How M/I Homes Uses This Clause
M/I Homes purchase agreements have been documented to include affiliated lender incentive steering provisions. M/I Financial, LLC (NMLS #50684) is the wholly owned mortgage subsidiary of M/I Homes, operating since 1983. M/I Financial offers conventional, FHA, VA, jumbo, and adjustable-rate mortgage products. Builder incentives such as closing cost credits or interest rate buydowns may be contingent on using M/I Financial. Under RESPA, buyers are not required to use the affiliated lender, but should compare rates and terms with at least two independent lenders to ensure competitive pricing.
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
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
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 | Likely Enforceable | Ohio permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Indiana | Likely Enforceable | Indiana permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Michigan | Likely Enforceable | Michigan permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Illinois | Uncertain | Illinois permits preferred lender arrangements subject to RESPA requirements, but the Illinois... |
| North Carolina | Likely Enforceable | North Carolina permits builders to offer incentives conditioned on using a preferred lender, subject... |
| South Carolina | Likely Enforceable | South Carolina permits builders to offer incentives conditioned on using a preferred lender, subject... |
| Florida | Likely Enforceable | Florida permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Texas | Likely Enforceable | Texas generally permits builders to offer incentives conditioned on using a preferred lender,... |
| Tennessee | Likely Enforceable | Tennessee permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Minnesota | Uncertain | Minnesota permits preferred lender arrangements subject to RESPA requirements, but the Minnesota... |
| Virginia | Likely Enforceable | Virginia permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Pennsylvania | Uncertain | Pennsylvania permits preferred lender arrangements subject to RESPA requirements, but the... |
| Maryland | Uncertain | Maryland permits preferred lender arrangements subject to RESPA requirements, but Maryland's... |
| Georgia | Likely Enforceable | Georgia permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Colorado | Likely Enforceable | Colorado permits builders to offer incentives conditioned on using a preferred lender, subject to... |
Related Clauses in M/I Homes Contracts
This clause often works in combination with other provisions in M/I Homes's purchase agreements.
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
The affiliated lender provides the suppressed payment estimates, creating a direct connection between these clauses.
What Buyers Can Do
- Compare rates with independent lenders. M/I Financial, LLC (NMLS #50684); wholly owned subsidiary since 1983 may offer closing cost credits or other incentives, but the overall loan terms may not be the most competitive available.
- Calculate the true cost of lender incentives. A closing cost credit of several thousand dollars may be offset by a higher interest rate over the life of the loan. Run the numbers for your specific situation.
- 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.