Getting a great buy on a foreclosure is simpler these days than getting the loan for it.  Many foreclosure properties fall out of escrow because buyers do not have the capital to put in a “bank required” escrow account to resolve damages or costly fixes.  Save your capital for the rehab with FHA 203(k) construction loan. The down payment can be as little as 3% down payment, and zoning rules allow the loan can be used to purchase or refinance a single family home and turn it into a 2-4 unit owner occupied property.

find out more info at http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm