Musharaka Financing

• Musharakah financing is used at Crescent Coop for “rent to own” sale of the property to the member customer
• Member customeridentifies the home of their choice and negotiates the price and other aspects of the purchase
• Member customermakes any initial payment of earnest money to reserve the home
• Crescent Coop purchases the property and member customeragrees to purchase the property over time
• A portion of the property ownership is transferred to member customerwith each payment made

Musharaka Financing

• Because member customerwoulduse a property they do not own, member customeralso pays rent on the Crescent Coop’sportion of the property
• Member customermay choose the rental adjustment period
• As an equity-based product, member customerand the Crescent Coop are co-owners and shares only losses upon the sale of the property based on a pre-agreed loss sharing structure
• Crescent Coop will not share in any profit realized due to the sale of the proper

This product is very flexible, but is more complex and has some additional costs to establish and maintain the arrangement. The payments member customermake will be very similar to those that member customerwould make on a conventional adjustable-rate mortgage.