You will have to pay interest on taking cash home loan, therefore it is unlawful. Therefore, you should avoid it. However, under the Govt scheme, you can buy the houses built and allotted by the Govt with interest on the instalments of 10-20 years, but you will have to deal with them on the total amount (real price along with the interest) that you will pay in instalments of 10 years. It will be right. Though in this way the interest was included, but it is as increased price for you which is lawful.
Allah (Subhana Wa Ta’ala) knows Best
Darul Uloom Deoband