What Is a Bridge Loan?

What is a Bridge Loan and How Does it Work?

Even if you’re an amazing saver, sometimes you just don’t have cash on hand at the exact moment when you really need it. For example, what if your dream home comes on the market at the right price, but your money is tied up in equity in your current home? Or you need to move across the country for a new job. How can you make a down payment before your own home sells?

There are plenty of circumstances where you have to move quickly to secure a deal, and sometimes liquidating assets or securing long-term funding doesn’t happen as quickly as you need it to.

In these instances, interim funding options, like a bridge loan, can help you get the money you need to get things done.

Let’s dig a little deeper into how bridge loans work: what the rates are, the pros and cons, and an alternative source of funding you may have overlooked.

What is a Bridge Loan?

A bridge loan, also known as a swing loan, gap financing, or interim financing, is a temporary loan that bridges the gap between the down payment of a new property and the mortgage balance of your previous home.

Bridge loans tend to have six- to 12-month payoff periods and typically have higher interest rates than other types of loans. Basically, a bridge loan is a short-term loan taken out by a homeowner against their current property in order to finance the purchase of a new property.

One of the most common uses for bridge loans is to put a down payment on a new home before selling a current home. If you don’t have a contract with a home sale contingency clause or aren’t able to pay cash for the down payment on the new house, you may very well need assistance to bridge that gap.

Bridge loans often use an asset such as a current home as collateral. Borrowers generally need to have at least 20% equity in their first home in order to qualify for a bridge loan.

Buying a home? With SoFi there are no
hidden fees, and as little as 10% down.


Benefits of a Bridge Loan

The main benefit of a bridge loan is the ability to quickly secure short-term financing without having to wait until you sell your home. You may be able to delay payments for several months and you have the option of paying off the loan before or after you secure long-term financing.

Bridge loans can be a major benefit in a time crunch: the home seller can immediately put their home on the market and use the funds to move into another house. This can be especially helpful if you’re a homeowner going through a period of sudden transition.

For example, if you have a new job in another city or are trying to time your move with the beginning of your children’s school year, a bridge loan could be helpful. Bridge loans are not a replacement for a mortgage but a temporary solution. They are generally designed to be repaid within six months to three years.

Drawbacks of a Bridge Loan

Bridge loans may help you get fast financing, but they can come with some risks. Because qualifying and being approved for a bridge loan can be a faster process than that of an unsecured personal loan, bridge loan rates and terms can vary widely from lender to lender and are typically higher than market rates for mortgage loans.

Borrowers may also encounter differences in how lenders deal with interest payments. Some require monthly interest payments while others require an upfront or end-of-term lump sum interest payment.

Bridge mortgage loans are secured with the borrower’s current home, which means it can be foreclosed on if the bridge loan is defaulted on. The standards for qualifying for a bridge loan tend to be high, typically requiring a low debt-to-income ratio and excellent credit. After all, you’re trying to prove that you can afford not one, but two homes.The short-term financing of a bridge loan can also be one of the major drawbacks.

Until you are able to sell your previous home, you’ll be carrying two mortgages and paying down the bridge loan. If you are trying to sell a home in a weak real estate market, a bridge loan can create financial strain because you might not have the time you need to let your home sit on the market and wait for a prospective buyer.

Exploring Other Financial Options

Borrowing a bridge loan can be risky. You may be required to start paying off the mortgage on the new home and the bridge loan at the same time. You’re also depending on the sale of your current home in order to pay off the bridge loan, which could take time depending on the state of the real estate market as you are selling your home. Bridge loans can be risky investments for banks, too, which means they can be difficult to get.

Due to the risks and costs that come with a bridge mortgage loan, borrowers may want to consider one of these other options.

HELOC

One alternative to a bridge loan is a home equity line of credit (HELOC) which allows you to draw equity against the value of your current home in a similar way to a bridge loan.

With a HELOC you’ll usually get a better interest rate, pay lower closing costs, and have more time to repay the loan than you would with a bridge loan. It’s important to note that some lenders may not approve a HELOC on a home that is currently on the market for sale.

If you are considering borrowing a HELOC, you may want to look for one without any prepayment penalties or early closure fees, which could significantly cut into your profits in the event that your home sells quickly.

Personal Loan

Another alternative to a bridge loan is taking out an unsecured personal loan. If you have a decent credit history and a steady income, an unsecured personal loan can be a viable option that provides additional flexibility at more competitive rates than those typical of bridge loan interest rates.

In addition, because unsecured personal loan lending is a more diversified market, you can likely find unsecured personal loans without origination fees. Personal loans, including the ones available with SoFi, are often unsecured and therefore require no collateral.

The Takeaway

No matter what, make sure to do your homework. Thorough research is what will help you find the option that works best for your personal situation and get you the home you need at a cost that works for your budget.

And when you borrow an unsecured personal loan with SoFi there are no prepayment penalties, which means if your home sells quickly, you can pay off the loan without losing any of your profits.

Looking to move into a new home? With SoFi Personal Loans, you can bridge the gap so that you can move into your new house now instead of later.

Want to learn whether a SoFi Personal Loan can help you make a down payment on another home before you sell your current home? Checking your rates takes just two minutes.


SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

PL18129

Read more
Woman on laptop at window seat

A Homeowner’s Guide to HELOC Loans

If you own a home, you may be interested in tapping into your available home equity. A home equity line of credit, different from a home equity loan, can help you finance a major renovation or anything else.

Homeowners sitting on at least 20% equity—the home’s market value minus what is owed—may be able to secure a HELOC.

Like all financing options, a HELOC has advantages and some less attractive features as well.

Home Equity Line vs. Home Equity Loan

A HELOC is a revolving line of credit that lets you borrow money as needed, up to your approved credit limit, pay back all or part of the balance, and then borrow up to the limit again through your draw period, typically 10 years.

The interest rate is usually variable. You pay interest only the amount of credit you actually use.

A home equity loan is a lump sum with a fixed rate on the loan.

Borrowing limits and repayment terms may also differ, but both use your home as collateral.

Hybrid fixed-rate HELOCs are not the norm but have gained attention. They allow a borrower to withdraw money from the credit line and convert it to a fixed rate.

How Does a Home Equity Line of Credit Work?

Once you secure a HELOC with a lender, you can draw against your credit line as needed until your draw period ends. You then repay the balance, typically over 20 years, or refinance to a new loan.

The variable rate is frequently tied to the prime rate, a benchmark index that closely follows the economy. Even if your rate starts out low, it could go up. A margin is added to the index to determine the interest you are charged.

HELOCs can be used for anything but are commonly used to cover big home expenses, like a major renovation or addition.

Home equity rose to a new high in 2020. Remodeling expenditures increased in tandem, to $339 billion in late 2020, and were expected to continue to increase in 2021, CoreLogic found.

