Junaid,
1. If you go through the following threads, you will find several good references on the subject:
a. http://www.sepakistan.com/topic/1652-load-bearing-structure-design/?hl=masonry#entry4141
b. http://www.sepakistan.com/topic/1326-seismic-design-guide-for-masonry-buildings/?hl=masonry
c. http://www.sepakistan.com/topic/1313-modulus-of-elasticity-of-brick-masonary/?hl=masonry#entry2495
d. http://www.sepakistan.com/topic/1680-the-seismic-performance-of-rcc-frame-buildings-with-masonry-infill-walls/?hl=masonry
2. In case of a 3-story house, it would be better to use a framed or confined masonry structure, if the structure would be constructed in a location of seismic zone 2 or higher. Moreover, you would be requiring RC walls too, for the basement portion.
Regards.