What is the ruling on a housing loan?

It is not permissible to borrow with interest, because it is forbidden usury (riba). Allah has forbidden usury, and the Messenger of Allah, peace and blessings be upon him, cursed the one who consumes it and the one who feeds it. It is not permissible to deal with it except in a case of dire necessity, which is when a person reaches a point where, if they do not consume what is forbidden, they will perish or be close to perishing. Prohibitions are permitted in such cases, as are others. Need (hajah) takes the place of necessity (darurah), whether it is general or specific. It is less severe than necessity but leads to hardship and difficulty that are usually unbearable.