10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2013

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES ACT OF 1934

Commission File Number 1-12434

M/I HOMES, INC.

(Exact name of registrant as specified in it charter)

Ohio	31-1210837
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3 Easton Oval, Suite 500, Columbus, Ohio 43219

(Address of principal executive offices) (Zip Code)

(614) 418-8000

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes X No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	Accelerated filer	X
Non-accelerated filer	Smaller reporting company
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes No X

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common shares, par value $.01 per share: 24,357,943 shares outstanding as of October 23, 2013.

M/I HOMES, INC.
FORM 10-Q
TABLE OF CONTENTS
PART 1.	FINANCIAL INFORMATION
	Item 1.	M/I Homes, Inc. and Subsidiaries Unaudited Condensed Consolidated Financial Statements
		Unaudited Condensed Consolidated Balance Sheets at September 30, 2013 and December 31, 2012	3
		Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2013 and 2012	4
		Unaudited Condensed Consolidated Statement of Shareholders' Equity for the Nine Months Ended September 30, 2013	5
		Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2013 and 2012	6
		Notes to Unaudited Condensed Consolidated Financial Statements	7
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
	Item 4.	Controls and Procedures	55
PART II.	OTHER INFORMATION
	Item 1.	Legal Proceedings	55
	Item 1A.	Risk Factors	55
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55
	Item 3.	Defaults Upon Senior Securities	55
	Item 4.	Mine Safety Disclosures	55
	Item 5.	Other Information	55
	Item 6.	Exhibits	56
Signatures			57
Exhibit Index			58

2

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par values)	September 30, 2013			December 31, 2012
ASSETS:
Cash and cash equivalents	$	142,475		$	145,498
Restricted cash	15,806			8,680
Mortgage loans held for sale	60,388			71,121
Inventory	676,336			556,817
Property and equipment - net	10,346			10,439
Investment in unconsolidated joint ventures	34,088			11,732
Deferred income taxes, net of valuation allowance of $14.9 million and $135.7 million at September 30, 2013 and December 31, 2012, respectively	112,682			—
Other assets	30,946			27,013
TOTAL ASSETS	$	1,083,067		$	831,300
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Accounts payable	$	85,804		$	47,690
Customer deposits	14,918			10,239
Other liabilities	62,310			49,972
Community development district (“CDD”) obligations	3,419			4,634
Obligation for consolidated inventory not owned	1,576			19,105
Notes payable bank - financial services operations	55,614			67,957
Notes payable - other	8,126			11,105
Convertible senior subordinated notes due 2017	57,500			57,500
Convertible senior subordinated notes due 2018	86,250			—
Senior notes	227,970			227,670
TOTAL LIABILITIES	603,487			495,872
Commitments and contingencies	—			—
SHAREHOLDERS' EQUITY:
Preferred shares - $.01 par value; authorized 2,000,000 shares; 2,000 and 4,000 shares issued at September 30, 2013 and December 31, 2012, respectively; 2,000 and 4,000 shares outstanding as of September 30, 2013 and December 31, 2012, respectively	48,163			96,325
Common shares - $.01 par value; authorized 38,000,000 shares; issued 27,092,723 and 24,631,723 shares at September 30, 2013 and December 31, 2012, respectively	271			246
Additional paid-in capital	235,880			180,289
Retained earnings	249,582			117,048
Treasury shares - at cost - 2,734,780 and 2,944,470 shares at September 30, 2013 and December 31, 2012, respectively	(54,316		)	(58,480		)
TOTAL SHAREHOLDERS' EQUITY	479,580			335,428
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,083,067		$	831,300

See Notes to Unaudited Condensed Consolidated Financial Statements.

3

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands, except per share amounts)	2013			2012		2013			2012
Revenue	$	275,195		$	208,875	$	700,475		$	510,994
Costs and expenses:
Land and housing	218,150			164,452		556,799			408,893
Impairment of inventory and investment in unconsolidated joint ventures	2,136			1,309		4,237			1,876
General and administrative	18,261			16,016		52,389			42,299
Selling	17,999			14,647		47,383			38,483
Equity in income of unconsolidated joint ventures	(278		)	—		(278		)	—
Interest	3,449			3,999		12,186			12,066
Loss on early extinguishment of debt	1,726			—		1,726			—
Total costs and expenses	261,443			200,423		674,442			503,617
Income before income taxes	13,752			8,452		26,033			7,377
(Benefit) provision for income taxes	(111,559		)	138		(111,129		)	(955		)
Net income	$	125,311		$	8,314	$	137,162		$	8,332
Preferred dividends	1,219			—		2,438			—
Excess of fair value over book value of preferred shares redeemed	—			—		2,190			—
Net income to common shareholders	$	124,092		$	8,314	$	132,534		$	8,332
Earnings per common share:
Basic	$	5.09		$	0.43	$	5.61		$	0.44
Diluted	$	4.22		$	0.42	$	4.79		$	0.43
Weighted average shares outstanding:
Basic	24,358			19,434		23,642			19,014
Diluted	29,745			20,273		28,410			19,238

See Notes to Unaudited Condensed Consolidated Financial Statements.

4

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

	Nine Months Ended September 30, 2013
	Preferred Shares					Common Shares
	Shares Outstanding					Shares Outstanding			Additional Paid-in Capital			Retained Earnings			Treasury Shares			Total Shareholders' Equity
(Dollars in thousands)			Amount				Amount
Balance at December 31, 2012	4,000		$	96,325		21,687,253	$	246	$	180,289		$	117,048		$	(58,480	)	$	335,428
Net income	—		—			—	—		—			137,162			—			137,162
Fair value over carrying value of preferred shares redeemed	—		2,190			—	—		—			(2,190		)	—			—
Dividends to shareholders, $609.375 per preferred share	—		—			—	—		—			(2,438		)	—			(2,438		)
Common share issuance	—		—			2,461,000	25		54,592			—			—			54,617
Preferred shares redeemed	(2,000	)	(50,352		)	—	—					—			—			(50,352		)
Income tax effect of stock options and executive deferred compensation distributions	—		—			—	—		383			—			—			383
Stock options exercised	—		—			184,832	—		(1,031		)	—			3,671			2,640
Stock-based compensation expense	—		—			—	—		1,835			—			—			1,835
Deferral of executive and director compensation	—		—			—	—		305			—			—			305
Executive and director deferred compensation distributions	—		—			24,858	—		(493		)	—			493			—
Balance at September 30, 2013	2,000		$	48,163		24,357,943	$	271	$	235,880		$	249,582		$	(54,316	)	$	479,580

See Notes to Unaudited Condensed Consolidated Financial Statements.

5

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
(Dollars in thousands)	2013			2012
OPERATING ACTIVITIES:
Net income	$	137,162		$	8,332
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Inventory valuation adjustments and abandoned land transaction write-offs	4,237			2,132
Equity in income of unconsolidated joint ventures	(278		)	—
Bargain purchase gain	—			(1,219		)
Mortgage loan originations	(426,636		)	(355,075		)
Proceeds from the sale of mortgage loans	439,151			354,443
Fair value adjustment of mortgage loans held for sale	(1,782		)	(431		)
Depreciation	3,777			4,940
Amortization of intangibles, debt discount and debt issue costs	2,555			1,822
Loss on early extinguishment of debt	1,726			—
Stock-based compensation expense	1,835			1,398
Deferred income tax expense	9,190			3,721
Deferred tax asset valuation allowances	(120,836		)	(3,721		)
Other	—			50
Change in assets and liabilities:
Cash held in escrow	148			(37		)
Inventory	(142,642		)	(71,236		)
Other assets	(2,443		)	(4,030		)
Accounts payable	38,114			23,016
Customer deposits	4,679			6,604
Accrued compensation	1,767			1,667
Other liabilities	9,840			11,303
Net cash used in operating activities	(40,436		)	(16,321		)
INVESTING ACTIVITIES:
Change in restricted cash	(7,274		)	32,391
Purchase of property and equipment	(1,654		)	(858		)
Return of capital from unconsolidated joint ventures	1,522			—
Acquisition, net of cash acquired	—			(4,707		)
Investment in unconsolidated joint ventures	(25,496		)	(949		)
Net cash (used in) provided by investing activities	(32,902		)	25,877
FINANCING ACTIVITIES:
Repayment of senior notes, including transaction costs	—			(41,443		)
Net proceeds from issuance of senior notes	—			29,700
Proceeds from issuance of convertible senior subordinated notes due 2018	86,250			—
Proceeds from issuance of convertible senior subordinated notes due 2017	—			57,500
Repayments of bank borrowings - net	(12,343		)	2,234
(Principal repayments of) proceeds from notes payable-other and CDD bond obligations	(2,979		)	4,968
Dividends paid on preferred shares	(2,438		)	—
Net proceeds from issuance of common shares	54,617			42,085
Redemption of preferred shares	(50,352		)	—
Debt issue costs	(5,463		)	(5,843		)
Proceeds from exercise of stock options	2,640			1,215
Excess tax deficiency from stock-based payment arrangements	383			—
Net cash provided by financing activities	70,315			90,416
Net (decrease) increase in cash and cash equivalents	(3,023		)	99,972
Cash and cash equivalents balance at beginning of period	145,498			59,793
Cash and cash equivalents balance at end of period	$	142,475		$	159,765
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest — net of amount capitalized	$	4,977		$	5,442
Income taxes	$	679		$	280
NON-CASH TRANSACTIONS DURING THE PERIOD:
Community development district infrastructure	$	(1,215	)	$	(995	)
Consolidated inventory not owned	$	(17,529	)	$	3,608
Distribution of single-family lots from unconsolidated joint ventures	$	1,912		$	—

See Notes to Unaudited Condensed Consolidated Financial Statements.

6

M/I HOMES, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. Basis of Presentation

The accompanying Unaudited Condensed Consolidated Financial Statements (the “financial statements”) of M/I Homes, Inc. and its subsidiaries (the “Company”) and notes thereto have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The financial statements include the accounts of M/I Homes, Inc. and its subsidiaries. All intercompany transactions have been eliminated. Results for the interim period are not necessarily indicative of results for a full year. In the opinion of management, the accompanying financial statements reflect all adjustments (all of which are normal and recurring in nature) necessary for a fair presentation of financial results for the interim periods presented. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 Form 10-K”).

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during that period. Actual results could differ from these estimates and have a significant impact on the financial condition and results of operations and cash flows. With regard to the Company, estimates and assumptions are inherent in calculations relating to valuation of inventory and investment in unconsolidated joint ventures, property and equipment depreciation, valuation of derivative financial instruments, accounts payable on inventory, accruals for costs to complete inventory, accruals for warranty claims, accruals for self-insured general liability claims, litigation, accruals for health care and workers' compensation, accruals for guaranteed or indemnified loans, stock-based compensation expense, income taxes, and contingencies. Items that could have a significant impact on these estimates and assumptions include the risks and uncertainties listed in “Item 1A. Risk Factors” in Part I of our 2012 Form 10-K, as the same may be updated from time to time in our subsequent filings with the SEC.

Reclassifications

The Company reclassified certain amounts presented in the Supplemental Condensed Consolidating Balance Sheet for the period ended December 31, 2012 and the Supplemental Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2012 included in Note 13. The Company believes these reclassifications are immaterial to the supplemental condensed consolidating financial statements which are presented as supplemental information. These reclassifications do not affect the Company's consolidated financial statements for either period.

Impact of New Accounting Standards

In January 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2013-01: Balance Sheet (Topic 210) - Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”). ASU 2013-01 amended ASU 2011-11 and will enhance disclosures required by the United States Generally Accepted Accounting Principles (“U.S. GAAP”) by requiring additional information about financial and derivative instruments that are either (1) offset in accordance with Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with Section 210-20-45 or Section 815-10-45. We are required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and for interim periods within those annual periods. The Company adopted this standard on January 1, 2013, and the adoption did not have a material impact on its Unaudited Condensed Consolidated Financial Statements.

In April 2013, the FASB issued ASU No. 2013-04: Liabilities (“ASU 2013-04”), which provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. ASU 2013-04 is effective for us beginning January 1, 2014. The Company does not anticipate the adoption of this guidance will have a material impact on its Unaudited Condensed Consolidated Financial Statements or disclosures.

In July 2013, the FASB issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). The amendments in ASU 2013-11 are intended to end inconsistent practices regarding the presentation of unrecognized tax benefits on the balance sheet. An entity will be required to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. An entity is required to apply the amendments prospectively for annual reporting periods

7

beginning after December 15, 2013, and for interim periods within those annual periods. Early adoption and retrospective application are permitted. The Company does not anticipate the adoption of this guidance will have a material impact on its Unaudited Condensed Consolidated Financial Statements or disclosures.

NOTE 2. Fair Value Measurements

There are three measurement input levels for determining fair value: Level 1, Level 2, and Level 3. Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

Assets Measured on a Recurring Basis

The Company measures both mortgage loans held for sale and interest rate lock commitments (“IRLCs”) at fair value. In the normal course of business, our financial services segment enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates.  The commitments become effective when the borrowers “lock-in” a specified interest rate within established time frames.  Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to an investor.  To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, the Company enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers.  The forward sale contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments.  The Company does not engage in speculative trading or derivative activities.  Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers or investors are undesignated derivatives, and accordingly, are marked to fair value through earnings.  Changes in fair value measurements are included in earnings in the accompanying statements of operations.

The fair value of mortgage loans held for sale is estimated based primarily on published prices for mortgage-backed securities with similar characteristics.  To calculate the effects of interest rate movements, the Company utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount.  The Company generally sells loans on a servicing released basis, and receives a servicing release premium upon sale.  Thus, the value of the servicing rights included in the fair value measurement is based upon contractual terms with investors and depends on the loan type. The Company applies a fallout rate to IRLCs when measuring the fair value of rate lock commitments.  Fallout is defined as locked loan commitments for which the Company does not close a mortgage loan and is based on management’s judgment and company experience.

The fair value of the Company’s forward sales contracts to broker/dealers solely considers the market price movement of the same type of security between the trade date and the balance sheet date.  The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value.

Interest Rate Lock Commitments. IRLCs are extended to certain home-buying customers who have applied for a mortgage loan and meet certain defined credit and underwriting criteria. Typically, the IRLCs will have a duration of less than six months; however, in certain markets, the duration could extend to twelve months.

Some IRLCs are committed to a specific third party investor through the use of best-efforts whole loan delivery commitments matching the exact terms of the IRLC loan. Uncommitted IRLCs are considered derivative instruments and are fair value adjusted, with the resulting gain or loss recorded in current earnings.

Forward Sales of Mortgage-Backed Securities. Forward sales of mortgage-backed securities (“FMBSs”) are used to protect uncommitted IRLC loans against the risk of changes in interest rates between the lock date and the funding date. FMBSs related to uncommitted IRLCs are classified and accounted for as non-designated derivative instruments and are recorded at fair value, with gains and losses recorded in current earnings.

Mortgage Loans Held for Sale.Mortgage loans held for sale consists primarily of single-family residential loans collateralized by the underlying property.  Generally, all of the mortgage loans and related servicing rights are sold to third-party investors shortly after origination.  During the intervening period between when a loan is closed and when it is sold to an investor, the interest rate risk is covered through the use of a best-efforts contract or by FMBSs. The FMBSs are classified and accounted for as non-designated derivative instruments, with gains and losses recorded in current earnings.

