Most home buyers expect to put 10% or less down, Zillow finds

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Despite tougher lending standards, a poll commissioned by Zillow finds that 17% of those planning to buy a home within two years expect to do so with zero down payment. Another 36% expect to make down payments from 1% to 10% of their home purchase price. That means 53% plan to buy a home with a down payment of 10% or less.

Whether these hopeful buyers will be able to get such mortgages is a question lenders will have to answer. But mortgages with low down payments -- or none at all -- put a lot of hot air in the housing bubble. Zillow’s Amy Bohutinsky said of the nearly one-fifth of buyers who plan to put no money down, ‘Given the fact that home values are still declining in most markets [and most ‘bottom’ forecasts reach into 2010], this surprises us.’

-- Peter Y. Hong