Abstract: A Sharia compliant financing arrangement for home purchases and refinances that does not involve the payment of interest is disclosed. The financing arrangement is a declining balance Co-Ownership financing arrangement in which a limited liability affiliate of the party financing the purchase, called a co-owner, and the party borrowing the funds for the purchase, the consumer, co-own a residence through a tenancy-in-common. The consumer makes monthly payments to repay the amount funded through which the consumer increases his or her real property or Co-Ownership interest in the residence, while correspondingly decreasing the interest held by the co-owner. Gradually, by making the monthly payments, the consumer acquires the full ownership interest in the residence. The monthly payment has two parts, a profit payment and an acquisition payment.