Business Financing · UIF
UIF Construction 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.
Residential construction financing from UIF Corporation structured as a certified Istisna (commissioned-construction) contract, with a signed fatwa published February 2023. The customer must own the lot free and clear and intend the completed home as a primary residence; UIF appoints the customer as its agent to select and negotiate with a builder, who must pass UIF's background and track-record checks. Profit is paid only on amounts actually disbursed to the builder for work in place, and one application covers both the construction phase and the long-term take-out financing across two closings. Available in FL, GA, MI, MN, and NC.
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What is the UIF Construction Financing?
Residential construction financing from UIF Corporation structured as a certified Istisna (commissioned-construction) contract, with a signed fatwa published February 2023. The customer must own the lot free and clear and intend the completed home as a primary residence; UIF appoints the customer as its agent to select and negotiate with a builder, who must pass UIF's background and track-record checks.
- Contract structure: Istisna (construction).
- Amounts: Contact provider to Contact provider.
- Available in 5 states.
- Shariah oversight disclosed: Formal Board.
- 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
- Istisna (construction)
- Program type
- Construction Financing
- Minimum amount
- Contact provider
- Maximum amount
- Contact provider
- Availability
- 5 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's construction program is the rare US product built on a certified Istisna contract, and the mechanics track the fiqh: the price is fixed upfront in three disclosed parts, profit accrues only on money actually disbursed to the builder for completed work - exactly where conventional construction loans charge interest on idle commitments - and early completion earns a credit rather than a penalty. The entry requirements are real: you must own the lot free and clear, build a primary residence, accept UIF's builder vetting, and commit to UIF for the long-term take-out financing at application. Five states only (FL, GA, MI, MN, NC) and no published pricing. For Muslim families building from the ground up in those states, there is essentially no comparable certified alternative.
Strengths
- One of very few halal new-home construction financing programs in the U.S. (available in FL, GA, MI, MN, and NC)
- Uses Istisna (construction contract) with a published fatwa - Musharakah option also available
- Profit accrues only on amounts actually disbursed to the builder, not the full commitment
- Contract price fixed upfront and cannot be changed - no rate-drift risk during the build
Watch-outs
- Available in only 5 states (FL, GA, MI, MN, NC)
- Construction draws, inspections, and feasibility reviews add paperwork and timeline versus a standard purchase
- Long-term financing is arranged at application - you commit to UIF for the take-out financing as well
Is the UIF Construction Financing halal?
UIF's construction program is a certified Istisna - a commissioned-construction contract in which the buyer purchases a home to be built for deferred delivery - and the signed New Construction Financing fatwa (an Istisna fatwa, published February 2023) from UIF's Sharia Supervisory Board is on its website. The mechanics track the fiqh: the contract price is fixed upfront in three parts (principal for materials and labor, profit as a percentage of principal, and construction-related expenses), and profit accrues only on amounts actually disbursed to the builder for completed work in place - never on undrawn funds, which is where conventional construction loans charge interest on idle commitments. The customer must own the lot free and clear, acts as UIF's agent to select and negotiate with a builder (who must pass UIF's background and track-record checks), and refinances into long-term UIF financing at completion via a second closing. Late fees, if collected, are absolved to charitable purposes, and early completion earns the customer a credit. Oversight comes from the same independent board that certifies all seven published UIF fatwas - Sheikh Nizam Yaqubi (chairman), Dr. Abdulbari Mashal (AAOIFI Governance and Ethics Board since 2015), and Mufti Abdullah Nana - within UIF's fully accredited AAOIFI membership and its published June 2024 independent Shariah audit.
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
- Land must be owned free and clear before applying
- For homes intended as the buyer's primary residence
- Profit paid only on amounts disbursed to the builder for work in place
- Total construction cost and profit specified upfront and cannot be changed
- Buyer acts as UIF's agent via Power of Attorney to select the builder, negotiate price, and set specifications
- One application covers construction + long-term financing (two closings: construction first, permanent financing once the build completes)
Cost and terms
No rate sheet published - the Istisna contract price is fixed upfront in three parts (principal for materials and labor, profit as a percentage of principal, and construction-related expenses), and profit accrues only on amounts disbursed to the builder for work in place, never on undrawn commitment. Long-term take-out financing is arranged at application, with two closings. Late fees, if collected, are absolved to charity, and early completion earns the customer a credit. Individual quotes only (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 Construction Financing (this page) | Istisna (construction) | Formal Board | 5 states | A |
| Devon Bank Construction Financing | Murabaha / Ijara | Formal Board | Illinois | A |
| Stearns Bank Construction Financing | Varies by product | Formal Board | 50 states | A- |
| IjaraCDC Multifamily Financing | Ijara | Formal Board | all 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
- Savings Account
Bank Accounts · Mudarabah
- Deposit Account
Bank Accounts · Mudarabah
- Commercial Real Estate Financing
Business Financing · Musharakah
Where it's available
UIF lists the Construction Financing as available in 5 states.
Availability may vary by product and can change; verify with UIF before applying.
Frequently asked questions
Is the UIF Construction Financing halal?
UIF's construction program is a certified Istisna - a commissioned-construction contract in which the buyer purchases a home to be built for deferred delivery - and the signed New Construction Financing fatwa (an Istisna fatwa, published February 2023) from UIF's Sharia Supervisory Board is on its website. Contract structure: Istisna (construction). Shariah oversight disclosed by UIF: Formal Board. HalalWallet reports what the provider documents; we do not certify products.
How does the UIF Construction Financing work?
Residential construction financing from UIF Corporation structured as a certified Istisna (commissioned-construction) contract, with a signed fatwa published February 2023. The customer must own the lot free and clear and intend the completed home as a primary residence; UIF appoints the customer as its agent to select and negotiate with a builder, who must pass UIF's background and track-record checks.
What does the UIF Construction Financing cost?
No rate sheet published - the Istisna contract price is fixed upfront in three parts (principal for materials and labor, profit as a percentage of principal, and construction-related expenses), and profit accrues only on amounts disbursed to the builder for work in place, never on undrawn commitment. Long-term take-out financing is arranged at application, with two closings. Late fees, if collected, are absolved to charity, and early completion earns the customer a credit. Individual quotes only (verified 2026-08-05).
What are the minimums for the UIF Construction Financing?
As published by UIF: minimum amount Contact provider; maximum Contact provider. Confirm current requirements with UIF before applying.
Where is the UIF Construction Financing available?
UIF lists this product as available in 5 states. Availability can change and may differ by state; verify directly with UIF.
What are the alternatives to the UIF Construction Financing?
In the same category we also list Devon Bank Construction Financing (HalalWallet Index A), Stearns Bank Construction Financing (HalalWallet Index A-), IjaraCDC Multifamily 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 Construction 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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For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.