<PAGE>   1

                                                                    EXHIBIT 10.9

                                                                  EXECUTION COPY

================================================================================


                        FINANCIAL ASSET SECURITIES CORP.,

                                  as Purchaser,

                                       and

                           MEGO MORTGAGE CORPORATION,

                                   as Seller,


                          HOME LOAN PURCHASE AGREEMENT


================================================================================





                            Dated as of June 14, 1997


<PAGE>   2



                                Table of Contents

                                   ARTICLE I.
                                   DEFINITIONS
<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----
<S>                        <C>                                                                                   <C>
Section 1.1       Definitions...................................................................................  1

                                                            ARTICLE II.
                                           SALE OF HOME LOANS; PAYMENT OF PURCHASE PRICE

Section 2.1       Sale of Home Loans............................................................................  2
Section 2.2       [Reserved]....................................................................................  2
Section 2.3       Obligations of Seller Upon Sale...............................................................  2
Section 2.4       Payment of Purchase Price for the Home Loans..................................................  4


                                                            ARTICLE III.
                                                        REPRESENTATIONS AND
                                                  WARRANTIES; REMEDIES FOR BREACH

Section 3.1       Seller Representations and Warranties.........................................................  5

                                                            ARTICLE IV.
                                                         SELLER'S COVENANTS

Section 4.1       Covenants of the Seller.......................................................................  7

                                                             ARTICLE V.
                                                   INDEMNIFICATION BY THE SELLER

Section 5.1       Indemnification...............................................................................  7
Section 5.2       Limitation on Liability of the Seller.........................................................  7

                                                            ARTICLE VI.
                                                            TERMINATION

Section 6.1       Termination................................................................................... 10

                                                            ARTICLE VII.
                                                      MISCELLANEOUS PROVISIONS

Section 7.1       Amendment..................................................................................... 10
Section 7.2       Governing Law................................................................................. 10
Section 7.3       Notices....................................................................................... 10
Section 7.4       Severability of Provisions.................................................................... 11
Section 7.5       Counterparts.................................................................................. 11
Section 7.6       Further Agreements............................................................................ 11
</TABLE>


                                        i

<PAGE>   3

<TABLE>
<S>               <C>                                                                                            <C>
Section 7.7       Intention of the Parties...................................................................... 11
Section 7.8       Successors and Assigns; Assignment of Purchase Agreement...................................... 12
Section 7.9       Survival...................................................................................... 12
Section 7.10      Third-Party Beneficiaries..................................................................... 12

                                                       EXHIBITS AND SCHEDULES

Schedule I    Schedule of Home Loans
</TABLE>


                                       ii

<PAGE>   4



        HOME LOAN PURCHASE AGREEMENT (the "Purchase Agreement"), dated as of
June 14, 1997, between Mego Mortgage Corporation ("Mego" or the "Seller") and
FINANCIAL ASSET SECURITIES CORP., ("FASCO" and together with any assignee of
FASCO, the "Purchaser").

                               W I T N E S S E T H

        WHEREAS, the Seller is the owner of a pool of fixed-rate home
improvement and debt consolidation loans and retail installment sale contracts
(the "Home Loans") secured by first and junior mortgages, deeds of trust and
security deeds on certain residential and investment properties (the
"Properties") as listed on Schedule I attached hereto and the Related Documents
thereto (as defined below);

        WHEREAS, the parties hereto desire that the Seller sell all its right,
title and interest in and to the Home Loans and the Related Documents to the
Purchaser pursuant to the terms of this Purchase Agreement; and

        WHEREAS, pursuant to the terms of a Sale and Servicing Agreement, dated
as of June 14, 1997 (the "Sale and Servicing Agreement"), among Mego Mortgage
Home Loan Owner Trust 1997-3, as issuer (the "Trust"), FASCO, as depositor (the
"Depositor"), Mego, as Seller and servicer (the "Servicer"), Norwest Bank
Minnesota, N.A., as master servicer (the "Master Servicer"), and First Bank
National Association, as indenture trustee (the "Indenture Trustee") and
co-owner trustee (the "Co-Owner Trustee"), the Purchaser will sell, transfer,
assign and otherwise convey to the Trust all its right, title and interest in
and to the Home Loans and this Purchase Agreement;

        NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties hereto agree as follows:


                                   ARTICLE I.
                                   DEFINITIONS

        Section 1.1 Definitions. Capitalized terms used but not defined herein
have the meanings assigned thereto in the Sale and Servicing Agreement.

