murabaha balance assures that you pay less profit to Minnwest Bank over the contract term. 

You may sell at any time without permission. You keep all appreciation and simply pay off the prorated balance at closing. As Minnwest Bank sold the house to you, Minnwest Bank does not share in profits or house appreciation with you. With our program, the title is in your name from day one. 

Qualification requirements mirror conventional underwriting.  Minnwest Bank currently offers Murabaha financing for 1-4 unit residential properties in Minnesota. Property usage is limited to primary residence, second home, and investment. .