All good advice has already been given. There are loan programs available for home buyers with low down payments. Most people assume if you have little to put down on a home purchase you have to go with an FHA loan, this is not always the case. You should meet with a Mortgage Broker to discuss your situation.
As for closing costs, per the other responses, you can try to get a Sellers Concession, you can also opt for a higher mortgage rate and receive a lender credit at Closing to cover some of the costs.
Check out my website to get a free personalized rate quote. http://www.nysmortgagerates.com
Yes, you can. With as little as 3.5% down you can apply for an FHA mortgage. SONYMA offers up $15,000 of downpayment assistance, which they forgive the buyer after 10 years of living in the property. As for the closing costs, you can sometimes add them to the purchase price (as a seller's concession), so you can finance them in your mortgage, instead of paying them out of packet at closing.
Most foreclosures do need some work, but some are in a move in condition - it all depends.
Hope this helps. Good luck! Let me know if you need any help in finding a house.
There may even be State and Local programs that only your local Realtor and Lender have access to.
YES, almost all FORECLOSED homes are in need of some TLC; many need major repair:
Many homeowners are vindictive when they leave and I've seen holes in the walls from a foot, missing light fixtures, stolen stove and even toilets and water heaters.
Talk to your Agent and your Lender about Rehab loans piggy-backed on your Loan.
Good luck and may God bless