8

The table below shows the notional amounts of our financial instruments at September 30, 2013 and December 31, 2012:

Description of financial instrument (in thousands)	September 30, 2013		December 31, 2012
Best efforts contracts and related committed IRLCs	$	4,417	$	1,184
Uncommitted IRLCs	79,594		25,854
FMBSs related to uncommitted IRLCs	80,000		26,000
Best efforts contracts and related mortgage loans held for sale	3,025		25,441
FMBSs related to mortgage loans held for sale	55,000		44,000
Mortgage loans held for sale covered by FMBSs	54,720		44,524

The table below shows the level and measurement of assets and liabilities measured on a recurring basis at September 30, 2013 and December 31, 2012:

Description of Financial Instrument (in thousands)	Fair Value Measurements September 30, 2013			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	60,388		$	—	$	60,388		$	—
Forward sales of mortgage-backed securities	(1,971		)	—		(1,971		)	—
Interest rate lock commitments	942			—		942			—
Best-efforts contracts	(179		)	—		(179		)	—
Total	$	59,180		$	—	$	59,180		$	—

Description of Financial Instrument (in thousands)	Fair Value Measurements December 31, 2012			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	71,121		$	—	$	71,121		$	—
Forward sales of mortgage-backed securities	253			—		253			—
Interest rate lock commitments	1			—		1			—
Best-efforts contracts	(3		)	—		(3		)	—
Total	$	71,372		$	—	$	71,372		$	—

The following table sets forth the amount of (loss) gain recognized, within our revenue in the Unaudited Condensed Consolidated Statements of Operations, on assets and liabilities measured on a recurring basis for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2013			2012			2013			2012
Mortgage loans held for sale	$	3,365		$	328		$	1,782		$	431
Forward sales of mortgage-backed securities	(5,262		)	(838		)	(2,224		)	(925		)
Interest rate lock commitments	1,677			341			941			328
Best-efforts contracts	(193		)	(84		)	(176		)	(77		)
Total (loss) gain recognized	$	(413	)	$	(253	)	$	323		$	(243	)

9

The following tables set forth the fair value of the Company's derivative instruments and their location within the Unaudited Condensed Consolidated Balance Sheets for the periods indicated (except for mortgage loans held for sale which is disclosed as a separate line item):

	Asset Derivatives			Liability Derivatives
	September 30, 2013			September 30, 2013
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	—	Other liabilities	$	1,971
Interest rate lock commitments	Other assets	942		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	179
Total fair value measurements		$	942		$	2,150

	Asset Derivatives			Liability Derivatives
	December 31, 2012			December 31, 2012
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	253	Other liabilities	$	—
Interest rate lock commitments	Other assets	1		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	3
Total fair value measurements		$	254		$	3

Assets Measured on a Non-Recurring Basis

The Company assesses inventory for recoverability on a quarterly basis if events or changes in local or national economic conditions indicate that the carrying amount of an asset may not be recoverable. In conducting our quarterly review for indicators of impairment on a community level, we evaluate, among other things, margins on sales contracts in backlog, the margins on homes that have been delivered, expected changes in margins with regard to future home sales over the life of the community, expected changes in margins with regard to future land sales, the value of the land itself as well as any results from third party appraisals. We pay particular attention to communities in which inventory is moving at a slower than anticipated absorption pace, and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. We also evaluate communities where management intends to lower the sales price or offer incentives in order to improve absorptions even if the community's historical results do not indicate a potential for impairment. From the review of all of these factors, we identify communities whose carrying values may exceed their estimated undiscounted future cash flows and run a test for recoverability. For those communities whose carrying values exceed the estimated undiscounted future cash flows and which are deemed to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the communities exceeds the estimated fair value. Due to the fact that the Company's cash flow models and estimates of fair values are based upon management estimates and assumptions, unexpected changes in market conditions and/or changes in management's intentions with respect to the inventory may lead the Company to incur additional impairment charges in the future.

Our determination of fair value is based on projections and estimates, which are Level 3 measurement inputs.  Our analysis is completed at a phase level within each community; therefore, changes in local conditions may affect one or several of our communities. For all of the categories listed below, the key assumptions relating to the valuations are dependent on project-specific local market and/or community conditions and are inherently uncertain. Because each inventory asset is unique, there are numerous inputs and assumptions used in our valuation techniques. Market factors that may impact these assumptions include:

• historical project results such as average sales price and sales pace, if closings have occurred in the project;

• competitors' market and/or community presence and their competitive actions;

• project specific attributes such as location desirability and uniqueness of product offering;

• potential for alternative product offerings to respond to local market conditions; and

• current economic and demographic conditions and related trends and forecasts.

These and other market factors that may impact project assumptions are considered by personnel in our homebuilding divisions as they prepare or update the forecasts for each community. Quantitative and qualitative factors other than home sales prices could significantly impact the potential for future impairments. The sales objectives can differ between communities, even within a given sub-market. For example, facts and circumstances in a given community may lead us to price our homes with the objective of yielding a higher sales absorption pace, while facts and circumstances in another community may lead us to price our homes to minimize deterioration in our gross margins, although it may result in a slower sales absorption pace. Furthermore, the key assumptions included in our estimated future undiscounted cash flows may be interrelated. For example, a decrease in estimated

10

base sales price or an increase in home sales incentives may result in a corresponding increase in sales absorption pace or a reduction in base house costs. Changes in our key assumptions, including estimated average selling price, construction and development costs, absorption pace, selling strategies, or discount rates, could materially impact future cash flow and fair value estimates.

As of September 30, 2013, our projections generally assume a gradual improvement in market conditions over time. If communities are not recoverable based on estimated future undiscounted cash flows, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The fair value of a community is estimated by discounting management's cash flow projections using an appropriate risk-adjusted interest rate. As of September 30, 2013, we utilized discount rates ranging from 13% to 16% in our valuations. The discount rate used in determining each asset's estimated fair value reflects the inherent risks associated with the related estimated cash flow stream, as well as current risk-free rates available in the market and estimated market risk premiums. For example, construction in progress inventory, which is closer to completion, will generally require a lower discount rate than land under development in communities consisting of multiple phases spanning several years of development.

Operating Communities.  If an indicator for impairment exists for existing operating communities, the recoverability of assets is evaluated by comparing the carrying amount of the assets to estimated future undiscounted net cash flows expected to be generated by the assets based on home sales.  These estimated cash flows are developed based primarily on management's assumptions relating to the specific community. The significant assumptions used to evaluate the recoverability of assets include: the timing of development and/or marketing phases; projected sales price and sales pace of each existing or planned community; the estimated land development, home construction, and selling costs of the community; overall market supply and demand; the local market; and competitive conditions. Management reviews these assumptions on a quarterly basis. While we consider available information to determine what we believe to be our best estimates as of the end of a reporting period, these estimates are subject to change in future reporting periods as facts and circumstances change. We believe the most critical assumptions in the Company's cash flow models are projected absorption pace for home sales, sales prices, and costs to build and deliver homes on a community by community basis.

In order to estimate the assumed absorption pace for home sales included in the Company's cash flow models, the Company analyzes the historical absorption pace in the community as well as other communities in the geographic area. In addition, the Company considers internal and external market studies and trends, which may include, but are not limited to, statistics on population demographics, unemployment rates, foreclosure sales, and availability of competing products in the geographic area where a community is located. When analyzing the Company's historical absorption pace for home sales and corresponding internal and external market studies, the Company places greater emphasis on more current metrics and trends such as the absorption pace realized in its most recent quarters and management's most current assessment of sales pace.

In order to estimate the sales prices included in its cash flow models, the Company considers the historical sales prices realized on homes it delivered in the community and other communities in the geographic area, as well as the sales prices included in its current backlog for such communities. In addition, the Company considers internal and external market studies and trends, which may include, but are not limited to, statistics on sales prices in neighboring communities, which include the impact of short sales, if any, and sales prices on similar products in non-neighboring communities in the geographic area where the community is located. When analyzing its historical sales prices and corresponding market studies, the Company places greater emphasis on more current metrics and trends such as the sales prices realized in its most recent quarters and the sales prices in current backlog. Based upon this analysis, the Company sets a sales price for each house type in the community which it believes will achieve an acceptable gross margin and sales pace in the community. This price becomes the price published to the sales force for use in its sales efforts. The Company then considers the average of these published sales prices when estimating the future sales prices in its cash flow models, assuming no increase in weighted average sales price in 2013, a 4% increase in 2014 and 2015, and a 2% increase in 2016 and beyond.

In order to arrive at the Company's assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors and subcontractors, adjusted for any anticipated cost reduction initiatives or increases in cost structure. With respect to overhead included in the cash flow models, the Company uses forecasted rates included in the Company's annual budget adjusted for actual experience that is materially different than budgeted rates. The Company anticipates no increase in assumed weighted average costs in 2013, a 4% increase in 2014 and 2015, and a 2% increase in 2016 and beyond.

Future communities. If an indicator of impairment exists for raw land, land under development, or lots that management anticipates will be utilized for future homebuilding activities, the recoverability of assets is evaluated by comparing the carrying amount of the assets to the estimated future undiscounted cash flows expected to be generated by the assets based on home sales, consistent with the evaluations performed for operating communities discussed above.

11

For raw land, land under development, or lots that management intends to market for sale to a third party, but that do not meet all of the criteria to be classified as land held for sale as discussed below, the estimated fair value of the assets is determined based on either the estimated net sales proceeds expected to be realized on the sale of the assets or the estimated fair value determined using cash flow valuation techniques.

If the Company has not yet determined whether raw land, land under development, or lots will be utilized for future homebuilding activities or marketed for sale to a third party, the Company assesses the recoverability of the inventory using a probability-weighted approach.

Land held for sale. Land held for sale includes land that meets all of the following six criteria: (1) management, having the authority to approve the action, commits to a plan to sell the asset; (2) the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; (4) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; (5) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company records land held for sale at the lower of its carrying value or estimated fair value less costs to sell. In performing the impairment evaluation for land held for sale, management considers, among other things, prices for land in recent comparable sales transactions, market analysis and recent bona fide offers received from outside third parties, as well as actual contracts. If the estimated fair value less the costs to sell an asset is less than the asset's current carrying value, the asset is written down to its estimated fair value less costs to sell.

Our quarterly assessments reflect management's best estimates. Due to the inherent uncertainties in management's estimates and uncertainties related to our operations and our industry as a whole, we are unable to determine at this time if and to what extent continuing future impairments will occur. Additionally, due to the volume of possible outcomes that can be generated from changes in the various model inputs for each community, we do not believe it is possible to create a sensitivity analysis that can provide meaningful information for the users of our financial statements.

Variable Interest Entities.In order to minimize our investment and risk of land exposure in a single location, we have periodically partnered with other land developers or homebuilders to share in the land investment and development of a property through joint ownership and development agreements, joint ventures, and other similar arrangements. During the nine month period ended September 30, 2013, we increased our total investment in such joint venture arrangements from December 31, 2012 by $22.4 million primarily due to a joint investment with another builder in a land development in our Southern region.

For joint venture arrangements where a special purpose entity is established to own the property, we generally enter into limited liability company or similar arrangements (“LLCs”) with the other partners. The Company's ownership in these LLCs as of September 30, 2013 ranged from 25% to 61%. These entities typically engage in land development activities for the purpose of distributing or selling developed lots to the Company and its partners in the LLC. With respect to our investments in these LLCs, we are required, under ASC 810-10, Consolidation (“ASC 810-10”), to evaluate whether or not such entities should be consolidated into our financial statements. We initially perform these evaluations when each new entity is created and upon any events that require reconsideration of the entity. In order to determine if we should consolidate an LLC, we determine (1) if the LLC is a Variable Interest Entity (“VIE”) and (2) if we are the primary beneficiary of the entity. To determine whether we are the primary beneficiary of an entity, we consider whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. This analysis considers, among other things, whether we have the ability to determine the budget and scope of land development work, if any; the ability to control financing decisions for the VIE; the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with M/I Homes; and the ability to change or amend the existing option contract with the VIE. If it is determined we are not able to control such activities, we are not considered the primary beneficiary of the VIE.

As of September 30, 2013, we have determined that one of the LLCs in which we have an interest meets the requirements of a VIE due to a lack of equity at risk in the entity. However, we have determined that we do not have substantive control over any of these entities, including our VIE, as we do not have the ability to control the activities that most significantly impact their economic performance. As a result, none of these LLCs are required to be consolidated into our financial statements and the entities are instead recorded in Investment in Unconsolidated Joint Ventures on our Unaudited Condensed Consolidated Balance Sheets.

We enter into option or purchase agreements to acquire land or lots, for which we generally pay non-refundable deposits. We also analyze these agreements under ASC 810-10 to determine whether we are the primary beneficiary of the VIE, if applicable, using

12

an analysis similar to that described above. If we are deemed to be the primary beneficiary of the VIE, we will consolidate the VIE in our consolidated financial statements. In cases where we are the primary beneficiary, even though we do not have title to such land, we are required to consolidate these purchase/option agreements and reflect such assets and liabilities as Consolidated Inventory not Owned in our Unaudited Condensed Consolidated Balance Sheets.

Investment In Unconsolidated Joint Ventures.We use the equity method of accounting for investments in unconsolidated joint ventures over which we exercise significant influence but do not have a controlling interest. Under the equity method, our share of the unconsolidated joint ventures' earnings or loss, if any, is included in our statement of operations. We evaluate our investments in unconsolidated joint ventures for impairment at least quarterly as described below.

If the fair value of the investment is less than the investment's carrying value and the Company has determined that the decline in value is other than temporary, the Company would write down the value of the investment to fair value. The determination of whether an investment's fair value is less than the carrying value requires management to make certain assumptions regarding the amount and timing of future contributions to the unconsolidated joint venture, the timing of distribution of lots to the Company from the unconsolidated joint venture, the projected fair value of the lots at the time of distribution to the Company, and the estimated proceeds from, and timing of, the sale of land or lots to third parties. In determining the fair value of investments in unconsolidated joint ventures, the Company evaluates the projected cash flows associated with each unconsolidated joint venture. As of September 30, 2013, the Company used a discount rate of 16% in determining the fair value of investments in unconsolidated joint ventures. In addition to the assumptions management must make to determine if the investment's fair value is less than the carrying value, management must also use judgment in determining whether the impairment is other than temporary. The factors management considers are: (1) the length of time and the extent to which the market value has been less than cost; (2) the financial condition and near-term prospects of the company; and (3) the intent and ability of the Company to retain its investment in the unconsolidated joint venture for a period of time sufficient to allow for any anticipated recovery in market value. We believe that the Company's maximum exposure related to its investment in these unconsolidated joint ventures as of September 30, 2013 is the amount invested of $34.1 million (in addition to a $2.5 million note due to the Company from one of the unconsolidated joint ventures), although we expect to invest further amounts in these unconsolidated joint ventures as development of the properties progresses. Included in the Company's investment in unconsolidated joint ventures at September 30, 2013 and December 31, 2012 were $0.7 million and $0.8 million of capitalized interest and other costs, respectively.

Because of the high degree of judgment involved in developing these assumptions, it is possible that the Company may determine the investment is not impaired in the current period; however, due to the passage of time, change in market conditions, and/or changes in management's intentions with respect to the inventory, a change in assumptions could result and impairment could occur.

The table below summarizes the Company's assets measured on a non-recurring basis as of and for the three and nine months ended September 30, 2013 and 2012:

		Three Months Ended September 30,				Nine Months Ended September 30,
Description (in thousands)	Hierarchy	2013		2012 (2)		2013		2012 (2)
Adjusted basis of inventory (1)	Level 3	$	1,975	$	2,108	$	3,876	$	2,350
Impairments		2,136		1,309		4,237		1,876
Initial basis of inventory		$	4,111	$	3,417	$	8,113	$	4,226

(1) The fair values in the table above represent only assets whose carrying values were adjusted in the respective period.

(2) The carrying values for these assets may have subsequently increased or decreased from the fair value reported due to activities that have occurred since the measurement date.

Financial Instruments

Counterparty Credit Risk. To reduce the risk associated with losses that would be recognized if counterparties failed to perform as contracted, the Company limits the entities with whom management can enter into commitments. This risk of accounting loss is the difference between the market rate at the time of non-performance by the counterparty and the rate to which the Company committed.

13

The following table presents the carrying amounts and fair values of the Company's financial instruments at September 30, 2013 and December 31, 2012. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price).

