Putting Together Seller Financing Deal - No Interest

[Marcell L.]

Hi All -

I am in talks with a FSBO on the possibility of doing seller financing. Because of religious reasons, he cannot accept interest. In order to overcome this challenge, I was thinking of offering more for the property to capture missed interest. As an example - add the amount of interest a 10 year note @ XX% would accrue into my offer upfront. Does anyone know if there are any restrictions by law which would do not allow zero percent interest seller financing? I am pretty sure seller financing between family requires a min rate.

[Max Householder]

A common misconception about Sharia is that it's all about stoning people for crimes or whatever. In reality it's meant to cover all aspects of law including crime, property, marriage, trade, etc. It doesn't allow for charging interest and plaintiffs/accusers are supposed to represent themselves in court, no lawyers. It's really pretty fascinating and many Christian religions, think Mennonites or the Amish, govern themselves using similar sets of religious law.