How M/I Homes Uses This Clause
M/I Homes purchase agreements have been documented to include monthly payment suppression / hidden costs provisions. The purchase agreement may specify that model homes contain options, upgrades, and decorator items not included in the base purchase price. Buyers who rely on model home presentations rather than written contract specifications may receive a home that differs from expectations. Ensure that specific material selections and features are documented in the purchase agreement or an addendum.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. This provision is closely connected to M/I Homes's affiliated lending arm, M/I Financial, LLC (NMLS #50684); wholly owned subsidiary since 1983. Because M/I Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
M/I Homes's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Deposit Forfeiture
Buyers who discover true costs after signing face forfeiting their deposit if they back out.
Regional Contract Patterns
M/I Homes operates in a more focused geographic footprint. Contract terms may vary somewhat between markets, but documented patterns tend to be consistent across the builder's operating states.
Connection to M/I Financial, LLC (NMLS #50684); wholly owned subsidiary since 1983
M/I Homes operates M/I Financial, LLC (NMLS #50684); wholly owned subsidiary since 1983 as an affiliated lending arm. The builder may offer financial incentives for buyers who use this lender, which creates a direct connection between the lending relationship and the terms of the purchase agreement.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects M/I Homes's operating states.
| State | Status | Note |
|---|---|---|
| Ohio | Uncertain | Ohio does not have a specific statute addressing monthly payment suppression in builder marketing.... |
| Indiana | Uncertain | Indiana does not have a specific statute addressing monthly payment suppression in builder... |
| Michigan | Uncertain | Michigan does not have a specific statute addressing monthly payment suppression in builder... |
| Illinois | Likely Unenforceable | Illinois has strong consumer protection statutes and some of the highest property tax rates in the... |
| North Carolina | Uncertain | North Carolina does not have a specific statute addressing monthly payment suppression in builder... |
| South Carolina | Uncertain | South Carolina does not have a specific statute addressing monthly payment suppression in builder... |
| Florida | Uncertain | Florida does not have a specific statute addressing monthly payment suppression in builder... |
| Texas | Uncertain | Texas does not have a specific statute addressing monthly payment suppression in new construction... |
| Tennessee | Uncertain | Tennessee does not have a specific statute addressing monthly payment suppression in builder... |
| Minnesota | Uncertain | Minnesota does not have a specific statute addressing monthly payment suppression in builder... |
| Virginia | Uncertain | Virginia does not have a specific statute addressing monthly payment suppression in builder... |
| Pennsylvania | Uncertain | Pennsylvania does not have a specific statute addressing monthly payment suppression in builder... |
| Maryland | Uncertain | Maryland does not have a specific statute addressing monthly payment suppression in builder... |
| Georgia | Uncertain | Georgia does not have a specific statute addressing monthly payment suppression in builder... |
| Colorado | Uncertain | Colorado does not have a specific statute targeting monthly payment suppression in builder... |
Related Clauses in M/I Homes Contracts
This clause often works in combination with other provisions in M/I Homes's purchase agreements.
Buyers who discover true costs after signing face forfeiting their deposit if they back out.
The affiliated lender may present suppressed payment estimates, and incentives encourage buyers to use that lender.
Closing penalties discourage buyers from delaying to investigate payment discrepancies.
What Buyers Can Do
- Independently verify your projected monthly payment. Do not rely solely on estimates from M/I Financial, LLC (NMLS #50684); wholly owned subsidiary since 1983. Get a loan estimate from at least one independent lender for comparison.
- Ask about temporary rate buydowns. Determine whether any quoted rate includes a temporary buydown that will expire, causing your payment to increase after the introductory period.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in M/I Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.