Brief Summary of Faith Based “Lease to Own” Financing

The faith based home financing program offered by UIF Corporation (UIF – A subsidiary of University Bank) of Ann Arbor, Michigan is a lease to own program whereby a purchaser enters into a standard contract to purchase with a seller. The contract/purchase agreement will be assignable to a Trust or an LLC who will take title and be insured under a standard Owner’s policy.

The Trust or LLC will contribute most of the purchase price and the purchaser, who will be, at first, a residual beneficiary of the Trust or LLC, will contribute the remainder of the purchase price and take possession of the residence pursuant to a lease from the Trust or LLC to the purchaser. Therefore the only two policies to be issued is an owner’s and owner’s leasehold policy.

Specific Details for Purchase Transactions:

  • UIF Trust, LLC (F/K/A Shape Trust LLC) settles a Trust Entity on behalf of UIF Corporation (For properties in Illinois an LLC is established where UIF Trust, LLC is the single member)
  • The Trust or LLC Name is “Lessee’s Last Name, Property Address, Trust/LLC”
    • For Lessees with different last names, include both last names in the name of the Trust/LLC
  • A Rider to Contract is attached to the Purchase Agreement at closing signed by seller and buyer assigning the Trust or LLC as new purchaser
  • Seller deeds to Trust or LLC
    • The Trust or LLC’s address is: 29777 Telegraph Road, Suite 3590, Southfield, MI 48034
    • Seller Purchases Owner’s Policy to insure the Trust or LLC as buyer in the amount of the purchase price
  • The Buyer enters into:
    • Redeemable Lease with Trust or LLC
    • Promise to Purchase with Trust or LLC
  • Buyer purchases ALTA Owner’s Leasehold 13.1 (w/45-116) policy, insuring the Trust or LLC in the amount of the purchase price

Specific Details of Refinance Transactions:

  • UIF Trust, LLC (F/K/A Shape Trust LLC) settles a Trust Entity on behalf of UIF Corporation (For properties in Illinois an LLC is established where UIF Trust, LLC is the single member)
  • The Trust or LLC Name is “Lessee’s Last Name, Property Address, Trust/LLC”
    • For Lessees with different last names, include both last names in the name of the Trust/LLC
  • The Lessee(s) (the current title holders) transfer title of the property via a Quit Claim Deed to the Trust or LLC
    • The Trust or LLC’s address is: 29777 Telegraph Road, Suite 3590, Southfield, MI 48034
  • The Lessee(s) enters into:
    • Redeemable Lease with Trust or LLC
    • Promise to Purchase with Trust or LLC
  • Lessee purchases ALTA Owner’s Leasehold 13.1 (w/45-116) policy, insuring the lessee in the amount of the transaction amount

Parties Involved:

UIF Trust, LLC:

  • Trustee of the Trust Entity or Single Member of the LLC on behalf of UIF Corporation (see all entity documents available as pdfs on this page)
  • Have the Trademark on the product/lease documents and have licensed its use to University Bank/UIF Corporation

UIF Corporation

  • Financier and Primary Beneficiary of Trust or LLC
  • Funds will be wired from UIF Corporation
  • Trust Participation Certificate holder after closing
  • Contact:
  • UIF will establish the Trust or LLC and prepare document package, execute and overnight originals, and email a copy to you, separate from the standard closing documents, that includes the following:
    • Trust Participation Certificate (not applicable for Illinois properties)
      • Identifies the “Holder” of the Trust Participation Certificate, and Trustee acts for whoever holds this certificate (UIF Corporation)
    • Michigan Certificate of Trust (only applicable for Michigan properties)
      • Michigan’s requirement to acknowledge the Delaware Trust (recorded with the county in which the property is located)
    • Trust Indenture (Exhibit “B” to Michigan Cert. of Trust) (no applicable for Illinois properties)
      • Establishes what the Trust is allowed to do on whose behalf (recorded with the county in which the property is located)
    • Lease
      • Contract between Lessor (Trust or LLC) and Lessee
        • Includes the terms and rent under the contract
    • Adjustable Factor Rider to Lease
    • Promise to Purchase
      • Applicant promises to purchase the home from the Trust or LLC at some later date
    • Memorandum of Lease and Promise to Purchase
      • Summary of the transaction (recorded with the county in which the property is located)
    • Monthly Allocation Schedule; Payment Address
  • Warranty Deed to be prepared by settlement agent and MUST be reviewed and approved by UIF prior to closing

Document Recording Requirements by State:

Corporate Documents:

Sample Closing Documents:

Instructions on viewing PDF Documents

The forms on this website are in Adobe’s Portable Document Format (PDF).