D.R. Horton faces a federal lawsuit alleging it hid full property taxes from buyers, inflating post-closing payments. Plaintiffs claim deception in loan estimates. The company denies the allegations and says it will defend its transparency record.
D.R. Horton, the largest homebuilding company in the United States, is facing a federal lawsuit in Florida over allegations that it concealed the true monthly costs associated with purchasing its homes. The complaint centers on claims that the company and its affiliated lender, DHI Mortgage, excluded full property tax amounts from projected mortgage payment calculations presented to buyers.
According to the filing, this practice allegedly allowed D.R. Horton to market homes with artificially low estimated monthly payments, misleading buyers about affordability. Plaintiffs argue that they were shown lower monthly payments during the sales process and did not learn of the full financial obligation until after closing, when their payments increased substantially following escrow analyses that incorporated complete tax assessments.
Court documents include examples of buyers whose estimated mortgage payments rose by hundreds of dollars after closing. One homeowner stated that a quoted payment of $2,164.68 increased to $3,136.33 once taxes and back taxes were included by the mortgage servicer. Another buyer reported a payment rise from $2,602.47 to $3,439.07 under similar circumstances. The plaintiffs claim that this pattern misrepresented affordability and gave D.R. Horton a competitive edge over other homebuilders by making its homes appear more accessible to middle-income buyers.
The lawsuit argues that D.R. Horton and DHI Mortgage’s practices constitute deceptive trade behavior and violate federal consumer protection standards. It further alleges that the company’s advertising of low-cost monthly payments in marketing materials contributed to confusion among prospective homebuyers.
In response to the allegations, D.R. Horton issued a public statement denying wrongdoing. The company said, “D.R. Horton and DHI Mortgage (DHIM) strongly disagree with the claims made in this lawsuit, and we intend to vigorously defend against them. D.R. Horton and DHIM have been, and will continue to be, unwavering in our commitment towards transparency with our customers.”
The case adds to ongoing scrutiny surrounding mortgage disclosure practices and the transparency of builder-affiliated lending operations. Details of the filing indicate that plaintiffs are seeking financial relief and potential policy changes in how homebuilders calculate and communicate estimated housing costs. The lawsuit remains pending in federal court, with no trial date yet set.