How do I verify UIF's Shariah compliance?

Review UIF's publicly available Shariah compliance documentation, understand the product structures they use, and check for independent oversight or Shariah board involvement. Always verify compliance directly with UIF and consult with qualified Islamic finance advisors for guidance on specific products.

UIF Review

Q: How do I contact UIF?

Visit UIF at https://www.myuif.com/commercial/, or use the product links on this page.

Kyle Natter

Co-Founder & CEO, HalalWallet

Reviewed by: HalalWallet Editorial Team•Last reviewed: 2026-10-22•Disclosure: Featured partners may compensate HalalWallet for clicks. Editorial policy and full disclosures.

Reviewed quarterly and updated when provider terms, ratings, or coverage change.

UIF is in HalalWallet's independent directory with 7 products we currently list in Bank Accounts, Business Financing, Home Financing, Vehicle Financing, using Musharakah, Mudarabah, Hybrid Partnership-Installment Sale, Istisna (construction). We do not invent a contract structure when the listing does not name one. Confirm terms and Shariah documentation with UIF.

Visit UIF Website

Opens provider's site - no obligation

HalalWallet is an independent, education-only comparison site. Some outbound links earn referral fees.Advertiser disclosure

Important: HalalWallet is not a lender, mortgage broker, loan originator, or settlement agent. We are an educational comparison site and do not originate applications on your behalf.

Items marked “Featured” may include paid placement in that module. Where you control sort order (tables, filters), your selection applies.

Referral fees typically come from the provider's marketing budget and should not increase what you pay - you should receive the same terms as visiting providers directly; confirm with the provider. How we make money · Methodology · Legal disclosures

HalalWallet 2026 Review

UIF - At a Glance

AHalalWallet Index

Products Reviewed

States Served

Pros & Cons

What We Like

AAOIFI institutional member - among the strongest Shariah compliance credentials available in U.S. halal home financing
Musharakah (Diminishing) structure following AAOIFI Standards 12 and 46
32-state coverage including major population centers
10, 15, 20, and 30-year term options - more flexibility than some competitors
No prepayment penalty
30-40 day closing - faster than many competitors
4.5/5 Google rating from 42 reviews
No monthly LLC fees - unlike some competing co-ownership programs, UIF states it never charges a monthly LLC fee on its Musharaka partnership
Title in the buyer's name from day one - buyer keeps 100% of appreciation when selling, with no profit-sharing on the sale
Down payments as low as 3% - among the lowest in halal home financing
Flat $50 late fee (never a percentage) with all late-fee income donated to charity per the Sharia board - a consumer-friendly policy rare among lenders

What Could Be Better

32-state coverage still leaves some states without access - not as broad as IjaraCDC's 50-state reach
Less brand recognition than Guidance Residential among some Muslim communities
Limited product range - focuses primarily on home financing
Post-disaster insurance shortfall - per its Co-Ownership Agreement (§5, Property Insurance), the customer's share of insurance proceeds is assigned to the financier until the financed amount is repaid, rather than split pro-rata by ownership share
Down payments under 20% incur a PMI-style added cost, and escrow of taxes and insurance is mandatory below 20% down (10% in California)

Who Is UIF Best For?

Buyers who prioritize AAOIFI certification

UIF's AAOIFI institutional membership provides one of the strongest Shariah compliance credentials available

First-time buyers and refinancers

UIF explicitly serves both purchase and refinance customers with competitive terms

Buyers wanting fast closing

30-40 day closing is faster than many halal and conventional financing options

Detailed Analysis

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.

How It Works

UIF uses Musharakah (Diminishing Partnership) following AAOIFI standards. UIF and the buyer jointly purchase the property as co-owners. The buyer's share increases with each payment while UIF's share decreases. Payments include rent on UIF's portion plus equity acquisition - UIF calls these two components the "Buyout Price" and the "Use Payment" (rent). Unlike some competitors' co-ownership programs, UIF does not charge a monthly LLC fee on top of these payments. Over the chosen term, the buyer's share reaches 100%.

Apply & Get Pre-Approved

Submit your application with income, credit, and asset documentation. UIF evaluates your profile.

Joint Purchase

UIF and you jointly purchase the property as co-owners under a Musharakah agreement.

Monthly Payments

Each month, you pay rent on UIF's share plus an equity buyout amount. Your ownership increases over time.

