Homebuyers sue D.R. Horton and DHI Mortgage for allegedly hiding true monthly mortgage costs

D.R. Horton class action lawsuit overview:

• Who: A group of homebuyers have filed a class action lawsuit against homebuilder D.R. Horton and its mortgage company, DHI Mortgage.
• Why: The homebuyers claim D.R. Horton and DHI Mortgage misled them about the true monthly cost of their homes.
• Where: The D.R. Horton class action lawsuit was filed in Nevada federal court.

A new class action lawsuit claims homebuilder D.R. Horton misled homebuyers about the true monthly cost of their homes.

The class action lawsuit, filed Dec. 3 in Nevada federal court, alleges D.R. Horton and its mortgage company, DHI Mortgage, engaged in a bait-and-switch scheme that concealed the actual monthly payments from homebuyers by providing artificially low estimates of property taxes.

The plaintiffs say the scheme made the homes appear more affordable than they actually were, leading buyers to purchase properties they could not afford.

According to the class action lawsuit, D.R. Horton and DHI Mortgage deliberately included only a fraction of the required property taxes in their initial mortgage payment calculations. This resulted in monthly payment estimates that were significantly lower than what buyers would eventually have to pay, the plaintiffs say.

They claim the true cost of the monthly payments was only revealed after closing, when a new mortgage servicer conducted an escrow analysis that included the full amount of property taxes.

D.R. Horton scheme caused financial hardship, homebuyers claim

The plaintiffs allege that the unexpected increase in monthly payments caused financial hardship for many homebuyers, forcing them to scrape together hundreds of extra dollars each month to avoid foreclosure.

The lawsuit claims that many of the affected buyers were first-time homebuyers on tight budgets, including participants in federal programs designed to help working- and middle-class Americans and veterans.

The lawsuit further alleges that D.R. Horton and DHI Mortgage used the artificially low payment estimates to market their homes as more affordable than those of competitors. This allowed them to sell higher-priced homes by making them appear within the buyers’ budgets, the plaintiffs say.

The plaintiffs seek to represent a class of homebuyers who purchased D.R. Horton homes with mortgages originated by DHI Mortgage that included suppressed estimated taxes in the monthly payment.

They are suing for violations of the Racketeer Influenced and Corrupt Organizations Act, the Nevada Deceptive Trade Practices Act, negligence and unjust enrichment.

The plaintiffs are seeking damages, disgorgement of profits and injunctive relief to prevent D.R. Horton and DHI Mortgage from continuing the alleged scheme.

D.R. Horton was previously sued by Alabama homeowners who claimed the company failed to build their residences up to code to withstand a Category 3 hurricane.

What do you think of the allegations made in this D.R. Horton class action lawsuit? Let us know in the comments.

The plaintiffs are represented by Elizabeth Mikesell and Peter Aldous of the Legal Aid Center of Southern Nevada; Jeffrey L. Newsome, Brian W. Warwick, Janet R. Varnell, Christopher J. Brochu and Pamela Levinson of Varnell & Warwick P.A.; Kristen G. Simplicio and Roke Iko of Clarkson Law Firm P.C.; and Jennifer Wagner and Shennan Kavanagh of the National Consumer Law Center.

The D.R. Horton home mortgage class action lawsuit is Robinson, et al. v. D.R. Horton Inc., et al., Case No. 2:25-cv-02394, in the U.S. District Court for the District of Nevada.

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