        Registration Statement. The Purchaser's registration statement on Form
S-3 (No. 333-29381), in the form in which it became effective under the
Securities Act of 1933, as amended, on June 20, 1997 including any documents
incorporated by reference therein.

        Base Prospectus. The prospectus, dated June 20, 1997 attached to the
Prospectus Supplement relating to the Notes.



                                        1

<PAGE>   5

                                   ARTICLE II.
                  SALE OF HOME LOANS; PAYMENT OF PURCHASE PRICE

        Section 2.1 Sale of Home Loans. The Seller, concurrently with the
execution and delivery of this Purchase Agreement, does hereby sell, assign, set
over, and otherwise convey to the Purchaser, without recourse other than as
expressly provided herein and in the Sale and Servicing Agreement, all of its
right, title and interest in, to and under the following, whether now existing
or hereafter acquired and wherever located: (i) as of the Cut-Off Date, the Home
Loans delivered to the Indenture Trustee on the Closing Date, including the
related Principal Balance and all payments of principal in respect of Home Loans
received on or after the Cut-Off Date and payments of interest in respect of
Home Loans due on or after the CutOff Date, (ii) the Home Loan Files, (iii) any
Insurance Policies and related Insurance Proceeds, (iv) the Mortgages and
security interests in Mortgaged Properties which secure the Home Loans, (v) any
and all documents or electronic records relating to the Home Loans, (vi) all
proceeds of any of the foregoing.

        Section 2.2 [Reserved].

        Section 2.3 Obligations of Seller Upon Sale. In connection with any
transfer pursuant to Section 2.1 hereof, the Seller further agrees, at its own
expense, on or prior to the Closing Date (a) to indicate in its books and
records that the Home Loans have been sold to the Purchaser pursuant to this
Purchase Agreement and (b) to deliver to the Purchaser a computer file
containing a true and complete list of all Home Loans specifying for each Home
Loan, as of the Cut-Off Date, (i) its account number and (ii) its Principal
Balance. Such file, which forms a part of Exhibit A to the Sale and Servicing
Agreement, shall also be marked as Schedule I to this Purchase Agreement and is
hereby incorporated into and made a part of this Purchase Agreement.

        The Seller agrees to prepare, execute and file UCC-1 financing
statements with the County Clerk of Cobb (which shall have been filed on or
before the Closing Date with respect to the Home Loans describing the Home Loans
and naming the Seller as debtor and, the Purchaser as secured party (and
indicating that such loans have been assigned to the Trust) all necessary
continuation statements and any amendments to the UCC-1 financing statements
required to reflect a change in the name or corporate structure of the Seller or
the filing of any additional UCC-1 financing statements due to the change in the
principal office of the Seller, as are necessary to perfect the sale of the
Seller's interest in each Home Loan and the proceeds thereof.

        In connection with any conveyance by the Seller, the Seller shall on
behalf of the Purchaser deliver to, and deposit with the Indenture Trustee, as
assignee of the Purchaser, on or before the Closing Date the following documents
or instruments with respect to each Home Loan (the "Related Documents");
provided, that the documents or instruments listed in clause (f) below may be
held in the custody of the Seller on behalf of the Indenture Trustee.


                With respect to each Home Loan:



                                        2

<PAGE>   6

                                                                                
                                                                                
                                                                                
                (a) The original Debt Instrument, showing a complete chain of
    endorsements or assignments from the named payee to the Trust and endorsed
    as follows: "Pay to the order of First Bank National Association, as
    Indenture Trustee and Co-Owner Trustee for Mego Mortgage Home Loan Owner
    Trust 1997-3 without recourse";

                (b) If such Home Loan is a Mortgage Loan, the original Mortgage
    with evidence of recording indicated thereon (except that a true copy
    thereof certified by an appropriate public official may be substituted);
    provided, however, that if the Mortgage with evidence of recording thereon
    cannot be delivered concurrently with the execution and delivery of this
    Purchase Agreement solely because of a delay caused by the public recording
    office where such Mortgage has been delivered for recordation, there shall
    be delivered to the Indenture Trustee a copy of such Mortgage certified as a
    true copy in an Officer's Certificate which shall certify that such Mortgage
    has been delivered to the appropriate public recording office for
    recordation, and there shall be promptly delivered to the Indenture Trustee
    such Mortgage with evidence of recording indicated thereon upon receipt
    thereof from the public recording official (or a true copy thereof certified
    by an appropriate public official may be delivered to the Indenture
    Trustee);

