Using someone else's identity to get a home loan isn't a good idea...

... because you're bound to be caught. Think about it. If you buy a house with someone else's credit history, that address becomes associated with that name. The person is likely to find out at some point, and then you're a sitting duck, right? And also, if you couldn't have gotten that loan on your own, how will you make the payments?

Sounds dumb, and yet people try it. There was a case last year of someone who got a loan, bought a house, and then the listing agent was questioned months later because the person whose credit had been used found out about it and called the authorities. The agent hadn't ever realized that the buyer wasn't who he said he was. After all, he had provided all the necessary documents to his lender, right?

Another agent I know had a listing for some sellers that were about to go into foreclosure. Then she got a call one day from someone who told her that his credit had been used to buy the house. It was very odd because he apparently knew the couple to some extent, and it wasn't clear if he had knowingly given them his social security number. At that point, he was just hoping that they would sell the house in time to save what was left of his credit. Well, they lost the house. They didn't even own it a year and never were able to make the payments.

So don't use someone else's credit to buy a house. If you don't have the credit and salary, then you probably can't make the payments, and someone is bound to notice that they suddenly have a house payment showing up on their credit history. And if someone you know would like to use your credit to buy a house, don't let them. There's a reason why no one will loan them the money.