What is the difference between Guidance’s sharia compliant home financing program and a mortgage loan?

Guidance program is not a loan. Money lending is a charitable act in which charging interest is prohibited.

Lending money to profit from the financing of real estate is not a legitimate form of commerce.

Islam promotes equity based agreements and generates profit from the sale of real goods and services.

Guidance’s program is based on musharakah (diminishing partnership).

The relationship is that of co-owners, not borrower/lender. Guidance acquired a share in the property, it does not provide a loan.