The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. These properties are available for sale to both homeowner-occupants and investors.

You can only purchase HUD-owned properties through a licensed real estate broker. In Tucson, HUD will pay the broker's commission up to 5 percent of the sales price. Down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range from the conventional market's 5 to 20 percent.

One important thing to keep in mind: HUD homes are sold "as is," meaning limited repairs have been made, but no structural or mechanical warranties are implied.

If you don’t have a lot of cash to put down and you are looking for a great deal on a home, one option you may want to pursue is buying a foreclosure property acquired by the U.S. Department of Housing and Urban Development for as little as $100 down.

With HUD foreclosures, down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range from 5 to 20 percent. But when the property is FHA-insured, the down payment can go much lower. Each offer must be accompanied by an "earnest money" deposit of either $500 or $1,000, depending on the sales price.