                (c) If such Home Loan is a Mortgage Loan, an original Assignment
    of the Mortgage, in recordable form. Such assignment may be a blanket
    assignment, to the extent that blanket assignments are effective under
    applicable law, for Mortgages covering Properties situated in the same
    county. If the assignment of Mortgage is in blanket form, an assignment of
    Mortgage need not be included in the individual Home Loan File;

                (d) If such Home Loan is a Mortgage Loan, all original
    intermediate assignments of the Mortgage, showing a complete chain of
    assignments from the named mortgagee to the assignor to the Indenture
    Trustee, with evidence of recording thereon (or true copies thereof
    certified by appropriate public officials may be substituted); provided,
    however, that if the intervening assignments of mortgage with evidence of
    recording thereon cannot be delivered concurrently with the execution and
    delivery of this Purchase Agreement solely because of a delay caused by the
    public recording office where such Assignments of Mortgage have been
    delivered for recordation, there shall be delivered to the Indenture Trustee
    a copy of each such assignment of Mortgage certified as a true copy in an
    Officer's Certificate which shall certify that each such assignment of
    Mortgage has been delivered to the appropriate public recording office for
    recordation, and there shall be promptly delivered to the Indenture Trustee
    such assignments of Mortgage with evidence of recording indicated thereon
    upon its receipt thereof from the public recording official (or true copies
    thereof certified by an appropriate public official may be delivered to the
    Indenture Trustee);

                (e) An original of each assumption or modification agreement, if
    any, relating to such Home Loan; and

                (f) (i) an original or copy of the truth-in-lending disclosure,
    (ii) an original or copy of the credit application, (iii) an original or
    copy of the consumer credit report, (iv) an original or copy of verification
    of employment and income, or verification of self-



                                        3

<PAGE>   7

    employment income, (v) an original or copy of the contract of work or
    written description with cost estimates, if applicable, (vi) an original or
    copy of the report of inspection of improvements to the Property, if
    applicable, (vii) to the extent not included in (ii), an original or a copy
    of a written verification, or an underwriter's notation of obtaining a
    verbal verification that the Obligor at the time of origination was not more
    than 30 days delinquent on any senior mortgage or deed of trust on the
    Property, (viii) (1) if the original principal balance is between $35,001
    and $40,000, (A) evidence that the borrower has a FICO Score of at least
    640, a debt to income ratio no greater than 45%, and disposable income of at
    least $1,500 per month, or (B) (I) a copy of the HUD-1 Closing Statement
    indicating the sale price, or (II) an Uniform Residential Appraisal Report,
    or (III) a Drive-By Appraisal documented on either FHLMC Form 704 or FNMA
    Form 2055, or (IV) a tax assessment, or (V) a broker's price opinion; (2) if
    the original principal balance is between $40,001 and $50,000, (A) a copy of
    the HUD-1 Closing Statement indicating the sale price, or (B) an Uniform
    Residential Appraisal, or (C) a Drive-By Appraisal documented on either
    FHLMC Form 704 or FNMA Form 2055, or (D) a tax assessment, or (E) a broker's
    price opinion, or (3) if the original principal balance exceeds $50,000, a
    full Uniform Residential Appraisal Report prepared by a national appraisal
    firm, and (ix) an original or a copy of a title search as of the time of
    origination with respect to the Property.

        With respect to any documents referred to clauses (b) and (d) above that
are not delivered to the Indenture Trustee because of a delay caused by the
public recording office, such documents shall be delivered to the Indenture
Trustee in accordance with the terms of such clauses by the Seller if such
documents are received by it or by the Purchaser if such documents are received
by it.

        The Seller further hereby confirms to the Purchaser that, as of the
Closing Date it has caused the portions of the Seller's electronic ledger
relating to the Home Loans to be clearly and unambiguously marked to indicate
that the Home Loans have been sold to the Purchaser.

        The Purchaser hereby acknowledges its acceptance of all right, title and
interest to the Home Loans and other property, now existing and hereafter
created, conveyed to it pursuant to Section 2.1 hereof.

