1. PERSONAL FINANCE

Same-Sex Couples Denied a Mortgage More Often

Same-Sex Couples Denied a Mortgage More Often
 Updated 
Jun 30, 2025
Key Takeaways:
  • 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.
  • Other laws protect against lending discrimination, so file a complaint if you believe you’re experiencing it.

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 prevent some Americans from achieving it.

Unfortunately, homeownership may be more of a hurdle for same-sex couples. According to a 2019 study by the Proceedings of the National Academy of Sciences, same-sex couples who apply for mortgages are denied a mortgage more frequently and often offered higher interest rates than heterosexual couples. 

Let’s take a closer look at how same-sex couples fare, and explore ways to make buying a home easier even if you’re facing 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 But four years later, current President Trump rescinded this push with Executive Order 14148.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. 

What Is Lending Discrimination?

Under current federal laws, lending discrimination occurs when a lender makes an adverse action against an individual that's 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 where 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. For example:

  • 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 states that 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 to them for information or support

Lending and housing discrimination affects more of us than just the person or couple 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.

Steps to Take if You’re Facing Lending Discrimination

If you're part of a same-sex couple denied a mortgage based on credit discrimination, or facing unfair treatment for any other reason, here are steps you can 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.

  • 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, you can visit HUD’s website and file a complaint online, or call their toll-free discrimination hotline at 800-669-9777.

By filing a complaint and standing up against lending discrimination, you can protect others from being discriminated against by the same lender or individual—as well as stand up for yourself. 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. 

Focus on improving your credit profile 

Your credit profile is a major factor that determines how much you’ll pay for a mortgage—and whether you can even be 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 your options for help, like debt relief programs

Get copies of your credit reports from AnnualCreditReport.com and check for errors (like accounts mistakenly reported as delinquent) that could be dragging your credit score down. 

Shop around

Talk to and apply for pre-approval with several mortgage lenders, because each offers different rates. You might also qualify for certain programs with a given lender that can result in saving money. The more lenders you explore, the lower your chances of being denied a mortgage by all of them. 

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) where you can afford the average home price and feel at home. If you have LGBTQ+ friends or family members, ask for their help (and if they’re homeowners, ask for real estate agent recommendations, too). 

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 during the pandemic and more normal times? Come back to our blog each week for more information.

A look into the world of debt relief seekers

We looked at a sample of data from Freedom Debt Relief of people seeking the best debt relief company for them during May 2025. This data highlights the wide range of individuals turning to debt relief.

Credit utilization and debt relief

How are people using their credit before seeking help? Credit utilization measures how much of a credit line is being used. For example, if you have a credit line of $10,000 and your balance is $3,000, that is a credit utilization of 30%. High credit utilization often signals financial stress. We have looked at people who are seeking debt relief and their credit utilization. (Low credit utilization is 30% or less, medium is between 31% and 50%, high is between 51% and 75%, very high is between 76% to 100%, and over-utilized over 100%). In May 2025, people seeking debt relief had an average of 74% credit utilization.

Here are some interesting numbers:

Credit utilization bucketPercent of debt relief seekers
Over utilized30%
Very high32%
High19%
Medium10%
Low9%

The statistics refer to people who had a credit card balance greater than $0.

You don't have to have high credit utilization to look for a debt relief solution. There are a number of solutions for people, whether they have maxed out their credit cards or still have a significant part available.

Home-secured debt – average debt by selected states

According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) (using 2022 data) the average home-secured debt for those with a balance was $212,498. The percentage of families with mortgage debt was 42%.

In May 2025, 25% of the debt relief seekers had a mortgage. The average mortgage debt was $236504, and the average monthly payment was $1882.

Here is a quick look at the top five states by average mortgage balance.

State% with a mortgage balanceAverage mortgage balanceAverage monthly payment
California20$391,113$2,710
District of Columbia17$339,911$2,330
Utah31$316,936$2,094
Nevada25$306,258$2,082
Massachusetts28$297,524$2,290

The statistics are based on all debt relief seekers with a mortgage loan balance over $0.

Housing is an important part of a household's expenses. Remember to consider all your debts when looking for a way to get debt relief.

Tackle Financial Challenges

Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.

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Author Information

Ashley Maready

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.