HUD, VA, and USDA/Rural homes are for sale by the US government. These homes may not be free, but there may be some free equity built in. Real estate continues to be one of the best investments you can make with some nice tax benefits.

And if you can buy a house where someone paid the down payment for you, you'd have instant equity. How can that happen? Buy a home that's been foreclosed on (or about to be). Assume a $100,000 home had $20,000 paid into it's loan when foreclosure came knocking. The banks really only want to get the remaining $80,000 (plus whatever interest and taxes). And say the home's value appreciated to $115,000. So when you come in with $80,000, you already netted an extra $35,000 in free equity from the previous owner and appreciation.

Now foreclosed properties may not be in the best shape, and some of that free money may need to go to repairs. That is still a good thing, because the maintenance will drive your property value up even more.

Check out government properties in your area!