Home Financing – Installment Sale FAQ

house key in hand

Our installment sale product is primarily used for a home purchase. You identify the home you would like to purchase, then UIF purchases the house of your choice and sells it to you at a marked-up price. You then make equal installment payments toward the balance of the marked-up price of the home.

A conventional transaction is a loan of money to you for the purchase of a home on which you pay interest. An installment sale transaction is a sale of a home with a deferred payment plan.

UIF’s goal is to provide its customers the lowest cost pricing structure in the industry. With that said our profit rate is determined by market conditions and the amount of profit the investor (University Bank) wishes to make on the transaction. We also track industry pricing so we are never priced higher than our competitors. Please feel free to contact us and learn more about our pricing and payment programs

Our lease to own product is a lease, whereas a our installment sale product is a sale. In a lease to own transaction, a trust is on title to the property, and you enter into a lease-to-own contract with the trust. In an installment sale transaction, UIF will purchase the home and then sell it to you at a marked-up price on a deferred payment plan.

There are two types of costs when you purchase or refinance a house…financier (Bank) charges and third party fees. Generally, third party fees comprise of property appraisal fees, credit report fees, recording fees, title insurance and other settlement costs. These fees vary by State and County you are purchasing the property in. One of our experienced Sales consultants can advise you on what your closing costs will be based on where you are financing the property.

With our installment sale program, you can put down as low as 5% of the purchase price. However, if you put down less than 20%, there will be an added cost, also known as PMI. This is charged to compensate UIF for the added risk of financing low down payment properties. The added cost is based on many factors, including the amount of down payment, credit score, income, etc. Your financing consultant can answer more questions on this topic and calculate this cost for you. UIF specializes in financing low down payment customers. Contact us and review your options before considering FHA (government) backed conventional loans.

Our installment sale contract does not have any pre-payment penalties. You can pay off the remaining acquisition balance at any time you wish. Profit portion is prorated, and UIF agrees to accept a lesser profit should you choose to pay off the contract early.

There is a flat fee of $50 that is used to compensate for the cost of third party collection. We do not charge you an arbitrary percentage of your monthly payment as others may. This is paid to a third party company that makes collections on our behalf at the same cost to us and you.

If you are putting down 20% or more (10% for CA residents) you have the option to pay taxes and insurances yourself and a fee may apply. If you are putting down less than 20% you have to Escrow with us. UIF collects taxes and insurance on a monthly basis and pays the appropriate parties on your behalf. This insures that you are never in default due to a failure to pay taxes or maintain required property insurance.

Minimum down payment for our Murabaha program is 5%. In some cases the down payment may be higher based on the location where you are purchasing the property.

The Installment Contract is a contract signed by two parties that reflects the nature of the installment sale, which is the sale of property. The Note reflects the nature of a conventional mortgage, which is a loan of money with interest.

Your installment payment stays the same until the contract is paid off in full. If you make a large additional payment you will end up paying the contract sooner than the original term. Making extra payments towards your outstanding balance assures that you pay less profit to UIF over the contract term.

Yes! Since UIF sold the house to you, UIF does not share in the profits with you. You can sell your house whenever you wish and pay back the remaining installment sale acquisition balance at closing to UIF. With our program, the title is in your name from day one.

Yes. Because this is not a conventional mortgage, we have separate and different documents that need to be signed before and at closing. Your sales consultant will coordinate all paperwork with realtors, title companies, and sellers. Rest assured — we will guide you throughout the process and close your file in a timely fashion.

Yes. You can do either one of these at any time you wish. Terms and Conditions apply please speak to one of our Sales Consultants. Click here to contact a Sales consultant.

Simple answer is YES. Federal law requires that we mail you a 1098-INT form that shows how much profit you paid us during the prior year. You can deduct this profit on your Income taxes. Please consult your accountant as there may be limitation on this deduction.

Yes, this can be taken care of by our sister company, Midwest Loan Services, who services all our transactions.

Yes, this information can be viewed online here.

UIF works very closely with its customers in hardship situations. Our goal is to keep you in the house and work out a potential solution. However, if you cannot make payments and there is no resolution to this matter, UIF has the right to foreclose and take possession of the property.

No. You own the home and can sell it at any time you wish.

Yes, you may use our Installment Sale program to purchase investment properties of 1-4 units.

No, we have the same qualification process, no more or less stringent.

Currently UIF offers home financing in the states of California, Colorado, Connecticut, Florida, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Our home financing products are only available to finance properties in these states.