Dishonest disclosure on home

Our house flooded, we contacted the seller to see if they had any ideas on how to clean up the mess, they informed us that it had flooded in the house a month prior to us buying it( not in the seller's disclosure). Luckily insurance helped and we were able to renovate the room but in the process, we found mold behind paneling going 3 ft up the wall on an entire wall. They were right, it had extreme water damage before this certain flood. Since then, we have found mold in the entire house and we have two young children, a 7 yr. old and 17 mon. old. Our 17 mon. old has had many respiratory problems since moving into the property and I'm very concerned for his health. We WOULD NOT have bought this home knowing it had flooded because of our child's health problems. We feel very uninformed and angry because of this and we do not have a clue where to start or how to get out of this loan.