We’ve been faced with good news about the Texas housing market, but a darker side has emerged. Texas is having trouble with Federal Housing Administration loan delinquencies.
The Dallas-Plano-Irving area joins Houston and San Antonio metro areas as Texas metros having the biggest increases in late payments on federally backed home loans through the end of August, according to the American Enterprise Institute’s FHA Neighborhood Warch.
Dallas-Plano-Irving had an FHA loan delinquent rate of 19 percent with 12 percent seriously delinquent, making the area the fifth-most threatened.
Houston-The Woodlands-Sugar Land registered the second-largest share of delinquent FHA loans with 22 percent. San Antonio-New Braunfels is the eighth-most at-risk metro with 19 percent delinquent.
Nationally, 17.4 percent of the 7.98 million FHA loans are delinquent in August, up from 17 percent the previous month.
“It would be expected that these delinquency percentages will increase over time,” Researchers say in the report. “At some point, a significant percentage of the then-delinquent loans would be expected to be placed on the market by owners under distressed conditions or become foreclosures, and then enter the market.”