Home Financing · UIF
UIF Renovation 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.
Combines your home purchase and renovation costs into one Shariah-compliant Musharakah contract - buy a fixer-upper and finance the improvements together, with up to 5 draws as work is completed. Finances up to 75% of the combined purchase plus renovation value on 15- or 30-year fixed terms, for 1-2 unit primary residences and 1-unit second homes in 9 states (AL, FL, GA, IL, IN, MI, NC, TX, VA). Requires a 660 credit score; your own licensed contractor's bids and plans are reviewed and approved before closing, and a feasibility study is required for major repairs or projects over $35K.
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What is the UIF Renovation Financing?
Combines your home purchase and renovation costs into one Shariah-compliant Musharakah contract - buy a fixer-upper and finance the improvements together, with up to 5 draws as work is completed. Finances up to 75% of the combined purchase plus renovation value on 15- or 30-year fixed terms, for 1-2 unit primary residences and 1-unit second homes in 9 states (AL, FL, GA, IL, IN, MI, NC, TX, VA).
- Contract structure: Musharakah.
- Published profit rate: 5-8%.
- Available in 9 states.
- Shariah oversight disclosed: Formal Board (fatwa published).
- HalalWallet Index grade for UIF in Home Financing: A.
- Verified against UIF's published materials on 2026-09-29.
Source: HalalWallet (halalwallet.us)
Key facts
- Structure
- Musharakah
- Program type
- Renovation Financing
- Maximum amount
- Up to 75% of combined purchase + renovation value
- Minimum down payment
- 5%
- Terms
- 15 Years, 30 Years
- Minimum credit score
- 660
- Published profit rate
- 5-8%
- Late fee policy
- $50 donated to charity
- Prepayment penalty
- None
- Financing purposes
- Purchase
- Property use
- Primary residence, Second / vacation home, Investment / rental property
- Availability
- 9 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 offers halal renovation financing using a Musharakah structure in 9 states - one of the only US providers that lets you buy a fixer-upper and fund the work in a single Shariah-compliant contract. It combines home purchase and renovation costs with up to 5 draws as work completes, on 15- or 30-year fixed terms, financing up to 75% of the combined value. The $1,975 supplemental origination fee is the visible cost; quote-only pricing and a 660 credit floor are the gates. Watch the exclusions: no self-builds, no tear-downs, and nothing that leaves the home uninhabitable beyond 30 days. Best suited for buyers targeting under-priced homes that need real work.
Strengths
- Purchase and renovation costs combined in one halal contract
- Uses Musharakah - a recognized Shariah-compliant structure
- Financing up to 75% of combined purchase + renovation value
- 15- and 30-year fixed terms with a flat $50 charity-donated late fee and no prepayment penalty
Watch-outs
- Not eligible: self-builds, full tear-downs, or projects making the home uninhabitable for more than 30 days
- Cost overruns beyond the contingency reserve are the buyer's responsibility
- $1,975 supplemental origination fee (though it can be financed)
Is the UIF Renovation Financing halal?
Renovation financing solves a specific riba trap: buying a fixer-upper conventionally usually means a mortgage plus a separate interest-bearing improvement loan or credit line. UIF instead rolls the purchase and renovation costs into one Sharia-compliant contract under its residential partnership program, so the renovation budget is financed inside the same declining-balance co-ownership structure as the home itself - draws (up to five: four interim and one final) fund contractor work as it completes, with plans and bids reviewed before closing. The compliance foundation is the program family it belongs to: UIF's residential Declining Balance Partnership carries a signed fatwa from its independent Sharia Supervisory Board - Sheikh Nizam Yaqubi (chairman, who has served on more than 40 Shariah boards including the Dow Jones Islamic Index), Dr. Abdulbari Mashal (AAOIFI Governance and Ethics Board member since 2015), and Mufti Abdullah Nana - published alongside six other product fatwas and a June 2024 independent Shariah audit, all under UIF's fully accredited AAOIFI membership. One precision note: UIF's published fatwa list names the residential partnership, ARM, commercial, vehicle, construction, and two deposit products - no renovation-specific fatwa is separately listed, so ask UIF to confirm which signed document governs the renovation contract. The board's standing rules apply throughout: late-fee income donated to charity, no prepayment penalties, and profit prorated on early payoff.