        The parties hereto intend that each of the transactions set forth herein
be a sale by the Seller to the Purchaser of all the Seller's right, title and
interest in and to the Home Loans and other property described above. In the
event the transactions set forth herein are deemed not to be a sale, the Seller
hereby grants to the Purchaser a security interest in all of the Seller's right,
title and interest in, to and under the Home Loans and other property described
above, whether now existing or hereafter created, to secure all of the Seller's
obligations hereunder; and this Purchase Agreement shall constitute a security
agreement under applicable law.

        Section 2.4 Payment of Purchase Price for the Home Loans. (a) In
consideration of the sale of the Home Loans from the Seller to the Purchaser on
the Closing Date, the Purchaser agrees to pay to the Seller on the Closing Date
by transfer of immediately



                                        4

<PAGE>   8

available funds, an amount equal to $103,620,516.02 (which includes accrued
interest) (before deducting expenses payable by the Seller to the Purchaser)
(the "Purchase Price").

        (b) Within 60 days of the Closing Date, the Seller, at its own expense,
shall cause the Indenture Trustee to record each Assignment of Mortgage in favor
of the Indenture Trustee (which may be a blanket assignment if permitted by
applicable law) in the appropriate real property or other records; provided,
however, the Indenture Trustee need not record any assignment which relates to a
Home Loan in any jurisdiction under the laws of which, as evidenced by an
Opinion of Counsel delivered by the Seller (at the Seller's expense) to the
Indenture Trustee, the recordation of such Assignment is not necessary to
protect the Indenture Trustee's and the Securityholders' interest in the related
Home Loan. With respect to any Assignment of Mortgage as to which the related
recording information is unavailable within 60 days following the Closing Date,
such Assignment of Mortgage shall be submitted for recording within 30 days
after receipt of such information but in no event later than one year after the
Closing Date. The Indenture Trustee shall be required to retain a copy of each
Assignment of Mortgage submitted for recording. In the event that any such
Assignment of Mortgage is lost or returned unrecorded because of a defect
therein, the Seller shall promptly prepare a substitute Assignment of Mortgage
or cure such defect, as the case may be, and thereafter the Trustee shall be
required to submit each such Assignment of Mortgage for recording.

                                  ARTICLE III.
                               REPRESENTATIONS AND
                         WARRANTIES; REMEDIES FOR BREACH

                Section 3.1 Seller Representations and Warranties. (a) The
    Seller represents and warrants to the Purchaser as of the Cut-Off Date and
    the Closing Date that:

                (i)     The Seller is a corporation duly organized, validly
    existing and in good standing under the laws of the State of Delaware with
    full power and authority to own its properties and conduct its business as
    such properties are presently owned and such business is presently
    conducted;

                (ii)    The Seller has full power and authority to execute,
    deliver and perform, and to enter into and consummate all transactions
    required of it by this Purchase Agreement and each other Transaction
    Document to which it is a party; has duly authorized the execution, delivery
    and performance of this Purchase Agreement and each other Transaction
    Document to which it is a party; has duly executed and delivered this
    Purchase Agreement and each other Transaction Document to which it is a
    party; when duly authorized, executed and delivered by the other parties
    hereto, this Purchase Agreement and each other Transaction Document to which
    it is a party will constitute a legal, valid and binding obligation of the
    Seller enforceable against it in accordance with its terms, except as
    enforceability may be limited by bankruptcy, insolvency, reorganization or
    other similar laws affecting the enforcement of creditors' rights generally
    and by equitable limitations on the availability of specific remedies,
    regardless of whether such enforceability is considered in a proceeding in
    equity or at law;



                                        5

<PAGE>   9

                (iii)   Neither the execution and delivery of this Purchase
    Agreement or any of the other Transaction Documents to which the Seller is a
    party, the consummation of the transactions required of it herein or under
    any other Transaction Document, nor the fulfillment of or compliance with
    the terms and conditions of this Purchase Agreement or any of the other
    Transaction Documents will conflict with or result in a breach of any of the
    terms, conditions or provisions of the Seller's charter or by-laws or any
    legal restriction or any material agreement or instrument to which the
    Seller is now a party or by which it is bound, or which would adversely
    affect the creation and administration of the Trust as contemplated hereby,
    or constitute a material default or result in an acceleration under any of
    the foregoing, or result in the violation of any law, rule, regulation,
    order, judgment or decree to which the Seller or its property is subject;

                (iv)    There is no action, suit, proceeding, investigation or
    litigation pending against the Seller or, to its knowledge, threatened,
    which, if determined adversely to the Seller, would materially adversely
    affect the sale of the Home Loans, the execution, delivery or enforceability
    of this Purchase Agreement or any other Transaction Document, or which would
    have a material adverse affect on the financial condition of the Seller;

