As for qualified investors, zero down is often less risk. Your illustration of a $2,000 cooler replacement has nothing to do with the amount of down payment a buyer pays for a house. If you had paid cash it would have still needed to be replaced.

Too many so called experts have condemned zero down practices and blaimed zero down as the cause of so many foreclosures. There is no truth to these aligations. I agree that the owners could not afford to pay for the debt they agreed to pay for. But down payment had little to do with it. For those that bought homes for $400,000 with no down payment and can not afford the payment. There are those that bought homes for $500,000 with $100,000 down and cannot afford their payments.

When the Financial industry withdrew negative arm loans the value of real estate dropped in most markets. If the mortgage rates increase to 17% real estate values will drop. If unemployment increases real estate values will drop. And I might add all of these problems increase foreclosures. It is the law of economics and supply and demand.

Some people should never be home owners. The odds of failure in any venture have been calculated. Real estate is no different. historically the forclosure rates nationwide has been less than 1 in 1,000. But the foreclosure rates amoung certain ethnic neighborhoods are much higher. Black homeowners in neighborhoods that are 90% Hispanic face foreclosure over 25% of the time. This is the highest foreclosure rate identified by HUD. I am not predjudiced by race or color. I empathize with anyone that loses their home. But this is a real statistic.

If you are a well healed investor and understand contracts you will understand that there are ways to eliminate recourse. In which case zero down might be zero risk.