Devon Bank, Headquarters Office opened in 1966 at 6445 N. Western Avenue, Chicago.

A Chicago bank says it will begin selling its Islamic home-financing products to Freddie Mac—one of the nation’s largest investors in mortgages.

The move will expand opportunities for Muslims to become homeowners without violating Islamic restrictions on paying interest, Devon Bank said in a press release.

Devon Bank said it uses the Islamic “murabaha” trade model to avoid problems that make traditional loans objectionable to devout Muslims.

Under murabaha, the bank buys a house or some other commodity for a client, then sells it to that client for cost plus an agreed-upon profit. Under Islamic law, interest may not be charged on loans.

A Murabaha sale involves two separate contracts—one in which the bank buys the property, and a second in which the bank sells the property to a client, who may then repay the bank in installments.

Devon Bank said its Islamic home-financing model complies with both Islamic and U.S. law. It includes residential and commercial real-estate financing, financing for business equipment and trade goods, and construction financing.

Freddie Mac said its agreement to invest in the Islamic mortgages underscores its mission to expand homeownership opportunities for all of America’s households, including the nation’s estimated 2.5 million Muslim households. With Freddie Mac’s backing, Devon will be able to boost the volume of its Islamic financing.

Devon Bank describes itself as an independent community bank with deep roots in Chicago-area communities. “At Devon Bank, we celebrate our cultural diversity and are proud to be considered a caring organization—characteristics that set us apart from other banks,” its website says.

“Our cultural diversity is exemplified by the over 30 languages spoken by our staff, and in the array of scrumptious ethnic foods made by staff members for multicultural celebrations,” the website says.