A HELOC can also be used to consolidate high-interest debt. Whatever homeowners use a home equity line or loan for—investing in a new business, taking a dream vacation, funding a college education—they need to remember that if they can’t keep up with payments, the lender may force the sale of the home to satisfy the debt.

How Much Can You Borrow With a HELOC?

Depending on your creditworthiness and debt-to-income ratio, you may be able to borrow up to 85% of the value of your home, less the amount owed on your first mortgage.

Thought of another way, most lenders require your combined loan-to-value ratio (CLTV) to be 85% or less for a home equity line of credit.

Here’s an example. Say your home is worth $500,000, you owe $300,000 on your mortgage, and you hope to tap $120,000 of home equity.

combined loan balance (420,000) ÷ current appraised value (500,000) = CLTV (0.84)

Convert to a percentage, and you arrive at 84%, just under many lenders’ CLTV threshold for approval.

You’d receive the ability to access the funds in the form of a credit card or a checkbook. In this example, the liens on your home would be a first mortgage with its existing terms at $300,000 and a second mortgage (the HELOC) with its own terms at $120,000.

Qualifying for a HELOC

The main factors a lender will consider include:

•  Your home’s market value

•  How much you still owe on the home

•  Credit score

•  Employment history

•  Income

•  Debt-to-income ratio

Shopping around with different lenders can reveal minimum credit score ranges required for HELOC approval. You can also use that as an opportunity to take a cue from the Federal Trade Commission, which advises shoppers to:

•  Check and compare terms

•  Check the periodic and lifetime rate caps

•  Ask which index is used and how much and how often it can change

•  Check the margin

•  Ask whether you can convert your variable-rate loan to a fixed rate later

•  Ask if the rate you’re offered is “discounted.” If it is, find out how the rate will be determined after the discount period and how much your payments could rise.

If you’re comparing advertised annual percentage rates (APRs) for HELOCs, know that unlike a home equity loan, the APR for a home equity line of credit does not take points and financing charges into consideration. The APR is based on interest alone.

Pros of Taking Out a HELOC

Initial Interest Rate and Acquisition Cost

A HELOC, secured by your home, may have a lower interest rate than unsecured loans and lines of credit. The average HELOC rate in August 2021 was 4.1%, according to Bankrate.

Lenders often offer a low introductory rate, or teaser rate. After that period ends, your rate (and payments) increase to the true market level (the index plus the margin). Lenders normally place periodic and lifetime rate caps on HELOCs.

The closing costs may be lower than a home equity loan’s. Some lenders waive HELOC closing costs entirely if you meet a minimum credit line and keep the line open for a few years.

Taking Out Money as You Need It

Instead of receiving a lump sum loan, a HELOC gives you the option to draw on the money over time as needed. That way you don’t borrow more than you actually use, and you don’t have to go back to the lender to apply for more loans if you end up requiring additional money.

Only Paying Interest on the Amount You’ve Withdrawn

Paying interest only on the amount plucked from the credit line is beneficial when you are not sure how much will be needed for a project or if you need to pay in intervals.

Also, you can pay the line off and let it sit open at a zero balance during the draw period in case you need to pull from it again later.

Cons of Taking Out a HELOC

Variable Interest Rate

Even though your initial interest rate may be low, if it’s variable and tied to the prime rate, it will likely go up and down with the federal funds rate. This means that over time, your monthly payment may fluctuate and become less (or more!) affordable.

Although variable-rate HELOCs come with annual and lifetime rate caps, the lifetime cap is 18% in most states, according to debt.org.

Potential Cost

Taking out a HELOC is placing a second mortgage lien on your home. You may have to deal with closing costs of about 2% of the loan amount, though some HELOCs come with low or zero fees. Sometimes loans with no or low fees have an early closure fee.

Your Home Is on the Line

If you aren’t able to make payments and go into loan default, the lender could foreclose on your home. And if the HELOC is in second lien position, the lender could work with the first lienholder on your property to recover the borrowed money.

Adjustable-rate loans like HELOCs can be riskier than others because fluctuating rates can change your expected repayment amount.

It Could Affect Your Ability to Take On Other Debt

Just like other liabilities, adding on to your debt with a HELOC could affect your ability to take out other loans in the future. That’s because lenders consider your existing debt load before agreeing to offer you more.

Lenders will qualify borrowers based on the full line of credit draw even if the line has a zero balance. This may be something to consider if you expect to take on another mortgage, a car loan, or other debts in the near future.

How Do You Pay Back a Home Equity Line of Credit?

During the draw period, you may be required to make minimum payments toward your HELOC. They might be interest-only payments.

Once the draw period ends, your regular HELOC repayment period begins, when payments must be made toward both the interest and the principal.

Remember that if you have a variable-rate HELOC, your monthly payment could fluctuate over time. And it’s important to check the terms so you know whether you’ll be expected to make one final balloon payment at the end of the repayment period.

What Are Some Alternatives to HELOCs?

Motivated by spiking home values and low interest rates, homeowners cashed out nearly $50 billion in home equity in the first quarter of 2021, according to Freddie Mac.

Here are HELOC options.

Cash-Out Refi

With a cash-out refinance, you replace your existing mortgage with a new mortgage given your home’s current value, with a goal of a lower interest rate, and cash out some of the equity that you have in the home.

Lenders typically require you to maintain at least 20% equity in your home (although there are exceptions). Be prepared to pay closing costs.

Generally, cash-out refinance guidelines may require more equity in the home vs. a HELOC.

Home Equity Loan

What is a home equity loan again? It’s a lump sum loan secured by your home. These loans almost always come with a fixed interest rate, which allows for consistent monthly payments.

Some lenders will reduce or waive the closing costs if you don’t pay off the loan within a particular period—usually three years.

Personal Loan

If you’re looking to finance a big-but-not-that-big project for personal reasons and you have a good estimate of how much money you’ll need, a personal loan that is not secured by your home could be a better fit.

With possibly few to zero upfront costs and minimal paperwork, a fixed-rate personal loan could be a quick way to access the money you need. Just know that an unsecured loan usually has a higher interest rate than a secured loan.

A personal loan might also be a better alternative to a HELOC if you bought your home recently and don’t have much equity built up yet.

The Takeaway

How does a HELOC work? For equity-rich homeowners, a home equity line of credit can give them money as needed, up to their approved limit, during a typical 10-year draw period. The rate is usually variable. Sometimes closing costs are waived.

A cash-out refinance may hold more appeal for some homeowners, and an unsecured personal loan may suit others. SoFi offers both kinds of fixed-rate loans.

Check your rate options within minutes.


SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

SoFi Home Loans
Terms, conditions, and state restrictions apply. SoFi Home Loans are not available in all states. See SoFi.com/eligibility for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

MG18108

Read more
house next to a condo

House or Condo: Which is Right For You? Take The Quiz

There’s something to be said for having peace of mind, even if it might cost you. For many, that can easily take the form of having a place to truly call your own—space that gives you privacy and the ability to customize it to your dream preferences.

Deciding on a condo vs. house may hinge on your desires about privacy, a yard, rules, the amount of upkeep, and initial and ongoing costs.

There are upsides and downsides to both buying a single-family home and a condo.

To find out what might be right for you, you’re invited to take the House vs. Condo Quiz, which can help to answer two important questions:

•  Does it make sense to purchase a home or condo, or should I stay where am I for now?

•  If it does make sense to buy, which one could be better for me?

Now that you’ve taken the quiz, are you clear about which direction you want to take?

You might want to take these pros and cons into consideration as well, and check out this home affordability calculator.

Pros and Cons of Buying a House

Cost is a factor, especially when buying in a hot market.

The median sales price of existing single-family homes was $367,000 in July 2021, compared with $307,100 for existing condos and co-ops, the National Association of Realtors® reported.

These are typical factors to weigh when buying a house vs. a condo.

Pros of Buying a House

•  More privacy and space, including storage

•  A yard

•  Ability to customize your home

•  Room to garden and create a pleasing outdoor space

•  Control, including pet ownership

•  Sometimes no homeowners association (HOA) or dues

•  Generally considered a better investment

Cons of Buying a House

•  Higher initial and ongoing costs

•  More maintenance inside and out

•  Higher utility bills

•  Higher property taxes and homeowners insurance

•  Possibly fewer amenities

If, after taking the quiz and weighing the pros and cons, buying a house feels like the right choice, you can start brainstorming about size, style, location, and price; attending open houses; and looking online.

Learning how to win a bidding war might also come in handy, depending on the temperature of the market.

Check out local real estate
market trends to help with
your home-buying journey.


Pros and Cons of Buying a Condo

Condominium owners share an interest in common areas, like the grounds and parking structures, and hold title to their individual units. They are members of an HOA that enforces the community rules.

This is the general lay of the land in the condo vs. house universe.

Pros of Buying a Condo

•  More affordable

•  Amenities included

•  Less expensive homeowners insurance and property taxes

•  Covered repairs and upkeep

•  Lower utility bills

•  Security, if the community is gated or patrolled

•  Access to urban perks

Cons of Buying a Condo

•  Less privacy

•  No yard

•  Rules and restrictions (noise levels, outside wall colors, pets, and more)

•  Typically less overall space

•  HOA fees

•  Limited parking

•  Slower appreciation in value

Plus, the mortgage interest rate and down payment are often higher on a condo vs. a house of the same value, though that isn’t always the case, especially for a first-time buyer of an owner-occupied condo.

Conventional-mortgage lenders sometimes charge more for loans on condo units; they take into consideration the strength of the condo association financials and vacancy rate when weighing risk.

Mortgages backed by the Federal Housing Administration (FHA) are available for condos, even if they are not part of an FHA-approved condominium project , with a relatively new process called “spot approval.”

An FHA loan is easier to qualify for and requires as little as 3.5% down, but you’ll pay upfront and ongoing mortgage insurance premiums.

What Are the Costs of a House or Condo?

Of all of the costs listed above, perhaps monthly maintenance fees and HOAs come to mind most when thinking about condos vs. homes.

Fees and boards are often associated with condos, but new-home residential developments include HOAs at increasing rates, according to iPropertyManagement, which provides information about property management, investing, and real estate law.

Homeowner fees are growing more than twice as fast as the average home value, iPM says, and vary drastically, from under $200 a month to thousands, depending on amenities and ZIP code.

For condos, the fees can go toward basic upkeep, maintenance of building exteriors, amenities, and insurance that doesn’t fall under individual homeowner’s insurance. (Condo owners typically are responsible for the interior of their units, while townhouse owners are usually responsible for maintaining the inside and outside alike, so their HOA fees may be smaller.)

Buying into a co-op means purchasing shares or an interest in the entire building. The monthly fees for co-ops tend to be higher than condo fees.

Before buying into an HOA community, it’s imperative to vet the board’s finances, including its reserve fund, how often it has raised rates in recent years, whether it has collected any special assessments or plans to, and whether it’s facing any lawsuits.

When Is a Good Time to Buy?

You may know what you’d like to buy (condo vs. house) and where (in what neighborhood), but do you feel as though now is the right time? If so, fantastic.

You might decide, though, that you want to rent for a while longer under certain circumstances, which can include:

•  Hoping to wait out an overheated market and looking at price-to-rent ratios

•  Wanting to save more money for the down payment and closing costs

•  Needing to boost your credit score first

•  Wanting to pay down credit card debt or other debt

•  Needing more time to look at houses and condos before deciding

If you feel ready, is now a good time to buy? If your finances are stable and you can get a mortgage at historically low rates, buying may make sense. Then again, you may not want to or be able to pay top dollar.

The Takeaway

The condo vs. house decision depends on a multitude of things, but giving thought to the pros and cons of buying a condo vs. a house can at least give you a direction to lean toward.

If you’re ready to get prequalified for a home loan, know that SoFi offers mortgages for single-family homes and condos with as little as 5% down.

Check your rate on a SoFi Home Loan today.


SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

SoFi Home Loans
Terms, conditions, and state restrictions apply. SoFi Home Loans are not available in all states. See SoFi.com/eligibility for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.

SOMG18118

Read more
house keychain on key in door

Top 50 Safest Cities in the U.S.

For many homebuyers, safety is a top concern when shopping for a house. It can influence where you feel comfortable living, and safety ratings can have a big effect on local housing market trends.

If you’re in the market to buy or rent a home and you’re looking for just the right spot, check out this list of the 50 safest cities from NeighborhoodScout, which looks at property and violent crime in cities across the country.

What Are the Safest Cities in the U.S.?

The safest cities in America tend to be suburban areas close to major cities like New York and Boston. Only one spot on this list, Rexburg, Idaho, is outside a major metropolitan area.

Massachusetts is home to the most cities on the list at 17, and when you factor in Connecticut towns, New England represents nearly 40% of the safest cities.

Residents of the cities that made the list (pop. 25,000 and over) tend to have a median household income over $100,000, though that isn’t the case in every town.

Here’s a countdown of the 50 safest cities in the U.S. that you could call home.

50. Moorpark, California

Located in Ventura County in Southern California, Moorpark sits 50 miles northwest of downtown Los Angeles. The city was incorporated in 1983 and was named after the Moorpark apricot that grew throughout the valley. The city is a natural choice for raising a family, with nine schools and the lowest serious crime rate in the county.

