The mortgages are an attempt to get observant Muslims, who are not allowed to borrow at interest, into the housing market. You can hear and read Minnesota Public Radio's report.
Shame on the state for its hypocrisy. This is a government-involved program. Can you imagine the liberal screech if something like this were set up for Christians? Are efforts like this made to appease Muslims, out of fear, or to advantage them, due to the cultural elitists' hatred of Christianity and zeal to help its rivals?
But more shame on the church. The situation exists because Muslims are observing God's own teachings against usury. Christians, meanwhile, have capitulated to this exploitative aspect of "the market". The church occasionally comes up with a Dave Ramsey type to give practical financial advice, but has lost all moral teaching about high interest lending. The church basically colludes with the lenders in a "let the buyer beware" message - while the Bible puts the onus on the usurers.