Is it Islamically permissible to take out an interest-bearing loan to buy a home, knowing that it is the only available solution, and given the difficult circumstances and the inability to purchase a house without this loan?

It is not permissible to take out a usurious loan to own a home if renting is possible, or if a permissible financing can be obtained from Islamic banks. Renting fulfills the need for housing without ownership.

However, if renting is not possible, and severe hardship results from it that cannot be endured except by a usurious loan, then it is permissible at that point, on the basis that necessities permit the prohibited, as Allah Almighty says: "And He has already explained to you what He has forbidden to you, except for that which you are compelled to [eat or use]" (Al-An'am:119). But this applies only in cases of severe hardship that entails harm to oneself, or one's limbs, or honor, or intellect, or wealth, and not merely for luxuries or improving one's living standard.