Lender review
University Bank review: what Michigan borrowers should know
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.
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%
- MSHDA MI Home Loan
- Approved lender
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
The full picture on University Bank
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 home financing in the entire country.
RIBA-free Islamic financing
For Muslim buyers in southeast Michigan who need financing structured to avoid interest, that specialty is the whole reason to call.
The real limits
University Bank offers no in-house FHA, VA, or USDA government loans, and its footprint centers tightly on Washtenaw County.
The conventional line is narrower than a big lender's, so if your priority is a low-down government loan, look elsewhere first.
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. Below, that 620 floor is plotted against the four broad credit tiers and the 620 median for the 55 Michigan lenders we track.
| 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.
Compare: Dart Bank Mortgage 1 Success Mortgage Partners This week's Michigan rates
University Bank: frequently asked questions
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. That 620 is a floor, not a promise: every lender layers on its own overlays, and approval still turns on your income, debts and the property.
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 2026-07-16 and can change; the only rate that binds a lender is a written Loan Estimate. Verify the license at NMLS Consumer Access (#715685). MSHDA status reflects the state's MI Home Loan lending-partners list dated June 12, 2026, which changes over time.