Is it permissible to acquire a house that was built with an interest-bearing loan and pay off its remaining installments, or rent it out, knowing that the one who took the interest-bearing loan wished to divest himself of the house?

Whoever borrows with usury has sinned, and repentance and repayment of the loan are obligatory upon him. If he can avoid paying the interest, he should not pay it. As for the borrowed money, he is permitted to benefit from it.

There is no harm for you in renting your brother's house, which he bought with a usurious loan, or buying it from him for a known amount.

However, it is not permissible to buy it by paying the remaining installments to the bank, nor to rent it on the condition of paying rent that includes usury to the usurious bank. This is because paying the remaining installments to the bank constitutes aiding usury.

The Prophet, peace and blessings be upon him, cursed the one who consumes usury, the one who feeds it, its scribe, and its two witnesses. They are all equal in sin, due to their involvement in aiding falsehood.