The Prohibition on Riba (Usuary) in Buying a House
Some Muslims have become entangled in Riba as a result of interest loan taken from banks to buy a home. They got a Fatwa (religious verdict) from some people who said paying Riba in this situation is permissible for people who don’t own houses already, because they are forced into it by necessity. In order to support their position, they made Qiyas (analogy) on the permissibility of eating dead flesh (of an animal which was not slaughtered properly) when a person is starving to death.
The two situations are totally different. The person who is permitted to eat dead flesh is starving; if he doesn’t eat, he may die. Whereas the person who doesn’t not own a home can rent one, or buy an apartment, or perhaps he could buy a very simple home without resorting to a loan, rather than buying a more luxurious home on interest.
That is far better for him than to enter into an interest loan, exposing himself to war with Allah and His Messenger (SAW). Also, the borrower may get behind on his payments which will result in increasing interest, and one day he might lose the house, either selling at a loss or having the bank foreclose the mortgage and take back the house.
The Sahabah (R.A.) also faced problems of poverty and housing shortages, but they didn’t resort to Riba, so those who issue these “Modernistic” Fatwa and those seeking loans, should fear Allah and steer clear of Riba.