Population: 36,375

Total Crime Rate (per 1,000 residents): 7.2

Chance of Being a Victim: 1 in 137

Major City Nearby: Oxnard

49. Belmont, Massachusetts

This city in the western suburbs of Boston offers residents highly rated schools and lots of restaurants, coffee shops and parks. Perhaps unsurprisingly, many families choose to call Belmont home.

Population: 26,116

Total Crime Rate (per 1,000 residents): 7.2

Chance of Being a Victim: 1 in 138

Major City Nearby: Boston

48. Friendswood, Texas

Friendswood began as a Quaker town in 1895 and became known for growing and preserving Magnolia figs. Since the 1950s, it has transformed into a quiet bedroom community 30 minutes from Houston and Galveston.

Population: 40,290

Total Crime Rate (per 1,000 residents): 7.2

Chance of Being a Victim: 1 in 138

Major City Nearby: Houston

47. Syracuse, Utah

Located on the shores of the Great Salt Lake, this farming community is rapidly transforming into a suburban outpost of Salt Lake City. The city offers easy access to Antelope Island State Park, home to bison, pronghorn antelope and other desert creatures.

Population: 31,458

Total Crime Rate (per 1,000 residents): 7.0

Chance of Being a Victim: 1 in 142

Major City Nearby: Ogden

46. Plainfield, Illinois

This village on the outskirts of the Chicago metro area has put a lot of effort into making its vibrant downtown pedestrian-friendly to give residents easy access to restaurants, shopping and entertainment.

Population: 44,308

Total Crime Rate (per 1,000 residents): 6.9

Chance of Being a Victim: 1 in 143

Major City Nearby: Chicago

45. Wallingford, Connecticut

One of three Connecticut towns to make the safest cities list, Wallingford began as a settlement along the Quinnipiac River in 1667. Since then, the city has grown to be home to more than 40,000 residents and has its own symphony orchestra, which performs throughout the year at the Paul Mellon Arts Center.

Population: 44,326

Total Crime Rate (per 1,000 residents): 6.9

Chance of Being a Victim: 1 in 143

Major City Nearby: New Haven

44. Westport, Connecticut

This small city on Long Island Sound offers access to beaches, Sherwood Island State Park, and a quaint downtown on the Saugatuck River.

Population: 28,491

Total Crime Rate (per 1,000 residents): 6.9

Chance of Being a Victim: 1 in 144

Major City Nearby: Bridgeport

43. Rancho Santa Margarita, California

Tucked against the mountains in Orange County, Rancho Santa Margarita offers a respite from the urban sprawl of much of the rest of Southern California. The city is master planned to balance the amenities of a small city with the natural landscape.

Population: 47,896

Total Crime Rate (per 1,000 residents): 6.9

Chance of Being a Victim: 1 in 144

Major City Nearby: Los Angeles

42. North Andover, Massachusetts

Massachusetts makes a good showing on the safest cities list, representing nearly 30% of the burgs listed.

Population: 31,188

Total Crime Rate (per 1,000 residents): 6.8

Chance of Being a Victim: 1 in 145

Major City Nearby: Boston

41. Rochester Hills, Michigan

This Detroit suburb features the 102-acre Avon Nature Study Area on the Clinton River and the Rochester Hills Museum, where visitors can learn about pioneer farmers, Native American history, and local ecology. The city is considered the safest in Michigan.

Population: 74,516

Total Crime Rate (per 1,000 residents): 6.8

Chance of Being a Victim: 1 in 145

Major City Nearby: Detroit

40. Bridgewater, Massachusetts

Bridgewater lies south of Boston, northwest of Cape Cod, and east of Providence, Rhode Island.

Population: 27,619

Total Crime Rate (per 1,000 residents): 6.7

Chance of Being a Victim: 1 in 148

Major City Nearby: Boston

39. Mason, Ohio

Mason is the largest city in Warren County. The county is known as “Ohio’s Largest Playground” and boasts regional attractions including the Golf Center, the Great Wolf Lodge, and Kings Island amusement park.

Population: 33,870

Total Crime Rate (per 1,000 residents): 6.7

Chance of Being a Victim: 1 in 148

Major City Nearby: Cincinnati

38. Harrison, New York

Nestled near the Connecticut border, the Westchester County city of Harrison is just a stone’s throw from New York City. The town is home to one of America’s richest ZIP codes, the neighborhood of Purchase, where the average income reaches beyond $800,000.

Population: 28,943

Total Crime Rate (per 1,000 residents): 6.6

Chance of Being a Victim: 1 in 150

Major City Nearby: New York

37. Rosemount, Minnesota

The only Minnesota city to make the list, Rosemount offers residents access to the resources and culture of the Twin Cities while enjoying one of America’s safest towns.

Population: 25,207

Total Crime Rate (per 1,000 residents): 6.6

Chance of Being a Victim: 1 in 150

Major City Nearby: Minneapolis

36. Newton, Massachusetts

Just over the Boston line, Newton is a wealthy suburb where the median household income in 2019 was over $150,000 and 72% of the population consisted of homeowners. Newton is the largest city by population to make the top 50 list.

Population: 88,414

Total Crime Rate (per 1,000 residents): 6.6

Chance of Being a Victim: 1 in 151

Major City Nearby: Boston

35. Wellesley, Massachusetts

West of Newton, Wellesley is a much smaller municipality, though the median household income is higher, at over $197,000, and the homeownership rate tops 80%.

Population: 28,670

Total Crime Rate (per 1,000 residents): 6.5

Chance of Being a Victim: 1 in 151

Major City Nearby: Boston

34. Sammamish, Washington

Located on the eastern shores of Lake Sammamish, the town offers a spread-out suburban feel with highly rated public schools and access to restaurants, coffee shops, and parks.

Population: 65,892

Total Crime Rate (per 1,000 residents): 6.5

Chance of Being a Victim: 1 in 153

Major City Nearby: Seattle

33. Colleyville, Texas

Conveniently sandwiched between the Dallas and Fort Worth areas, Colleyville offers a rural feel close to big-city amenities.

Population: 27.091

Total Crime Rate (per 1,000 residents): 6.4

Chance of Being a Victim: 1 in 154

Major City Nearby: Dallas

32. Rahway, New Jersey

The first of five New Jersey cities to make the top 50 list, Rahway is located just west of Staten Island. Median income is modest, nearing $79,000 per household.

Population: 29,895

Total Crime Rate (per 1,000 residents): 6.4

Chance of Being a Victim: 1 in 154

Major City Nearby: New York

31. Beverly, Massachusetts

Beverly is a suburb of Boston on the North Shore of Massachusetts, just north of Salem. Like its witchy neighbor, Beverly offers historic New England architecture and water access.

Population: 42,174

Total Crime Rate (per 1,000 residents): 6.4

Chance of Being a Victim: 1 in 155

Major City Nearby: Boston

30. Ridgewood, New Jersey

A village in Bergen County, Ridgewood is just northwest of New York City. The town is family friendly, with restaurants, coffee shops, and parks.

