Couple Gets Great Deal on HUD Home

Remodeled kitchen

Remodeled house

Three weeks after a Sioux Falls couple learned about HUD's Officer Next Door/Teacher Next Door (OND/TND) program, they signed a sales contract to purchase a HUD home.

Abby, an educator in the Sioux Falls School district, and Michael, a fireman with the City of Sioux Falls, learned about the program last year. Shortly after that, a new listing became available for the OND/TND program under HUD homes for sale in Sioux Falls. Although the house was in poor condition, they thought it had potential. Michael and Abby looked at the house several times before deciding to make an offer to purchase the property.

Because they qualified for HUD's OND/TND program, they were able to make an offer at 50% of HUD's listing price. Their offer was accepted, and the closing process began. Structurally, the house was in good shape, but many cosmetic improvements were needed before this house would become their home. Family members and friends who looked at the house could only ask, "What in the world are you getting into?" Many of their friends and family thought they were crazy.

Their initial plans for the kitchen called for general clean up and some minor changes. But, before they knew it, the whole kitchen was gutted, and they were starting from scratch. They added new cabinets, new tile flooring, much more storage space, and ended up with a wonderfully spacious new kitchen. Michael's schedule as a fireman allowed him to do most of the work himself, but he did get some help from a friend who does custom kitchen cabinets.

Finally, in the upstairs bedrooms the wood floors were re-worked and a new coat of paint was added. The exterior also received a general clean up and fix-up.

Because they qualified for this special HUD program, and were willing to buy a home that needed lots of work, they were able to get a great deal on their home. Their loan payment, including tax and insurance escrow, is less than $450.00 per month. They estimate they have put $6,800 worth of materials into their new home, plus hundreds of hours of their own labor. A recent assessment for insurance purposes shows a significant increase in value.

The improvements they made to the house have also had an impact on the neighborhood. Located in the older part of town, the neighborhood includes a number of older families who are happy to have a young couple move into the area. Several neighbors have come by and asked see the inside improvements as well, since they were familiar with the house. The neighbors are impressed with the work that has been done to improve their neighborhood, and are pleased to have an educator and a fireman living next door.

Before closing on the home, they had a general idea of the improvements they wanted to make. After closing, however, as they started working, one thing led to another and before they knew it, most of the interior main floor was demolished down to the studs. They added new sheetrock, a fresh coat of paint, new floor coverings and some new windows. Next, came the kitchen.

Read more about the Teacher Next Door and Officer Next Door programs.

Content Archived: April 5, 2011