Is it permissible to reside and pray in a house that was built with money borrowed from an interest-based bank?

It is not permissible to borrow with interest from banks or any other entity, whether the interest is small or large, even if it is called "banking services." Usury is a major sin with grave consequences in this world and the Hereafter. A usurer is at war with Allah and is accursed. Whoever has borrowed with usury must repent to Allah, regret their action, and resolve not to return to it. They must rid themselves of the corrupt contract by paying back the principal without any increase, even if it means selling the house. If they are unable to do so or if it results in severe harm, they must be sincere in their repentance and hasten to repay. As for residing in the house and praying in it, sincere repentance removes the sin, and the prayer is valid.