Arrest over Vic blood-smeared house body

A man has been arrested and two people are being questioned after a 26-year-old man's body was found inside a blood-smeared house in Melbourne.

The body was found by police about 11.20pm on Sunday in the southwestern suburb of Altona.

Forensic police are at the Civic Parade home where splattered blood is visible on the front door.

Victoria Police say they are yet to establish the "exact circumstances" surrounding the death.

The Age newspaper reports that some neighbours heard a loud bang that sounded like a car backfiring but others only heard about what had happened from the morning news.

One woman told The Age the residents kept to themselves but it wasn't unusual to hear arguing from the house.

The house, which is one of two on the block, is close to the Maidstone Street intersection.