University Islamic Financial Corp. is pleased to reveal that we now offer two Sharia compliant home acquisition programs or a replacement plan.  You can purchase your home with an installment sale (Murabaha) or a redeemable lease (Ijara) that is fully compliant with Islamic Guidelines (Sharia) and, therefore, free of interest (riba) and doubtful practices (gharar).  Murabaha and Ijara are two of the forms of business that are Islamically acceptable. 

We currently offer Sharia compliant home financing in the following states: Illinois, Indiana, Maryland, Michigan, New Jersey, Ohio, Texas, Virginia, New York, California, Connecticut*.

*Pending reqistration and licensing as of May 2008, please check on the current status by calling 1-800-916-UIFC.

Murabaha (Installment Sale)
     The program is based on Murabaha, an installment sale, or a marked up sale.  You select the property, UIFC-acting as agent for University Bank-will purchase it for you and sell it to you at a marked up price.  At the closing, you make your down payment toward the acquisition price.  This is your initial down payment, which may be as low as 5% in certain cases, or as high as suits your circumstances. 
     Your down payment represents your initial investment in the property.  Your monthly payments include profit from the mark up and a payment toward your investment, thereby increasing your investment in your home.  You acquire full title to the property at the time of closing, when your initial down payment is made. 
    University Islamic Financial Corp. accepts Murabaha applications up to $417,000 with a minimum initial down payment of 5% (in certain cases). Final approval will take place once UIFC  receives your completed application package. A deposit is required at application which will be refunded at closing.

Ijara (Redeemable Sale)
     The program is based on Ijara wa Iqtina, or a lease followed by an acquisition.  You select the property and an independent Trust acquires it and rents it to you. 
     At closing, you may make your down payment towards the acquisition price. This is your initial payment on-account, which may be as low as 20% or as high as suits your circumstances.
     Your payment on-account represents your beneficial rights in the property. Your monthly payments include rent and a further payment on-account, thereby increasing your beneficial rights. You can acquire full title to the property when the sum of your payments on-account equals the original purchase price. The original purchase price is the goal toward which you are always working; we do not adjust it over the life of the lease. This eliminates gharar.
    University Islamic Financial Corp. accepts SHAPE™ applications up to $1,300,000 with a minimum initial payment on account of 20%. Final approval will take place once UIFC  receives your completed application package. A deposit is required at application which will be refunded at closing.