Full Ownership

At the end of the term (10, 15, 20, or 30 years), or earlier if you prepay, you own the home outright.

Shariah Compliance Review

Oversight Level

Formal Shariah Board - highest level of independent oversight

Sharia Supervisory Board chaired by Sheikh Nizam Yaquby. Board reviews/approves UIF programs; fatwas + audits published.

UIF is an AAOIFI institutional member (member since 2007), representing one of the strongest Shariah compliance credentials available in U.S. halal home financing.

Their Musharakah structure follows AAOIFI Standard 46 with oversight from an independent Shariah advisory board.

UIF publishes Shariah audit reports, providing transparency about the compliance review process.

Licensed and regulated lender - NMLS #93460 (nmlsconsumeraccess.org); Illinois Residential Mortgage Licensee #MB.6760599 (IDFPR); New York Licensed Mortgage Banker LMB 109672 (NYS Department of Financial Services); Massachusetts Mortgage Lender License ML93460. Full state license list published at myuif.com/license-registration.

UIF Corporation is not a bank - it is a faith-based subsidiary of University Bank, Member FDIC. Banking and deposit services are provided through University Bank, and deposit products are FDIC insured up to the maximum allowed.

Profit-Sharing Deposit Accounts are structured on investment agency standards (AAOIFI Standard 46): UIF, as the depositor's agent, invests funds held at University Bank in faith-based compliant assets, segregated from any interest-bearing assets and deposits. All agreements are approved by UIF's Sharia Supervisory Board, which regularly audits UIF's business dealings.

UIF's Sharia Supervisory Board has ruled that FDIC insurance on deposit balances is permissible under U.S. banking regulations because the FDIC is a third party to the depositor and the depository institution. The risk-sharing requirement is preserved on the profit side: depositors may earn above, below, or none of the anticipated profit rate depending on how the faith-based asset pool performs, while UIF may acquire additional faith-based assets or develop new products over time.

Sharia Supervisory Board roster: Sheikh Nizam Yaqubi (chair) - Ph.D. in Islamic Law (University of Wales), BA in Economics and Comparative Religion (McGill); has served on more than 40 Shariah boards including Abu Dhabi Islamic Bank, Barclays, BNP Paribas, Credit Agricole CIB, Dow Jones Islamic Index, HSBC Amanah, Lloyds TSB, and Citi Islamic. Dr. Abdulbari Mashal - Ph.D. in Islamic Economics (Al-Imam Islamic University, Riyadh), 25+ years in Shariah audit, member of the Fiqh Council of North America (FCNA), member of AAOIFI's Governance and Ethics Board since 2015 (AAOIFI Shariah Committees 2007-2010), expert at the International Islamic Fiqh Academy (Jeddah), author of 14 textbooks and 60+ research papers. Mufti Abdullah Ebrahim Nana - BA (UC Berkeley), seven years of Islamic studies in South Africa with fatwa authorization, Imam at the Islamic Center of Mill Valley, presented Takaful research at the Harvard Islamic Finance Seminar.

The board was formerly chaired by the late Prof. Hussein Hamed Hassan (d. August 19, 2020) - Ph.D. from al-Azhar (1965), former Chairman of the Assembly of Muslim Jurists of America (AMJA) board, author of 400+ books and research papers, who helped convert several conventional banks to Islamic banks and led the transformation of the Dubai Financial Market into the world's first Islamic financial market.

UIF states that AAOIFI standards govern its fatwa: it is a fully accredited AAOIFI member and the scholars on its Shariah Board are themselves active members of AAOIFI (AAOIFI, established 1991, maintains 100 standards across Shari'ah, accounting, auditing, ethics, and governance).

UIF is a Michigan corporation and is not a "bank" under state or federal law - it is not authorized to hold customer deposits and is not itself FDIC insured. Customer deposit accounts are held at its parent, University Bank (Member FDIC), while UIF's own role is limited to Shariah-compliant financing transactions.

Regulatory basis: as a bank subsidiary, UIF's faith-based real estate financing falls within the OCC-recognized "business of banking" - the Office of the Comptroller of the Currency has held these structures permissible for national banks and their subsidiaries (OCC Interpretive Letter #806 on lease-to-own; #867 on Murabaha installment sales).