                (v)     No consent, approval, authorization or order of any
    court or governmental agency or body is required for: (a) the execution,
    delivery and performance by the Seller of, or compliance by the Seller with,
    this Purchase Agreement, (b) the sale of the Home Loans or (c) the
    consummation of the transactions required of it by this Purchase Agreement;

                (vi)    The Seller is not in default with respect to any order
    or decree of any court or any order, regulation or demand of any federal,
    state, municipal or governmental agency, which default might have
    consequences that would materially and adversely affect the condition
    (financial or other) or operations of the Seller or its properties or might
    have consequences that would materially and adversely affect its performance
    hereunder;

                (vii)   The Seller received fair consideration and reasonably
    equivalent value in exchange for the sale of the Home Loans to the
    Purchaser; and

                (viii)  The Seller has transferred the Home Loans without any
    intent to hinder, delay or defraud any of its creditors.

                (b)     The Seller further represents and warrants to the
    Purchaser that with respect to the Home Loans as of the Closing Date each of
    the representations and warranties contained in Section 3.03(b) of the Sale
    and Servicing Agreement are true and correct.

        It is understood and agreed that the representations and warranties set
forth in this Section 3.1(b) shall survive delivery of the respective Home Loan
Files to the Indenture Trustee on behalf of the Purchaser. In the event that (a)
any of the representations and warranties of the Seller in Section 3.03(b) of
the Sale and Servicing Agreement are determined



                                        6

<PAGE>   10

to be untrue in a manner that materially and adversely affects the interests of
the Securityholders in any Home Loan with respect to which such representation
or warranty is made and (b) the Seller shall fail to cure such breach within the
time period specified in Section 3.05 of the Sale and Servicing Agreement, the
Seller shall be obligated to repurchase or substitute the affected Home Loan(s)
in accordance with the provisions of Section 3.05 of the Sale and Servicing
Agreement.

        With respect to representations and warranties made by Mego pursuant to
this Section 3.1(b) that are made to the Seller's best knowledge, if it is
discovered by any of the Depositor, the Seller, the Indenture Trustee or the
Owner Trustee that the substance of such representation and warranty is
inaccurate and such inaccuracy materially and adversely affects the value of the
related Home Loan, notwithstanding the Seller's lack of knowledge, such
inaccuracy shall be deemed a breach of the applicable representation and
warranty.

                                   ARTICLE IV.
                               SELLER'S COVENANTS

        Section 4.1 Covenants of the Seller. The Seller hereby covenants that
except for the transfer hereunder, the Seller will not sell, pledge, assign or
transfer to any other Person, or grant, create, incur, assume or suffer to exist
any lien on, any Home Loan, or any interest therein; and the Seller will defend
the right, title and interest of the Trust, as assignee of the Purchaser, in, to
and under the Home Loans, against all claims of third parties claiming through
or under the Seller.


                                   ARTICLE V.
                          INDEMNIFICATION BY THE SELLER

        Section 5.1 Indemnification. The Seller agrees to indemnify and hold
harmless the Purchaser from and against any loss, liability, expense, damage,
claim or injury (other than those resulting solely from defaults on the Home
Loans) arising out of or based on this Agreement including, without limitation,
in connection with the origination or prior servicing of the Home Loans by
reason of any acts, omissions, or alleged acts or omissions arising out of
activities of the Seller, originator or prior servicer, including reasonable
attorneys' fees and other costs or expenses incurred in connection with the
defense of any actual or threatened action, proceeding or claim; provided that
the Seller shall not indemnify the Purchaser if such loss, liability, expense,
damage or injury is due to the Purchaser's willful misfeasance, bad faith or
negligence or by reason of the Purchaser's reckless disregard of its obligations
hereunder. The provisions of this indemnity shall run directly to and be
enforceable by an injured party subject to the limitations hereof.

        Section 5.2 Limitation on Liability of the Seller. None of the directors
or trustees or officers or employees or agents of the Seller shall be under any
liability to the Purchaser, it being expressly understood that all such
liability is expressly waived and released as a condition of, and as
consideration for, the execution of this Purchase Agreement; provided, however,
that this provision shall not protect any such Person against any liability
which would otherwise be imposed by reason of willful misfeasance, bad faith or
negligence



                                        7

<PAGE>   11

in the performance of duties hereunder. Except as expressly provided herein and
in the Sale and Servicing Agreement, the Seller shall not be under any liability
to the Trust, the Owner Trustee, the Co-Owner Trustee or the Securityholders.
The Seller and any director or officer or employee or agent of the Seller may
rely in good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising hereunder.

