More young people are buying houses by putting older co-borrowers on their mortgages

As home prices and mortgage rates balloon, more young buyers are taking out mortgages with help from an older co-applicant.

The share of buyers under 35 who purchased with a co-applicant over 55 was up 21% between 2018 and 2025, according to an analysis of public mortgage information by Rocket. Roughly 1 in 30, or 3.3%, of all transactions now include an older co-applicant, likely a parent or other relative.

A co-applicant can help a borrower qualify for a pricier home : They apply for the mortgage alongside the primary borrower, and their income, assets, and credit score are counted in the qualification process. They receive joint ownership in the home and are considered equally responsible for mortgage payments, a step up from a co-signer, who typically doesn't receive any ownership stake and agrees to step in if the primary borrower defaults.

Younger buyers have pulled back from the housing market as prices spiked. Home purchases in that cohort last year were down 15% from 2018 levels. But during the same period, purchases with co-applicants rose slightly, a sign that more parents and relatives are stepping in to help.

Buyers in pricey locations are more likely to get help from a co-applicant. In Anaheim, Calif., where the median home costs nearly $1 million, nearly 8% of buyers had an older co-applicant. Older co-applicants are also common in other California cities like Los Angeles and San Diego, as well as South Florida and New York.

They're comparatively rare in more affordable cities, especially in the Midwest. In Milwaukee, just 2.3% of young buyers had an older co-applicant, while 2.4% of those in St. Louis relied on one.

Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.