Which is really influenced by how much you are financially leveraged, and less so about whether a home is underwater or not. In a case where capital is needed,

Which is really influenced by how much you are financially leveraged, and less so about whether a home is underwater or not. In a case where capital is needed, if I "put 10% down on my primary residence with remaining capital in more liquid assets and the home becomes underwater" can often be a better situation than if I "put 40% down on my primary residence with little capital in liquid assets and the home decreases in value by 20%".