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Bank Loan FHA

Answered as per Hanafi Fiqh by ShariahBoard.org

Assalamu Alaikom, 

              I am married with 2 kids. 
               I have a question about the house I bought for $120.000, its FHA and I got little less than $ 8000. as GRANT (help from Gov) “the condition on grant is I can’t sell the house for 8yrs if I do then I have to pay that $8000. back to gov” and rest of the money on loan from the bank. Now my question to you is:
1. The transaction I made is it Halal?
2.  Is that loan I got from Bank permissible not RIBA? 
3.  If the transaction is not Halal or it is Riba or both what can I do at this stage? It will be 2 yrs since I bought this house. (i’m married with 2 kids and my parents come and go to my  other brothers house, I have 3 brothers live separate).
     Jazakallah for your attention and time that you are giving me and helping me in this matter.

الجواب وبالله التوفيق   

  • You can accept the grant provided there is no interest involved. If by violating any conditions of this grant, you end up paying the same amount back to the government then it is permissible to accept such grant. But if upon violation the amount paid back to the government is greater than the original amount, the excess is considered interest and it is impermissible to accept this grant in that situation.
  • It is impermissible to get a loan from bank involving interest.

 واللہ اعلم  بالصواب

This answer was collected from Shariahboard.org. It was established under the supervision of the eminent faqih of our era, Hazrat Shah Mufti Mohammed Navalur Rahman damat barakatuhum.

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