Commercial Financing FAQ

We use a lease to own structure. You do not sign a note for money and you do not sign a mortgage. We rely upon the experience of our board of scholars and the Fatwa that can be found here,

UIF, through our parent University Bank, is the only place in the country that offers FDIC insured, Faith Based bank accounts. As our commercial Lease to Own clients make their monthly lease payments, a profit is created. We share that profit with our depositors who have provided funds for our Lease to Own transactions.

We are limited to real estate only and do not finance construction, development, gas stations or hotels/motels. We welcome the opportunity to finance professional offices.

We do not provide Islamic financing in Maryland or Louisiana.

We have provided financing in California, Illinois, Indiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio, Texas, and Virginia. While we have not been asked to provide Islamic financing in any other state, we know of no reason why we would be unable to do so.

UIF’s maximum transaction is $1.3 million. However with exceptional transactions we may be able to finance as much as $2.6 million.

We will review your personal credit, cash flow from your business, a proven secondary source of repayment and an initial deposit. Depending on the type and location of the property, the amount of the initial deposit will generally be between 30% and 40% of purchase price or appraised value of the real estate, whichever is less.

You will need to provide a personal financial statement, 3 years complete federal tax returns including all K-1’s and W-2’s and a legible valid driver’s license or passport. For each business in which you have more than 15% ownership you will need to provide the articles of incorporation and by-laws or partnership agreement and operating agreement along with 3 years of federal tax returns, 2 end-of-year financial statements including balance sheet and income statement and the most recent monthly or quarter financial statement and for the same period of the previous year.

Never less than sixty days from receipt of all of the initial documents and the deposit for the appraisal and survey ($6,500).

Closing costs depend upon the state and the complexity of the transaction. Within the closing costs there are three kinds of fees, those charged by UIF (1% of the amount financed with a $2,500 minimum), third party fees (amounts charged by other parties) and escrows.

Typical Third Party Fees Include:

  • Attorney: $5,000 – $10,000
  • Commercial Appraisals: $1,500 – $3,500
  • Commercial Survey: $1,500 – $3,500
  • Credit Reports (each): $20
  • Michigan LLC Formation: $50 – $150

Currently our commercial portfolio is over represented by Mosques, schools and Musallas. UIF management will only consider transactions to non-profit organizations that will be used to provide income for a community such as retail, professional office or multi-family properties.

From each board member we require the documents below:

  • Current drivers license or passport
  • Social security number
  • Position in organization
  • Resume or brief professional biography
  • List of all non-profit organizations in which you are a board member or officer

From the community organization:

  • Three end of year financial statements including income sheet and balance statement
  • Three 990 federal tax return, if filed
  • Name and address and amount of contributions for all donors who exceeded $3,000 annually

California, Illinois, Indiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio, Texas, and Virginia.

  • 501(c)3 Organization
  • 40% equity either in real estate or cash
  • Two years of financials including balance sheet and income and expense statement
  • Minimum of three qualified personal guarantors