Title arrangement: although the property is jointly owned under the Musharaka partnership, UIF waives its right to go on title so the customer holds sole legal title from day one - an arrangement UIF's Sharia Board approved to avoid transfer taxes and hardship for the customer. The customer must notify UIF before major repairs or a sale, and can sell at any time by paying the buyout amount in full.

Per AAOIFI standards (and other scholarly positions cited by UIF), Sharia does not require an LLC vehicle to establish or legitimize a partnership - UIF partners directly with the customer, with its property interest evidenced through the publicly recorded mortgage or deed of trust referencing the Declining Balance Partnership Agreement.

Signed, published fatwas: UIF's deposit products carry formal Certificates of Shariah Accreditation signed by the full Sharia Supervisory Board - Time Deposit Account fatwa issued January 11, 2023 and Profit-Sharing Savings Account fatwa issued March 4, 2024, both published at myuif.com/fatawa. Per the fatwas, the products combine an Agency Agreement (customer appoints UIF as agent) with a Management & Services Agreement at the depository bank and a Mudharabah Partnership Agreement.

The fatwas and audit reports confirm board roles: Sheikh Nizam Yaquby, Ph.D. signs as Chairman of the SSB, Dr. Abdulbari Mashal as Executive Member (and Managing Partner of Raqaba, the independent Shariah audit network that serves as Secretary of the SSB), and Mufti Abdullah Nana as Member.

Independent Shari'ah Auditor's Report (dated April 23, 2025, covering the audit year ending June 30, 2024): conducted in accordance with AAOIFI standards and the International Auditing and Assurance Standards Board's assurance standards, it concluded that ALL contracts and transactions executed by UIF during the year complied with the Shari'ah rules and principles accepted by the board - a clean opinion.

Full state licensing (per UIF's July 2026 provider intake): Alabama Consumer Credit License #23011; Arizona Mortgage Banker License #BK-1023915; California DFPI Financing Law License #603I396; Colorado Mortgage Company Registration; Connecticut Mortgage Lender License #21151 and Exempt Mortgage Servicer Registration #EMSR-93460; Delaware Lender License #040980; Georgia Mortgage Lender License/Registration #57766; Illinois Residential Mortgage License #MB.6760599 and Sales Finance Agency License #SF.0001683; Kentucky Mortgage Company License #MC386626; Maine Supervised Lender License; Maryland Mortgage Lender License #93460; Massachusetts Mortgage Lender License #ML93460; Minnesota Residential Mortgage Originator Exemption #MN-0X-93460 and Residential Mortgage Servicer Exemption #MN-SX-93460; New Jersey Residential Mortgage Lender License #0758541 and Residential Mortgage Servicer Registration; New York Licensed Mortgage Banker #LMB 109672 and Exempt Mortgage Loan Servicer Registration; Oklahoma Exempt Company Registration #MB012524; Oregon Mortgage Lending License #ML-5498; South Carolina Mortgage Lender/Servicer License #MLS-93460; Washington Consumer Loan Company License #CL-93460.

UIF Corporation holds an A+ rating from the Better Business Bureau (BBB profile: mortgage broker, Southfield, MI).

Shariah compliance should always be verified directly with UIF. HalalWallet reports publicly available oversight information but does not issue fatwas or certify compliance.

Awards & Recognition

IFN Best Islamic Bank (2015)

IFN Best Islamic Bank (2016)

IFN Best Islamic Bank in the US (2017)

IFN Best Islamic Bank in the US (2018)

IFN Best Islamic Bank in the US (2019)

IFN Best Islamic Real Estate Financier (2020)

IFN Best Islamic Real Estate Financier (2021)

IFN Best Islamic Real Estate Financier (2022)

IFN Best Islamic Real Estate Financier (2023)

As reported by UIF and public sources.

How It Compares

UIF competes directly with Guidance Residential in overlapping markets. Both use Musharakah-style structures but with different scholarly endorsements.

vs. Guidance Residential

Both use co-ownership/Musharakah structures. Guidance has AMJA endorsement; UIF has AAOIFI institutional membership. Guidance covers 38 states vs. UIF's 32. Compare total cost over the full term.

vs. IjaraCDC

IjaraCDC covers all 50 states with an Ijara structure. IjaraCDC works better for credit-challenged buyers. Different structure - compare if you're deciding between Musharakah and Ijara.

Bottom Line

UIF is a strong halal mortgage provider with AAOIFI institutional membership - one of the highest compliance credentials in the U.S. market. Their 30-40 day closing, no prepayment penalty, and flexible term options make them competitive. Get quotes from UIF alongside Guidance Residential to compare.

