Same-Sex Couples Denied a Mortgage More Often
- A recent study found that same-sex couples are denied a mortgage or offered higher interest rates more often than heterosexual couples are.
- The Fair Housing Act doesn't specifically protect same-sex couples, but 23 states (and Washington D.C.) have protections against housing discrimination based on sexual and gender identity.
- It’s worthwhile to save money, boost your credit, and seek LGBTQ-friendly lenders and real estate agents.
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Homeownership is a hallmark of the American dream for many people. However, barriers such as a lack of sufficient income, struggles with bad credit, excessive debt, and wage stagnation are preventing some Americans from achieving it.
Unfortunately, homeownership may be even more of a hurdle for same-sex couples. According to a 2023 study from researchers at the University of North Carolina at Greensboro and the Federal Reserve Bank of Richmond, some same-sex couples are more likely to be denied a mortgage than different-sex couples with similar profiles. And when same-sex couples are conditionally approved to borrow to buy a home, they are more likely to be quoted higher mortgage rates.
Let’s take a closer look at this study and how same-sex couples fare in the housing market, and explore ways to make buying a home easier—even if you face discrimination.
Does the Fair Housing Act Apply?
The Fair Housing Act states that it’s illegal to discriminate against anyone seeking a mortgage or housing assistance on the basis of race, color, national origin, religion, sex, familial status, or disability. The Fair Housing Act doesn't specifically ban discrimination on the basis of sexual orientation or gender identity.
Former President Biden attempted to fix this shortfall via Executive Order 13988 when he took office on January 20, 2021. The order directed federal agencies to review policies responsible for non-discrimination and extend them to gender identity and sexual orientation. But four years later, current President Trump rescinded this push with Executive Order 14148.
Executive actions don’t override the constitution, federal laws, or established legal precedents. But it’s still a disheartening development for those who believe in non-discrimination for all Americans.
Same Sex Couples Face Mortgage Discrimination, Even Today
You might be under the impression that discrimination on the basis of sexuality and relationship status is a thing of the past, but it’s not. As the study referenced above found, mortgage discrimination against same-sex couples is alive and well.
New Results on the Disparities Between Same-Sex and Different-Sex Couples in the Home Mortgage Market was conducted using information from the Home Mortgage Disclosure Act, which includes the sex of the borrowers on mortgage applications. Let’s take a closer look at the significance of the findings and what they mean for same-sex couples looking to buy homes.
How much more likely are same-sex couples to be denied a mortgage today?
In terms of hard numbers, the study found that same-sex couples consisting of two men are 27.6% more likely to be rejected when they submit a mortgage application. However, it’s worth noting that the study included data collected during the COVID-19 pandemic.
This data indicated that these couples were more likely to default on a mortgage, thanks in part to being employed in industries badly impacted at that time. There are also deeper roots in labor discrimination at play here, and LGBTQ+ Americans face a wage gap as compared to their heterosexual peers.
Do female-female couples face the same level of mortgage discrimination as male-male couples?
The study found that female-female couples are better off than their male-male counterparts in a joint mortgage application. The numbers suggest no significant disparities in the denial numbers between female-female couples and opposite-sex couples.
Do same-sex couples pay more for a mortgage when approved?
Male-male couples are quoted mortgage rates that average 0.73% higher than opposite-sex couples. At a time when rates are already up across the board, paying 0.73% more just increases the chances of defaulting on a mortgage, making it harder for that couple to get approved in the future. It’s like a vicious circle.
What Is Lending Discrimination?
Under current federal laws, lending discrimination occurs when a lender takes adverse action against an individual in a protected class, as outlined in the Equal Credit Opportunity Act (ECOA). This only addresses overt discrimination.
“Disparate impact” discrimination is another kind of discrimination. This is when more subtle actions (or actions with no discriminatory intent) have a disproportionate effect on a protected group. According to the ECOA, lending discrimination based on the following is illegal:
Age
Sex
Race
Religion
Color
National origin
Physical or mental handicaps
If you’re in a protected class and find yourself in any of these situations, you may be experiencing lending or housing discrimination:
A mortgage lender is unwilling to share current rates.
