I was wondering if it was illegal for an associate of a mortgage company to give me a personal check to pay off my credit card debt so that I would qualify for a home loan from a lender that her company had found for me.

Wow! Run, run, run, the other way. Have you not seen in the news all the people who are being foreclosed on? THESE are the types of tactics that got thousands and thousands of people in that situation!!

If not specifically ILLEGAL, it's highly questionable at the very least.

Honestly, I know this isn't what you want to hear, and you're probably bound and determined that you can buy this house, but if you need the loan officer to pay off a debt for you, this is not the time to be buying a house!! If you're having to scrape THAT hard to get the deal done... you shouldn't be doing it.

Why don't you tell us what state you're in, or the transcation is taking place in.

Technically, I'd say that it's perfectly legal for the associate to pay off the credit cards. Now, unless she is giving you that money, instead of loaning it to you, it's probably not legal for her to not report it as a debt on the loan documents. On the other hand, there are all sorts of strange loans out there, so it may be that it's perfectly legal.

Now, whether it's financially sound is an entirely different question.

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