Visit UIF Compare All Providers

Evidence and verification

What we verified about UIF, and when

Verified within 90 days

Data last verified

October 22, 2026 (2 days ago)

Provider portal attestation every 30 days; editorial re-check at least quarterly.

Shariah oversight on record

Formal Shariah board

Named oversight: Sheikh Nizam Yaqubi, Abdulbari Mashal, Mufti Abdullah Ebrahim Nana, Hussein Hamed Hassan; Sheikh Nizam Yaqubi, Abdulbari Mashal, Mufti Abdullah Ebrahim Nana, Prof. Hussein Hamed Hassan

Labels follow the four-level oversight taxonomy.

HalalWallet editorial score

Index grade A

Computed from the published rubric (Shariah integrity, transparency, cost and value, track record, verified data) and approved by a named editor. Commercial status is not an input. How grades work

Public sentiment signals

Google rating 4.5 / 5 from 42 reviews, as recorded October 22, 2026

External ratings are recorded, not endorsed. For complaints and licensing history, check the public registers below and the BBB directory.

Commercial relationship

Labeled Featured placement

This does not change the grade, the data shown, or default comparison order. Links carry a sponsored attribute. What each click does

Coverage in this registry

7 products across 4 categories in the U.S. registry

If UIF offers a Shariah-compliant product we do not list, tell us. Gaps are reported on the coverage map.

Regulatory context for this category

General to the category, not a statement about UIF. Use the public registers to confirm licensing and history.

Home financing: Residential home-financing providers must be licensed in each state where they originate; the NMLS Consumer Access register shows licenses, history, and regulatory actions. Halal contracts are recorded as a mortgage or deed of trust under state law and receive the same federal disclosures (TILA/RESPA) as conventional loans.NMLS Consumer Access
Bank accounts: Deposits at FDIC-insured banks are covered up to $250,000 per depositor per ownership category; credit unions are covered by the NCUA. Fintech apps usually hold deposits at a partner bank, so the partner's FDIC status is what applies.FDIC BankFind NCUA credit union locator
Vehicle financing: Auto-finance companies hold state sales-finance or consumer-lender licenses; federal TILA disclosures apply to consumer credit. Your state financial regulator lists licensees.NMLS Consumer Access
Business financing: Commercial financing has fewer federal protections than consumer credit. Several states (including California, New York, Utah, Virginia, Georgia, Florida, and Connecticut) require standardized commercial-financing disclosures. Read the total cost of financing in the agreement.SBA Lender Match

See something outdated or wrong?

This data was last verified Oct 22, 2026. Report a correction and we will re-check the primary source, fix the record, and log the change on our public corrections page.

