Lender review
University Bank review: what Michigan borrowers should know
Best for: michigan buyers seeking riba-free islamic home financing
- Headquarters
- Ann Arbor, MI
- Founded
- 1890
- NMLS
- #715685
- Min. credit score
- 620
- Min. down payment
- 3%
University Bank is a small, locally owned Ann Arbor community bank whose standout is faith-based lending: through its UIF Corporation subsidiary it is one of the largest providers of Sharia-compliant, RIBA-free home financing in the country. For Michigan's Muslim buyers that niche is hard to match locally; conventional and reverse options round out a modest but distinctive menu.
Most lenders on any Michigan list are variations on the same theme; University Bank is not. This small, locally owned Ann Arbor community bank runs UIF Corporation, one of the largest providers of Sharia-compliant, RIBA-free home financing in the entire country, a niche almost impossible to match locally.
For Muslim buyers in southeast Michigan who need financing structured to avoid interest, that specialty is the whole reason to make the call, and it's backed by an actual in-person bank rather than a distant portal. Eligible Washtenaw County buyers may also tap Neighborly Housing Grant help, and conventional and reverse options fill out the menu.
The distinctiveness comes with real limits. University Bank offers no in-house FHA, VA, or USDA government loans, its footprint centers tightly on Washtenaw County, and the conventional line is narrower than a big lender's. If your priority is a low-down government loan rather than faith-based financing, look elsewhere first.
What works
- Leading RIBA-free Islamic home-financing option (UIF)
- Locally owned, in-person Ann Arbor community bank
- Neighborly Housing Grant help for eligible Washtenaw buyers
What to watch
- No in-house FHA/VA/USDA government-loan menu
- Small footprint centered on Washtenaw County
- Conventional product line is narrower than big lenders
Loan programs at University Bank
Which core Michigan loan types University Bank offers, with the typical minimum down payment for each program. Program floors are industry standards — University Bank's own minimums or credit overlays may run higher.
| Loan program | Offered | Typical min. down |
|---|---|---|
| Conventional | ✓ Yes | 3% |
| FHA | — No | — |
| VA | — No | — |
| USDA | — No | — |
| Jumbo | — No | — |
| Construction | — No | — |
Also offers: Refinance, Reverse, Islamic (RIBA-free).
Where University Bank's credit bar sits
University Bank's roughly 620 minimum sits in the good credit range. The marker below sets 620 against the four credit tiers and the 620 catalog median.
| University Bank | Michigan median* | |
|---|---|---|
| Editorial score | 3.9 / 5 | 4.0 / 5 |
| Min. credit score | 620 | 620 |
| Loan programs offered | 4 | 5 |
| Michigan-headquartered | Yes | — |
*Median across the 55 Michigan lenders in our catalog.
How University Bank's rates and offers compare
Before committing, pull a same-day quote from at least two competitors — pricing gaps of 0.25% are common for identical borrowers. Start with Dart Bank, Mortgage 1 or Success Mortgage Partners, then compare Loan Estimates line by line. Today’s Michigan averages live in our Michigan rate table.
University Bank: frequently asked questions
What are University Bank's mortgage rates in Michigan?
University Bank doesn't post one rate — like every lender, its pricing turns on your credit score, down payment, loan size and the day you lock. Ask for a personalized quote to see the number you'd actually get. The reliable move: pull a written Loan Estimate from University Bank and set it beside this week's Michigan averages in our rate table, comparing on the same day.
Is University Bank a legitimate mortgage lender?
Yes. University Bank is a licensed mortgage lender registered under NMLS #715685 and lending since 1890. That license and its full regulatory history are public at NMLS Consumer Access. In our independent scoring it lands at 3.9/5 for Michigan buyers, with no paid placement.
What credit score do you need for a University Bank mortgage?
University Bank generally looks for a credit score around 620 on its most common loans. Conventional and jumbo loans usually want higher scores than that floor. Loan type and overlays move that number, so confirm your own threshold before counting on 620.
Does University Bank offer FHA, VA and USDA loans?
University Bank does not focus on government-backed loans. It does not currently offer FHA, VA and USDA — buyers who need those should compare a lender that does. Its complete Michigan lineup is Conventional, Refinance, Reverse, Islamic (RIBA-free).
Does University Bank lend in Michigan?
Yes — University Bank is headquartered in Ann Arbor, MI and is a Michigan-based lender, so Michigan purchases, refinances and state programs such as MSHDA down-payment assistance are everyday business rather than an afterthought.
Will University Bank sell my mortgage after closing?
It may. Many lenders sell the servicing rights to a loan after closing, so ask University Bank directly whether it retains servicing or transfers it — your rate and terms won't change either way.
Independent and unpaid — University Bank did not pay for placement. How we score every lender (and where our rate data comes from) is set out in our editorial policy. Figures reflect public information as of 2026-07-01 and can change; the only rate that binds a lender is a written Loan Estimate. Verify the license at NMLS Consumer Access (#715685).