What happens if you sell or refinance within 7 years of using Hoosier Homes? The remaining unforgiven balance is due — see examples and planning tips.
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Sell or Refinance Within 7 Years
If you sell or refinance before the 7-year forgiveness period ends, the remaining unforgiven balance on your Hoosier Homes second loan must be repaid — here is why that matters before you close.
Hoosier Homes forgives 1/84th of the assistance principal each month you remain in the home as your primary residence. That forgiveness stops — and any unforgiven balance becomes due — when you sell, refinance, or otherwise exit the program terms within the 7-year window.
This is not a penalty. It is how the program recovers assistance when a buyer does not complete the full forgiveness term. The payoff comes from your sale proceeds or is rolled into a refinance transaction.
Ryan and Steve walk through this scenario before you close on your purchase — so you know what a move or refinance could cost at year 2, year 4, or any point inside the window.
Approximate unforgiven balance if you exit at various points (assuming primary-residence occupancy throughout).
Three questions Ryan and Steve ask every Hoosier Homes buyer.
Related guides on forgiveness structure and program basics.
Ryan & Steve will estimate your Hoosier Homes payoff at any exit year — so you know the real cost of a move or refinance.
Program guidelines, income limits, and Targeted Area maps change. This page is educational — final eligibility is confirmed when your file is underwritten against current Hoosier Homes rules. This website is not directly affiliated with or endorsed by any government agency.