UIF Home Financing

UIF (formerly UIF) has been providing halal home financing since 2006, using a Musharakah (Diminishing) structure. In this model, UIF and the homebuyer enter a joint partnership to purchase the home. Over time, the homebuyer gradually buys out UIF's share through monthly payments.

UIF's key differentiator is its AAOIFI institutional membership and adherence to AAOIFI Standards 12 and 46 for Musharakah. AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) is the leading international standard-setter for Islamic finance. Being an institutional member represents a strong commitment to compliance.

Published Shariah audit reports from UIF's independent Shariah Supervisory Board add transparency. The 30-40 day closing timeline is notably faster than many competitors, which is valuable in competitive housing markets.

UIF Corporation is not a bank - it operates as a faith-based subsidiary of University Bank (Member FDIC), which provides its banking and deposit services. It is a licensed lender (NMLS #93460) with state licenses including Illinois (#MB.6760599), New York (LMB 109672), and Massachusetts (ML93460). Mufti Abdullah Nana (CA), who serves on UIF's own Sharia Supervisory Board, states: "I would recommend that anyone who is looking into purchasing a house in the US strongly consider the UIF's home financing model. It does not make sense for us to pursue interest-based mortgage loans from conventional banks currently when we have halal home financing options available to us."

UIF's official state map shows how availability varies by product line: the full product lineup is available only in Michigan; home financing covers 32 states; commercial real estate is available in many but not all states (UIF does not publish the list - it confirms by state and property); vehicle financing is limited to Michigan, Illinois, Ohio, and Texas; and new-home construction financing is offered in Florida, Georgia, Michigan, Minnesota, and North Carolina. UIF maintains office locations in California, Minnesota, Illinois, Michigan, Texas, and Virginia.

On April 1, 2026, American Finance House LARIBA came together with UIF Corporation, with UIF continuing as the combined platform - absorbing one of the oldest U.S. Islamic finance companies and expanding UIF's customer base and service lineup.

On pricing, UIF says its goal is the lowest-cost pricing structure in the Islamic finance industry: profit rates are set by market conditions and investor return targets, benchmarked against conventional mortgage industry pricing. Closing costs mirror a conventional transaction - UIF's own charges plus third-party fees (appraisal, credit report, recording, title insurance, settlement) that vary by state and county. Down payments start at 3%, with a PMI-style added cost below 20% down, and profit paid is reported on a 1098-INT and is generally tax-deductible like mortgage interest.

UIF classifies its partnership as Shirkat al-Milk (an asset-ownership partnership) rather than Shirkat al-Aqd (a traditional business partnership) - the customer pays rent on UIF's share plus a buyout amount, UIF's profit is the rent received, and the customer keeps all home-price appreciation. The process starts with the customer being appointed UIF's agent to find the property and negotiate terms; at closing both parties sign a Declining Balance Agreement. On loss sharing, UIF's FAQ describes two scenarios: in a foreclosure UIF may absorb a loss when selling on the open market (after attempting a workout plan), and in a natural-disaster total loss it states losses are shared by ownership percentage at the time of the event - though note UIF's Co-Ownership Agreement (§5, Property Insurance) assigns the customer's share of insurance proceeds to the financier until the financed amount is repaid.

Unlike some co-ownership programs, no LLC is formed at any point in UIF's partnership: UIF partners directly with the customer, and its ownership interest is evidenced by a reference to the Declining Balance Partnership Agreement in the publicly recorded mortgage or deed of trust. UIF adopted this structure after obtaining both legal and Sharia opinions - under AAOIFI standards a partnership does not require an LLC vehicle to be legitimate - and it is the reason UIF customers never pay the LLC administration fees charged in some competing programs. The paperwork differs from a conventional loan accordingly: instead of an interest-based Promissory Note, the parties sign a Declining Balance Agreement based on the Musharaka model.

UIF's vehicle finance program uses what it describes as the industry's only hybrid Partnership-Installment Sale structure: a Joint Purchase Agreement first appoints the buyer as UIF's agent to shop and negotiate, then once approved the transaction converts into an installment sale in which UIF sells the vehicle to the customer, who takes title with UIF as lien holder. Early payoff is customer-friendly - only principal plus profit earned to date is collected, with remaining unearned profit forgiven - and the $15 flat late fee is donated to charity, mirroring the charity policy on its home financing ($50 flat).

Per UIF's July 2026 provider intake: the company reports roughly 30,000 customers served and about $700M in annual funding volume, with Muslim-led leadership (majority shareholder University Bank, with minority shareholders including Muslim American investors). Home financing carries a $0 application fee and a $1,395 processing fee, profit rates typically run 5-8%, financing is available up to $2 million with a 620 minimum credit score, and typical closings take 30-40 days. UIF has also earned nine Islamic Finance News awards between 2015 and 2023 - Best Islamic Bank (2015-2016), Best Islamic Bank in the US (2017-2019), and Best Islamic Real Estate Financier (2020-2023) - and holds an A+ BBB rating.