How risky is it to co sign a mortgage for a relative?

It depends on how dependable the relative is, but generally it is *incredibly* risky. If your relative can't make the payments for some reason, then you are responsible for paying that mortgage. If you don't pay, then it will show up on your credit report, and that can hurt you financially. Plus, if the house goes into default or sells for less than you owe, the mortgage company can ask for a judgment against you, and you will hav to pay the difference. It is just as risky as buying a house for yourself, with fewer benefits.

However, if your relative is a responsible person that you trust, then it is a very nice thing to do. If your relative makes the payments on time and works up his or her credit, then he or she might be able to refinance the home without you having to co-sign in the future. ... But they might have the option of buying a house now without your signature, just a smaller house.