Seriously Underwater Mortgages – Q2 2025 State Rankings

What Is the Share of Seriously Underwater Mortgages in Q2 2025?

ATTOM’s latest Q2 2025 Home Equity and Underwater report shows that the share of seriously underwater mortgages in the U.S. remained relatively stable in Q2 2025.

• National share: 2.7% of outstanding mortgages were seriously underwater (up from 2.4% in Q2 2024)
• Definition: “Seriously underwater” means the combined loan balances are at least 25% higher than the property’s estimated market value
• Highest rate: Louisiana at 11.9%
• Lowest rate: Vermont at 0.7%

National Trends in Homeowner Equity

While some states saw notable increases in underwater mortgage rates, the overall U.S. market remains resilient. Many homeowners continue to benefit from strong equity positions despite fluctuations in regional housing markets.

Which States Had the Most Underwater Properties in Q2 2025?

Here’s the breakdown of the states with the largest share of homeowners whose mortgage debt significantly exceeds their property value.

1. 1. 1. Louisiana – 11.9% (up from 10.5%) | 1 in 8 mortgages underwater
         Counties: Vernon (27.7%), De Soto (22.8%), Acadia (22.5%)
      2. Kentucky – 7.0% (up from 6.3%) | 1 in 14 mortgages underwater
         Counties: Pike (27.8%), Adair (20.4%), Greenup (19.4%)
      3. Mississippi – 6.5% (down from 6.8%) | 1 in 15 mortgages underwater
         Counties: Washington (18.7%), Pike (14.6%), Hinds (11.2%)
      4. Iowa – 5.9% (up from 5.2%) | 1 in 17 mortgages underwater
         Counties: Webster (13.6%), Tama (13.3%), Appanoose (12.1%)
      5. Oklahoma – 5.6% (up from 5.0%) | 1 in 18 mortgages underwater
         Counties: McCurtain (14.8%), Pontotoc (13.6%), Beckham (12.9%)
      6. Arkansas – 5.6% (up from 5.4%) | 1 in 18 mortgages underwater
         Counties: Columbia (14.5%), Ouachita (11.0%), Hot Spring (9.9%)
      7. North Dakota – 5.0% (unchanged) | 1 in 20 mortgages underwater
         Counties: Richland (6.8%), Ward (6.3%), Stutsman (5.0%)
      8. Kansas – 4.4% (up from 2.9%) | 1 in 23 mortgages underwater
         Counties: Leavenworth (7.7%), Johnson (5.8%), Wyandotte (5.7%)
      9. Missouri – 4.3% (up from 3.9%) | 1 in 23 mortgages underwater
         Counties: Gasconade (9.8%), Randolph (9.6%), Dunklin (9.4%)
      10. West Virginia – 4.3% (down from 4.7%) | 1 in 23 mortgages underwater
          Counties: Mercer (7.5%), Marshall (7.3%), Marion (6.8%)

State-by-State Share of Seriously Underwater Mortgages – Q2 2025

Below is the complete state ranking from highest to lowest share.

