A group of Florida homeowners has filed a federal class action lawsuit against D.R. Horton, the nation’s largest homebuilder, and its lending arm, DHI Mortgage Co., alleging the companies misled first-time buyers about monthly mortgage payments.

The lawsuit, filed in the U.S. District Court for the Middle District of Florida, claims the companies promoted artificially low monthly payments by not including full property tax costs in their estimates. Homeowners say their payments increased by hundreds of dollars per month after their mortgages were transferred to new servicers who recalculated taxes based on the homes’ full assessed values.

Plaintiff Frankie Santiago said his monthly payment for a Lake County home jumped from $2,164 to $3,136—an increase of nearly $1,000—less than a year after purchase when his servicer included full property taxes.

The plaintiffs’ attorneys allege D.R. Horton and DHI Mortgage operated a “Monthly Payment Suppression Scheme” and are seeking relief under the Racketeer Influenced and Corrupt Organizations Act (RICO), which could allow affected buyers to recover up to three times their losses.

Local mortgage expert Jason Kindler explained that new construction homes are initially taxed based only on land value until the county assesses the completed property. He said if companies intentionally used the lower unimproved tax figures to make payments appear more affordable, it represents a serious problem for buyers.

The attorneys representing the plaintiffs say the lawsuit aims to recover damages and prevent similar practices in the future. D.R. Horton has not yet responded to the allegations.

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