Sure, but you can always sell assets to cover expenses. Say you have $250k in diversified assets and a $500k note. In scenario A you put $250k and have no ear

Sure, but you can always sell assets to cover expenses. Say you have $250k in diversified assets and a $500k note. In scenario A you put $250k and have no earning power, owing $250k. If you lose your job and foreclose that downpayment is lost. In scenario B you lose your job but you still have $250k on assets, you can draw on that to pay the $500k note as it comes due. You have options.