Population: 25,056

Total Crime Rate (per 1,000 residents): 6.3

Chance of Being a Victim: 1 in 158

Major City Nearby: New York

29. Andover, Massachusetts

Andover, about 23 miles north of Boston, was incorporated in 1646 and later became a thriving mill town. The city is home to prestigious college prep school Phillips Academy.

Population: 36,356

Total Crime Rate (per 1,000 residents): 6.1

Chance of Being a Victim: 1 in 162

Major City Nearby: Boston

28. Brunswick, Ohio

The largest city in Medina County, Brunswick is about 25 miles southwest of Cleveland. The median household income is nearly $70,000, and about 76% of residents own their own homes.

Population: 34,880

Total Crime Rate (per 1,000 residents): 5.9

Chance of Being a Victim: 1 in 169

Major City Nearby: Cleveland

27. Simsbury, Connecticut

Mark Twain used to make the 10-mile walk from his home in Hartford to Talcott Mountain in this historic burg, which counts itself among the safest in Connecticut. The town comprises just under 10,000 households with a median household income of about $124,000.

Population: 25,395

Total Crime Rate (per 1,000 residents): 5.8

Chance of Being a Victim: 1 in 170

Major City Nearby: Hartford

26. Weston, Florida

The only Florida town to make the list, Weston is also the second largest by population, after Newton, Massachusetts.

Population: 71,166

Total Crime Rate (per 1,000 residents): 5.8

Chance of Being a Victim: 1 in 170

Major City Nearby: Miami

25. Caledonia, Wisconsin

With humble beginnings as a fur trading post in the 1830s, Caledonia has grown to a city of over 25,000.

Population: 25,277

Total Crime Rate (per 1,000 residents): 5.8

Chance of Being a Victim: 1 in 170

Major City Nearby: Racine

Found a city you love?
Get a mortgage with SoFi.


24. Dracut, Massachusetts

Dracut was home to Pennacook Indian settlements before Europeans arrived in the 1650s, and the town’s early economy depended on manufacturing and milling. The town provides easy access to the Lowell and Boston metropolitan areas.

Population: 31,634

Total Crime Rate (per 1,000 residents): 5.6

Chance of Being a Victim: 1 in 178

Major City Nearby: Boston

23. Palatine, Illinois

This city northwest of Chicago has a mix of residential, commercial, and light industrial space with award-winning schools. Palatine is the largest Illinois city to make the list.

Population: 67,482

Total Crime Rate (per 1,000 residents): 5.5

Chance of Being a Victim: 1 in 181

Major City Nearby: Chicago

22. Bartlett, Illinois

Built at the intersection of the Chicago and Pacific railways, the town of Bartlett was officially incorporated in 1891. The city experienced a boom in population starting in the 1950s and has since grown to include more than 40,000 residents.

Population: 40,647

Total Crime Rate (per 1,000 residents): 5.3

Chance of Being a Victim: 1 in 188

Major City Nearby: Chicago

21. Westfield, New Jersey

Westfield has an award-winning downtown with more than 450 shops, restaurants, and services.

Population: 29,512

Total Crime Rate (per 1,000 residents): 5

Chance of Being a Victim: 1 in 198

Major City Nearby: New York

20. Independence, Kentucky

The only Kentucky town to make it the list, Independence is a short drive across the Ohio River to Cincinnati.

Population: 28,521

Total Crime Rate (per 1,000 residents): 4.8

Chance of Being a Victim: 1 in 205

Major City Nearby: Cincinnati

19. Reading, Massachusetts

Another Boston suburb just north of the city, Reading is a town of about 9,000 households with a median household income of nearly $132,000.

Population: 25,400

Total Crime Rate (per 1,000 residents): 4.8

Chance of Being a Victim: 1 in 206

Major City Nearby: Boston

18. Needham, Massachusetts

Like many of the Massachusetts cities on this list, Needham is a well-off bedroom community of Boston, with a median household income of about $165,000.

Population: 31,388

Total Crime Rate (per 1,000 residents): 4.7

Chance of Being a Victim: 1 in 212

Major City Nearby: Boston

17. Cliffside Park, New Jersey

Cliffside has a commanding view of Manhattan from the top of the famed New Jersey palisades. Located between the Lincoln Tunnel and George Washington Bridge, the city allows commuters access to New York City.

Population: 28,133

Total Crime Rate (per 1,000 residents): 4.7

Chance of Being a Victim: 1 in 212

Major City Nearby: New York

16. North Royalton, Ohio

North Royalton sits just outside of Cleveland near the shores of Lake Erie. It was incorporated as a village in 1927 and became a city in 1961. The median household income is about $70,000 per year.

Population: 30,068

Total Crime Rate (per 1,000 residents): 4.6

Chance of Being a Victim: 1 in 214

Major City Nearby: Cleveland

15. Arlington, Massachusetts

Settled in 1635 as the town of Menotomy, Arlington was renamed in 1867 in honor of those buried at Arlington National Cemetery. The city is just 6 miles from Boston.

Population: 45,531

Total Crime Rate (per 1,000 residents): 4.5

Chance of Being a Victim: 1 in 217

Major City Nearby: Boston

14. Billerica, Massachusetts

Billerica sits on the Shawsheen and Concord rivers about 20 miles northwest of Boston and is home to about 15,000 households.

Population: 43,367

Total Crime Rate (per 1,000 residents): 4.5

Chance of Being a Victim: 1 in 217

Major City Nearby: Boston

13. Florence, Arizona

A bit farther from major metropolitan areas than many other cities on this list, Florence is 60 miles from Phoenix.

Population: 27,422

Total Crime Rate (per 1,000 residents): 4.3

Chance of Being a Victim: 1 in 230

Major City Nearby: Phoenix

12. Lake in the Hills, Illinois

Once a sleepy rural community home to seasonal residents who enjoyed the area’s lakes, Lake in the Hills became a quickly growing suburb of Chicago in the last few decades.

Population: 28,634

Total Crime Rate (per 1,000 residents): 4.3

Chance of Being a Victim: 1 in 230

Major City Nearby: Chicago

11. Rexburg, Idaho

Rexburg, in eastern Idaho, is one of the only cities on this list that’s not near a major metropolitan area. Its proximity to nature is one of its calling cards. Yellowstone National Park is just 80 miles away.

Population: 29,400

Total Crime Rate (per 1,000 residents): 4.3

Chance of Being a Victim: 1 in 231

Major City Nearby: N/A

10. Marshfield, Massachusetts

Marshfield is 30 miles from Boston on the South Shore where Cape Cod meets the Massachusetts Bay. The year-round population of about 25,000 grows to 40,000 in the summer months.

