I got a flyer last week from our Knoxville TVA Employees Credit Union (TVA stands for Tennessee Valley Authority, the guys that run the dams and power plants around here) headlined "100% Financing Available" so naturally it caught my eye.

Reading on it said it was a 2 year ARM, adjusted 1% every two years with a cap of 8% over the starting rate.

Years 1 and 2 have a 4.875% rate

Years 2 and 3 goes up to 5.875%

Years 5 and 6 goes up to 6.865%

It also has a maximum cap of 8% over the starting rate so the most it could ever be in this scenario is 12.875%

To be a credit union member all you have to do is open a savings account and reside in one the counties they have a branch in; The greater Knoxville area and Knox County certainly qualifies. You can open a savings account for as little as $5.00.

Owner occupied single family residences only.

Visit KnoxvilleHomeCenter.com if you need to find a new Knoxville area home to try this 100% financing out on.