Is it permissible to take out a loan with interest from banks for the purpose of building a house, knowing that the costs of rent and living are high, and there is no alternative for borrowing this large amount of money from relatives?

It is permissible to deal with Islamic banks to build a family home if the transaction adheres to Islamic legal guidelines, especially given the presence of Islamic banks in Iraq.

Conversely, it is not permissible to borrow with interest (riba) or deal with usurious banks, especially for those who find an Islamic alternative. The resolution of the Islamic Fiqh Academy states: "It is forbidden to deal with usurious banks in all transactions prohibited by Sharia. It is incumbent upon a Muslim to deal with Islamic banks, if possible, to avoid falling into what is forbidden or aiding in it."

And: "It is forbidden for any Muslim who can deal with an Islamic bank to deal with usurious banks, whether domestically or abroad. For there is no excuse for him to deal with them when an Islamic alternative exists. He must replace the impure with the pure, and suffice himself with the lawful over the unlawful."