Population: 25,967

Total Crime Rate (per 1,000 residents): 4

Chance of Being a Victim: 1 in 249

Major City Nearby: Boston

9. North Ridgeville, Ohio

Cleveland Magazine named this swiftly growing suburb one of the “Best Places to Live in the Cleveland Area.”

Population: 34,392

Total Crime Rate (per 1,000 residents):3.6

Chance of Being a Victim: 1 in 275

Major City Nearby: Cleveland

8. Muskego, Wisconsin

This cozy city sits within the orbit of Milwaukee and within the greater Chicago area.

Population: 25,127

Total Crime Rate (per 1,000 residents):3.5

Chance of Being a Victim: 1 in 279

Major City Nearby: Milwaukee

7. Bergenfield, New Jersey

The Borough of Bergenfield, which sits across the Hudson River from Yonkers, was first settled by the Dutch. The postwar period brought a boom, with the population reaching its peak in the 1970s.

Population: 27,327

Total Crime Rate (per 1,000 residents):3.4

Chance of Being a Victim: 1 in 296

Major City Nearby: New York

6. Shrewsbury, Massachusetts

Shrewsbury was incorporated in 1727 and rests just outside the Boston metropolitan area near the city of Worcester.

Population: 38,526

Total Crime Rate (per 1,000 residents): 3.3

Chance of Being a Victim: 1 in 296

Major City Nearby: Worcester

5. Lexington, Massachusetts

Known as the town where the first shots of the Revolutionary War were fired, Lexington is a suburb of Boston where the median household income tops $186,000.

Population: 33,132

Total Crime Rate (per 1,000 residents): 3

Chance of Being a Victim: 1 in 331

Major City Nearby: Boston

4. Zionsville, Indiana

Excellent schools and stable home values attract residents looking for a small-town feel just 20 minutes outside Indianapolis.

Population: 28,357

Total Crime Rate (per 1,000 residents): 2.8

Chance of Being a Victim: 1 in 345

Major City Nearby: Indianapolis

3. Milton, Massachusetts

In Milton, a suburb 10 miles south of Boston, the median household income is over $133,000 a year.

Population: 27,593

Total Crime Rate (per 1,000 residents): 2.7

Chance of Being a Victim: 1 in 367

Major City Nearby: Boston

2. Long Beach, New York

Long Beach is in Nassau County east of New York City. This beachside community is a popular tourist destination during the summer.

Population: 33,454

Total Crime Rate (per 1,000 residents): 2.5

Chance of Being a Victim: 1 in 389

Major City Nearby: New York

1. Franklin, Massachusetts

Franklin is the safest city in America, so it seems. It’s conveniently located between Boston and Providence, Rhode Island. About 80% of residents own their own homes, and the median household income is more than $122,000. The town is named in honor of Benjamin Franklin, whose donated books formed the first public library in the country.

Population: 34,087

Total Crime Rate (per 1,000 residents): 1.9

Chance of Being a Victim: 1 in 524

Major City Nearby: Boston

The Takeaway

It’s a safe bet that house hunters will find many of these 50 safest cities in the U.S. appealing. If you’re looking for a comfortable landing spot and a home, it’s time to secure a mortgage.

SoFi works with homebuyers from start to finish. You might be able to put as little as 5% down.

Finding your rate with SoFi® home loans is simple.



SoFi Home Loans
Terms, conditions, and state restrictions apply. SoFi Home Loans are not available in all states. See SoFi.com/eligibility for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOHL20038

Read more
Foreclosure Rates for All 50 States

Foreclosure Rates for All 50 States in July 2021

The number of US properties with foreclosure filings in July was 12,483 according to ATTOM Data
Solutions
. This is up roughly 40% from July last year, when foreclosure activity was extremely low due to the pandemic-related moratorium on foreclosures. The Biden administration’s final extension of the moratorium ended on July 31, 2021, while the moratorium on evictions for foreclosed borrowers was extended through September 30, 2021.

It is also worth noting that foreclosure filings were down roughly 4% from June to July. This is a substantive decrease compared to the roughly 20% increase in foreclosure filings that occurred from May to June. While foreclosure activity has been somewhat erratic month to month over the past year, now that the foreclosure moratorium has expired, experts at ATTOM are predicting a “steady increase” in foreclosure activity through the remainder of the year. Read on for the foreclosure rates in July 2021 – plus the five counties with the highest rates within those states.

50 State Foreclosure Rates

As just noted, foreclosures are down from last month, but on the rise compared to last year. Read on for July foreclosure rates for all 50 states, plus the District of Columbia, beginning with the state that had the lowest rate of foreclosure filings per housing unit.

District of Columbia

Ranking in population above the country’s two least populated states – Vermont and Wyoming – Washington, D.C. had 10 foreclosures in July. With a total of 315,176 housing units, the District’s foreclosure rate was one in every 31,518 households. putting it in between the states of Oregon (#45) and North Dakota (#44).

50. Vermont

The 49th least populated state ranked 50th for foreclosure rates in July. Of Vermont’s 334,999 housing units, four homes went into foreclosure for a foreclosure rate of one in every 83,750 households. Only two counties in the state had foreclosures. The counties with the most foreclosures per housing unit were (from highest to lowest): Rutland, followed by Chittenden.

49. South Dakota

South Dakota ranked 49th with five homes going into foreclosure in July. With 388,569 total housing units, the fifth least populated state’s foreclosure rate was one in every 77,714 households. Only four counties in the state had foreclosures. The counties with the most foreclosures per housing unit were (from highest to lowest): Clay, Codington, Yankton, and Minnehaha.

48. West Virginia

The 38th most populated state, West Virginia has 892,182 homes, of which 12 went into foreclosure in July. That means the foreclosure rate was one in every 74,349 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Calhoun, Monroe, Lincoln, Logan, and Greenbrier.

47. Montana

With 10 foreclosures out of 510,180 housing units, the 44th most populated state’s foreclosure rate for July was one in every 51,018 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Dawson, Hill, Cascade, Yellowstone, and Flathead.

46. Idaho

The 39th most populated state had 15 homes go into foreclosure in July. With 723,594 total housing units, the state’s foreclosure rate was one in every 48,240 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Washington, Boundary, Gooding, Elmore, and Madison.

45. Oregon

The 27th most populated state was 45th for foreclosures. Of its 1,768,901 homes, 47 went into foreclosure, making for a foreclosure rate of one in every 37,636 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Morrow, Clatsop, Malheur, Douglas, and Lincoln.

44. North Dakota

North Dakota’s foreclosure rate was one in every 31,089 homes in July. That puts the fourth least populated state – with a total of 373,063 housing units and 12 homes in foreclosure — in 44th place. The counties with the most foreclosures per housing unit were (from highest to lowest): Sioux, Ramsey, Richland, Stutsman, and Ward.