A lender quotes higher rates than those available to others in a similar financial situation.
A real estate agent says they’re too busy to help you find a home.
A seller informs you that their home suddenly went off the market.
A lender mistreats you, or ignores you when you reach out for information or support.
Lending and housing discrimination affects more of us than just those directly involved. Equality in lending opportunities can work to protect many different groups, bringing more people into the housing market, and creating more stable and economically viable communities.
Recent Legal Developments and Protections
Broadly speaking, at time of writing, the federal landscape for protecting same-sex couples from mortgage discrimination on the basis of sexual orientation and relationship status isn’t encouraging. But depending on where you live, you could enjoy state and local protections against mortgage discrimination.
What legal protections exist for LGBTQ+ mortgage borrowers in mortgage lending?
Here are the 23 states (plus Washington D.C.) that prohibit housing discrimination on the basis of sexual orientation and gender identity:
California
Colorado
Connecticut
Delaware
Hawaii
Illinois
Iowa
Maine
Maryland
Massachusetts
Michigan
Minnesota
Nevada
New Hampshire
New Jersey
New Mexico
New York
Oregon
Rhode Island
Utah
Vermont
Virginia
Washington
Washington D.C.
Wisconsin currently bans discrimination only on the basis of sexual orientation.
Will federal protections be increased in the future?
It’s hard to say. In 2021, the 117th Congress made positive strides—The Equality Act was introduced in and passed the House of Representatives, but didn’t make it to the Senate. The Equality Act expands the protections of the 1964 Civil Rights Act by adding protections against discrimination on the basis of sex, sexual orientation, and gender identity by federally funded programs and in public spaces.
In the current political climate, it’s hard to imagine a scenario in which the Equality Act would become law, despite the fact that it would strengthen the fight against mortgage discrimination for same-sex couples.
Steps to Take if You Face Lending Discrimination
If you're part of a same-sex couple denied a mortgage based on credit discrimination or facing unfair treatment for any reason, here are steps to consider taking to protect yourself.
Document everything. Jot down or gather any evidence of interactions or exchanges you’ve had with the lender or individuals you suspect have discriminated against you.
Check the Attorney General’s Office or website for your state. Many states have their own equal credit opportunity laws. Find out from your state’s attorney general if your lender violated any laws protecting LGBTQ+ citizens.
Get a lawyer. If you need legal help, turn to Lambda Legal or your state’s ACLU affiliate.
File a complaint for a violation. In the event your case concerns a violation of the ECOA, visit the Consumer Financial Protection Bureau’s website or call 855-411-2372 to file a complaint. If you suspect it involves a violation of the Fair Housing Act, visit HUD’s website and file a complaint online, or call their toll-free discrimination hotline at 800-669-9777.
By filing a lending discrimination complaint for yourself, you can also protect others from being discriminated against by the same lender or individual. Protections for same-sex couples may be more limited now than for other groups who face discrimination, but this may not always be the case.
Make Yourself the Best Buyer You Can Be
Thankfully, you have additional ways to get yourself in the best shape possible to buy a home and avoid being denied a mortgage, even if you’re part of a same-sex couple. Here are a few important steps to take.
Make a joint financial plan
Financial planning is a solid move, no matter your sexual orientation or relationship status. If you’re part of a same-sex couple hoping to achieve big financial milestones like homeownership, sit down with a professional (like a CFP, or Certified Financial Planner) to help you figure out your priorities.
You might want to buy a home next year, but it’s important to figure out how to save for that goal alongside covering your expenses and saving for emergencies and retirement. You can find the right planner for you by visiting Let’s Make a Plan, or by asking friends or family in your community for recommendations. Whoever you choose, make sure they’re a fiduciary—this means they work for your best interest, not their own.