	September 30, 2013				December 31, 2012
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash, cash equivalents and restricted cash	$	158,281	$	158,281	$	154,178	$	154,178
Mortgage loans held for sale	60,388		60,388		71,121		71,121
Split dollar life insurance policies	176		174		710		678
Notes receivable	3,312		3,180		8,787		7,460
Commitments to extend real estate loans	942		942		1		1
Forward sales of mortgage-backed securities	—		—		253		253
Liabilities:
Notes payable - banks	55,614		55,614		67,957		67,957
Notes payable - other	8,126		8,137		11,105		11,148
Convertible senior subordinated notes due 2017	57,500		65,406		57,500		74,175
Convertible senior subordinated notes due 2018	86,250		87,328		—		—
Senior notes due 2018	227,970		246,675		227,670		250,700
Best-efforts contracts for committed IRLCs and mortgage loans held for sale	179		179		3		3
Forward sales of mortgage-backed securities	1,971		1,971		—		—
Off-Balance Sheet Financial Instruments:
Letters of credit	—		659		—		493

The following methods and assumptions were used by the Company in estimating its fair value disclosures of financial instruments at September 30, 2013 and December 31, 2012:

Cash, Cash Equivalents and Restricted Cash. The carrying amounts of these items approximate fair value because they are short-term by nature.

Mortgage Loans Held for Sale, Forward Sales of Mortgage-Backed Securities, Commitments to Extend Real Estate Loans, Best-Efforts Contracts for Committed IRLCs and Mortgage Loans Held for Sale, 2017 Convertible Senior Subordinated Notes, 2018 Convertible Senior Subordinated Notes and 2018 Senior Notes. The fair value of these financial instruments was determined based upon market quotes at September 30, 2013 and December 31, 2012. The market quotes used were quoted prices for similar assets or liabilities along with inputs taken from observable market data by correlation. The inputs were adjusted to account for the condition of the asset or liability.

Split Dollar Life Insurance Policies and Notes Receivable. The estimated fair value was determined by calculating the present value of the amounts based on the estimated timing of receipts using discount rates that incorporate management's estimate of risk associated with the corresponding note receivable. During the third quarter of 2013, the balance of our split dollar life insurance policies decreased by $0.5 million due to the surrender of a policy (and termination of the related split-dollar agreement) by an officer.

Notes Payable - Banks. The interest rate available to the Company in the third quarter of 2013 fluctuated with the Alternate Base Rate or the Eurodollar Rate (for the Company's new $200 million unsecured revolving credit facility (the “Credit Facility”) or LIBOR (for M/I Financial Corp.'s $100 million secured mortgage warehousing agreement as amended and restated on March 29, 2013 (the “MIF Mortgage Warehousing Agreement”) and for M/I Financial's $15 million mortgage repurchase agreement dated November 13, 2012, as amended (the “MIF Mortgage Repurchase Facility”)), and thus their carrying value is a reasonable estimate of fair value. During the second quarter of 2013, M/I Financial exercised the accordion feature under the MIF Mortgage Warehousing Agreement to increase the maximum borrowing availability amount thereunder by $20.0 million to $100.0 million.

Notes Payable - Other. The estimated fair value was determined by calculating the present value of the future cash flows using the Company's current incremental borrowing rate.

Letters of Credit. Letters of credit of $29.4 million and $25.7 million represent potential commitments at September 30, 2013 and December 31, 2012, respectively. The letters of credit generally expire within one or two years. The estimated fair value of letters of credit was determined using fees currently charged for similar agreements.

14

NOTE 3. Inventory

A summary of the Company's inventory as of September 30, 2013 and December 31, 2012 is as follows:

(In thousands)	September 30, 2013		December 31, 2012
Single-family lots, land and land development costs	$	283,455	$	257,397
Land held for sale	6,899		8,442
Homes under construction	331,969		221,432
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2013 - $5,242;    December 31, 2012 - $4,883)	35,664		37,080
Community development district infrastructure	3,418		4,634
Land purchase deposits	13,355		8,727
Consolidated inventory not owned	1,576		19,105
Total inventory	$	676,336	$	556,817

Single-family lots, land and land development costs include raw land that the Company has purchased to develop into lots, costs incurred to develop the raw land into lots, and lots for which development has been completed, but which have not yet been used to start construction of a home.

Homes under construction include homes that are in various stages of construction. As of September 30, 2013 and December 31, 2012, we had 822 homes (with a carrying value of $110.0 million) and 649 homes (with a carrying value of $89.8 million), respectively, included in homes under construction that were not subject to a sales contract.

Model homes and furnishings include homes that are under construction or have been completed and are being used as sales models. The amount also includes the net book value of furnishings included in our model homes. Depreciation on model home furnishings is recorded using an accelerated method over the estimated useful life of the assets, typically three years.

The Company assesses inventory for recoverability on a quarterly basis. Refer to Note 2 of our Unaudited Condensed Consolidated Financial Statements for additional details relating to our procedures for evaluating our inventories for impairment.

Land purchase deposits include both refundable and non-refundable amounts paid to third party sellers relating to the purchase of land. On an ongoing basis, the Company evaluates the land option agreements relating to the land purchase deposits. In the period during which the Company makes the decision not to proceed with the purchase of land under an agreement, the Company writes off any deposits and accumulated pre-acquisition costs relating to such agreement.

15

NOTE 4. Valuation Adjustments and Write-offs

The Company assesses inventory for recoverability on a quarterly basis, by reviewing for impairment whenever events or changes in local or national economic conditions indicate that the carrying amount of an asset may not be recoverable.

A summary of the Company’s valuation adjustments and write-offs for the three and nine months ended September 30, 2013 and 2012 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2013		2012		2013		2012
Impairment of operating communities:
Midwest	$	481	$	—	$	481	$	10
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of operating communities (a)	$	481	$	—	$	481	$	10
Impairment of future communities:
Midwest	$	1,655	$	1,309	$	2,465	$	1,771
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of future communities (a)	$	1,655	$	1,309	$	2,465	$	1,771
Impairment of land held for sale:
Midwest	$	—	$	—	$	1,291	$	95
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of land held for sale (a)	$	—	$	—	$	1,291	$	95
Option deposits and pre-acquisition costs write-offs:
Midwest	$	—	$	—	$	—	$	36
Southern	—		—		—		110
Mid-Atlantic	—		—		—		110
Total option deposits and pre-acquisition costs write-offs (b)	$	—	$	—	$	—	$	256
Impairment of investments in unconsolidated joint ventures:
Midwest	$	—	$	—	$	—	$	—
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of investments in unconsolidated joint ventures (a)	$	—	$	—	$	—	$	—
Total impairments and write-offs of option deposits and pre-acquisition costs	$	2,136	$	1,309	$	4,237	$	2,132

(a) Amounts are recorded within Impairment of inventory and investment in unconsolidated joint ventures in the Company's Unaudited Condensed Consolidated Statements of Operations.

(b) Amounts are recorded within General and administrative expenses in the Company's Unaudited Condensed Consolidated Statements of Operations.

NOTE 5. Capitalized Interest

The Company capitalizes interest during land development and home construction.  Capitalized interest is charged to cost of sales as the related inventory is delivered to a third party.  The summary of capitalized interest for the three and nine months ended September 30, 2013 and 2012 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Capitalized interest, beginning of period	$	14,260		$	17,967		$	15,376		$	18,869
Interest capitalized to inventory	3,940			2,574			10,045			7,128
Capitalized interest charged to cost of sales	(4,074		)	(3,755		)	(11,295		)	(9,211		)
Capitalized interest, end of period	$	14,126		$	16,786		$	14,126		$	16,786
Interest incurred	$	7,389		$	6,573		$	22,231		$	19,194

16

NOTE 6. Guarantees and Indemnifications

Warranty

Warranty reserves are recorded for warranties under our Home Builder’s Limited Warranty (“HBLW”) and our 10-year (Texas markets only) and 30-year (all markets excluding Texas) transferable structural warranty in Other liabilities on the Company's Unaudited Condensed Consolidated Balance Sheets.

The warranty reserves for the HBLW are established as a percentage of average sales price and adjusted based on historical payment patterns determined, generally, by geographic area and recent trends. Factors that are given consideration in determining the HBLW reserves include: (1) the historical range of amounts paid per average sales price on a home; (2) type and mix of amenity packages added to the home; (3) any warranty expenditures not considered to be normal and recurring; (4) timing of payments; (5) improvements in quality of construction expected to impact future warranty expenditures; and (6) conditions that may affect certain projects and require a different percentage of average sales price for those specific projects. Changes in estimates for warranties occur due to changes in the historical payment experience and differences between the actual payment pattern experienced during the period and the historical payment pattern used in our evaluation of the warranty reserve balance at the end of each quarter. Actual future warranty costs could differ from our current estimated amount.

Our warranty reserves for our transferable structural warranty programs are established on a per-unit basis. While the structural warranty reserve is recorded as each house closes, the sufficiency of the structural warranty per unit charge and total reserve is re-evaluated on an annual basis, with the assistance of an actuary, using our own historical data and trends, industry-wide historical data and trends, and other project specific factors. The reserves are also evaluated quarterly and adjusted if we encounter activity that is inconsistent with the historical experience used in the annual analysis. These reserves are subject to variability due to uncertainties regarding structural defect claims for products we build, the markets in which we build, claim settlement history, insurance and legal interpretations, among other factors.

While we believe that our warranty reserves are sufficient to cover our projected costs, there can be no assurances that historical data and trends will accurately predict our actual warranty costs.

A summary of warranty activity for the three and nine months ended September 30, 2013 and 2012 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Warranty reserves, beginning of period	$	10,388		$	8,733		$	10,438		$	9,025
Warranty expense on homes delivered during the period	1,999			1,646			5,004			4,021
Changes in estimates for pre-existing warranties	321			141			422			231
Settlements made during the period	(1,952		)	(1,524		)	(5,108		)	(4,281		)
Warranty reserves, end of period	$	10,756		$	8,996		$	10,756		$	8,996

Guarantees

In the ordinary course of business, M/I Financial Corp. (“M/I Financial”), a 100%-owned subsidiary of M/I Homes, Inc., enters into agreements that guarantee certain purchasers of its mortgage loans that M/I Financial will repurchase a loan if certain conditions occur, primarily if the mortgagor does not meet those conditions of the loan within the first six months after the sale of the loan. Loans totaling approximately $6.1 million and $3.1 million were covered under the above guarantees as of September 30, 2013 and December 31, 2012, respectively.  A portion of the revenue paid to M/I Financial for providing the guarantees on the above loans was deferred at September 30, 2013, and will be recognized in income as M/I Financial is released from its obligation under the guarantees.  M/I Financial did not repurchase any loans under the above agreements during the nine months ended September 30, 2013. The risk associated with the guarantees above is offset by the value of the underlying assets.

M/I Financial has received inquiries concerning underwriting matters from purchasers of its loans regarding certain loans totaling approximately $8.4 million and $7.9 million at September 30, 2013 and December 31, 2012, respectively.  The risk associated with the guarantees above is offset by the value of the underlying assets.

M/I Financial has also guaranteed the collectability of certain loans to third party insurers (U.S. Department of Housing and Urban Development and U.S. Veterans Administration) of those loans for periods ranging from five to thirty years. As of both September 30, 2013 and December 31, 2012, the total of all loans indemnified to third party insurers relating to the above agreements was $1.0 million. The maximum potential amount of future payments is equal to the outstanding loan value less the value of the underlying asset plus administrative costs incurred related to foreclosure on the loans, should this event occur.

17

The Company has recorded a liability relating to the guarantees described above totaling $2.9 million and $2.6 million at September 30, 2013 and December 31, 2012, respectively, which is management's best estimate of the Company's liability.

At September 30, 2013, the Company had outstanding $230.0 million aggregate principal amount of 8.625% Senior Notes due 2018 (the “2018 Senior Notes”), $57.5 million aggregate principal amount of 3.25% Convertible Senior Subordinated Notes due 2017 (the “2017 Convertible Senior Subordinated Notes”) and $86.3 million aggregate principal amount of 3.0% Convertible Senior Subordinated Notes due 2018 (the “2018 Convertible Senior Subordinated Notes”). The Company's obligations under the 2018 Senior Notes and the Credit Facility are guaranteed jointly and severally on a senior unsecured basis by all of the Company's subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries (as defined in Note 13), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the Indenture for the 2018 Senior Notes. The Company's obligations under the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are guaranteed jointly and severally on a senior subordinated unsecured basis by the same subsidiaries of the Company that are guarantors for the 2018 Senior Notes and the Credit Facility (the “Guarantor Subsidiaries”). Refer to Note 9 for a description of the guarantees of the Credit Facility.

NOTE 7. Commitments and Contingencies

At September 30, 2013, the Company had outstanding approximately $91.8 million of completion bonds and standby letters of credit, some of which were issued to various local governmental entities that expire at various times through October 2018. Included in this total are: (1) $59.2 million of performance and maintenance bonds and $13.6 million of performance letters of credit that serve as completion bonds for land development work in progress; (2) $15.8 million of financial letters of credit, of which $8.4 million represent deposits on land and lot purchase agreements; and (3) $3.2 million of financial bonds.

At September 30, 2013, the Company also had options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $340.1 million. Purchase of properties under these agreements is contingent upon satisfaction of certain requirements by the Company and the sellers.

NOTE 8. Legal Liabilities

The Company and certain of its subsidiaries have been named as defendants in certain claims, complaints and legal actions which are incidental to our business. Certain of the liabilities resulting from these matters are covered by insurance. While management currently believes that the ultimate resolution of these matters, individually and in the aggregate, will not have a material effect on the Company's financial position, results of operations and cash flows, such matters are subject to inherent uncertainties. The Company has recorded a liability to provide for the anticipated costs, including legal defense costs, associated with the resolution of these matters. However, it is possible that the costs to resolve these matters could differ from the recorded estimates and, therefore, have a material effect on the Company's net income for the periods in which the matters are resolved. At both September 30, 2013 and December 31, 2012, we had $0.3 million reserved for legal expenses.

NOTE 9. Debt

Notes Payable - Homebuilding

On July 18, 2013, the Company entered into the Credit Facility, which has a maximum borrowing availability of $200 million. The Credit Facility matures on July 18, 2016. The Credit Facility contains an uncommitted $25 million accordion feature under which its aggregate principal amount can be increased to up to $225 million, subject to certain conditions, including obtaining additional commitments from existing or new lenders, as well as a sub-limit of $100 million for the issuance of letters of credit. Interest on amounts borrowed under the Credit Facility is payable at a rate based on either the Alternate Base Rate plus 2.25% or at the Eurodollar Rate plus 3.25%. Borrowings under the Credit Facility are unsecured and availability is subject to, among other things, a borrowing base. The Credit Facility also contains certain financial covenants, including a minimum tangible net worth requirement and a maximum leverage covenant that prohibits the leverage ratio (as defined therein) from exceeding 60%. In addition, we are restricted from allowing the amount of unsold owned land to exceed exceed 125% of the sum of tangible net worth and subordinated debt, we are prohibited from making investments in Unrestricted Subsidiaries and Joint Ventures in excess of 30% of tangible net worth, and we are required to maintain either (i) an interest coverage ratio ( as defined therein) of at least 1.50 to 1.00 or (ii) liquidity (as defined therein) of an amount not less than our consolidated interest incurred during the trailing 12 months. At September 30, 2013, the Company was in compliance with all financial covenants of the Credit Facility.

18

The Credit Facility replaced the $140 million secured revolving credit facility (the “Prior Credit Facility”) that was scheduled to mature on December 31, 2014. The guarantors of the Credit Facility are the same subsidiaries that guarantee the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes. The Company incurred no prepayment penalties in connection with the termination and replacement of the Prior Credit Facility; however, the Company recorded a $1.7 million loss on early extinguishment of debt related to unamortized issuance fees on the Prior Credit Facility.

At September 30, 2013, borrowing availability under the Credit Facility in accordance with the borrowing base calculation was $352.9 million, so the full amount of the $200 million facility was available, and there were no borrowings outstanding and $13.9 million of letters of credit outstanding under the Credit Facility, leaving net remaining borrowing availability of $186.1 million as of September 30, 2013.

The Company is party to three secured credit agreements for the issuance of letters of credit outside of the Credit Facility (collectively, the “Letter of Credit Facilities”). During the three months ended September 30, 2013, the Company extended the maturity dates on two of the Letter of Credit Facilities for an additional year to August 31, 2014 and September 30, 2014, respectively, while also increasing the maximum available amount under the facility maturing on September 30, 2014 from $8.0 million to $10.0 million. At September 30, 2013, there was $15.5 million of outstanding letters of credit in aggregate under the Company's three Letter of Credit Facilities, which were collateralized with $15.8 million of the Company's cash.