43. Nebraska

Ranking 37th for population, Nebraska claimed the 43rd spot in July with a foreclosure rate of one in every 31,018 homes. With a total 837,476 housing units, the state had 27 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Frontier, Nance, Burt, Hamilton, and Colfax.

42. Minnesota

Ranked 22nd for most populated state, Minnesota came in 42nd in July. It has 2,438,203 housing units, of which 93 went into foreclosure, making the state’s foreclosure rate one in every 26,217 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lincoln, Grant, Jackson, Chippewa, and Le Sueur.

41. Washington

Ranked 13th for most populated state, Washington came in at 41st place for foreclosures. It has 3,106,528 housing units, of which 119 went into foreclosure, making the state’s foreclosure rate one in every 26,105 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Kitsap, Pend Oreille, Mason, Lewis, and Pacific.

Recommended: Tips on Buying a Foreclosed Home

40. Tennessee

With 124 of its 2,963,486 homes going into foreclosure in June, Tennessee took the 40th spot with its July foreclosure rate coming in at one in every 23,899 households. In the 16th most populated state, the counties with the most foreclosures per housing unit were (from highest to lowest): Trousdale, Giles, Lauderdale, Henry, and Carroll.

39. Utah

Utah placed 39th in July. Of the Beehive State’s 1,087,112 housing units, 47 homes went into foreclosure, making the 31st most populated state’s foreclosure rate one in every 23,130 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Uintah, Carbon, Duchesne, Iron, and Sanpete.

38. New Hampshire

The 41st most populated state, New Hampshire ranked 38th for highest foreclosure rate in July. Of 634,726 homes, 28 went into foreclosure, making for a foreclosure rate of one in every 22,669 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Cheshire, Coos, Sullivan, Rockingham, and Hillsborough.

37. Colorado

The 21st most populated state ranked 37th for foreclosures in July. Of its 2,386,475 housing units, 109 went into foreclosure, making for a foreclosure rate of one in every 21,894 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Pueblo, Elbert, Custer, Gilpin, and Clear Creek.

36. Mississippi

In Mississippi, the 33rd most populated state, there were 61 foreclosures out of 1,322,808 housing units. That put the July foreclosure rate at one in every 21,685 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Jasper, Pike, Perry, Adams, and Smith.

35. Arkansas

Ranked 32nd for most populated state, Arkansas held on to its 35th spot from June for foreclosures. It has 1,370,281 housing units of which 65 went into foreclosure, making the Natural State’s July foreclosure rate one in every 21,081 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Monroe, Perry, Lonoke, Crittenden, and Jackson.

34. Kentucky

With a total 1,983,949 housing units, Kentucky saw 103 homes go into foreclosure in July. That put the foreclosure rate for the 26th most populated state at one in every 19,262 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Franklin, Morgan, Union, Lewis, and Bracken.

33. Virginia

The 12th most populated state ranked 33rd with 186 homes going into foreclosure in July. With 3,514,032 total housing units, the state’s foreclosure rate was one in every 18,893 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Norton City, Lexington City, Buckingham,Lancaster, and Craig.

32. Arizona

In Arizona, the 14th most populated state, there were 170 foreclosures out of 3,003,286 housing units. That put the July foreclosure rate at one in every 17,666 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Cochise, La Paz, Navajo, Apache, and Mohave.

31. Michigan

Ranking 10th for population, Michigan took the 31st spot in July with a foreclosure rate of one in every 16,241 homes. With a total 4,596,198 housing units, the state had 283 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Isabella, Shiawassee, Osceola, Eaton, and Genesee.

Recommended: What Is a Short Sale?

30. Pennsylvania

Pennsylvania, the fifth most populated state, had a total of 352 housing units out of 5,693,314 homes go into foreclosure in July, making the state’s foreclosure rate one in every 16,174 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Fulton, Montour, Venango, Perry, and Chester.

29. Rhode Island

The eighth least populated state took the 29th spot in July. A total of 30 homes went into foreclosure out of 468,335 total housing units, making the foreclosure rate for the Ocean State one in every 15,611 households. Only four counties had foreclosures in July. The counties with the most foreclosures per housing unit were (from highest to lowest): Newport, Providence, Washington, and Kent.

28. Massachusetts

The 15th most populated state ranked 28th in July. Of its 2,897,259 housing units, 186 went into foreclosure, making for a foreclosure rate of one in every 15,577 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Berkshire, Nantucket, Hampden, Worcester, and Bristol.

27. Hawaii

The 40th most populated state, Hawaii came in 27th for foreclosures in July. Of 542,674 homes, 36 went into foreclosure, making for a foreclosure rate of one in every 15,074 households. Only three counties in the state had foreclosures. The counties with the most foreclosures per housing unit were (from highest to lowest): Maui, Hawaii, and Honolulu.

26. Wisconsin

Wisconsin ranked 26th in July. With 179 foreclosures out of 2,694,527 total housing units, the 20th most populated state’s foreclosure rate was one in every 15,053 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Ashland, Shawano, Vernon, Florence, and Marquette.

25. New York

With 570 out of a total 8,322,722 housing units going into foreclosure in July, the fourth most populated state held on to its 25th spot from June with a foreclosure rate of one in every 14,601 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Chautauqua, Washington, Orleans, Jefferson, and Sullivan.

24. Texas

The Lone Star State saw 815 foreclosures in July. With a foreclosure rate of one in every 13,420 households, this put the second most populous state with 10,937,026 housing units into the 24th spot. The counties with the most foreclosures per housing unit were (from highest to lowest): Martin, Jones, Liberty, Orange, and Scurry.

23. Wyoming

Ranked the least populated, Wyoming claimed the 23rd spot in July. With 276,846 housing units and 21 homes in foreclosure, the state’s foreclosure rate was one in every 13,183 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Carbon, Washakie, Natrona, Sweetwater, and Campbell.

22. Oklahoma

Oklahoma claimed the 22nd spot in July. With housing units totaling 1,731,632, the 28th most populated state saw 133 homes go into foreclosure at a rate of one in every 13,020 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Love, Beckham, Marshall, Johnston, and Garfield.

21. Louisiana

Ranked 25th for population, Louisiana had 159 homes out of a total 2,059,918 go into foreclosure. That means one in every 12,955 households went into foreclosure in July. The counties with the most foreclosures per housing unit were (from highest to lowest): Saint Tammany, Saint Martin, Tangipahoa, Avoyelles, and De Soto.

Recommended: Home Buying 101: How Much House You Can Afford

20. North Carolina

The ninth most populated state took 20th place in July. Out of 4,627,089 homes, 360 went into foreclosure. That made its foreclosure rate one in every 12,853 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Gates, Martin, Pasquotank, Jones, and Scotland.

