Business Financing · UIF
UIF Commercial Real Estate Financing
Co-Founder & CEO, HalalWallet
Facts are re-verified against UIF's published materials; this page updates when the provider's terms, rates, or coverage change.
Faith-based commercial real estate financing from UIF Corporation (NMLS #93460, subsidiary of University Bank) built on a Musharaka partnership: the customer's 35-40% evaluated equity or verified down payment and UIF's financing amount jointly purchase the property, the customer pays rent on UIF's share, and buys that share out over the agreed term. Eligible uses include professional offices, retail centers, masjids, community centers, schools, and apartment and rental buildings, with financing titled in an individual or LLC name. Offered in 22 states, with a dedicated non-profit program for 501(c)(3) organizations.
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What is the UIF Commercial Real Estate Financing?
Faith-based commercial real estate financing from UIF Corporation (NMLS #93460, subsidiary of University Bank) built on a Musharaka partnership: the customer's 35-40% evaluated equity or verified down payment and UIF's financing amount jointly purchase the property, the customer pays rent on UIF's share, and buys that share out over the agreed term.
- Contract structure: Musharakah.
- Amounts: $100,000 to $2,000,000 (higher amounts possible by partnering with other investors).
- Available in 22 states.
- Shariah oversight disclosed: Formal Board (fatwa published).
- HalalWallet Index grade for UIF in Business Financing: A.
- Verified against UIF's published materials on 2026-09-29.
Source: HalalWallet (halalwallet.us)
Key facts
- Structure
- Musharakah
- Program type
- Commercial Real Estate
- Minimum amount
- $100,000
- Maximum amount
- $2,000,000 (higher amounts possible by partnering with other investors)
- Minimum down payment
- 30–40% of purchase price or appraised value, whichever is less (program page cites 35–40%), depending on property type and location
- Financing purposes
- Purchase, Refinance
- Availability
- 22 states
- Shariah oversight
- Formal Board
- Shariah board
- Sheikh Nizam Yaqubi, Abdulbari Mashal, Mufti Abdullah Ebrahim Nana, Hussein Hamed Hassan
- Provider founded
- 2006
- Last verified
- 2026-09-29
Facts are taken from UIF's published product materials and were last verified on 2026-09-29. Fields the provider does not publish are omitted rather than estimated.
Our take
UIF brings the most institutional compliance file in US halal commercial finance: a program-specific signed fatwa from a board chaired by Sheikh Nizam Yaqubi, AAOIFI accreditation, a published independent Shariah audit, and nine IFN awards. The Musharaka mechanics are clean - joint purchase, rent on UIF's share, buyout over time, no promissory note - and the dedicated non-profit track (501(c)(3), 35-40% equity, three personal guarantors) is a lifeline for masjid and school boards. Costs are the real diligence item: a $6,500 appraisal/survey deposit before anything moves, roughly 1% closing fee, and $8,000-$17,000 in typical third-party costs, with the profit rate quoted per deal. It won't finance construction, gas stations, or hotels. For stabilized property in its 22 states, UIF is the benchmark the others get measured against.
Strengths
- Coverage across 22 states, including most major population centers
- Uses Declining Musharakah - a recognized Shariah-compliant structure
- One of the few halal lenders with a dedicated non-profit real estate program for masjids, community centers, and schools
- Program-specific signed fatwa published (Declining Balance Partnership, January 2022) plus a June 2024 independent Shariah audit
Watch-outs
- Does not finance construction, development, gas stations, or hotels/motels - real estate collateral only
- Requires a $6,500 appraisal and property survey deposit upfront
- Meaningful third-party closing costs: attorney $5,000–$10,000, commercial appraisal $1,500–$3,500, survey $1,500–$3,500, plus possible Michigan LLC formation ($50–$150)
- Non-profits face heavy documentation under the Bank Secrecy Act's Customer Identification Program - board-member IDs, resumes, three years of financials/990s, and disclosure of all donors exceeding $3,000 annually
- Documentation-heavy approval: personal financial statement, three years of federal tax returns (K-1s, W-2s), and full business records for any business with over 15% ownership
Is the UIF Commercial Real Estate Financing halal?
UIF's commercial financing applies its Musharaka model to business and community property: the customer's down payment (35–40% evaluated equity) and UIF's financing amount jointly purchase the asset, the customer pays rent on UIF's share for using it, and buys out that share over the agreed term - profit from co-ownership of real property, not interest on a loan. The program carries its own signed fatwa (the Commercial Partnership fatwa, a Declining Balance Partnership document published January 2022) from UIF's independent Sharia Supervisory Board: Sheikh Nizam Yaqubi (chairman, veteran of more than 40 Shariah boards), Dr. Abdulbari Mashal (AAOIFI Governance and Ethics Board member since 2015), and Mufti Abdullah Nana. The exclusion list is itself a compliance feature - UIF won't finance gas stations or hotels/motels - while masjids, Islamic schools, and community centers get a dedicated non-profit program (501(c)(3) status, 40% equity, and three qualified personal guarantors). Legally the structure stands on OCC interpretive letters #806 and #867, which recognize faith-based real estate finance within the business of banking, so the partnership isn't a workaround at the regulatory level either. UIF is a fully accredited AAOIFI member, publishes a June 2024 independent Shariah audit, and - per board guidance applied across its products - donates late-fee income to charity.
Shariah oversight disclosed by UIF
Sharia Supervisory Board chaired by Sheikh Nizam Yaquby. Board reviews/approves UIF programs; fatwas + audits published.