Focus on improving your credit profile
Your credit profile is a major factor in determining how much you pay for a mortgage—and whether you’re approved. If a home purchase is in your near future, pay down whatever existing debt you can, since your debt levels are a credit score factor. If you’re facing financial difficulties and need help getting your debt under control, consider options like debt relief programs.
Get copies of your credit reports from AnnualCreditReport.com and check for errors (like accounts mistakenly reported as delinquent) that can drag your credit score down.
Shop around
Apply for pre-approval with several mortgage lenders, because they offer different rates. You might also qualify for programs with a given lender that can save you money. The more lenders you explore, the better your chances of getting a mortgage.
Save as much money as you can
The more you can put down for a home purchase, the less you need to finance, and the less interest you pay overall. It’s a myth that you need a 20% down payment on a home, but save as much as you can for that down payment. Also factor in closing costs, and leave yourself with an emergency fund. When something breaks, it’s on you as the homeowner to fix it.
Be choosy about where you look for homes
It’s a sad fact that LGBTQ+ Americans don’t receive the same level of welcome in every neighborhood in our country. So do your research to pinpoint parts of your city (or if you’re open to relocating, other cities and states) where you can afford the average home price and feel at home. If you have LGBTQ+ friends or family members, ask for their help.
Explore LGBTQ+-friendly lenders or resources to help improve your mortgage approval chances
Word of mouth in your community can also help you find a great real estate agent and lender who’ll be happy to work with you to find the home of your dreams. Don’t hesitate to turn to the internet in your search for an agent—resources like the National Association of Gay & Lesbian Real Estate Professionals and GayRealEstate.com stand ready to match you with the right agent to help you house-hunt.
As for mortgage lenders, since you’re shopping around anyway, be sure to mention that you’re buying with your same-sex spouse or domestic partner, and see what kind of reception you receive. If the lender’s enthusiasm doesn’t dim, you’re likely dealing with someone willing to give you a fair shot. But if the reception turns chilly or something seems off, don’t waste your time (or the hard credit check when you apply) on that mortgage lender.
Protect Your Finances and Future
Looking for more posts on how to ensure your financial rights are protected, how to manage your debt, and improve your personal and business finances? Come back to our blog each week for more information.
Insights into debt relief demographics
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during November 2025. The data provides insights about key characteristics of debt relief seekers.
FICO scores and enrolled debt
Curious about the credit scores of those in debt relief? In November 2025, the average FICO score for people enrolling in a debt settlement program was 593, with an average enrolled debt of $24,913. For different age groups, the FICO scores varied. For instance, those aged 51-65 had an average FICO score of 596 and an enrolled debt of $26,572. The 18-25 age group had an average FICO score of 567 and an enrolled debt of $15,791. No matter your age or debt level, it's reassuring to know you're not alone. Taking the step to seek help can lead you towards a brighter financial future.
Collection accounts balances – average debt by selected states.
Collection debt is one example of consumers struggling to pay their bills. According to 2023, data from the Urban Institute, 26% of people had a debt in collection.
In November 2025, 30% of debt relief seekers had a collection balance. The average amount of open collection account debt was $3,203.
Here is a quick look at the top five states by average collection debt balance.
| State | % with collection balance | Avg. collection balance |
|---|---|---|
| District of Columbia | 23 | $4,899 |
| Montana | 24 | $4,481 |
| Kansas | 32 | $4,468 |
| Nevada | 32 | $4,328 |
| Idaho | 27 | $4,305 |
The statistics are based on all debt relief seekers with a collection account balance over $0.
If you’re facing similar challenges, remember you’re not alone. Seeking help is a good first step to managing your debt.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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Author Information
Written by
Ashley Maready
Ashley is an ex-museum professional turned content writer and editor. When she changed careers, she was finally able to focus on turning her financial situation around. She went from deeply in debt to homeowner in two years. Ashley has a passion for teaching others about better living through better money management.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
Personal Finance