        Section 5.3 Indemnification (a) The Seller agrees to indemnify and hold
harmless the Purchaser, the directors of the Purchaser and each person, if any,
who controls the Purchaser within the meaning of Section 15 of the Securities
Act of 1933 (the "Act") or Section 20 of the Securities Exchange Act of 1934
(the "Exchange Act"), from and against any and all losses, claims, damages,
liabilities or judgments (including without limiting the foregoing the
reasonable legal and other expenses incurred in connection with any action, suit
or proceeding or any claim asserted) arising out of (i) any untrue statement or
alleged untrue statement of a material fact contained under any of the captions
"Mego Mortgage Corporation", and "The Pool" in the Prospectus Supplement or
caused by any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances in which they were made, not misleading or (ii)
any information concerning the Seller, the Home Loans or the Seller's operations
based on any untrue statement or alleged untrue statement of a fact contained in
any information provided by the Seller to the Purchaser, or any material
omission from the information purported to be provided thereby, and disseminated
to any Rating Agency, Deloitte & Touche or prospective investors (directly or
indirectly through available information systems) in connection with the
issuance, marketing or offering of the Notes and Certificates. This indemnity
agreement will be in addition to any liability which the Seller may otherwise
have pursuant to this Purchase Agreement.

        (b) The Purchaser agrees to indemnify and hold harmless the Seller and
each person, if any, who controls the Seller within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act from and against any and all losses,
claims, damages and liabilities caused by (A) any untrue statement or alleged
untrue statement of a material fact contained in (i) the Prospectus Supplement
under the caption "Description of the Securities", "Description of the Transfer
and Servicing Agreements", and "Prepayment and Yield Considerations"; (ii) the
Base Prospectus; or (iii) the Registration Statement (other than the information
with respect to the Seller contained in the Prospectus Supplement) or (B) any
omission or alleged omission to state a material fact, in the case of the
Registration Statement (other than the information with respect to the Seller
contained in the Prospectus Supplement), required to be stated therein or
necessary to make the statements therein not misleading, and in the case of the
section of the Prospectus Supplement specified in clause (A) (i) of this
sentence and the Base Prospectus, necessary in order to make the statements made
therein, in the light of the circumstances under which they were made, not
misleading. This indemnity agreement will be in addition to any liability which
the Purchaser may have pursuant to this Purchase Agreement.

        (c) In case any action or proceeding (including any governmental or
regulatory investigation or proceeding) shall be instituted involving any person
in respect of which indemnity may be sought pursuant to either of the two
preceding paragraphs, such person (hereinafter called the "indemnified party")
shall promptly notify the person against whom such indemnity may be sought
(hereinafter called the "indemnifying party") in writing and the



                                        8

<PAGE>   12

indemnifying party, upon request of the indemnified party, shall assume the
defense thereof, including the employment of counsel reasonably satisfactory to
the indemnified party to represent the indemnified party and any others the
indemnifying party may designate and shall pay the fees and disbursements of
such counsel related to such proceeding. In any such action or proceeding, any
indemnified party shall have the right to retain its own counsel, but the fees
and expenses of such counsel shall be at the expense of such indemnified party
unless (1) the indemnifying party and the indemnified party shall have mutually
agreed to the retention of such counsel or (2) the named parties to any such
proceeding (including any impleaded parties) include both the indemnifying party
and the indemnified party and representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between
them. It is understood that the indemnifying party shall not, in connection with
any proceeding or related proceedings in the same jurisdiction, be liable for
the reasonable fees and expenses of more than one separate firm (in addition to
any local counsel) for any indemnified party and each person, if any, who
controls such indemnified party within the meaning of either Section 15 of the
Act or Section 20 of the Exchange Act, and it is also understood that expenses
shall be reimbursed as they are incurred. In the case of any such separate firm
for any indemnified party and any director, officer and control person of the
indemnified party, such firm shall be designated in writing by such indemnified
party. The indemnifying party shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, the indemnifying
party agrees to indemnify the indemnified party from and against any loss or
liability by reason of such settlement or judgment. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