HalalWallet reports the Shariah documentation a provider publishes. We do not issue certifications; consult a qualified scholar for a personal ruling.
What you get
- Eligible uses: professional offices, retail centers, masjids, community centers, schools, apartment buildings & rental properties
- Financing can be titled in an individual or LLC name
- Requires 35–40% evaluated equity or verified down payment
- Three years of personal and business financials plus a Personal Financial Statement required
- Dedicated non-profit program: 501(c)3 status, 35–40% equity/down payment, three years of financial statements, and three qualified personal guarantors
- Typically ready to close ~60 days after initial documents and the $6,500 appraisal/survey deposit
- UIF closing fee generally 1% of the amount financed ($2,500 minimum)
- Also finances shopping centers and warehouses (real estate collateral only)
- No promissory note - scholar-approved partnership paperwork instead
- Approval reviews personal credit, business cash flow, a proven secondary source of repayment, and the initial investment
- Community center financing (per FAQ): 501(c)3, 40% equity in real estate or cash, two years of financials, and at least three qualified personal guarantors
Cost and terms
UIF publishes requirement-side costs rather than a rate sheet: $6,500 appraisal and property survey deposit upfront; UIF closing fee generally 1% of the amount financed ($2,500 minimum); third-party costs typically attorney $5,000-$10,000, commercial appraisal $1,500-$3,500, survey $1,500-$3,500, plus possible Michigan LLC formation ($50-$150). The Musharaka profit rate is quoted per deal; 35-40% evaluated equity or verified down payment required; typically ready to close about 60 days after initial documents (verified 2026-08-05).
How it compares
Other business financing providers we list in the U.S., ordered by HalalWallet Index grade.
| Product | Structure | Shariah oversight | Availability | Grade |
|---|---|---|---|---|
| UIF Commercial Real Estate Financing (this page) | Musharakah | Formal Board | 22 states | A |
| Devon Bank Commercial Real Estate Financing | Murabaha / Ijara | Formal Board | Illinois | A |
| IjaraCDC Commercial Real Estate Financing | Ijara / Musharakah | Formal Board | all 50 states | A |
| Stearns Bank Commercial Real Estate Financing | Varies by product | Formal Board | 50 states | A- |
| Bank of Whittier RF Business & Commercial Financing | RF (Riba Free) financing, LARIBA discipline | Third-Party Certified | all 50 states | B |
Other UIF products
- Auto Financing
Vehicle Financing · Hybrid Partnership–Installment Sale
- Renovation Financing
Home Financing · Musharakah
- Home Financing
Home Financing · Musharakah
- Construction Financing
Business Financing · Istisna (construction)
- Savings Account
Bank Accounts · Mudarabah
- Deposit Account
Bank Accounts · Mudarabah
Where it's available
UIF lists the Commercial Real Estate Financing as available in 22 states.
Availability may vary by product and can change; verify with UIF before applying.
Frequently asked questions
Is the UIF Commercial Real Estate Financing halal?
UIF's commercial financing applies its Musharaka model to business and community property: the customer's down payment (35–40% evaluated equity) and UIF's financing amount jointly purchase the asset, the customer pays rent on UIF's share for using it, and buys out that share over the agreed term - profit from co-ownership of real property, not interest on a loan. Contract structure: Musharakah. Shariah oversight disclosed by UIF: Formal Board. UIF publishes a fatwa or Shariah certificate for this product. HalalWallet reports what the provider documents; we do not certify products.
How does the UIF Commercial Real Estate Financing work?
Faith-based commercial real estate financing from UIF Corporation (NMLS #93460, subsidiary of University Bank) built on a Musharaka partnership: the customer's 35-40% evaluated equity or verified down payment and UIF's financing amount jointly purchase the property, the customer pays rent on UIF's share, and buys that share out over the agreed term.
What does the UIF Commercial Real Estate Financing cost?
UIF publishes requirement-side costs rather than a rate sheet: $6,500 appraisal and property survey deposit upfront; UIF closing fee generally 1% of the amount financed ($2,500 minimum); third-party costs typically attorney $5,000-$10,000, commercial appraisal $1,500-$3,500, survey $1,500-$3,500, plus possible Michigan LLC formation ($50-$150). The Musharaka profit rate is quoted per deal; 35-40% evaluated equity or verified down payment required; typically ready to close about 60 days after initial documents (verified 2026-08-05).
What are the minimums for the UIF Commercial Real Estate Financing?
As published by UIF: minimum amount $100,000; maximum $2,000,000 (higher amounts possible by partnering with other investors); minimum down payment 30–40% of purchase price or appraised value, whichever is less (program page cites 35–40%), depending on property type and location. Confirm current requirements with UIF before applying.
Where is the UIF Commercial Real Estate Financing available?
UIF lists this product as available in 22 states. Availability can change and may differ by state; verify directly with UIF.
What are the alternatives to the UIF Commercial Real Estate Financing?
In the same category we also list Devon Bank Commercial Real Estate Financing (HalalWallet Index A), IjaraCDC Commercial Real Estate Financing (HalalWallet Index A), Stearns Bank Commercial Real Estate Financing (HalalWallet Index A-). Compare every option side by side on our Halal Business Financing hub.
When was this UIF product information last verified?
HalalWallet last verified the UIF Commercial Real Estate Financing details against UIF's published materials on 2026-09-29. Rates, fees, and availability can change after that date.
How to use this comparison: HalalWallet is an independent educational comparison platform - by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider - their quote is final.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-09-29
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