Is it permissible to take out an interest-bearing housing loan from a bank that mortgages the land and house with a 2% interest rate paid in installments, knowing that the house becomes the property of the bank until the full amount is repaid?

What the questioner mentioned is not correct. The usurious bank does not sell the house for a deferred price. Rather, it lends a sum to the person desiring accommodation to build a house, and demands that the borrower mortgage the land of the house with it. This scenario combines two contracts: a usurious loan contract, which is forbidden, and a mortgage contract, which is permissible. If they are inseparable, then it is not permissible to enter into them.