        (d) If the indemnification provided for in this Section 5.3 is
unavailable to an indemnified party in respect of any losses, claims, damages,
liabilities or judgments referred to therein, then each indemnifying party, in
lieu of indemnifying such indemnified party, shall contribute to the amount paid
or payable by such indemnified party as a result of such losses, claims,
damages, liabilities and expenses (i) in such proportion as is appropriate to
reflect the relative benefits received by the indemnified party on the one hand
and the indemnifying party on the other from the sale of the Home Loans or (ii)
if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the
indemnified party on the one hand and the indemnifying party on the other in
connection with the statements or omissions which resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations. For purposes of the foregoing, the benefit received by
the Seller from the sale of the Home Loans shall be deemed to equal the amount
of the gross proceeds received by the Seller from such sale, and the benefit
received by the Purchaser for such sale shall be deemed to equal the amount
specified in the paragraph below. The relative fault of the Purchaser on the one
hand and the Seller on the other shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the
Purchaser or by the Seller and the parties' relative intent,



                                        9

<PAGE>   13

knowledge, access to information and opportunity to correct or prevent such
statement or omission.

        The Seller and the Purchaser agree that it would not be just and
equitable if contribution pursuant to this Section 5.3(d) were determined by pro
rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages, liabilities or judgments referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 5.3(d), in no event shall the
Purchaser be required to contribute any amount in excess of $961,697.37. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.


                                   ARTICLE VI.
                                   TERMINATION

        Section 6.1 Termination. The respective obligations and responsibilities
of the Seller and the Purchaser created hereby shall terminate, except for the
Seller's and Purchaser's indemnity obligations as provided herein, upon the
termination of the Trust as provided in Article XI of the Sale and Servicing
Agreement.


                                  ARTICLE VII.
                            MISCELLANEOUS PROVISIONS

        Section 7.1 Amendment. This Purchase Agreement may be amended from time
to time by the Seller and the Purchaser, by written agreement signed by the
Seller and the Purchaser.

        Section 7.2 Governing Law. This Purchase Agreement shall be governed by
and construed in accordance with the laws of the State of New York and the
obligations, rights and remedies of the parties hereunder shall be determined in
accordance with such laws.

        Section 7.3 Notices. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or mailed by registered mail, postage prepaid, addressed as
follows:

        (a) if to the Seller:

                Mego Mortgage Corporation 
                1000 Parkwood Circle, Suite 500 
                Atlanta, Georgia 30339 
                Attention: Jeff S. Moore, President



                                       10
<PAGE>   14

or, such other address as may hereafter be furnished to the Purchaser in writing
by the Seller.

        (b) if to FASCO

                Financial Asset Securities Corp.
                600 Steamboat Road
                Greenwich, Connecticut 06830
                Attention:  General Counsel

or such other address as may hereafter be furnished to the Seller in writing by
the Purchaser.


        Section 7.4 Severability of Provisions. If any one or more of the
covenants, agreements, provisions of terms of this Purchase Agreement shall be
held invalid for any reason whatsoever, then such covenants, agreements,
provisions or terms shall be deemed severable from the remaining covenants,
agreements, provisions or terms of this Purchase Agreement and shall in no way
affect the validity of enforceability of the other provisions of this Purchase
Agreement.

        Section 7.5 Counterparts. This Purchase Agreement may be executed in one
or more counterparts and by the different parties hereto on separate
counterparts, each of which, when so executed, shall be deemed to be an original
and such counterparts, together, shall constitute one and the same agreement.

        Section 7.6 Further Agreements. The Purchaser and the Seller each agree
to execute and deliver to the other such amendments to documents and such
additional documents, instruments or agreements as may be necessary or
appropriate to effectuate the purposes of this Purchase Agreement or in
connection with the offering of securities representing interests in the Home
Loans.

        Without limiting the generality of the foregoing, as a further
inducement for the Purchaser to purchase the Home Loans from the Seller, the
Seller will cooperate with the Purchaser in connection with the sale of any of
the securities representing interests in the Home Loans. In that connection, the
Seller will provide to the Purchaser any and all information and appropriate
verification of information, whether through letters of its auditors and counsel
or otherwise, as the Purchaser shall reasonably request and will provide to the
Purchaser such additional representations and warranties, covenants, opinions of
counsel, letters from auditors, and certificates of public officials or officers
of the Seller as are reasonably required in connection with such transactions
and the offering of investment grade securities rated by Duff & Phelps Credit
Ratings Co., Fitch Investors Services L.P. and Standard & Poor's Rating
Services.

