Younger Mortgage Applicants Rely More on Older Co-signers

In 2025, more buyers under 35 added older co-applicants to their home loans to navigate a tight market.

Updated on Oct. 31, 2026 in Residential

Bold vector editorial illustration of house keys and a small house model, symbolizing intergenerational support for modern homeownership. — More young homebuyers in 2025 are adding older co-signers to their mortgage applications to combat rising home prices and interest rates. AI Illustration. Upload story photo >

Live Poll

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

In 2025, roughly 1 in 30 mortgage originations for primary applicants under 35 included a co-applicant aged 55 or older. This reflects a growing trend of younger buyers leveraging family assistance to enter the housing market.

Why it matters

As the total number of mortgage originations for younger buyers fell 15% between 2018 and 2025, more families are turning to intergenerational co-signing to help secure home loans. This shift highlights the increasing reliance on financial support to overcome housing affordability barriers.

The share of mortgages with older co-applicants increased by 21% since 2018. Regional data shows wide variance, with 1 in 13 under-35 applicants in Anaheim using older co-applicants, compared to just 1 in 50 in Virginia Beach.

The details

Co-signing involves adding a second, older borrower to the mortgage application, which may allow the primary applicant to qualify for a loan using the co-signer's credit profile and income history. Recent survey data indicates that 45% of Gen Z and 34% of millennial buyers rely on family loans or gifts for down payments. These arrangements are becoming more common as the median age for first-time buyers has climbed to 40, reflecting the difficulty many face in achieving homeownership independently.

2018: Older co-applicant mortgage share was 1 in 36.
2025: Older co-applicant mortgage share was 1 in 30.
March 17-23, 2026: Homeowner survey data was collected.

The Home Front

The rise of intergenerational co-signing reflects a broader shift in housing accessibility as the median age of first-time buyers reaches 40. This trend underscores a departure from previous decades where younger buyers typically accessed the market without extensive support from older family members.

If you are planning to purchase a home, consult with a licensed mortgage broker to understand how a co-signer impacts your long-term debt-to-income ratio and home equity. Discuss the legal implications of shared ownership with an attorney before formalizing any family-based financial agreements.

The takeaway

Intergenerational financial support is increasingly common for younger buyers navigating a difficult housing market. If you are considering a co-signer, document all gift or loan terms clearly to avoid complications during the loan approval process.