The percentage of U.S. homeowners that owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March as home prices continue to fall, Deutsche Bank said on Wednesday.

Home price declines will have their biggest impact on conforming loans that meet the underwriting guidelines of Fannie Mae and Freddie Mac, the bank said in a report.

Of those conforming loans, 41 percent will be underwater by the first quarter of 2011, up from 16 percent at the end of the first quarter 2009, it said.

(Reporting by Al Yoon; Editing by Dan Grebler)