        Section 7.7 Intention of the Parties. It is the intention of the parties
that the Purchaser is purchasing, and the Seller is selling, the Home Loans
rather than pledging the Home Loans to secure a loan by the Purchaser to the
Seller. Accordingly, the parties hereto each intend to treat the transaction for
federal income tax purposes and all other purposes as a sale by the Seller, and
a purchase by the Purchaser, of the Home Loans. The Purchaser will have the
right to review the Home Loans and the related Home Loan Files to determine the



                                       11

<PAGE>   15

characteristics of the Home Loans which will affect the federal income tax
consequences of owning the Home Loans and the Seller will cooperate with all
reasonable requests made by the Purchaser in the course of such review.

        Section 7.8 Successors and Assigns; Assignment of Purchase Agreement.
The Agreement shall bind and inure to the benefit of and be enforceable by the
Seller, the Purchaser and the Trustee. The obligations of the Seller under this
Purchase Agreement cannot be assigned or delegated to a third party without the
consent of the Purchaser, which consent shall be at the Purchaser's sole
discretion, except that the Purchaser acknowledges and agrees that the Seller
may assign its obligations hereunder to any Person into which the Seller is
merged or any corporation resulting from any merger, conversion or consolidation
to which the Seller is a party or any Person succeeding to the business of the
Seller. The parties hereto acknowledge that FASCO is acquiring the Home Loans
for the purpose of contributing them to the Trust that will issue (i) the
Residual Instruments and the Certificates representing undivided interests in
such Home Loans and (ii) the Notes which will be secured by such Home Loans. As
an inducement to FASCO to purchase the Home Loans, the Seller acknowledges and
consents to the assignment by FASCO to the Trust of all of FASCO's rights
against the Seller pursuant to this Purchase Agreement and to the enforcement or
exercise of any right or remedy against the Seller pursuant to this Purchase
Agreement by the Owner Trustee and Co-Owner Trustee under the Sale and Servicing
Agreement. Such enforcement of a right or remedy by the Owner Trustee and
Co-Owner Trustee shall have the same force and effect as if the right or remedy
had been enforced or exercised by FASCO directly.

        Section 7.9 Survival. The representations and warranties set forth in
Article III and the provisions of Article V shall survive the purchase of the
Home Loans hereunder.

        Section 7.10 Third-Party Beneficiaries. This Purchase Agreement shall
inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. Except as otherwise provided in
this Section 7.10 no other Person shall have the right or obligation hereunder.



                                       12

<PAGE>   16

                IN WITNESS WHEREOF, the Seller and the Purchaser have caused
        this Home Loan Purchase Agreement to be duly executed on their behalf by
        their respective officers thereunto duly authorized as of the day and
        year first above written.

                                        FINANCIAL ASSET SECURITIES CORP.,
                                          as Purchaser


                                        By:
                                           -------------------------------------
                                             Name: Craig A. Braun
                                             Title: Vice President


                                        MEGO MORTGAGE CORPORATION, as Seller


                                        By:
                                           -------------------------------------
                                             Name:  James L. Belter
                                             Title: Executive Vice President



<PAGE>   17

STATE OF NEW YORK       )
                        )  ss.:
COUNTY OF NEW YORK      )


        On the 27th day of June 1997 before me, a Notary Public in and for said
State, personally appeared Craig A. Braun known to me to be a Vice President of
FINANCIAL ASSET SECURITIES CORP., the corporation that executed the within
instrument, and also known to me to be the person who executed it on behalf of
said corporation, and acknowledged to me that such corporation executed the
within instrument.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.




                                           Notary Public
                                           -------------------------------------



<PAGE>   18

STATE OF                )
                        )  ss.:
COUNTY OF               )

        On the 27th day of June 1997 before me, a Notary Public in and for said
State, personally appeared James L. Belter, known to me to be the Executive Vice
President of MEGO MORTGAGE CORPORATION, the company that executed the within
instrument, and also known to me to be the person who executed it on behalf of
said corporation, and acknowledged to me that such corporation executed the
within instrument.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.




                                           Notary Public
                                           -------------------------------------



<PAGE>   19


                                   SCHEDULE I


                                  Loan Schedule


                  See Exhibit A to Sale and Servicing Agreement