Report a correction

Products from UIF

Category Category details.	Provider The Islamic finance company offering this product.	Product Name The specific halal product or service offered.	Description Brief description of the product or service.	Availability Which US states this provider serves.	Action
Business Financing	UIF	Commercial Real Estate Financing Full review	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 many but not all states (UIF confirms availability by state and property), with a dedicated non-profit program for 501(c)(3) organizations.	-	See pricing & terms Opens provider site - no obligation
Bank Accounts	UIF	Savings Account Full review	A nationwide profit-sharing savings account from UIF Corporation, a faith-based subsidiary of University Bank (Member FDIC). It opens with $100, carries no one-time or monthly fees, and pays a monthly anticipated profit computed on the daily balance - sourced from UIF's sharia-compliant portfolios of residential, commercial real estate, and vehicle financing under an investment-agency (wakala) structure per AAOIFI Standard 46. Funds are segregated from interest-bearing assets, principal is FDIC-insured up to $250,000, and the account is backed by a signed fatwa from UIF's independent Sharia Supervisory Board, which includes Sheikh Nizam Yaqubi.	Available in all 50 states	See pricing & terms Opens provider site - no obligation
Home Financing	UIF	Home Financing Full review	UIF's flagship Declining Balance Agreement (diminishing Musharakah) for buying a home or replacing an existing home loan across 32 states. Finance up to $2,000,000 on 15-, 20-, or 30-year terms with down payments as low as 3% - UIF positions itself as the halal alternative to FHA for low-down-payment buyers. Title sits in your name from day one with no LLC or trust, there are no monthly LLC fees, closings run in about 30 days, and you keep 100% of the appreciation when you sell. Qualification mirrors conventional financing, with a 620 credit floor.	Available in: 32 states	See pricing & terms Opens provider site - no obligation
Vehicle Financing	UIF	Auto Financing Full review	Full halal auto financing for new and used vehicles in MI, IL, OH, and TX, using a hybrid Partnership-Installment Sale structure: a Joint Purchase Agreement appoints you as UIF's buying agent, then converts into an installment sale. Finance $10,000-$150,000 on new vehicles (up to 72 months) and $10,000-$100,000 on used, from dealerships or private parties, including lease buyouts. Title is in your name at closing with UIF as lien holder, approval runs 24-48 hours, and early payoff collects only principal plus profit earned to date - remaining unearned profit is forgiven.	Available in: 4 states	See pricing & terms Opens provider site - no obligation
Home Financing	UIF	Renovation Financing Full review	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.	Available in: 9 states	See pricing & terms Opens provider site - no obligation
Bank Accounts	UIF	Deposit Account Full review	UIF's Profit-Sharing Time Deposit - the halal counterpart to a CD - offered nationwide through University Bank (Member FDIC). Terms run 12, 36, or 60 months from a $5,000 minimum, with a jumbo tier above $100,000 and a $2,000,000 maximum; anticipated profit is paid quarterly, by check or applied to the balance. The relationship is an investment agency per AAOIFI Standard 46: deposits fund UIF's sharia-compliant residential, commercial, and vehicle financing portfolios, segregated from interest-bearing assets, with the anticipated rate disclosed upfront in the account agreement. Principal is FDIC-insured; a signed fatwa from UIF's independent Sharia Supervisory Board covers the product.	Available in all 50 states	See pricing & terms Opens provider site - no obligation
Business Financing	UIF	Construction Financing Full review	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.	Available in: 5 states	See pricing & terms Opens provider site - no obligation

Construction Financing

Available in: 5 states

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.

Full review

See pricing & terms

Opens provider site - no obligation

HalalWallet is an independent, education-only comparison site. Some outbound links earn referral fees.Advertiser disclosure

Important: HalalWallet is not a lender, mortgage broker, loan originator, or settlement agent. We are an educational comparison site and do not originate applications on your behalf.

Items marked “Featured” may include paid placement in that module. Where you control sort order (tables, filters), your selection applies.

Where Available

Based on listings we track, UIF operates nationwide across the U.S.:

Nationwide availability

Availability may vary by product type. Always verify current availability directly with UIF.

How We Compare

• We review publicly available information from providers, including Shariah compliance documentation.
• We compare financing structures, total costs, down payment requirements, and state availability.
• We prioritize providers that clearly explain their halal compliance rationale and operate with transparency.
• We note which products are available nationwide versus regionally.
• Scholars rule; we organize the evidence. We do not issue fatwas or declare a provider halal on our own authority.
• Our methodology, the Trust Standard, and the public corrections log.

UIF is in HalalWallet's independent directory for Bank Accounts, Business Financing, Home Financing, Vehicle Financing, with listings covering nationwide across the U.S.. Structures we list: Musharakah, Mudarabah, Hybrid Partnership-Installment Sale, Istisna (construction). Confirm terms and Shariah documentation directly with UIF.

UIF currently has 7 products in our listings (Bank Accounts, Business Financing, Home Financing, Vehicle Financing).
Coverage we list: nationwide across the U.S..
Contract structures we list: Musharakah, Mudarabah, Hybrid Partnership-Installment Sale, Istisna (construction).
Always verify compliance directly with UIF and consult qualified Islamic finance advisors when needed.
Compare UIF with other providers on HalalWallet before you apply.

Source: HalalWallet (halalwallet.us)

How to use this comparison: Scholars rule; we organize the evidence. HalalWallet is an independent educational comparison platform - by design, we do not issue fatwas or provide financial, legal, or tax advice. We do the research homework so your final checks are quick and personal. Where our role ends and who takes over.

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: 2026-10-01

How to cite this page

Preferred format (HTML):

According to HalalWallet (“UIF Halal Finance Options”, https://www.halalwallet.us/providers/uif, retrieved 2026-10-24).

For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.

Related Guides

Frequently Asked Questions

What types of halal products does UIF offer?

