What are the risks of putting "zero down"?

What are the risks of putting "zero down"?

Ron Goodlin (Mortgage Banker and Broker, The Goodlin Group) gives expert video advice on: How much of a down payment will I need to buy a home?; What can I do if I have little or no money for a down payment?; What are the risks of putting "zero down"?

There are indeed risks of going zero down. Let's take the example of when you buy the house for 5 dollars and you put no money down. The problem is, what if the market starts to turn around? And your house which you bought at 5 dollars isn't appreciating, but it's going the opposite way. So now maybe your house, a year from now, is only worth 49 dollars, compared to when you bought it at 5. And from a banks point of view they're going to be in trouble with you, because you're going to walk away from that mortgage if that property keeps going the opposite way. So most lending institutions want you to put a little more money down because of that risk factor.