Notes Payable — Financial Services

In March 2013, M/I Financial amended and restated the MIF Mortgage Warehousing Agreement, which, among other things, increased the maximum borrowing availability to $80.0 million and included an accordion feature which allowed for an increase of the maximum borrowing availability of up to an additional $20.0 million (subject to certain conditions, including obtaining additional commitments from existing or new lenders), extended the expiration date to March 28, 2014, and increased the maximum principal amount permitted to be outstanding at any one time in aggregate under all warehouse credit lines to $125.0 million. The interest rate was also adjusted to a per annum rate equal to the greater of (1) the floating LIBOR rate plus 275 basis points and (2) 3.50%. On June 3, 2013, M/I Financial exercised the accordion feature described above to increase the amount of our maximum borrowing availability under the MIF Mortgage Warehousing Agreement to $100.0 million by obtaining additional bank commitments totaling $20.0 million.

On November 13, 2012, M/I Financial entered into the MIF Mortgage Repurchase Facility with a maximum borrowing availability of $15.0 million and an expiration date of November 12, 2013. As is typical for similar credit facilities in the mortgage origination industry, at closing, the expiration of the MIF Mortgage Repurchase Facility was set at approximately one year and is under consideration for extension annually by the participating lenders. We expect to extend the MIF Mortgage Repurchase Facility on or prior to the current expiration date of November 12, 2013, but we cannot provide any assurance that we will be able to obtain such an extension.

At September 30, 2013, M/I Financial's total combined maximum borrowing availability under the two credit facilities was $115.0 million. At September 30, 2013, M/I Financial had $55.6 million outstanding on a combined basis under its credit facilities and was in compliance with all financial covenants of those agreements.

Convertible Senior Subordinated Notes

In March 2013, the Company issued $86.3 million aggregate principal amount of 2018 Convertible Senior Subordinated Notes. The 2018 Convertible Senior Subordinated Notes bear interest at a rate of 3.0% per year, payable semiannually in arrears on March 1 and September 1 of each year. The 2018 Convertible Senior Subordinated Notes mature on March 1, 2018. At any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2018 Convertible Senior Subordinated Notes into the Company's common shares. The conversion rate initially equals 30.9478 shares per $1,000 of principal amount. This corresponds to an initial conversion price of approximately $32.31 per common share, which equates to approximately 2.7 million common shares. The conversion rate is subject to adjustment upon the occurrence of certain events. The 2018 Convertible Senior Subordinated Notes are fully and unconditionally guaranteed on a senior subordinated unsecured basis by those subsidiaries of the Company that are guarantors under the Company's 2018 Senior Notes and 2017 Convertible Senior Subordinated Notes. The 2018 Convertible Senior Subordinated Notes are senior subordinated unsecured obligations of the Company and the subsidiary guarantors and are subordinated in right of payment to our existing and future senior indebtedness and are also effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The indenture governing the 2018 Convertible Senior Subordinated Notes provides that the Company may not redeem the 2018 Convertible Senior Subordinated Notes prior to March 6, 2016, but also

19

contains provisions requiring the Company to repurchase the notes (subject to certain exceptions), at a holder's option, upon the occurrence of a fundamental change (as defined in the indenture).

On or after March 6, 2016, the Company may redeem for cash any or all of the 2018 Convertible Senior Subordinated Notes (except for any 2018 Convertible Senior Subordinated Notes that the Company is required to repurchase in connection with a fundamental change), but only if the last reported sale price of the Company's common shares exceeds 130% of the applicable conversion price for the notes on each of at least 20 applicable trading days. The 20 trading days do not need to be consecutive, but must occur during a period of 30 consecutive trading days that ends within 10 trading days immediately prior to the date the Company provides the notice of redemption. The redemption price for the 2018 Convertible Senior Subordinated Notes to be redeemed will equal 100% of the principal amount, plus accrued and unpaid interest, if any.

In September 2012, the Company issued $57.5 million aggregate principal amount of 2017 Convertible Senior Subordinated Notes. The 2017 Convertible Senior Subordinated Notes bear interest at a rate of 3.25% per year, payable semiannually in arrears on March 15 and September 15 of each year. The 2017 Convertible Senior Subordinated Notes mature on September 15, 2017. At any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2017 Convertible Senior Subordinated Notes into the Company's common shares. The conversion rate initially equals 42.0159 shares per $1,000 of principal amount. This corresponds to an initial conversion price of approximately $23.80 per common share, which equates to approximately 2.4 million common shares. The conversion rate is subject to adjustment upon the occurrence of certain events. The 2017 Convertible Senior Subordinated Notes are fully and unconditionally guaranteed on a senior subordinated unsecured basis by those subsidiaries of the Company that are guarantors under the Company's 2018 Senior Notes and 2018 Convertible Senior Subordinated Notes. The 2017 Convertible Senior Subordinated Notes are senior subordinated unsecured obligations of the Company and the subsidiary guarantors and are subordinated in right of payment to our existing and future senior indebtedness and are also effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The indenture governing the 2017 Convertible Senior Subordinated Notes provides that we may not redeem the notes prior to their stated maturity date, but also contains provisions requiring the Company to repurchase the 2017 Convertible Senior Subordinated Notes (subject to certain exceptions), at a holder's option, upon the occurrence of a fundamental change (as defined in the indenture).

Senior Notes

As of September 30, 2013, we had $230.0 million of our 2018 Senior Notes outstanding. The 2018 Senior Notes bear interest at a rate of 8.625% per year, payable semiannually in arrears on May 15 and November 15 of each year, and mature on November 15, 2018. The 2018 Senior Notes are general, unsecured senior obligations of the Company and the subsidiary guarantors and rank equally in right of payment with all our existing and future unsecured senior indebtedness.  The 2018 Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of our subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries in accordance with the terms of the indenture.

The indenture governing our 2018 Senior Notes limits our ability to pay dividends on, and repurchase, our common shares and our 9.75% Series A Preferred Shares (the “Series A Preferred Shares”) to the amount of the positive balance in our “restricted payments basket,” as defined in the indenture. The restricted payments basket was $127.5 million at September 30, 2013. The increase in the balance of our restricted payments basket from the second quarter of 2013 was primarily due to the net income of our Restricted Subsidiaries in the third quarter of 2013, offset partially by a $1.2 million dividend payment made on our Series A Preferred Shares on September 16, 2013. We are permitted to pay dividends on, and repurchase, our common shares and Series A Preferred Shares to the extent of the positive balance in our restricted payments basket. The determination to pay future dividends on, or make future repurchases of, our common shares or Series A Preferred Shares will be at the discretion of our board of directors and will depend upon our results of operations, financial condition, capital requirements and compliance with debt covenants and the terms of our Series A Preferred Shares, and other factors deemed relevant by our board of directors.

20

NOTE 10. Earnings Per Share

The table below presents a reconciliation between basic and diluted weighted average shares outstanding, net income available to common shareholders and basic and diluted income per share for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(In thousands, except per share amounts)	2013			2012		2013			2012
NUMERATOR
Net income	$	125,311		$	8,314	$	137,162		$	8,332
Preferred stock dividends	(1,219		)	—		(2,438		)	—
Excess of fair value over book value of preferred shares redeemed	—			—		(2,190		)	—
Interest on 3.25% convertible senior subordinated notes due 2017	611			128		1,833			—
Interest on 3.00% convertible senior subordinated notes due 2018	824			—		1,851			—
Net income to common shareholders	125,527			8,442		136,218			8,332
DENOMINATOR
Basic weighted average shares outstanding	24,358			19,434		23,642			19,014
Effect of dilutive securities:
Stock option awards	183			187		246			92
Deferred compensation awards	119			127		111			132
3.25% convertible senior subordinated notes due 2017	2,416			525		2,416			—
3.00% convertible senior subordinated notes due 2018	2,669			—		1,995			—
Diluted weighted average shares outstanding - adjusted for assumed conversions	29,745			20,273		28,410			19,238
Earnings per common share
Basic	$	5.09		$	0.43	$	5.61		$	0.44
Diluted	$	4.22		$	0.42	$	4.79		$	0.43
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	998			695		951			1,003

During both the second and third quarters of 2013, the Company declared a cash dividend of $609.375 per preferred share on its 2,000 outstanding Series A Preferred Shares. The dividend was paid on June 17, 2013 and September 16, 2013 to holders of record as of June 1, 2013 and September 1, 2013 for $1.2 million in cash, respectively.

In March 2013, the Company announced its intention to redeem 2,000 of its outstanding Series A Preferred Shares and recognized a $2.2 million non-cash equity charge in the first quarter of 2013 related to the excess of fair value over carrying value relating primarily to the original issuance costs that were paid in 2007. This charge reduced net income to common shareholders in the earnings per share calculation above for the nine month period ended September 30, 2013. On April 10, 2013, the Company redeemed the 2,000 Series A Preferred Shares for $50.4 million in cash.

In March 2013, the Company also issued 2.461 million common shares in a public offering at a price of $23.50 per share (for net proceeds of $54.6 million), which shares are included above in our total basic weighted average shares outstanding for the nine month period ended September 30, 2013.

For the three months ended September 30, 2013 and 2012 and for the nine months ended September 30, 2013, the effect of convertible debt was included in the diluted earnings per share calculations. For the nine months ended September 30, 2012, the effect of convertible debt was not included in the diluted earnings per share calculations as it would have been anti-dilutive.

NOTE 11. Income Taxes

The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. At September 30, 2013, the Company's net gross deferred tax asset balance was $126.6 million, of which $127.6 million were gross deferred tax assets (reported as such on the Company's consolidated balance

21

sheets, net of a $14.9 million valuation allowance), and $1.0 million were gross deferred tax liabilities (included in other liabilities on the Company's consolidated balance sheets).

In accordance with ASC 740-10, Income Taxes, we evaluate our deferred tax assets, including the benefit from net operating losses (“NOLs”) and tax credit carryforwards, to determine if a valuation allowance is required. Companies must assess, using significant judgments, whether a valuation allowance should be established based on the consideration of all available evidence using a “more likely than not” standard with significant weight being given to evidence that can be objectively verified. This assessment gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, our experience with operating losses and our experience of utilizing tax credit carryforwards and tax planning alternatives. Based upon a review of all available evidence, we recorded a full valuation allowance against our deferred tax assets during 2008 due to economic conditions and the weight of negative evidence at the time.

During the quarter ended September 30, 2013, the Company concluded that it was more likely than not that the majority of its deferred tax assets would be utilized. This conclusion was based on a detailed evaluation of all relevant evidence, both positive and negative. The Company is required to use judgment in considering the relative impact of negative and positive evidence when determining the need for a valuation allowance for its deferred tax asset. The weight given to the potential effect of negative and positive evidence shall be commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is needed.

The positive evidence considered by the Company in its evaluation for each of our taxing jurisdictions was the objective evidence related to our past and current financial results, including a period of sustained profitability comprising six consecutive quarters of pre-tax net income totaling $43.2 million, and the projected utilization of a majority of our current NOL carryforwards and temporary differences as they reverse in the carryforward periods, generally 20 years. Other positive evidence considered, among other things, was our expectation of continued earnings, and continued indications of a sustained recovery in the housing markets in which the Company operates, as evidenced by the significant increases experienced by the Company in several key financial indicators compared to the prior year, including new contracts, revenues, backlog sales value, new home deliveries and declining overhead leverage as a percent of revenue. We believe that economic data, such as recent and forecasted increases in housing starts, homebuilding volume and average sales prices, also affirm the recovery in the housing industry. We believe historically low mortgage rates, affordable home prices, reduced foreclosures, and a favorable home ownership to rental comparison continue to drive the recovery in the housing industry.

The most significant direct negative evidence that currently exists is that the Company is currently in a four-year cumulative loss position, which period represents our estimated business cycle. However, at September 30, 2013, the Company's cumulative four-year loss has declined significantly as a result of six consecutive quarters of profitability and, based on the Company's current earnings level, the Company will realize a majority of its deferred tax assets. Other negative evidence considered was the recent rise in mortgage interest rates and the potential impact of such rise on our business. While we believe it has caused a temporary slow down in the pace of the housing recovery and related trends compared to previous quarters in 2013, we believe the demand for housing continues to increase new contracts, as evidenced by the 15%increase in new contracts that we experienced during the three months ended September 30, 2013 when compared to the same period in 2012 as well as other factors.

Based on its analysis of positive and negative evidence, the Company concluded that the objective positive evidence outweighed the negative evidence, and that the Company will more likely than not realize a majority of its deferred tax assets. In accordance with GAAP, when a change in valuation allowance is recognized as a result of a change in judgment in an interim period, a portion of the valuation allowance to be reversed must be spread over the remaining interim periods. Accordingly, the Company reversed $111.6 million of its deferred tax asset valuation allowance during the third quarter of 2013 and retained a $4.7 million valuation allowance for estimated utilization pertaining to estimated earnings in the fourth quarter of 2013. In addition to the retained $4.7 million valuation allowance, the Company retained an additional $10.2 million valuation allowance for certain state jurisdictions which have a shorter NOL carryforward utilization period or a large NOL carryforward relative to their current earnings. In future periods, the remaining valuation allowance for these state jurisdictions will be evaluated to determine if sufficient positive evidence indicates that it is more likely than not that an additional portion of the underlying state NOL carryforwards will be realized. The Company's net gross deferred tax assets were $126.6 million at September 30, 2013, which, inclusive of our valuation allowance, results in a net deferred tax asset of $111.6 million.

22

The tax effects of the significant temporary differences that comprise the deferred tax assets and liabilities are as follows:

(In thousands)	September 30, 2013			December 31, 2012
Deferred tax assets:
Warranty, insurance and other accruals	$	11,487		11,378
Inventory	17,417			22,612
State taxes	71			(64	)
Net operating loss carryforward	98,007			102,475
Deferred charges	613			336
Total deferred tax assets	127,595			136,737
Deferred tax liabilities:
Depreciation	397			804
Prepaid expenses	639			184
Total deferred tax liabilities	1,036			988
Net total deferred tax assets	126,559			135,749
Less valuation allowance	(14,913		)	(135,749	)
Total deferred tax assets, net of valuation allowance	111,646			—

The benefit from income taxes consists of the following:

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2013			2012		2013			2012
Current:
Federal	$	2		$	—	$	2		$	—
State	$	85		$	138	$	515		$	(955	)
	$	87		$	138	$	517		$	(955	)
(In thousands)
Deferred:
Federal	$	(104,751	)	$	—	$	(104,751	)	$	—
State	$	(6,895	)	$	—	$	(6,895	)	$	—
	(111,646		)	—		(111,646		)	—
Total	$	(111,559	)	$	138	$	(111,129	)	$	(955	)

At September 30, 2013, the Company had federal NOL carryforwards of approximately $77.8 million and federal credit carryforwards of $4.3 million. Federal NOL carryforwards may be carried forward up to 20 years to offset future taxable income. Our federal carryforward benefits begin to expire in 2028. The Company had $15.9 million of state NOL carryforwards at September 30, 2013. State NOLs may be carried forward from 5 to 20 years, depending on the tax jurisdiction, with $8.9 million expiring between 2013 and 2027 and $7.0 million expiring between 2028 and 2032, absent sufficient state taxable income. As of September 30, 2013, we have recorded a $10.2 million valuation allowance against these state NOLs.