19. Alabama

Ranked 24th for most populated, Alabama came in 19th in July. Of its 2,255,026 homes, 189 went into foreclosure, making for a foreclosure rate of one in every 11,931 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Coffee, Escambia, Chambers, Clarke, and Bullock.

18. Iowa

With 118 housing units out of 1,397,087 homes going into foreclosure, the 30th most populated state’s foreclosure rate was one in every 11,840 homes in July. The counties with the most foreclosures per housing unit were (from highest to lowest): Jones, Greene, Clinton, Louisa, and Mills.

17. Georgia

The eighth most populated state, Georgia ranked 17th in July for most foreclosures. Of its 4,283,477 homes, 376 were foreclosed on. That put the state’s foreclosure rate at one in every 11,392 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Crawford, Bibb, Charlton, Long, and Effingham.

16. Missouri

The 18th most populated state, Missouri came in 16th for highest rate of foreclosures in July. Of its 2,790,397 homes, 251 went into foreclosure, making for a foreclosure rate of one in every 11,117 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Audrain, Henry, Dent, Butler, and Mcdonald.

15. Maryland

Ranked 19th for most populated state, Maryland took 15th place for highest foreclosure rate in July. With a total of 2,448,422 housing units and 236 housing units going into foreclosure in June, the state’s June foreclosure rate was one in every 10,375 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Dorchester, Saint Marys, Charles, Baltimore City, and Baltimore.

14. California

The most populated state ranked 14th in July for most foreclosures. Of its 14,175,976 housing units, 1,405 went into foreclosure, making California’s foreclosure rate one in every 10,090 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Plumas, Calaveras, Kern, Inyo, and Solano.

13. Alaska

Alaska saw 32 foreclosures in July, making the foreclosure rate one in every 9,833 homes. That caused the third least populated state, with a total of 314,670 housing units, to claim the thirteenth spot. The counties with the most foreclosures per housing unit were (from highest to lowest): Sitka, Kenai Peninsula, Anchorage, Fairbanks North Star, and Matanuska-Susitna.

12. New Mexico

The 36th most populated state took the 12th spot in July. Of its 937,920 homes, 100 went into foreclosure, making for a foreclosure rate of one in every 9,379 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Cibola, Curry, Chaves, Sandoval, and Eddy.

11. Maine

Ranked as the ninth least populated state, Maine placed 11th for foreclosures in July. With a total of 742,788 housing units and 88 foreclosures, the Pine Tree State had a foreclosure rate of one in every 8,441 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Piscataquis, Penobscot, Somerset, Waldo, and Oxford.

Recommended: Your 2021 Guide to All Things Home

10. Florida

Florida’s foreclosure rate of one in every 7,152 homes put the third most populated state in the country into the 10th spot in July. Of its total 9,448,159 housing units, 1,321 went into foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Jefferson, Washington, Hendry, Calhoun, and Putnam.

9. Indiana

The 17th largest state by population, Indiana ranked ninth in July with a foreclosure rate of one in every 7,058 homes. Of its 2,886,548 homes, 409 homes were foreclosed on. The counties with the most foreclosures per housing unit were (from highest to lowest): Fayette, Pulaski, Dearborn, Randolph, and Owen.

8. Ohio

Ohio claimed the eighth spot with a foreclosure rate of one in every 7,040 homes. With a total 5,202,304 housing units, the seventh most populated state had a total of 739 filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Cuyahoga, Huron, Lawrence, Seneca, and Ross.

7. Connecticut

With 223 of its 1,516,629 homes going into foreclosure, Connecticut’s foreclosure rate was one in every 6,801 households in July. In the 29th most populated state, the counties that had the most foreclosures per housing unit were (from highest to lowest): Windham, Fairfield, New Haven, Tolland, and Litchfield.

6. South Carolina

With one in every 6,388 homes going into foreclosure, South Carolina took the sixth spot. Ranked 23rd for population, South Carolina has 2,286,826 housing units and saw 358 foreclosure filings in July. The counties with the most foreclosures per housing unit were (from highest to lowest): Dorchester, Dillon, Jasper, Chesterfield, and Bamberg.

5. Illinois

Illinois moved out of the top three in July, improving its ranking with its fall to the fifth spot for highest foreclosure rate. Of its 5,360,315 homes, 840 went into foreclosure, making the sixth most populated state’s foreclosure rate one in every 6,381. The counties with the most foreclosures per housing unit were (from highest to lowest): Mcdonough, Gallatin, Massac, Iroquois, and Pope.

4. Kansas

Kansas made a huge jump, moving from 47th place in June to fourth place in July. With 1,273,297 homes and a total of 227 housing units going into foreclosure, the 35th most-populated state’s foreclosure rate was one in every 5,609 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Wyandotte, Chautauqua, Harper, Kingman, and Jefferson.

3. New Jersey

With a foreclosure rate of one in every 4,809 homes, New Jersey moved into the third spot in July. The 11th most populated state has 3,616,614 housing units, 752 of which went into foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Salem, Essex, Atlantic, Cumberland, and Monmouth.

2. Delaware

The sixth least populated state in the country, Delaware remained in second place for highest foreclosure rate. With one in every 4,206 homes going into foreclosure and a total 433,195 housing units, Delaware saw a total 103 foreclosure filings in July. With only three counties in the state, the counties with the most foreclosures per housing unit were (from highest to lowest): New Castle, Kent, and Sussex.

1. Nevada

Ranking 34th in population, Nevada held on to the top spot as the state with the highest foreclosure rate with one in every 3,626 homes going into foreclosure in July. With a total 1,250,893 housing units, the state had 345 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Humboldt, Lincoln Clark, Nye, and Douglas.

The Takeaway

Of all 50 states, California once again had the most foreclosure filings (1,405) and Vermont had the least (4). As for the states with the highest foreclosure rates, Nevada and Delaware held on to their first and second spots, respectively, from June, with New Jersey bumping out Illinois and taking over the third spot.

The Midwest had the largest presence among the 10 states that ranked the highest for foreclosure rates. These states were (from highest to lowest): Kansas, Illinois, Ohio, and Indiana. The Midwest and the West tied for the regions with the largest presence among the 10 states that ranked the lowest for foreclosure rates. The Midwest included (from highest to lowest): Minnesota, Nebraska, North Dakota, and South Dakota. The West included: Washington, Oregon, Idaho, and Montana.

Looking to buy a home? SoFi offers competitive rates, exclusive member discounts, and guidance from mortgage loan officers and member specialists.

Discover more about home loans at SoFi.


SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

SoFi Home Loans
Terms, conditions, and state restrictions apply. SoFi Home Loans are not available in all states. See SoFi.com/eligibility for more information.

External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SOHL0721000

Read more
TLS 1.2 Encrypted
Equal Housing Lender