UIF has 7 products we currently list across 4 categories. Structures we list: Musharakah, Mudarabah, Hybrid Partnership-Installment Sale, Istisna (construction). UIF is best for buyers who prioritize aaoifi certification; first-time buyers and refinancers; buyers wanting fast closing. Confirm terms directly with UIF.

How does UIF ensure Shariah compliance?

UIF is an AAOIFI institutional member (member since 2007), representing one of the strongest Shariah compliance credentials available in U.S. halal home financing. Their Musharakah structure follows AAOIFI Standard 46 with oversight from an independent Shariah advisory board. UIF publishes Shariah audit reports, providing transparency about the compliance review process. Licensed and regulated lender - NMLS #93460 (nmlsconsumeraccess.org); Illinois Residential Mortgage Licensee #MB.6760599 (IDFPR); New York Licensed Mortgage Banker LMB 109672 (NYS Department of Financial Services); Massachusetts Mortgage Lender License ML93460. Full state license list published at myuif.com/license-registration. UIF Corporation is not a bank - it is a faith-based subsidiary of University Bank, Member FDIC. Banking and deposit services are provided through University Bank, and deposit products are FDIC insured up to the maximum allowed. Profit-Sharing Deposit Accounts are structured on investment agency standards (AAOIFI Standard 46): UIF, as the depositor's agent, invests funds held at University Bank in faith-based compliant assets, segregated from any interest-bearing assets and deposits. All agreements are approved by UIF's Sharia Supervisory Board, which regularly audits UIF's business dealings. UIF's Sharia Supervisory Board has ruled that FDIC insurance on deposit balances is permissible under U.S. banking regulations because the FDIC is a third party to the depositor and the depository institution. The risk-sharing requirement is preserved on the profit side: depositors may earn above, below, or none of the anticipated profit rate depending on how the faith-based asset pool performs, while UIF may acquire additional faith-based assets or develop new products over time. Sharia Supervisory Board roster: Sheikh Nizam Yaqubi (chair) - Ph.D. in Islamic Law (University of Wales), BA in Economics and Comparative Religion (McGill); has served on more than 40 Shariah boards including Abu Dhabi Islamic Bank, Barclays, BNP Paribas, Credit Agricole CIB, Dow Jones Islamic Index, HSBC Amanah, Lloyds TSB, and Citi Islamic. Dr. Abdulbari Mashal - Ph.D. in Islamic Economics (Al-Imam Islamic University, Riyadh), 25+ years in Shariah audit, member of the Fiqh Council of North America (FCNA), member of AAOIFI's Governance and Ethics Board since 2015 (AAOIFI Shariah Committees 2007-2010), expert at the International Islamic Fiqh Academy (Jeddah), author of 14 textbooks and 60+ research papers. Mufti Abdullah Ebrahim Nana - BA (UC Berkeley), seven years of Islamic studies in South Africa with fatwa authorization, Imam at the Islamic Center of Mill Valley, presented Takaful research at the Harvard Islamic Finance Seminar. The board was formerly chaired by the late Prof. Hussein Hamed Hassan (d. August 19, 2020) - Ph.D. from al-Azhar (1965), former Chairman of the Assembly of Muslim Jurists of America (AMJA) board, author of 400+ books and research papers, who helped convert several conventional banks to Islamic banks and led the transformation of the Dubai Financial Market into the world's first Islamic financial market. UIF states that AAOIFI standards govern its fatwa: it is a fully accredited AAOIFI member and the scholars on its Shariah Board are themselves active members of AAOIFI (AAOIFI, established 1991, maintains 100 standards across Shari'ah, accounting, auditing, ethics, and governance). UIF is a Michigan corporation and is not a "bank" under state or federal law - it is not authorized to hold customer deposits and is not itself FDIC insured. Customer deposit accounts are held at its parent, University Bank (Member FDIC), while UIF's own role is limited to Shariah-compliant financing transactions. Regulatory basis: as a bank subsidiary, UIF's faith-based real estate financing falls within the OCC-recognized "business of banking" - the Office of the Comptroller of the Currency has held these structures permissible for national banks and their subsidiaries (OCC Interpretive Letter #806 on lease-to-own; #867 on Murabaha installment sales). Title arrangement: although the property is jointly owned under the Musharaka partnership, UIF waives its right to go on title so the customer holds sole legal title from day one - an arrangement UIF's Sharia Board approved to avoid transfer taxes and hardship for the customer. The customer must notify UIF before major repairs or a sale, and can sell at any time by paying the buyout amount in full. Per AAOIFI standards (and other scholarly positions cited by UIF), Sharia does not require an LLC vehicle to establish or legitimize a partnership - UIF partners directly with the customer, with its property interest evidenced through the publicly recorded mortgage or deed of trust referencing the Declining Balance Partnership Agreement. Signed, published fatwas: UIF's deposit products carry formal Certificates of Shariah Accreditation signed by the full Sharia Supervisory Board - Time Deposit Account fatwa issued January 11, 2023 and Profit-Sharing Savings Account fatwa issued March 4, 2024, both published at myuif.com/fatawa. Per the fatwas, the products combine an Agency Agreement (customer appoints UIF as agent) with a Management & Services Agreement at the depository bank and a Mudharabah Partnership Agreement. The fatwas and audit reports confirm board roles: Sheikh Nizam Yaquby, Ph.D. signs as Chairman of the SSB, Dr. Abdulbari Mashal as Executive Member (and Managing Partner of Raqaba, the independent Shariah audit network that serves as Secretary of the SSB), and Mufti Abdullah Nana as Member. Independent Shari'ah Auditor's Report (dated April 23, 2025, covering the audit year ending June 30, 2024): conducted in accordance with AAOIFI standards and the International Auditing and Assurance Standards Board's assurance standards, it concluded that ALL contracts and transactions executed by UIF during the year complied with the Shari'ah rules and principles accepted by the board - a clean opinion. Full state licensing (per UIF's July 2026 provider intake): Alabama Consumer Credit License #23011; Arizona Mortgage Banker License #BK-1023915; California DFPI Financing Law License #603I396; Colorado Mortgage Company Registration; Connecticut Mortgage Lender License #21151 and Exempt Mortgage Servicer Registration #EMSR-93460; Delaware Lender License #040980; Georgia Mortgage Lender License/Registration #57766; Illinois Residential Mortgage License #MB.6760599 and Sales Finance Agency License #SF.0001683; Kentucky Mortgage Company License #MC386626; Maine Supervised Lender License; Maryland Mortgage Lender License #93460; Massachusetts Mortgage Lender License #ML93460; Minnesota Residential Mortgage Originator Exemption #MN-0X-93460 and Residential Mortgage Servicer Exemption #MN-SX-93460; New Jersey Residential Mortgage Lender License #0758541 and Residential Mortgage Servicer Registration; New York Licensed Mortgage Banker #LMB 109672 and Exempt Mortgage Loan Servicer Registration; Oklahoma Exempt Company Registration #MB012524; Oregon Mortgage Lending License #ML-5498; South Carolina Mortgage Lender/Servicer License #MLS-93460; Washington Consumer Loan Company License #CL-93460. UIF Corporation holds an A+ rating from the Better Business Bureau (BBB profile: mortgage broker, Southfield, MI).

