Should I co-sign on a friends house?

I have been in mortgage lending for over 15 years, and in my experience arrangements like this never end well. I do not believe that you should ever co-sign for friends/family, unless you can and are willing to fully take over the payments. If you really want to own this house, consider doing a ligitamate purchase transaction. Agree on a fair market price (that does not exceed a current appraisal), use a reputable closing agent or attorney. Then maybe let your friend rent a room from you (with a lease agmt). I also would not consider any lease w/option to purchase; this could cause you problems down the line. Good Luck