Wants to Buy a House with Riba
29-1-2002 | IslamWeb
Question:
I live in the USA. I am very well paid in the wireless industry in California. There is no way to buy a house through the system in America except via a bank that would lend me money with interest. According to Islam interest is forbidden. Does this mean that the Muslims have to always rent and spend a chunk of their earnings and not invest them in buying a house? I need to know the answer to this question. Please let me know at your earliest convenience. I will share your feedback with my fellow brothers.
Answer:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
Dear brother, we ask Allah to grant you success so that you can do what He likes and avoid what He dislikes and commit yourself to the teachings of Islam in all walks of life, especially to have lawful food and house.
You should know that borrowing money with Riba (usury and interest) is strictly forbidden unless there is a dire need that forces one to do so.
Allah Says (what means): {So fear Allah as much as you are able and listen and obey…} [Quran 64:16]
Allah also Says (what means): {…But if one is forced by necessity without willful disobedience nor transgressing due limits, then there is no sin on him. Truly, Allah is Oft-Forgiving, Most Merciful.} [Quran 2:173]
But, if there is no such dire need or there is need to have a house, for example, i.e. a problem which one can solve by some means or another, then borrowing money with Riba is forbidden.
In addition, one who does such an act has, in fact, opened a door of evil and disappearance of blessings. He/she will face a strong Divine war.
Allah Says (what means): {Allah will destroy Riba (usury) and will give increase for Sadaqat (deeds of charity, alms, etc.) And Allah likes not the disbelievers, sinners. Truly those who believe, and do deeds of righteousness, and perform As-Salat (Iqamat-as-Salat), and give Zakat, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve. O you who believe! Be afraid of Allah and give up what remains (due to you) from Riba (usury) (from now onward), if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).}[Quran 276-279]
Thus, you have to fear Allah and to avoid any form of dealing with Riba unless there is a dire need, which forces you to resort to Riba while you have no other means to avail of.
Then, Allah will grant a way out for anyone who heeds Him. Allah Says (what means): {…He will make a way for him to get out (from every difficulty). And He will provide him from (sources) he never could imagine …} [Quran 65:2-3]
Finally, you have to know that residence in non-Muslim countries is full of risks and dangers.
Allah knows best.