More Young Homebuyers Rely on Older Co-applicants

Mortgage originations with older co-signers have increased as younger buyers seek help to enter the housing market.

Updated on Oct. 31, 2026 in Residential

Gouache-painted editorial illustration of two nested, multi-generational home volumes, representing collaborative mortgage financing in the current housing market. — Roughly one in thirty mortgage applicants under 35 now includes a co-applicant aged 55 or older, a 21% increase since 2018. AI Illustration. Upload story photo >

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Do you believe family financial assistance is now necessary to purchase your first home?

In 2025, roughly 1 in 30 mortgages for primary applicants under age 35 included an older co-applicant age 55 or older. This reflects a 21% increase in such arrangements since 2018 as younger buyers navigate a challenging housing landscape.

Why it matters

Rising home prices and mortgage costs have made it increasingly difficult for younger individuals to qualify for loans independently. Many are now leveraging the financial stability of older family members or friends to secure necessary financing.

Nationally, 45% of Gen Z and 34% of millennial buyers used gifts or loans from family for down payments in 2026. Data shows usage varies by region, with Anaheim recording 1 in 13 applications involving older co-signers, compared to 1 in 50 in Virginia Beach.

The details

The trend includes applicants under 35 bringing in co-applicants age 55 or older to improve their chances of loan approval. While reliance on family assistance is growing, total mortgage originations for those under 35 dropped 15% between 2018 and 2025.

2018: Older co-applicant share was 1 in 36.
2025: Older co-applicant share reached 1 in 30.
July 2024 - June 2025: Survey period for primary residence purchases.
March 17-23, 2026: Homeowner survey data collection.

Culture Shift

This reliance on older co-applicants follows the documented trend of increased intergenerational wealth transfers for housing. Such arrangements mark a clear departure from 20th-century homeownership models where primary applicants were expected to qualify independently.

For younger buyers, including an older relative on a mortgage can increase the likelihood of approval but carries significant legal and financial risk for the co-signer. Prospective homeowners should weigh the necessity of this help against the long-term impact on their co-signer's credit and debt-to-income ratio.

The takeaway

Securing a home now often requires tapping into family assets to overcome high entry barriers. If you are considering this route, ensure all parties understand the legal obligations associated with shared mortgage responsibility.