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The only advantage here to co-signing a lower-interest HELOC (7-8%? - I just took one out at prime minus 1%) - is that it will potentially save him from instead paying 16% interest on the remaining $20K balance of a truck loan. (If you feel you must help-out, you cold always consider loaning him the difference in interest rates). The fact that he is sitting on a 16% truck loan balance of $20K in the first place, should tell you what others think about his credit-worthiness.
The fact that he wants a $50K LOC to pay off a $20K loan is a big red flag. Yes, having an extra $30K available in a HELOC might come-in handy ... for him, but, would leave you wondering when you would suddenly become liable for $50K instead of $20K (my guess is it would be sooner, rather than later). You said that the problems leading to his bad credit rating were long behind him. It sounds to me like the behavior creating those problems is still near in the rear-view mirror.
Getting a HELOC these days is like taking out a new mortgage. One used to be able to get one as easily as signing a signature loan, but, the banks learned a difficult lesson. A HELOC is like 10-year 'blank check' and I certainly would not give someone (even a relative without past issues) a 10-year blank check!
The advice on this thread seems to be unanimously (and justifiably) "NO!" -- However, if you want further input, check out some of the many CD threads by folks who co-signed loans for relatives, and then got stuck holding the bag.
I refinanced my house when interest rates hit 3% years ago. I didn't qualify at the time so my mother stepped up and did the loan under her name. Always paid it on time. Was like $310,000, down to a little over $200,000 today.
She tried to co-sign for my sister and her husband last year since they didn't qualify. It was a $300,000 place. She got declined... I kept telling her they're going to split... a month after it falls through they did (for a bit, now back at it, but rocky as can be). They wouldn't of been able to afford the place nor is the work ethic there to get to that point.
This is another consequence that many people don't consider. Co-signing a loan affects the co-signer's DTI which affects their ability acquire financing should they need it.
If your mother has a mortgage, and if she needed to refinance that mortgage - being a co-signer on your home would possibly affect her ability to do so.
We were recently asked to co-sign on a close relative's mortgage refinance, and we declined. We said "We'll help in other ways but we won't risk our financial future by co-signing."
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Don't, Don't and Don't
