So many people put off home buying because of inadequate funds.  If you are really interested in purchasing a home, but need a bargain with a minimal down payment, you may be able to purchase a foreclosed property from the US Department of Housing and Urban Development or HUD. 

Down payments on HUD homes vary greatly.  The amount of the down payment requirements depends largely on whether or not the property is eligible for FHA insurance.  If a HUD foreclosure does not qualify for FHA, then the down payment is comparable to traditional purchases requiring from 5-20% down; however, if the property is FHA-insured, the down payment can be significantly lower.

This does not take into account for the amount of the earnest money due when an offer is made.  With HUD foreclosures each offer must be accompanied by a deposit equal to 5% of the bid price, but not over $2000 or under $500.  But as with all earnest money, it is then deducted from your closing costs. 

The US Department of Veterans Affairs also offers foreclosure properties at well below market value with down payments as low as 2% for owner occupants.  Both VA and HUD homes are excellent options for the financially challenged that would still like to pursue their home ownership dreams.