The depth of the downturn will depend on whether the overall economy slips into recession, how fast and how sharply home prices fall, whether more turmoil rocks the credit markets and how many more foreclosures lie ahead. The number of vacant homes is expected to rise further this year because a record number of homes are entering foreclosure. Most lenders now require buyers to put down at least 5 percent of the purchase price (that’s about $10,500 on the national median home price of $210,200). The main exceptions are loans insured by the Federal Housing Administration, which require only 3 percent, and loans guaranteed by the Department of Veterans Affairs, which may cover the entire purchase price. This week, economists for Freddie Mac released their latest economic forecasts, which show home prices falling nearly 8 percent this year and not rising again before the end of 2009. Lenders, trying to cut the cost for maintaining and marketing homes, typically sell foreclosed homes for 20 percent below the market price. read more