More Young Buyers Use Older Co-signers for Mortgages
Young homebuyers are increasingly relying on family co-signers to help qualify for loans amid higher cost barriers.
Updated on Oct. 31, 2026 in Residential
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In 2025, approximately 1 in 30 mortgages for primary applicants under 35 included a co-applicant aged 55 or older. This reflects a broader trend of families relying on intergenerational financial support to navigate the housing market.
Why it matters
As the total number of under-35 mortgage originations declined by 15% between 2018 and 2025, younger buyers have increasingly turned to older relatives to qualify for loans. This trend highlights the growing importance of parental assistance in achieving homeownership in a high-cost environment.
The share of mortgages for young buyers involving an older co-applicant rose 21% between 2018 and 2025. During this same period, the median age of first-time buyers reached 40, while first-time buyers accounted for 21% of all purchases in a 2025 survey.
The details
Co-signing allows younger buyers to leverage the credit history and income of older relatives to meet lender qualification requirements. This strategy is more prevalent in expensive housing markets, such as Anaheim, where 1 in 13 young applicants utilized an older co-applicant, compared to 1 in 50 in Virginia Beach. Many younger buyers also rely on family gifts or loans, with 45% of Gen Z buyers using such funds for down payments in 2026.
Timeline
2018: The older co-applicant share was 1 in 36.
2025: The older co-applicant share was 1 in 30.
March 17-23, 2026: Homeowner survey data was collected.
Money Landscape
The reliance on older relatives for mortgage support reflects a significant shift from the 2007 market contraction, when first-time buyer market share dropped by 50 percent. Today, intergenerational financial participation has become a standard tool for overcoming modern entry barriers.
If you are considering homeownership, explore how co-signing arrangements or family gift letters might affect your mortgage eligibility. Speak with a qualified mortgage lender or financial advisor to understand the long-term credit implications of adding a co-signer to your loan.
The takeaway
Intergenerational support is a growing factor for younger households attempting to secure a mortgage. Prospective buyers should review their budget for down payment gifts or loan options while consulting a qualified mortgage professional about the risks of co-signing.
Further reading
For more on market trends, see our Residential coverage.
Source note: This article includes information reported by TokenPost.
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