<prompt> Human: I wanted to ask the group about a particular situation involving a mortgage through a program that Suntrust offers as do some other banks which allows new physicians residents to purchase a home through a Physician Loan. I am three years out of medical school, and Ive heard mixed opinions. The deal is: you get 100 financing of the home with 0 down payment required, an interest rate in the 2.5-3.5 range depending on your credit, and no PMI. As Ive literally had no time to save money being on loans all through medical school I dont really have any money to put towards the mortgage as a down payment. Im going to be in the same city for at least seven years, so Id hate to rent that entire time. Owning a home seems like a great thing to do instead, and if the property increases in value, youve essentially made money out of nothing. To me, it seems like a good deal, but others have said that by not having any personal equity in the home it makes it a bad deal should the property decrease in value. Wouldnt that just mean that you stand to lose LESS money if your home goes down in value from what you purchased it for ie, you dont lose what you didnt put in it.Any thoughts would be appreciated. Thanks  <response>: Wouldnt that just mean that you stand to lose LESS money if your home goes down in value from what you purchased it for ie, you dont lose what you didnt put in it.Unless you default on your mortgage, it wont matter how much you paid up front. Basically, you can lose what you didnt put in.If you buy a house for 100k with 0 down at 3 interest for 30 years and sell it seven years later for 80k, you will have to pay the bank the 84k you still owe on the mortgage, 4k of which would come out of your pocket. Im assuming the bank doesnt accept a short sale, and Im ignoring real estate agent commissions and closing costs. If you put 20 down like a normal human that isnt a doctor, your payments would be lower and in seven years your balance would be 67k. Selling the house for 80k would net you 13k. EDIT: To put it another way: A houses effect on your net worth is the value of the house minus the balance on your mortgage. If the value of the house goes down, your net worth goes down by exactly that amount, regardless of the balance on your mortgage. 