23

NOTE 12. Business Segments

The Company’s segment information is presented on the basis that the chief operating decision makers use in evaluating segment performance.  The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our 13 individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding regions; and (3) our consolidated financial results.  We have determined our reportable segments as follows: Midwest homebuilding, Southern homebuilding, Mid-Atlantic homebuilding and financial services operations.  The homebuilding operating segments that are included within each reportable segment have similar operations and exhibit similar long-term economic characteristics.  Our homebuilding operations include the acquisition and development of land, the sale and construction of single-family attached and detached homes, and the occasional sale of lots to third parties.  The homebuilding operating segments that comprise each of our reportable segments are as follows:

Midwest	Southern	Mid-Atlantic
Columbus, Ohio	Tampa, Florida	Washington, D.C.
Cincinnati, Ohio	Orlando, Florida	Charlotte, North Carolina
Indianapolis, Indiana	Houston, Texas	Raleigh, North Carolina
Chicago, Illinois	San Antonio, Texas
	Austin, Texas
	Dallas/Fort Worth, Texas

Our financial services operations include the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company's homes.

The following table shows, by segment, revenue, operating income and interest expense for the three and nine months ended September 30, 2013 and 2012, as well as the Company’s income before income taxes for such periods:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Revenue:
Midwest homebuilding	$	82,689		$	79,015		$	222,890		$	198,994
Southern homebuilding	96,275			50,828			216,181			123,400
Mid-Atlantic homebuilding	89,550			72,649			239,061			172,977
Financial services (a)	6,681			6,383			22,343			15,623
Total revenue	$	275,195		$	208,875		$	700,475		$	510,994
Operating income:
Midwest homebuilding (b)	$	5,114		$	3,940		$	11,696		$	9,012
Southern homebuilding (b)	8,271			6,144			15,222			9,837
Mid-Atlantic homebuilding (b)	8,433			5,787			18,961			9,496
Financial services (a)	3,827			3,960			13,451			8,606
Less: Corporate selling, general and administrative expense	(6,996		)	(7,380		)	(19,663		)	(17,508		)
Total operating income	$	18,649		$	12,451		$	39,667		$	19,443
Interest expense:
Midwest homebuilding	$	1,023		$	1,243		$	3,852		$	4,181
Southern homebuilding	1,405			999			4,510			2,543
Mid-Atlantic homebuilding	659			1,342			2,809			4,248
Financial services (a)	362			415			1,015			1,094
Total interest expense	$	3,449		$	3,999		$	12,186		$	12,066
Equity in income of unconsolidated joint ventures	(278		)	—			(278		)	—
Loss on early extinguishment of debt	1,726			—			1,726			—
Income before income taxes	$	13,752		$	8,452		$	26,033		$	7,377

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of a small amount of mortgage re-financing.

(b) For the three months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $2.1 million and $1.3 million, respectively. These charges reduced operating income by $2.1 million and $1.3 million in the Midwest region for the three months ended September 30, 2013 and 2012, respectively. There were no charges in the Mid-Atlantic or Southern regions for the three months ended September 30, 2013 and 2012.

24

For the nine months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $4.2 million and $2.1 million, respectively. These charges reduced operating income by $4.2 million and $1.9 million in the Midwest region for the nine months ended September 30, 2013 and 2012, respectively, and $0.1 million in each of the Southern and Mid-Atlantic regions for the nine months ended September 30, 2012. There were no charges in the Mid-Atlantic or Southern regions for the nine months ended September 30, 2013.

The following tables show total assets by segment at September 30, 2013 and December 31, 2012:

	September 30, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,141	$	7,737	$	3,477	$	—	$	13,355
Inventory (a)	241,233		212,665		209,083		—		662,981
Investments in unconsolidated joint ventures	5,200		28,888		—		—		34,088
Other assets	7,699		14,186		9,146		341,612		372,643
Total assets	$	256,273	$	263,476	$	221,706	$	341,612	$	1,083,067

	December 31, 2012
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	1,462	$	4,612	$	2,653	$	—	$	8,727
Inventory (a)	196,554		157,302		194,234		—		548,090
Investments in unconsolidated joint ventures	5,121		6,611		—		—		11,732
Other assets	4,421		8,436		7,759		242,135		262,751
Total assets	$	207,558	$	176,961	$	204,646	$	242,135	$	831,300

(a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.

NOTE 13. Supplemental Guarantor Information

The Company's obligations under the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are not guaranteed by all of the Company's subsidiaries and therefore, the Company has disclosed condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. The subsidiary guarantors of the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are the same.

The following condensed consolidating financial information includes balance sheets, statements of operations and cash flow information for the parent company, the Guarantor Subsidiaries, collectively, and for all other subsidiaries and joint ventures of the Company (the “Unrestricted Subsidiaries”), collectively. Each Guarantor Subsidiary is a direct or indirect 100%-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the (a) 2018 Senior Notes, on a joint and several senior unsecured basis, (b) the 2017 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis and (c) the 2018 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis.

There are no significant restrictions on the parent company's ability to obtain funds from its Guarantor Subsidiaries in the form of a dividend, loan, or other means.

As of September 30, 2013, each of the Company's subsidiaries is a Guarantor Subsidiary, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries, subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the Indenture for the 2018 Senior Notes.

In the condensed financial tables presented below, the parent company presents all of its 100%-owned subsidiaries as if they were accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the Guarantor Subsidiaries and Unrestricted Subsidiaries.

25

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Three Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	268,514		$	6,681		$	—		$	275,195
Costs and expenses:
Land and housing	—		218,150			—			—			218,150
Impairment of inventory and investment in unconsolidated joint ventures	—		2,136						—			2,136
General and administrative	—		15,309			2,952			—			18,261
Selling	—		17,979			20			—			17,999
Equity in income of unconsolidated joint ventures	—		—			(278		)	—			(278		)
Interest	—		3,087			362			—			3,449
Loss on early extinguishment of debt	—		1,726			—			—			1,726
Total costs and expenses	—		258,387			3,056			—			261,443
Income before income taxes	—		10,127			3,625			—			13,752
(Benefit) provision for income taxes	—		(112,694		)	1,135			—			(111,559		)
Equity in subsidiaries	125,311		—			—			(125,311		)	—
Net income (loss)	125,311		122,821			2,490			(125,311		)	125,311
Preferred dividends	1,219		—			—			—			1,219
Net income (loss) to common shareholders	$	124,092	$	122,821		$	2,490		$	(125,311	)	$	124,092

	Three Months Ended September 30, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries		Eliminations			Consolidated
Revenue	$	—	$	202,492		$	6,383	$	—		$	208,875
Costs and expenses:
Land and housing	—		164,452			—		—			164,452
Impairment of inventory and investment in unconsolidated joint ventures	—		1,309			—		—			1,309
General and administrative	—		13,425			2,591		—			16,016
Selling	—		14,647			—		—			14,647
Interest	—		3,584			415		—			3,999
Total costs and expenses	—		197,417			3,006		—			200,423
Income before income taxes	—		5,075			3,377		—			8,452
(Benefit) provision for income taxes	—		(1,003		)	1,141		—			138
Equity in subsidiaries	8,314		—			—		(8,314		)	—
Net income (loss)	$	8,314	$	6,078		$	2,236	$	(8,314	)	$	8,314

26

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Nine Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	678,132		$	22,343		$	—		$	700,475
Costs and expenses:
Land and housing	—		556,799			—			—			556,799
Impairment of inventory and investment in unconsolidated joint ventures	—		4,237			—			—			4,237
General and administrative	—		43,104			9,285			—			52,389
Selling	—		47,317			66			—			47,383
Equity in income of unconsolidated joint ventures	—		—			(278		)	—			(278		)
Interest	—		11,171			1,015			—			12,186
Loss on early extinguishment of debt	—		1,726			—			—			1,726
Total costs and expenses	—		664,354			10,088			—			674,442
Income before income taxes	—		13,778			12,255			—			26,033
(Benefit) provision for income taxes	—		(115,308		)	4,179			—			(111,129		)
Equity in subsidiaries	137,162		—			—			(137,162		)	—
Net income (loss)	137,162		129,086			8,076			(137,162		)	137,162
Preferred dividends	2,438		—			—			—			2,438
Excess of fair value over book value of preferred shares redeemed	2,190		—			—			—			2,190
Net income (loss) to common shareholders	$	132,534	$	129,086		$	8,076		$	(137,162	)	$	132,534

	Nine Months Ended September 30, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries		Eliminations			Consolidated
Revenue	$	—	$	495,371		$	15,623	$	—		$	510,994
Costs and expenses:
Land and housing	—		408,893			—		—			408,893
Impairment of inventory and investment in unconsolidated joint ventures	—		1,876			—		—			1,876
General and administrative	—		34,938			7,361		—			42,299
Selling	—		38,482			1		—			38,483
Interest	—		10,972			1,094		—			12,066
Total costs and expenses	—		495,161			8,456		—			503,617
Income before income taxes	—		210			7,167		—			7,377
(Benefit) provision for income taxes	—		(3,403		)	2,448		—			(955		)
Equity in subsidiaries	8,332		—			—		(8,332		)	—
Net income (loss)	$	8,332	$	3,613		$	4,719	$	(8,332	)	$	8,332

27

CONDENSED CONSOLIDATING BALANCE SHEET
	September 30, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	126,254	$	16,221	$	—		$	142,475
Restricted cash	—		15,806		—		—			15,806
Mortgage loans held for sale	—		—		60,388		—			60,388
Inventory	—		676,336		—		—			676,336
Property and equipment - net	—		10,139		207		—			10,346
Investment in unconsolidated joint ventures	—		14,656		19,432		—			34,088
Investment in subsidiaries	521,617		—		—		(521,617		)	—
Deferred income taxes, net of valuation allowances	—		112,164		518		—			112,682
Intercompany assets	319,136		—		—		(319,136		)	—
Other assets	10,547		12,389		8,010		—			30,946
TOTAL ASSETS	$	851,300	$	967,744	$	104,776	$	(840,753	)	$	1,083,067
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	85,383	$	421	$	—		$	85,804
Customer deposits	—		14,918		—		—			14,918
Intercompany liabilities	—		298,130		21,006		(319,136		)	—
Other liabilities	—		54,669		7,641		—			62,310
Community development district obligations	—		3,419		—		—			3,419
Obligation for consolidated inventory not owned	—		1,576		—		—			1,576
Notes payable bank - financial services operations	—		—		55,614		—			55,614
Notes payable - other	—		8,126		—		—			8,126
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Convertible senior subordinated notes due 2018	86,250		—		—		—			86,250
Senior notes	227,970		—		—		—			227,970
TOTAL LIABILITIES	371,720		466,221		84,682		(319,136		)	603,487
SHAREHOLDERS' EQUITY	479,580		501,523		20,094		(521,617		)	479,580
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	851,300	$	967,744	$	104,776	$	(840,753	)	$	1,083,067

28

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	126,334	$	19,164	$	—		$	145,498
Restricted cash	—		8,680		—		—			8,680
Mortgage loans held for sale	—		—		71,121		—			71,121
Inventory	—		540,761		16,056		—			556,817
Property and equipment - net	—		10,314		125		—			10,439
Investment in unconsolidated joint ventures	—		—		11,732		—			11,732
Investment in subsidiaries	391,555		—		—		(391,555		)	—
Intercompany assets	219,962		—		—		(219,962		)	—
Other assets	9,081		12,375		5,557		—			27,013
TOTAL ASSETS	$	620,598	$	698,464	$	123,755	$	(611,517	)	$	831,300
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	46,882	$	808	$	—		$	47,690
Customer deposits	—		10,239		—		—			10,239
Intercompany liabilities	—		205,389		14,573		(219,962		)	—
Other liabilities	—		44,230		5,742		—			49,972
Community development district obligations	—		4,634		—		—			4,634
Obligation for consolidated inventory not owned	—		3,549		15,556		—			19,105
Notes payable bank - financial services operations	—		—		67,957		—			67,957
Notes payable - other	—		11,105		—		—			11,105
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Senior notes	227,670		—		—		—			227,670
TOTAL LIABILITIES	285,170		326,028		104,636		(219,962		)	495,872
SHAREHOLDERS' EQUITY	335,428		372,436		19,119		(391,555		)	335,428
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	620,598	$	698,464	$	123,755	$	(611,517	)	$	831,300

(a) Certain amounts above have been reclassified from intercompany assets to intercompany liabilities as of December 31, 2012. These reclassifications relate solely to transactions between M/I Homes, Inc. and its subsidiaries and are immaterial to the Supplemental Condensed Consolidated Financial Statements. These reclassifications do not impact the Company's consolidated financial statements.

29

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	7,100		$	(60,703	)	$	20,267		$	(7,100	)	$	(40,436	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			(7,274		)	—						(7,274		)
Purchase of property and equipment	—			(1,528		)	(126		)				(1,654		)
Investments in and advances to unconsolidated joint ventures	—			(14,657		)	(10,839		)	—			(25,496		)
Return of capital from unconsolidated joint ventures	—			—			1,522			—			1,522
Net cash used in investing activities	—			(23,459		)	(9,443		)	—			(32,902		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			(12,343		)	—			(12,343		)
Principal repayments of note payable - other and community development district bond obligations	—			(2,979		)	—			—			(2,979		)
Proceeds from issuance of convertible senior subordinated notes due 2018	86,250			—			—			—			86,250
Redemption of preferred shares	(50,352		)	—			—			—			(50,352		)
Proceeds from issuance of common shares	54,617			—			—			—			54,617
Proceeds from exercise of stock options	2,640			—			—			—			2,640
Excess tax benefits from stock-based payment arrangements	383			—			—			—			383
Intercompany financing	(98,200		)	92,463			5,737			—			—
Dividends paid	(2,438		)	—			(7,100		)	7,100			(2,438		)
Debt issue costs	—			(5,402		)	(61		)	—			(5,463		)
Net cash (used in) provided by financing activities	(7,100		)	84,082			(13,767		)	7,100			70,315
Net (decrease) increase in cash and cash equivalents	—			(80		)	(2,943		)	—			(3,023		)
Cash and cash equivalents balance at beginning of period	—			126,334			19,164			—			145,498
Cash and cash equivalents balance at end of period	$	—		$	126,254		$	16,221		$	—		$	142,475

	Nine Months Ended September 30, 2012
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	2,000		$	(20,546	)	$	4,225		$	(2,000	)	$	(16,321	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			32,391			—			—			32,391
Purchase of property and equipment	—			(786		)	(72		)	—			(858		)
Acquisition, net of cash acquired	—			(4,707		)	—			—			(4,707		)
Investments in and advances to unconsolidated joint ventures	—			—			(949		)	—			(949		)
Net cash provided by (used in) investing activities	—			26,898			(1,021		)	—			25,877
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowings - net	—			—			2,234			—			2,234
Repayment of Senior Notes	(41,443		)	—			—			—			(41,443		)
Principal proceeds from note payable - other and community development district bond obligations	—			4,968			—			—			4,968
Proceeds from issuance of convertible senior subordinated notes due 2017	57,500			—			—			—			57,500
Proceeds from issuance of common shares	42,085			—			—			—			42,085
Intercompany financing	(91,057		)	91,852			(795		)	—			—
Proceeds from issuance of senior notes	29,700			—			—			—			29,700
Dividends paid	—			—			(2,000		)	2,000			—
Debt issue costs	—			(5,812		)	(31		)	—			(5,843		)
Proceeds from exercise of stock options	1,215			—			—			—			1,215
Net cash provided by (used in) financing activities	(2,000		)	91,008			(592		)	2,000			90,416
Net increase in cash and cash equivalents	—			97,360			2,612			—			99,972
Cash and cash equivalents balance at beginning of period	—			43,539			16,254			—			59,793
Cash and cash equivalents balance at end of period	$	—		$	140,899		$	18,866		$	—		$	159,765

(a) Certain amounts above have been reclassified from intercompany financing to dividends paid and cash flows from operating activities for the nine months ended September 30, 2012. These reclassifications relate solely to transactions between M/I Homes, Inc. and its subsidiaries and are immaterial to the Supplemental Condensed Consolidated Financial Statements. These reclassifications do not impact the Company's consolidated financial statements.

30

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

OVERVIEW

M/I Homes, Inc. (the “Company” or “we”) is one of the nation’s leading builders of single-family homes, having delivered approximately 86,000 homes since we commenced homebuilding activities in 1976.  The Company's homes are marketed and sold under the M/I Homes, Showcase Collection and Triumph Homes trade names. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Tampa and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.

