Brief Summary of Faith Based “Installment Sale” Financing

The faith based home financing program offered by UIF Corporation (UIF – A subsidiary of University Bank) of Ann Arbor, Michigan is a Marked-up Installment Sale program whereby a purchaser enters into a standard contract to purchase with a seller. The contract/purchase agreement will be assignable to UIF who will take title, then immediately quit claim title to the buyer at a marked-up price to be paid over equal installments. UIF will be insured under a standard Lender’s policy, and the Purchaser will be insured under a standard Owner’s policy.

In many states and in special circumstances, we are not able to administer our standard two-deed process. In these cases, the Deed for the property goes directly from the Seller to our Buyer, and we execute a Temporary Agency Agreement with our Buyer at closing which assigns them as our agent temporarily to accept the Deed to the property on our behalf.

In a refinance scenario, we are replacing existing financing with our Marked-up Installment Sale program. For religious purposes this is structured much more like a purchase, meaning we generally have some form of ownership change to meet program requirements. In general, there will be two deeds at closing with a slight change in title. However, in many states and in special circumstances, we are not able to administer our standard two-deed process. In these cases, there may only be ONE deed or NO deed during the refinance transaction, and we execute a Temporary Agency Agreement with our Applicant at closing which assigns them as our agent temporarily to accept the Deed or ownership to the property on our behalf.

Specific Details for Purchase Transactions:

  • A Rider to Contract is attached to Purchase Agreement at closing signed by seller and buyer assigning UIF Corporation as new purchaser
  • Seller deeds to UIF Corporation.
    • 29777 Telegraph Road, Suite 3590, Southfield, MI 48034
    • Seller Purchases Owner’s Policy to insure the buyer, in the amount of the purchase price
  • UIF Corporation immediately Deeds the property to buyer, for consideration of $1.00
  • OR: The Seller deeds to Buyer directly, and UIF and Buyer sign a Temporary Agency Agreement (please see closing instructions and document package)
  • The Buyer enters into:
    • Mortgage with UIF Corporation (with immediate assignment to University Bank)
    • Installment Credit Sales Contract with UIF Corporation

Buyer purchases a Lender’s policy, insuring UIF Corporation in the amount of the financing.

Specific Details for Refinance Transactions:

  • Current vested title holder(s) Quit Claim the property to UIF Corporation
    • 29777 Telegraph Road, Suite 3590, Southfield, MI 48034
  • UIF Corporation Quit Claims to new Applicant
  • OR: The current title holders Quit Claim the property directly to the Applicant, and UIF Corporation and the Applicant sign a Temporary Agency Agreement (please see closing instructions and document package)
  • The Applicant enters into:
    • Mortgage with UIF Corporation (with immediate assignment to University Bank)
    • Installment Credit Sales Contract with UIF Corporation
  • Applicant purchases Lender’s policy, insuring UIF Corporation in the amount of the financing.

Parties Involved:

UIF Corporation:

  • Financier (Agent on behalf of University Bank)
  • Funds will be wired from UIF
  • Immediately Assign Mortgage/Deed of Trust to University Bank at closing (Must be recorded with Mortgage/Deed of Trust)
  • Contacts:
  • Processing/Closing:
    • UIF will email closing package to Title Company
    • UIF will have Authorized Representative sign and overnight to you:
      • Quit Claim from UIF Corporation to buyer (if applicable)
      • Assignment of Mortgage/Deed of Trust to University Bank

SHAPE™ Financial Corp.:

  • Have the Trademark on the product/security instruments and have licensed its use to University Bank and UIF Corporation.

Documents to be Recorded:

  • Mortgage or Deed of Trust
    • Any applicable riders
    • Assignment of Mortgage or Deed of Trust to University Bank
  • Warranty Deed / Quit Claim Deed (if applicable)
    • Purchase Transactions
      • Seller to UIF Corporation
      • Quit Claim from UIF Corporation to Buyer
    • Refinance Transactions
      • Current Owner to UIF Corporation
      • Quit Claim from UIF Corporation to new obligor
  • ALL RECORDED DOCUMENTS SHOULD BE RETURNED TO UIF Corporation
  • Please attached Exibit A legal descriptions where required.

PDF Documents

Corporate Documents:

  1. UIF – Authorization to sign mortgage documents
  2. UIF – Certificate of Good Standing & Articles of Incorporation

SAMPLE Documents:

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