JACKSONVILLE, Fla. – Dozens of Northeast Florida families say they were blindsided by steep increases in their monthly mortgage payments, some jumping by $600 to more than $1,000, after buying new construction homes from D.R. Horton, one of the nation’s largest homebuilders.
The issue is now at the center of a class action lawsuit accusing D.R. Horton and its lending arm, DHI Mortgage, of deceptive practices that attorneys describe as a “Monthly Payment Suppression Scheme.”
The lawsuit claims the companies misled first-time buyers by underestimating property taxes in their monthly mortgage projections, making the homes appear more affordable than they actually were.
Mario Caracas, who moved to Yulee from Buffalo, said the low monthly payment was a major reason his family chose their home.
“We love the neighborhood… it’s been awesome,” Caracas said. “But things went wrong when we ended up getting an estimated bill the following year. The escrow was significantly higher… probably 20% higher than what we had been paying before. It was quite the hit on the wallet.”
Caracas said his payment later jumped about $600 a month.
“We didn’t quite understand it,” he said. “Do we get a second job? How do we actually afford this monthly payment?”
Homeowners interviewed by the News4JAX I-TEAM reported similar experiences. In North Jacksonville, one D.R. Horton homeowner said her mortgage rose by $500, but neighbors saw even bigger increases.
“People I’ve talked to… theirs have gone up $1,000, $2,000,” she said. “I know people are paying $3,000 right now for their mortgage from what they originally started with. And they haven’t gotten any clear answers as to why.”
The class action lawsuit, filed by attorneys with the National Consumer Law Center, alleges D.R. Horton and DHI Mortgage intentionally left out the majority of property taxes during loan disclosures, keeping monthly payment estimates artificially low.
When the loans were later sold to a new servicer and escrow accounts recalculated, homeowners saw their true payments plus back taxes they suddenly owed.
The consequences, attorneys say, have been severe. Some homeowners have faced foreclosure or been forced to sell.
Caracas said the added costs have changed his family’s daily life.
“To do some of the other things we wanted to do, my wife is doing delivery apps just to make a few extra dollars,” he said. “There’s a lot of people that have had to move out of the neighborhood.”
Another homeowner told News4JAX she hopes the lawsuit brings change.
“People have to live,” she said. “They have to be able to afford to live in their house. They’re basically scamming people, in my opinion.”
Caracas agrees that homebuilders need to be more transparent.
“They know what they’re doing,” he said. “They need to do a better job of being upfront with people… so people truly understand what they are getting into.”
What’s next in the case
The lawsuit has been filed but is not yet certified as a class action. If a judge approves certification, affected homeowners would receive notices by mail and would not need to take any action to join.
There is no timeline yet for when the court will decide on class certification, and the case remains in its early stages.
A D.R. Horton spokesperson released the following statement:
“D.R. Horton and DHI Mortgage (DHIM) strongly disagree with the claims made in this lawsuit, and we intend to vigorously defend against them.”