More Young Homebuyers Are Adding Older Co-Borrowers to Their Mortgages

As home prices and mortgage rates keep climbing, a growing number of younger buyers are turning to older co-applicants to help secure a home loan.

According to an analysis of public mortgage data by Rocket, the share of homebuyers under 35 who purchased with a co-applicant older than 55 rose 21% between 2018 and 2025. About 1 in 30 transactions, or 3.3%, now involve an older co-applicant, most likely a parent or another relative.

A co-applicant can make it easier to qualify for a more expensive home. Unlike a co-signer, a co-applicant applies for the mortgage with the primary borrower, and the lender counts that person’s income, assets, and credit score during underwriting. The co-applicant also gets joint ownership of the property and shares equal responsibility for the loan payments.

Many younger buyers have stepped back from the housing market as prices surged. Home purchases in that age group were down 15% last year compared with 2018. Even so, buying with co-applicants edged higher over the same period, suggesting more parents and relatives are helping fill the gap.

That support is especially common in expensive markets. In Anaheim, California, where the median home price is nearly $1 million, almost 8% of young buyers had an older co-applicant. The pattern is also common in other costly areas, including Los Angeles, San Diego, South Florida, and New York.

Older co-applicants are much less common in more affordable cities, particularly across the Midwest. In Milwaukee, only 2.3% of young buyers used one, while the figure was 2.4% in St. Louis.