Included in this Management's Discussion and Analysis of Financial Condition and Results of Operations are the following topics relevant to the Company's performance and financial condition:

• Information Relating to Forward-Looking Statements;

• Our Application of Critical Accounting Estimates and Policies;

• Our Results of Operations;

• Discussion of Our Liquidity and Capital Resources;

• Summary of Our Contractual Obligations;

• Discussion of Our Utilization of Off-Balance Sheet Arrangements; and

• Impact of Interest Rates and Inflation.

FORWARD-LOOKING STATEMENTS

Certain information included in this report or in other materials we have filed or will file with the Securities and Exchange Commission (the “SEC”) (as well as information included in oral statements or other written statements made or to be made by us) contains or may contain forward-looking statements, including, but not limited to, statements regarding our future financial performance and financial condition.  Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” and “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements.  These statements involve a number of risks and uncertainties.  Any forward-looking statements that we make herein and in future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various risk factors.  Please see“Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the year ended December 31, 2012 and “Item 1A. Risk Factors” of Part II of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013.

Any forward-looking statement speaks only as of the date made. Except as required by applicable law, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent reports on Forms 10-K, 10-Q and 8-K should be consulted.  This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.

APPLICATION OF CRITICAL ACCOUNTING ESTIMATES AND POLICIES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.  Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.  On an ongoing basis, management evaluates such estimates and judgments and makes adjustments as deemed necessary.  Actual results could differ from these estimates using different estimates and assumptions, or if conditions are significantly different in the future.  See Note 1 (Summary of Significant Accounting Policies) to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012 for additional information about our accounting policies.

We believe that there have been no significant changes to our critical accounting policies during the quarter ended September 30, 2013 as compared to those disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2012.

31

RESULTS OF OPERATIONS

The Company’s segment information is presented on the basis that the chief operating decision makers use in evaluating segment performance.  The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our 13 individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding regions; and (3) our consolidated financial results.  We have determined our reportable segments as follows: Midwest homebuilding, Southern homebuilding, Mid-Atlantic homebuilding and financial services operations.  The homebuilding operating segments that are included within each reportable segment have similar operations and exhibit similar long-term economic characteristics.  Our homebuilding operations include the acquisition and development of land, the sale and construction of single-family attached and detached homes, and the occasional sale of lots and land to third parties.  The homebuilding operating segments that comprise each of our reportable segments are as follows:

Midwest	Southern	Mid-Atlantic
Columbus, Ohio	Tampa, Florida	Washington, D.C.
Cincinnati, Ohio	Orlando, Florida	Charlotte, North Carolina
Indianapolis, Indiana	Houston, Texas	Raleigh, North Carolina
Chicago, Illinois	San Antonio, Texas
	Austin, Texas
	Dallas/Fort Worth, Texas

In July 2013, we announced our entry into the Dallas/Fort Worth, Texas market.

Our financial services operations include the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company's homes.

Overview

During the nine months ended September 30, 2013, we continued to experience improving results as the recovery in the housing market continued. We believe that the recovery in the housing industry is being driven by the demand for housing created by growing population and re-accelerating household formations, favorable own-versus-rent dynamics, record low inventory levels for both new homes and resales, historically attractive affordability levels, and a slow but steady improvement in job growth. We continue to experience broad based improvements across all of our markets, albeit at a slower pace than the first half of 2013.

We experienced significant improvement in traffic quantity and quality, as well as our number of new contracts, during the nine months ended September 30, 2013, as buyer confidence in the housing market strengthened, and we achieved our highest operating margin in any quarter since 2007 during the third quarter of 2013. We believe that our improved results of operations are due to improving market conditions coupled with a strategic shift in our mix of communities towards better performing locations, our continued focus on shifting our investment to stronger housing markets, and the performance of our mortgage operations.

During the third quarter of 2013, we achieved net income of $125.3 million, of which $13.8 million ($0.47 per diluted share) related to our core profitability while $111.6 million ($3.75 per diluted share) related to the accounting benefit associated with a reversal of a majority of our deferred tax asset valuation allowance as more fully described in Note 11 of our Unaudited Condensed Consolidated Financial Statements.

In response to the continuing recovery in new home sales, we have increased our land positions to meet our strategic growth targets in each market, based on the availability of well-located land opportunities which meet our financial return targets and other requirements. To sustain our improved profitability, we believe that we need to purchase new land at prices that we have underwritten to generate appropriate investment returns and drive greater operating efficiencies. Accordingly, we purchased $156.7 million of new land during the nine months ended September 30, 2013 and spent $67.5 million on land development.

On July 18, 2013, we entered into a new three-year unsecured revolving credit facility (the “Credit Facility”) with an aggregate commitment amount of $200 million, as more fully described below in our “Liquidity and Capital Resources” section, which replaced the $140 million secured revolving credit facility (the “Prior Credit Facility”) that was scheduled to mature on December 31, 2014. During the three and nine months ended September 30, 2013, we recognized a loss on early extinguishment of debt of $1.7 million which represented the write-off of unamortized debt issuance costs related to the termination of the Prior Credit Facility.

32

During the three and nine months ended September 30, 2013, we paid cash dividends of $609.375 per preferred share on our 2,000 outstanding Series A Preferred Shares for $1.2 million and $2.4 million , respectively.

Summary of Company Results

Summary of Financial Results

For the quarter ended September 30, 2013, we achieved net income to common shareholders of $124.1 million, or $4.22 per diluted share, which included a $111.6 million accounting benefit from income taxes due to the reversal of a majority of the valuation allowance against our deferred tax assets, offset partially by $2.1 million of pre-tax impairment charges, a $1.7 million charge related to the early termination of our Prior Credit Facility and $1.2 million of dividend payments made to holders of our Series A Preferred Shares. This compares to net income to common shareholders of $8.3 million, or $0.42 per diluted share, for the quarter ended September 30, 2012, which included income of $3.0 million related to a drywall settlement and $1.3 million of pre-tax impairment charges. For the nine months ended September 30, 2013, we achieved net income to common shareholders of $132.5 million, or $4.79 per diluted share, which included a $111.6 million accounting benefit from income taxes due to the reversal of a majority of the valuation allowance against our deferred tax assets, $4.2 million of pre-tax impairment charges, a $2.2 million non-cash equity adjustment resulting from the excess of fair value over carrying value of our Series A Preferred Shares that were called for redemption in the first quarter of 2013 and $2.4 million of dividend payments made to holders of our Series A Preferred Shares. This compares to net income to common shareholders of $8.3 million, or $0.43 per diluted share, for the nine months ended September 30, 2012, which included income of $3.0 million related to a drywall settlement and $1.9 million of pre-tax impairment charges.

For the third quarter of 2013, we recorded $265.9 million in revenue from homes delivered, $2.6 million in revenue from land sales and $6.7 million in revenue from our financial services operations. Revenue from homes delivered increased34% driven primarily by the 191 additional homes delivered in 2013's third quarter compared to the same period in 2012 and a 7%increase in the average sales price of homes delivered ($18,000 per home delivered). Offsetting the increase in revenue from homes delivered above was a decrease in revenue from land sales of $1.5 million from the third quarter of 2012 due primarily to land sales in our Mid-Atlantic region in prior year. Revenue in our financial services segment increased5% to $6.7 million in the third quarter of 2013 primarily due to the factors discussed below in our “Year Over Year Comparisons” section. For the nine months ended September 30, 2013, we recorded $665.4 million in revenue from homes delivered, $12.8 million in revenue from land sales and $22.3 million in revenue from our financial services operations. Revenue from homes delivered increased37% driven primarily by the 474 additional homes delivered in the nine months ended September 30, 2013 compared to the same period in 2012 and a 9%increase in the average sales price of homes delivered ($24,000 per home delivered). Revenue from land sales increased$3.8 million from the nine months ended September 30, 2012. Revenue in our financial services segment increased43% to $22.3 million in the nine months ended September 30, 2013 primarily due to the factors discussed below in our “Year Over Year Comparisons” section.

Total gross margin increased$11.8 million in the third quarter of 2013 compared to the corresponding period in 2012, which was largely the result of an $11.5 millionimprovement in our homebuilding operations, with the remainder due to our financial services operations. The improvement in our homebuilding operations for the third quarter of 2013 was primarily due to a $15.3 millionincrease in homebuilding gross margin when compared to the third quarter of 2012, offset, in part, by an increase of $0.8 million in land impairments taken during the third quarter of 2013. For the nine months ended September 30, 2013, total gross margin increased$39.2 million when compared to the nine months ended September 30, 2012, which was largely the result of a $32.5 million improvement in our homebuilding operations, with the remainder due to our financial services operations. The improvement in our homebuilding operations for the nine months ended September 30, 2013 was primarily due to a $34.9 millionincrease in homebuilding gross margin when compared to the nine months ended September 30, 2012, offset in part by an increase of $2.4 million in land impairments taken during the nine month period ended September 30, 2013.

The increase in homebuilding gross margin for both the three and nine months ended September 30, 2013 resulted from the increase in the average sales price of homes delivered and the increase in the number of homes delivered offset, in part, by an increase in construction costs. The increased sales prices for both the three and nine months ended September 30, 2013 were driven primarily by the performance of our newer communities, the strategic shift in our geographic footprint, which resulted in more homes delivered in our better performing markets, a shift in the mix of homes delivered to higher priced and larger homes and improving market conditions. This allowed for more pricing leverage in select locations and submarkets. The pricing and unit improvements were partially offset by higher construction costs related to both the mix of homes delivered as well as cost increases associated with improving homebuilding industry conditions and normal supply and demand dynamics. In both the third quarter and the nine month period ended September 30, 2013, we were able to pass a majority of the higher construction costs to our homebuyers in the form of higher sales prices and lower incentives. However, recent moderation in the stronger sales price appreciation trends

33

we experienced earlier in 2013 may make it more difficult to continue to fully offset any further increase in material, labor and land cost that we may experience going forward.

Selling, general and administrative expense increased$5.6 million and $19.0 million for the three and nine months ended September 30, 2013, respectively, which offset, in part, the increase in our gross margins discussed above. For the third quarter of 2013, selling expense increased$3.4 million from the prior year's third quarter but declined as a percentage of revenue to 6.6% compared to 7.0% in the third quarter of 2012. Variable selling expense for sales commissions contributed $2.9 million to the increase due to the increase in the number of homes delivered and the increase in our average sales price. During the third quarter of 2013, general and administrative expense increased$2.2 million but declined as a percentage of revenue to 6.6% compared to 7.7% for the third quarter of 2012. For the nine months ended September 30, 2013, selling expense increased$8.9 million from the nine months ended September 30, 2012 but declined as a percentage of revenue to 6.8% compared to 7.5% in the nine months ended September 30, 2012. Variable selling expense for sales commissions contributed $7.7 million to the increase due to the increase in the number of homes delivered and the higher average sales price. General and administrative expense increased$10.1 million compared to the nine months ended September 30, 2012 but declined as a percentage of revenue from 8.3% in the nine months ended September 30, 2012 to 7.5% in the nine months ended September 30, 2013. Overall, our selling, general and administrative expense was 13.2% and 14.2% of revenue in the third quarter and nine months ended September 30, 2013, respectively, compared to 14.7% and 15.8% for the same periods in 2012, respectively.

Summary of Operational Results

In addition to the improving financial results noted above, our operational metrics also improved. For the quarter ended September 30, 2013, we achieved a 15%increase in our new contracts and a 26%increase in homes delivered. For the nine months ended September 30, 2013, we achieved a 28%increase in our new contracts and a 25%increase in homes delivered. We also experienced a 36%increase in the number of homes in our backlog and a 46%increase in the overall sales value of our backlog as of September 30, 2013 compared to September 30, 2012. Furthermore, we continue to invest in communities and markets that we believe are helping us attain improved profitability as housing markets improve and enhance our ability to establish market share and create a platform for future growth in our current markets. During the nine month period ended September 30, 2013, we opened 47 new communities and closed 31 older communities. We have continued to make progress selling the remaining homes in our older communities, which have lower margins. For the nine months ended September 30, 2013, we reduced the number of homes delivered in older communities to 22% of our total homes delivered during the period, compared to 31% of the total homes delivered during the nine months ended September 30, 2012. Additionally, our absorption rates per community improved from 2.1 for the nine months ended September 30, 2012 to 2.4 for the nine months ended September 30, 2013.

Outlook

Looking ahead, although the rate of improvement in the overall housing industry may moderate due to the upward movement in interest rates which occurred during the second quarter of 2013 as well as a decline in consumer confidence resulting from recent political and economic uncertainty, we believe that the fundamentals supporting a sustained multi-year housing recovery remain strong. Despite a moderation in the pace of improvement in new home sales activity during the third quarter and concerns reflected in recent sales volatility, we believe that longer-term demand for new homes will continue to improve as consumers continue to perceive good values amidst limited supply and generally low interest rates. We believe that we will continue to benefit from the recovery in housing sales, though maybe not at the same rate of improvement that we experienced during the first six months of 2013. Specifically, the pace and increase in our new contracts and average sales price when compared to our prior year results may be less than what we have experienced to date in 2013, and this slower pace of improvement may lead to related impacts on the level of year-over-year improvements in our financial results.

Given our expectations with respect to homebuilding market conditions, and consistent with our focus on improving long-term returns, we will continue to emphasize the following strategic business objectives during the remainder of 2013:

• profitably growing our presence in our existing markets;

• strategically investing in new markets;

• maintaining a strong balance sheet; and

• emphasizing customer service, product design, and premier locations.

With these objectives and improving market conditions in mind, we took a number of steps during the nine months ended September 30, 2013 to position the Company for continued improvement throughout 2013 and beyond, including investing $156.7 million in land acquisition and $67.5 million in land development in the nine month period ended September 30, 2013 to help grow our

34

presence in our existing markets. We currently estimate that for fiscal 2013, we will spend approximately $300 million to $350 million on land purchases and land development.

We ended the third quarter of 2013 with $158.3 million of cash, no outstanding borrowings under our $200 million Credit Facility.

The following table shows, by segment, revenue; homebuilding gross margin; selling, general and administrative expense; operating income; and interest expense for the three and nine months ended September 30, 2013 and 2012, as well as the Company’s income before income taxes for such periods:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Revenue:
Midwest homebuilding	$	82,689		$	79,015		$	222,890		$	198,994
Southern homebuilding	96,275			50,828			216,181			123,400
Mid-Atlantic homebuilding	89,550			72,649			239,061			172,977
Financial services (a)	6,681			6,383			22,343			15,623
Total revenue	$	275,195		$	208,875		$	700,475		$	510,994
Gross margin:
Midwest homebuilding (b)	$	13,406		$	12,118		$	35,156		$	30,727
Southern homebuilding (b)	17,992			11,962			40,077			25,410
Mid-Atlantic homebuilding (b)	16,830			12,651			41,863			28,465
Financial services (a)	6,681			6,383			22,343			15,623
Total gross margin	$	54,909		$	43,114		$	139,439		$	100,225
Selling, general and administrative expense:
Midwest homebuilding	$	8,292		$	8,178		$	23,460		$	21,715
Southern homebuilding	9,721			5,818			24,855			15,573
Mid-Atlantic homebuilding	8,397			6,864			22,902			18,969
Financial services (a)	2,854			2,423			8,892			7,017
Corporate	6,996			7,380			19,663			17,508
Total selling, general and administrative expense	$	36,260		$	30,663		$	99,772		$	80,782
Operating income (loss):
Midwest homebuilding (b)	$	5,114		$	3,940		$	11,696		$	9,012
Southern homebuilding (b)	8,271			6,144			15,222			9,837
Mid-Atlantic homebuilding (b)	8,433			5,787			18,961			9,496
Financial services (a)	3,827			3,960			13,451			8,606
Corporate	(6,996		)	(7,380		)	(19,663		)	(17,508		)
Total operating income	$	18,649		$	12,451		$	39,667		$	19,443
Interest expense:
Midwest homebuilding	$	1,023		$	1,243		$	3,852		$	4,181
Southern homebuilding	1,405			999			4,510			2,543
Mid-Atlantic homebuilding	659			1,342			2,809			4,248
Financial services (a)	362			415			1,015			1,094
Total interest expense	$	3,449		$	3,999		$	12,186		$	12,066
Equity in income of unconsolidated joint ventures	(278		)	—			(278		)	—
Loss on early extinguishment of debt	1,726			—			1,726			—
Income before income taxes	$	13,752		$	8,452		$	26,033		$	7,377

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of a small amount of mortgage re-financing.