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
- Purchase + renovation in one halal contract
- Up to 5 renovation draws (4 interim + 1 final)
- Fixed-rate only
- No processing fee
- Supplemental origination fee of $1,975 (can be included in the financing)
- Feasibility study required for major repairs or projects over $35k
- Eligible: 1–2 unit primary residences and 1-unit second homes
- Licensed contractor of your choice - bids and plans reviewed and approved before closing
Cost and terms
Rates are not published - UIF quotes 15- and 30-year fixed-rate contracts individually (verified 2026-08-05). Known fees: no processing fee and a $1,975 supplemental origination fee that can be rolled into the financing. Renovation costs are capped at 75% of the combined purchase plus renovation value; flat $50 late fee donated to charity.
Terms published: 15 years; 30 years.
How it compares
Other home financing providers we list in the U.S., ordered by HalalWallet Index grade.
| Product | Structure | Shariah oversight | Availability | Grade |
|---|---|---|---|---|
| UIF Renovation Financing (this page) | Musharakah | Formal Board | 9 states | A |
| IjaraCDC Renovation Financing | Ijara | Formal Board | all 50 states | A |
| Bank of Whittier RF Home Financing (Purchase, Refinance & Cash-Out) | Declining Participation in Usufruct (LARIBA model) | Third-Party Certified | all 50 states | B |
| Sukoon Finance Halal Home Purchase Financing (HomeSimple & TBD Approval) | Murabaha (Cost-Plus Sale) | Third-Party Certified | 46 states | B |
| Devon Bank Home Financing | Murabaha | Formal Board | 34 states | A |
Other UIF products
- Auto Financing
Vehicle Financing · Hybrid Partnership–Installment Sale
- Home Financing
Home Financing · Musharakah
- Construction Financing
Business Financing · Istisna (construction)
- Savings Account
Bank Accounts · Mudarabah
- Deposit Account
Bank Accounts · Mudarabah
- Commercial Real Estate Financing
Business Financing · Musharakah
Where it's available
UIF lists the Renovation Financing as available in 9 states.
Availability may vary by product and can change; verify with UIF before applying.
Frequently asked questions
Is the UIF Renovation Financing halal?
Renovation financing solves a specific riba trap: buying a fixer-upper conventionally usually means a mortgage plus a separate interest-bearing improvement loan or credit line. 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 Renovation Financing work?
Combines your home purchase and renovation costs into one Shariah-compliant Musharakah contract - buy a fixer-upper and finance the improvements together, with up to 5 draws as work is completed. Finances up to 75% of the combined purchase plus renovation value on 15- or 30-year fixed terms, for 1-2 unit primary residences and 1-unit second homes in 9 states (AL, FL, GA, IL, IN, MI, NC, TX, VA).
What does the UIF Renovation Financing cost?
Rates are not published - UIF quotes 15- and 30-year fixed-rate contracts individually (verified 2026-08-05). Known fees: no processing fee and a $1,975 supplemental origination fee that can be rolled into the financing. Renovation costs are capped at 75% of the combined purchase plus renovation value; flat $50 late fee donated to charity.
What are the minimums for the UIF Renovation Financing?
As published by UIF: minimum down payment 5%; minimum credit score 660. Confirm current requirements with UIF before applying.
Where is the UIF Renovation Financing available?
UIF lists this product as available in 9 states. Availability can change and may differ by state; verify directly with UIF.
What are the alternatives to the UIF Renovation Financing?
In the same category we also list IjaraCDC Renovation Financing (HalalWallet Index A), Bank of Whittier RF Home Financing (Purchase, Refinance & Cash-Out) (HalalWallet Index B), Sukoon Finance Halal Home Purchase Financing (HomeSimple & TBD Approval) (HalalWallet Index B). Compare every option side by side on our Halal Home Financing hub.
When was this UIF product information last verified?
HalalWallet last verified the UIF Renovation 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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