11. Illinois – 4.2% | Mason (16.5%), McDonough (15.4%), Montgomery (13.7%)
    12. Ohio – 3.8% | Belmont (16.6%), Pike (13.1%), Coshocton (10.9%)
    13. Nebraska – 3.8% | Scotts Bluff (7.1%), Gage (6.0%), Madison (6.0%)
    14. Pennsylvania – 3.7% | Somerset (11.5%), Jefferson (11.3%), Clearfield (9.3%)
    15. Wisconsin – 3.3% | Rusk (8.7%), Buffalo (7.3%), Vernon (7.2%)
    16. Alabama – 3.2% | Pike (6.8%), Geneva (6.3%), Covington (5.9%)
    17. South Carolina – 3.2% | Darlington (13.7%), Jasper (9.7%), Fairfield (9.5%)
    18. Georgia – 3.2% | Upson (14.0%), Toombs (13.2%), Coffee (11.6%)
    19. Indiana – 3.1% | Miami (12.5%), Spencer (7.0%), Perry (6.9%)
    20. South Dakota – 3.1% | Yankton (6.3%), Union (4.4%), Minnehaha (3.7%)
    21. Tennessee – 3.0% | Hardeman (20.9%), Haywood (9.0%), Lauderdale (8.6%)
    22. New Mexico – 2.7% | Roosevelt (9.7%), Chaves (8.2%), Eddy (7.2%)
    23. Minnesota – 2.6% | Becker (9.5%), Wadena (9.4%), Itasca (8.0%)
    24. Wyoming – 2.6% | Carbon (4.2%), Converse (3.1%), Uinta (2.8%)
    25. Maryland – 2.6% | Dorchester (8.4%), Baltimore City (6.9%), Garrett (6.1%)
    26. North Carolina – 2.5% | Vance (11.5%), Robeson (9.1%), Edgecombe (8.7%)
    27. Michigan – 2.5% | Gogebic (6.5%), Cass (5.1%), Hillsdale (4.7%)
    28. Idaho – 2.4% | Gem (5.1%), Shoshone (5.0%), Jerome (4.4%)
    29. Utah – 2.4% | Washington (4.7%), Iron (4.7%), Sevier (3.7%)
    30. Delaware – 2.3% | Kent (2.6%), Sussex (2.4%), New Castle (2.2%)
    31. Colorado – 2.3% | Otero (16.1%), Las Animas (7.1%), Logan (5.3%)
    32. Texas – 2.3% | Gray (7.5%), Jim Wells (6.2%), Orange (6.2%)
    33. Maine – 2.1% | Aroostook (5.5%), Washington (4.6%), Somerset (4.3%)
    34. Virginia – 2.0% | Pittsylvania (8.8%), Smyth (8.1%), Halifax (7.9%)
    35. Alaska – 2.0% | Matanuska-Susitna (2.9%), Fairbanks North Star (2.1%), Anchorage (1.9%)
    36. Arizona – 2.0% | Santa Cruz (3.7%), Gila (3.6%), Cochise (3.2%)
    37. New York – 2.0% | Saint Lawrence (7.6%), Chenango (6.6%), Herkimer (6.3%)
    38. Montana – 2.0% | Lewis and Clark (3.1%), Yellowstone (2.3%), Silver Bow (2.2%)
    39. Oregon – 1.8% | Wasco (4.2%), Malheur (4.0%), Union (3.1%)
    40. Florida – 1.8% | Gadsden (6.1%), Charlotte (5.8%), Jackson (4.4%)
    41. Nevada – 1.7% | Nye (4.2%), Lyon (3.9%), Elko (3.6%)
    42. Washington – 1.7% | Pacific (5.3%), Chelan (4.2%), Adams (4.1%)
    43. New Jersey – 1.7% | Salem (4.2%), Cumberland (4.0%), Mercer (3.3%)
    44. Connecticut – 1.4% | New London (1.7%), New Haven (1.6%), Litchfield (1.6%)
    45. California – 1.4% | Mariposa (6.6%), Trinity (6.0%), Plumas (4.7%)
    46. Hawaii – 1.3% | Honolulu (1.4%), Hawaii (1.3%), Maui (1.2%)
    47. Massachusetts – 1.1% | Berkshire (1.8%), Suffolk (1.7%), Nantucket (1.6%)
    48. New Hampshire – 1.1% | Coos (1.6%), Grafton (1.4%), Cheshire (1.3%)
    49. Rhode Island – 0.9% | Bristol (1.2%), Providence (1.0%), Kent (0.9%)
    50. Vermont – 0.7% | Chittenden (0.5%), Addison (0.5%), Washington (0.4%)

Key Takeaway

Despite year-over-year shifts in some states, seriously underwater mortgage rates remain historically low nationwide, signaling that homeowner equity is holding steady in most markets. As of Q1 2025, the national share of outstanding mortgages that are seriously underwater stands at 2.7%.

Explore ATTOM’s Mortgage & Equity Data

ATTOM’s Home Equity & Underwater Data provides detailed coverage of loan-to-value ratios, equity positions, and negative equity trends at the national, state, and county levels. This data helps lenders, investors, and housing professionals identify markets with high default risk or strong equity potential.

ATTOM is a leading source for property and mortgage data. Contact an ATTOM representative to find out how we can further serve your data needs.