How does UIF work?

Apply & Get Pre-Approved: Submit your application with income, credit, and asset documentation. UIF evaluates your profile. Joint Purchase: UIF and you jointly purchase the property as co-owners under a Musharakah agreement. Monthly Payments: Each month, you pay rent on UIF's share plus an equity buyout amount. Your ownership increases over time. Full Ownership: At the end of the term (10, 15, 20, or 30 years), or earlier if you prepay, you own the home outright.

Is UIF available in my state?

UIF operates nationwide across the U.S., though specific products may have regional limitations. Always verify current availability directly with UIF.

What are alternatives to UIF?

UIF competes directly with Guidance Residential in overlapping markets. Both use Musharakah-style structures but with different scholarly endorsements. Guidance Residential: Both use co-ownership/Musharakah structures. Guidance has AMJA endorsement; UIF has AAOIFI institutional membership. Guidance covers 38 states vs. UIF's 32. Compare total cost over the full term. IjaraCDC: IjaraCDC covers all 50 states with an Ijara structure. IjaraCDC works better for credit-challenged buyers. Different structure - compare if you're deciding between Musharakah and Ijara.

Are UIF's products more expensive than conventional options?

Halal financing structures can have different fee structures compared to conventional products. Some options may be competitive with conventional rates, while others may have different cost structures. Pricing varies by product type, location, and individual circumstances. Always compare total costs and terms when evaluating options.

How do I contact UIF?

Visit UIF at www.myuif.com/commercial/, or use the product links on this page.

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