(b) For the three months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $2.1 million and $1.3 million, respectively. These charges reduced gross margin and operating income by $2.1 million and $1.3 million in the Midwest region for the three months ended September 30, 2013 and 2012, respectively. There were no charges in the Mid-Atlantic or Southern regions for the three months ended September 30, 2013 and 2012.

For the nine months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $4.2 million and $2.1 million, respectively. These charges reduced operating income by $4.2 million and $1.9 million in the Midwest region for the nine months ended September 30, 2013 and 2012, respectively, and $0.1 million in each of

35

the Southern and Mid-Atlantic regions for the nine months ended September 30, 2012. There were no charges in the Mid-Atlantic or Southern regions for the nine months ended September 30, 2013.

The following tables show total assets by segment at September 30, 2013 and December 31, 2012:

	At September 30, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,141	$	7,737	$	3,477	$	—	$	13,355
Inventory (a)	241,233		212,665		209,083		—		662,981
Investments in unconsolidated joint ventures	5,200		28,888		—		—		34,088
Other assets	7,699		14,186		9,146		341,612		372,643
Total assets	$	256,273	$	263,476	$	221,706	$	341,612	$	1,083,067

	At December 31, 2012
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	1,462	$	4,612	$	2,653	$	—	$	8,727
Inventory (a)	196,554		157,302		194,234		—		548,090
Investments in unconsolidated joint ventures	5,121		6,611		—		—		11,732
Other assets	4,421		8,436		7,759		242,135		262,751
Total assets	$	207,558	$	176,961	$	204,646	$	242,135	$	831,300

(a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.

36

Reportable Segments

The following table presents, by reportable segment, selected financial information for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2013		2012		2013			2012
Midwest Region
Homes delivered	307		307		837			795
New contracts, net	318		274		1,062			913
Backlog at end of period	643		505		643			505
Average sales price per home delivered	$	269	$	257	$	263		$	250
Average sales price of homes in backlog	$	297	$	267	$	297		$	267
Aggregate sales value of homes in backlog	$	190,932	$	135,086	$	190,932		$	135,086
Revenue homes	$	82,641	$	79,015	$	220,018		$	198,374
Revenue third party land sales	$	48	$	—	$	2,872		$	620
Operating income homes	$	5,110	$	3,940	$	12,681		$	9,083
Operating income (loss) land	$	4	$	—	$	(985	)	$	(70	)
Number of active communities	66		58		66			58
Southern Region
Homes delivered	354		223		794			543
New contracts, net	289		224		1,043			707
Backlog at end of period	590		362		590			362
Average sales price per home delivered	$	269	$	226	$	269		$	226
Average sales price of homes in backlog	$	287	$	263	$	287		$	263
Aggregate sales value of homes in backlog	$	169,547	$	95,299	$	169,547		$	95,299
Revenue homes	$	95,315	$	50,382	$	213,518		$	122,748
Revenue third party land sales	$	960	$	447	$	2,663		$	653
Operating income homes	$	7,924	$	6,141	$	13,845		$	9,837
Operating income land	$	347	$	4	$	1,377		$	—
Number of active communities	46		34		46			34
Mid-Atlantic Region
Homes delivered	276		216		721			540
New contracts, net	262		259		889			727
Backlog at end of period	374		312		374			312
Average sales price per home delivered	$	319	$	319	$	322		$	306
Average sales price of homes in backlog	$	341	$	333	$	341		$	333
Aggregate sales value of homes in backlog	$	127,610	$	103,951	$	127,610		$	103,951
Revenue homes	$	87,930	$	69,009	$	231,840		$	165,277
Revenue third party land sales	$	1,620	$	3,640	$	7,221		$	7,700
Operating income homes	$	8,116	$	5,017	$	17,397		$	7,960
Operating income land	$	317	$	770	$	1,564		$	1,536
Number of active communities	35		36		35			36
Total Homebuilding Regions
Homes delivered	937		746		2,352			1,878
New contracts, net	869		757		2,994			2,347
Backlog at end of period	1,607		1,179		1,607			1,179
Average sales price per home delivered	$	284	$	266	$	283		$	259
Average sales price of homes in backlog	$	304	$	284	$	304		$	284
Aggregate sales value of homes in backlog	$	488,089	$	334,336	$	488,089		$	334,336
Revenue homes	$	265,886	$	198,406	$	665,376		$	486,399
Revenue third party land sales	$	2,628	$	4,087	$	12,756		$	8,973
Operating income homes	$	21,150	$	15,098	$	43,923		$	26,880
Operating income land	$	668	$	774	$	1,956		$	1,466
Number of active communities	147		128		147			128
Financial Services
Number of loans originated	689		606		1,783			1,589
Value of loans originated	$	165,660	$	139,020	$	426,637		$	355,075
Revenue	$	6,681	$	6,383	$	22,343		$	15,623
Selling, general and administrative expense	2,854		2,423		8,892			7,017
Interest expense	362		415		1,015			1,094
Income before income taxes	$	3,465	$	3,545	$	12,436		$	7,512

37

A home is included in “new contracts” when our standard sales contract is executed. “Homes delivered” represents homes for which the closing of the sale has occurred. “Backlog” represents homes for which the standard sales contract has been executed, but which are not included in homes delivered because closings for these homes have not yet occurred as of the end of the period specified.

Cancellation Rates

The following table sets forth the cancellation rates for each of our homebuilding segments for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Midwest	18.0	%	18.7	%	18.6	%	16.8	%
Southern	17.2	%	23.8	%	14.7	%	18.9	%
Mid-Atlantic	15.2	%	11.3	%	11.6	%	12.0	%
Total cancellation rate	16.9	%	18.0	%	15.3	%	16.0	%

Seasonality

Typically, our homebuilding operations experience significant seasonality and quarter-to-quarter variability in homebuilding activity levels. In general, homes delivered increase substantially in the second half of the year compared to the first half of the year. We believe that this seasonality reflects the tendency of homebuyers to shop for a new home in the spring with the goal of closing in the fall or winter, as well as the scheduling of construction to accommodate seasonal weather conditions. Our financial services operations also experience seasonality because loan originations correspond with the delivery of homes in our homebuilding operations.

Year Over Year Comparisons

Three Months Ended September 30, 2013 Compared to Three Months Ended September 30, 2012

Midwest Region. Our Midwest region had operating income of $5.1 million for the three months ended September 30, 2013, a $1.2 millionincrease from our operating income of $3.9 million for the three months ended September 30, 2012. This improvement is a result of the factors described below.

For the quarter ended September 30, 2013, homebuilding revenue in our Midwest region increased$3.7 million, from $79.0 million in the third quarter of 2012 to $82.7 million in the third quarter of 2013, and our homebuilding gross margin percentage improved to 16.2% for the quarter ended September 30, 2013 compared to 15.3% for the same period in 2012, inclusive of impairment charges. This 5%increase in homebuilding revenue and 90 basis point improvement in gross margin percentage was the result of a 5%increase in the average sales price of homes delivered ($12,000 per home delivered). The number of homes delivered remained flat for the third quarter of 2013 compared to the same period a year ago at 307 deliveries primarily due to longer building cycle times, specifically in our Indianapolis division due to lengthier building permit approval times. Partially offsetting these improvements was an $0.8 millionincrease in asset impairment charges taken in the third quarter of 2013 compared to the same period in 2012 and higher construction costs related to both the mix of homes delivered as well as cost increases in labor and materials associated with improving housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$0.1 million from $8.2 million for the quarter ended September 30, 2012 to $8.3 million for the quarter ended September 30, 2013 but declined slightly as a percentage of revenue to 10.0% for the three months ended September 30, 2013 compared to 10.3% for the same period in 2012. The slight increase in selling, general and administrative expense was due to a $0.1 millionincrease in sales commissions due to higher average sales prices of homes delivered, a $0.4 millionincrease in variable compensation expenses associated with the improved operating performance in the region and a $0.3 millionincrease in other land-related expenses, which were offset, in part, by the absence of the $0.7 million charge taken in 2012's third quarter for the acceleration of leasehold improvement depreciation for rental space we exited early.

During the three months ended September 30, 2013, we experienced a 16%increase in new contracts in our Midwest region, from 274 in the third quarter of 2012 to 318 in the third quarter of 2013. Backlog increased27% from 505 homes at September 30, 2012 to 643 homes at September 30, 2013, with an average sales price in backlog of $297,000 at September 30, 2013 compared to $267,000 at September 30, 2012. These improvements were primarily due to increased activity related to our Cincinnati division as a result of higher-end product offerings and improving sub-market conditions, in addition to an increased number of active

38

communities in our Cincinnati and Indianapolis divisions compared to a year ago. During the three months ended September 30, 2013, we opened four new communities in our Midwest region compared to six during 2012's third quarter. Our monthly absorption rate in our Midwest region declined slightly to 1.6 per community in the third quarter of 2013 compared to 1.7 per community in 2012's third quarter.

Southern Region.Our Southern region had operating income of $8.3 million for the quarter ended September 30, 2013, a $2.2 millionincrease from our operating income of $6.1 million for the third quarter of 2012. The increase in operating income was primarily the result of improvement in our homebuilding revenue as well as a $0.3 million profit relating to the sale of land to third parties offset, in part, by a $3.9 millionincrease in selling, general and administrative expense.

During the three months ended September 30, 2013, homebuilding revenue in our Southern region increased$45.5 million, from $50.8 million in the third quarter of 2012 to $96.3 million in the third quarter of 2013. This 89%increase in homebuilding revenue was the result of a 59%increase in the number of homes delivered (131 units), which was primarily due to increased activity related to our Florida divisions, and a 19%increase in the average sales price of homes delivered ($43,000 per home delivered) as well as an increase of $0.5 million in land sale revenue. Our homebuilding gross margin improved$6.0 million, or 50%, primarily from the improvements in the average sales price of homes delivered and the number of homes delivered described above as well as from a $0.3 million profit from the sale of land, compared to the third quarter of 2012, yielding a gross margin percentage of 18.7% for the quarter ended September 30, 2013 compared to 23.5% for the quarter ended September 30, 2012. This decline in gross margin percentage was primarily due to the $3.0 million settlement the Company received in the third quarter of 2012 related to defective imported drywall. Absent this settlement, our gross margin percentage for the three months ended September 30, 2012 was 17.6%, resulting in a 110 basis point improvement for the three months ended September 30, 2013. Partially offsetting these improvements were higher construction costs related to both the mix of homes delivered as well as cost increases in labor and materials associated with improving housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$3.9 million from $5.8 million in the third quarter of 2012 to $9.7 million in the third quarter of 2013 but declined as a percentage of revenue to 10.1% for the three months ended September 30, 2013 compared to 11.4% for the third quarter of 2012. The $2.6 millionincrease in selling expense was due to a $1.9 millionincrease in variable selling expenses, which resulted from increases in sales commissions due to the higher average sales price of homes delivered and number of homes delivered, as well as due to a $0.7 millionincrease in expenses related to our design centers and sales offices. The $1.3 millionincrease in general and administrative expense was primarily due to a $0.7 millionincrease in variable compensation expenses associated with the improved operating performance in this region, a $0.2 millionincrease in payroll-related expenses related to our new Austin and Dallas divisions, and a $0.2 millionincrease in land-related expenses.

During the three months ended September 30, 2013, we experienced a 29%increase in new contracts in our Southern region, from 224 in the third quarter of 2012 to 289 for the quarter ended September 30, 2013. Backlog increased63% from 362 homes at September 30, 2012 to 590 homes at September 30, 2013, with an average sales price in backlog of $287,000 at September 30, 2013 compared to $263,000 at September 30, 2012. These improvements were primarily due to an increased number of active communities at September 30, 2013 compared to prior year as our Texas operations continue to grow. During the three months ended September 30, 2013, we opened nine new communities in our Southern region compared to five during 2012's third quarter. Our monthly absorption rate in our Southern region remained flat at 2.2 per community in both the third quarter of 2013 and 2012.

Mid-Atlantic Region. Our Mid-Atlantic region had operating income of $8.4 million for the quarter ended September 30, 2013, a $2.6 millionincrease from our operating income of $5.8 million in the third quarter of 2012. This increase in operating income was primarily the result of improvement in our homebuilding revenue and related gross margin, offset, in part, by a $1.5 millionincrease in selling, general and administrative expense.

For the three month period ended September 30, 2013, homebuilding revenue in our Mid-Atlantic region increased$17.0 million from $72.6 million in the third quarter of 2012 to $89.6 million in the third quarter of 2013, and our homebuilding gross margin improved$4.2 million compared to the third quarter of 2012, yielding a gross margin percentage of 18.8% for the quarter ended September 30, 2013 compared to 17.4% for the quarter ended September 30, 2012. This 23%increase in revenue and 33%improvement in gross margin was the result of a 28%increase in the number of homes delivered (60 units). Partially offsetting these improvements was a decrease of $2.0 million in land sale revenue as well as higher construction costs related to both the mix of homes delivered and cost increases in labor and materials associated with improving housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$1.5 million from $6.9 million in the third quarter of 2012 to $8.4 million in the third quarter of 2013 and remained flat as a percentage of revenue, ending at 9.4% for both the three months ended September 30, 2013 and 2012. The $0.9 millionincrease in selling expense was primarily due to an increase in variable selling expenses,

39

which resulted from the increase in sales commissions due to the increase in the number of homes delivered. The $0.6 millionincrease in general and administrative expense related primarily to increased variable compensation expenses associated with the improved operating performance in this region.

During the three months ended September 30, 2013, we experienced a 1%increase in new contracts in our Mid-Atlantic region, from 259 in the third quarter of 2012 to 262 in the third quarter of 2013, primarily due to a lower number of active communities in the region as well as a change in the mix and stage of completion of our current active communities when compared to prior year. Backlog increased20% from 312 homes at September 30, 2012 to 374 homes at September 30, 2013, with an average sales price in backlog of $341,000 at September 30, 2013 compared to $333,000 at September 30, 2012. We opened four new communities in our Mid-Atlantic region during the third quarter of 2013 compared to one new community opened during the same period in 2012. Our monthly absorption rate in our Mid-Atlantic region increased slightly to 2.5 per community in the third quarter of 2013 from 2.4 per community in the third quarter of 2012.

Financial Services. Revenue from our mortgage and title operations increased$0.3 million (5%) from $6.4 million in the third quarter of 2012 to $6.7 million in the third quarter of 2013 as a result of several factors: (1) a 14%increase in the number of loan originations, from 606 in the third quarter of 2012 to 689 in the third quarter of 2013; (2) a 5%increase in the average loan amount from $229,000 in the quarter ended September 30, 2012 to $240,000 in the quarter ended September 30, 2013; and (3) additional revenue due to retaining mortgage servicing rights, offset, in part, by lower margins on the loans sold and a continued shift in product mix from government to conventional financing, where margins on sale are generally lower. We experienced a $0.1 milliondecrease in operating income in the third quarter of 2013 in our mortgage and title operations compared to 2012's third quarter, which was due to the increase in revenue discussed above offset by a $0.4 millionincrease in selling, general, and administrative expense for the three months ended September 30, 2013 compared to the same period in 2012. The increase in selling, general, and administrative expenses was due to a $0.8 millionincrease in payroll related expenses offset partially by a $0.4 milliondecrease in expenses related to mortgage loans sold.

At September 30, 2013, M/I Financial provided financing services in all of our markets. Approximately 81% of our homes delivered during the third quarter of 2013 were financed through M/I Financial compared to 85% in the third quarter of 2012. The decrease in our overall capture rate was due to a higher percentage of our homes delivered being in Texas where our financial services operations are not fully in place, as is typical in newer markets. Capture rate is influenced by financing availability and can fluctuate up or down from quarter to quarter.

Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense decreased$0.4 million, from $7.4 million in the third quarter of 2012 to $7.0 million in the third quarter of 2013. The decrease was primarily due to a $0.7 million recovery of legal fees from our insurance carrier received in relation to our drywall product liability litigation, offset, in part, by an increase in share based and variable incentive compensation associated with our improved financial performance.

Interest Expense - Net. Interest expense for the Company decreased$0.6 million, from $4.0 million in the three months ended September 30, 2012 to $3.4 million in the three months ended September 30, 2013. This decrease was primarily the result of a decline in our weighted average borrowing rate from 8.83% in the third quarter of 2012 to 7.51% for third quarter of 2013, related to the addition of our two convertible debt issuances which have significantly lower interest rates compared to our other debt outstanding in those periods, as well as increased capitalized interest related to our increased land development during the third quarter of 2013 compared to prior year. Partially offsetting these decreases was an increase in our weighted average borrowings outstanding from $294.7 million in 2012's third quarter to $396.8 million in 2013's third quarter related to the issuance of $86.3 million aggregate principal amount of 2018 Convertible Senior Subordinated Notes in the first quarter of 2013 as well as the result of the $57.5 million aggregate principal amount of 2017 Convertible Senior Subordinated Notes that were issued at the end of 2012's third quarter.

Earnings from Unconsolidated Joint Ventures. Earnings from unconsolidated joint ventures represents our portion of pre-tax earnings from our joint ownership and development agreements, joint ventures and other similar arrangements. The $0.3 million increase in 2013 as compared to 2012 is primarily attributable to third party lot sales.

Loss on Early Extinguishment of Debt. Loss on early extinguishment of debt is attributable to the write-off of unamortized debt issuance costs associated with the termination of our Prior Credit Facility that was scheduled to mature on December 31, 2014. During the quarter ended September 30, 2013, we recognized a loss on early extinguishment of debt of $1.7 million.

Income Taxes. We reversed $111.6 million of the valuation allowance against our deferred tax assets during the quarter ended September 30, 2013. After the reversal, we had a valuation allowance of $14.9 million against our deferred tax assets as of

40

September 30, 2013, $4.7 million of which is related to intra-period tax allocation and is expected to reverse in the fourth quarter of 2013. As a result, we will continue to report tax rate at or near zero on our income statement for the remainder of the year. The remaining $10.2 million relates to a valuation allowance related to state net operating loss carryforwards for which we currently do not meet the "more likely than not" criteria for realization of such carryforwards.

Our overall effective tax rate was (811.2)% for the third quarter of 2013 and 1.6% for the third quarter of 2012. The decrease in our effective tax rate for the third quarter of 2013, in addition to our increase in pre-tax income of $5.3 million compared to prior year, is primarily attributable to the reversal of a majority of the valuation allowance against our deferred tax assets during the quarter ended September 30, 2013 as described above. The effective rates are not reflective of our historical tax rate or our effective tax rate in future periods due to our deferred tax asset valuation allowance.

Nine Months Ended September 30, 2013 Compared to Nine Months Ended September 30, 2012

Midwest Region. Our Midwest region had operating income of $11.7 million for the nine months ended September 30, 2013, a $2.7 millionincrease from our operating income of $9.0 million for the nine months ended September 30, 2012. This improvement is a result of the factors described below.

For the nine months ended September 30, 2013, homebuilding revenue in our Midwest region increased$23.9 million, from $199.0 million for the nine months ended September 30, 2012 to $222.9 million for the nine months ended September 30, 2013. This 12%increase in homebuilding revenue was the result of a 5%increase in the number of homes delivered (42 units), which was primarily related to increased activity in our Cincinnati and Chicago divisions offset by fewer active communities in our Columbus division compared to a year ago, and a 5%increase in the average sales price of homes delivered ($13,000 per home delivered) as well as an increase of $2.3 million in land sale revenue. Our homebuilding gross margin improved$4.4 million, or 14%, primarily from the improvements in the number of homes delivered and the average sales price of homes delivered described above, compared to 2012's first nine months, yielding a gross margin percentage of 15.8% for the nine months ended September 30, 2013 compared to 15.4% for the same period in 2012. Partially offsetting these improvements was a $2.4 millionincrease in asset impairment charges taken in the nine months ended September 30, 2013 compared to the same period in 2012 and higher construction costs related to both the mix of homes delivered as well as cost increases in labor and materials associated with improving housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$1.8 million from $21.7 million for the nine months ended September 30, 2012 to $23.5 million for the nine months ended September 30, 2013 but declined as a percentage of revenue to 10.5% for the nine months ended September 30, 2013 from 10.9% for 2012's first nine months. The $0.4 millionincrease in selling expense was primarily due to a $0.9 millionincrease in variable selling expenses, which resulted from increases in sales commissions due to the higher average sales price of homes delivered and number of homes delivered, offset, in part, by the absence of the $0.7 million charge taken in 2012's third quarter for the acceleration of leasehold improvement depreciation for rental space we exited early. The $1.4 millionincrease in general and administrative expense was primarily due to a $0.9 millionincrease in variable compensation expenses associated with the improved operating performance in this region and a $0.5 millionincrease in land-related expenses.

We experienced a 16%increase in new contracts in our Midwest region for the nine months ended September 30, 2013, from 913 in the nine months ended September 30, 2012 to 1062 for the same period in 2013. Backlog increased27% from 505 homes at September 30, 2012 to 643 homes at September 30, 2013, with an average sales price in backlog of $297,000 at September 30, 2013 compared to $267,000 at September 30, 2012. These improvements were primarily due to increased activity related to our Cincinnati division as a result of higher-end product offerings and improving sub-market conditions, and more attractive community locations compared to a year ago. During the nine months ended September 30, 2013, we opened 14 new communities in our Midwest region compared to 10 during 2012's first nine months. Our monthly absorption rate in our Midwest region increased to 1.9 per community in the nine months ended September 30, 2013 compared to 1.8 per community in 2012's first nine months.

Southern Region.Our Southern region had operating income of $15.2 million for the nine months ended September 30, 2013, a $5.4 millionincrease from our operating income of $9.8 million for the nine months ended September 30, 2012. The increase in operating income was primarily the result of improvement in our homebuilding revenue as well as a $1.4 million profit relating to the sale of land to third parties, offset, in part, by a $9.3 millionincrease in selling, general, and administrative expense.

During the nine months ended September 30, 2013, homebuilding revenue in our Southern region increased$92.8 million, from $123.4 million in the nine months ended September 30, 2012 to $216.2 million in the nine months ended September 30, 2013. This 75%increase in homebuilding revenue was the result of a 46%increase in the number of homes delivered (251 units) and a 19%increase in the average sales price of homes delivered ($43,000 per home delivered) as well as an increase of $2.0 million in

41

land sale revenue. Our homebuilding gross margin improved$14.7 million, or 58%, primarily from the improvements in the average sales price of homes delivered and the number of homes delivered described above as well as from a $1.4 million profit from the sale of land, compared to the nine months ended September 30, 2012, yielding a gross margin percentage of 18.5% for the nine months ended September 30, 2013 compared to 20.6% for the nine months ended September 30, 2012. This decline in gross margin percentage was primarily due to the $3.0 million settlement the Company received in the third quarter of 2012 related to defective imported drywall. Absent this settlement, our gross margin percentage for the nine months ended September 30, 2012 was 18.2%, resulting in a 40 basis point improvement for the nine month period ended September 30, 2013. Partially offsetting these improvements were higher construction costs related to both the mix of homes delivered as well as cost increases in labor and materials associated with improving housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$9.3 million from $15.6 million in the nine months ended September 30, 2012 to $24.9 million in the nine months ended September 30, 2013 but declined as a percentage of revenue to 11.5% for the nine months ended September 30, 2013 from 12.6% for the nine months ended September 30, 2012. The $5.5 millionincrease in selling expense was primarily due to a $3.8 millionincrease in variable selling expenses, which resulted from increases in sales commissions due to the higher average sales price of homes delivered and number of homes delivered, as well as due to a $1.7 millionincrease in expenses related to our design centers and sales offices. The $3.8 millionincrease in general and administrative expense was primarily due to a $1.8 millionincrease in variable compensation expenses associated with the improved operating performance in this region, a $0.4 million increase in payroll-related expenses related to our new Austin and Dallas divisions and an $0.8 millionincrease in land-related expenses.

During the nine months ended September 30, 2013, we experienced a 48%increase in new contracts in our Southern region during the nine months ended September 30, 2013, from 707 in the nine month period ended September 30, 2012 to 1,043 for the same period in 2013, primarily due to increased activity related to our Houston division. Backlog increased63% from 362 homes at September 30, 2012 to 590 homes at September 30, 2013, with an average sales price in backlog of $287,000 at September 30, 2013 compared to $263,000 at September 30, 2012. These improvements were primarily due to an increased number of active communities at September 30, 2013 compared to prior year as our Texas operations continue to grow. During the nine months ended September 30, 2013, we opened 21 new communities in our Southern region compared to 16 new communities opened during 2012's first nine months (five of which were acquired in our April 2012 acquisition). Our monthly absorption rate in our Southern region increased to 2.9 per community in the nine months ended September 30, 2013 compared to 2.5 per community in the nine months ended September 30, 2012.

Mid-Atlantic Region. Our Mid-Atlantic region had operating income of $19.0 million for the nine months ended September 30, 2013, a $9.5 millionincrease from our operating income of $9.5 million in the nine months ended September 30, 2012. This increase was primarily due to the improvement in our homebuilding revenue, offset in part, by a $3.9 millionincrease in selling, general and administrative expense.

For the nine month period ended September 30, 2013, homebuilding revenue in our Mid-Atlantic region increased$66.1 million from $173.0 million in the nine months ended September 30, 2012 to $239.1 million in the nine months ended September 30, 2013, and our homebuilding gross margin improved$13.4 million compared to the nine months ended September 30, 2012, yielding a gross margin percentage of 17.5% for the nine months ended September 30, 2013 compared to 16.5% for the nine months ended September 30, 2012. This 38%increase in revenue and 47%improvement in our gross margin was the result of a 34%increase in the number of homes delivered (181 units), primarily related to increases in average sales price and changes in mix and stage of completion of existing communities when compared to prior year, as well as a 5%increase in the average sales price of homes delivered ($16,000 per home delivered). Partially offsetting these improvements were higher construction costs related to both the mix of homes delivered as well as cost increases in labor and materials associated with improving housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$3.9 million from $19.0 million in the nine months ended September 30, 2012 to $22.9 million in the nine months ended September 30, 2013 but declined as a percentage of revenue to 9.6% for the nine months ended September 30, 2013 from 11.0% for the same period in 2012. The increase in selling expense was primarily due to a $2.9 millionincrease in variable selling expenses, which resulted from the increase in sales commissions due to the higher average sales price of homes delivered and number of homes delivered. The $1.0 millionincrease in general and administrative expense was primarily due to an increase in variable compensation expenses associated with the improved operating performance in this region.

During the nine months ended September 30, 2013, we experienced a 22%increase in new contracts in our Mid-Atlantic region, from 727 in the nine months ended September 30, 2012 to 889 in the nine months ended September 30, 2013 and a 20%increase in the number of homes in backlog from 312 homes at September 30, 2012 to 374 homes at September 30, 2013, primarily related

42

to increased activity in our Raleigh division. Additionally, our average sales price in backlog increased to $341,000 at September 30, 2013 compared to $333,000 at September 30, 2012. During the nine months ended September 30, 2013, we opened 12 new communities in our Mid-Atlantic region compared to eight new communities opened during the same period in 2012. Our monthly absorption rate in our Mid-Atlantic region increased to 2.9 per community in the nine months ended September 30, 2013, compared to 2.3 per community in the same period in 2012.

Financial Services. Revenue from our mortgage and title operations increased$6.7 million (43%) from $15.6 million in the nine months ended September 30, 2012 to $22.3 million in the nine months ended September 30, 2013 as a result of several factors: (1) a 12%increase in the number of loan originations, from 1,589 in the nine months ended September 30, 2012 to 1,783 in the same period in 2013; (2) a 7%increase in the average loan amount from $223,000 in the nine months ended September 30, 2012 to $239,000 in the nine months ended September 30, 2013; (3) higher margins on our loans sold earlier in the year than we experienced in 2012's first nine months; and (4) additional revenue due to retaining mortgage servicing rights. We ended the nine months ended September 30, 2013 with a $4.8 millionincrease in operating income compared to the nine months ended September 30, 2012, which was primarily due to the increase in revenue discussed above. Offsetting these improvements was a $1.9 millionincrease in selling, general and administrative expense for the nine months ended September 30, 2013 compared to the same period in 2012, primarily due to an increase in payroll related expenses.

At September 30, 2013, M/I Financial provided financing services in all of our markets. Approximately 79% of our homes delivered during the nine months ended September 30, 2013 were financed through M/I Financial compared to 84% in the same period in 2012. The decrease in our overall capture rate was due to a higher percentage of our homes delivered being in Texas where our financial services operations are not fully in place, as is typical in newer markets. Capture rate is influenced by financing availability and can fluctuate up or down from quarter to quarter.

Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased$2.2 million, from $17.5 million in the nine months ended September 30, 2012 to $19.7 million in the nine months ended September 30, 2013. The increase was primarily due to a $1.7 millionincrease in share based and variable incentive compensation associated with our improved financial performance, a $0.7 millionincrease in professional fees and an $0.8 millionincrease related to the absence of our net gain on purchase accounting related to our April 2012 acquisition, offset partially by a $0.7 million recovery of legal fees from our insurance carrier received in connection with our drywall product liability litigation and a $0.5 million decrease in depreciation charges.

Interest Expense - Net. Interest expense for the Company increased$0.1 million, from $12.1 million for the nine months ended September 30, 2012 to $12.2 million for the nine months ended September 30, 2013. This slight increase was primarily the result of an increase in our weighted average borrowings from $279.1 million in the nine months ended September 30, 2012 to $387.2 million in nine months ended September 30, 2013 related to the issuance of $57.5 million aggregate principal amount of 2017 Convertible Senior Subordinated Notes in the third quarter of 2012 and the issuance of $86.3 million aggregate principal amount of 2018 Convertible Senior Subordinated Notes in the first quarter of 2013. Partially offsetting this increase was a decline in our weighted average borrowing rate from 9.01% in the nine months ended September 30, 2012 to 7.67% for 2013's first nine months, related to the addition of our two convertible debt issuances, which have significantly lower interest rates compared to our other debt outstanding in those periods, as well as an increase in our capitalized interest related to increased land development during the nine months ended September 30, 2013 compared to prior year.

Earnings from Unconsolidated Joint Ventures. Earnings from unconsolidated joint ventures represents our portion of pre-tax earnings from our joint ownership and development agreements, joint ventures and other similar arrangements. The $0.3 million increase in 2013 as compared to 2012 is primarily attributable to third party lot sales.

Loss on Early Extinguishment of Debt. Loss on early extinguishment of debt is attributable to the write-off of unamortized debt issuance costs associated with the termination of our Prior Credit Facility that was scheduled to mature on December 31, 2014. During the nine months ended September 30, 2013, we recognized a loss on early extinguishment of debt of $1.7 million.

Income Taxes. We reversed $111.6 million of the valuation allowance against our deferred tax assets during the quarter ended September 30, 2013. After the reversal, we had a valuation allowance of $14.9 million against our deferred tax assets as of September 30, 2013, $4.7 million of which is related to intra-period tax allocation and is expected to reverse in the fourth quarter of 2013. As a result, we will continue to report tax rate at or near zero on our income statement for the remainder of the year. The remaining $10.2 million relates to a valuation allowance related to state net operating loss carryforwards for which we currently do not meet the "more likely than not" criteria for realization of such carryforwards.

43

Our overall effective tax rate was (426.9)% for the nine months ended September 30, 2013 and (12.9)% for the same period in 2012. The decrease in our effective tax rate for the nine months ended September 30, 2013, in addition to the $18.7 millionincrease in our pre-tax income compared to prior year, is primarily related to the reversal of a majority of the valuation allowance against our deferred tax assets during the quarter ended September 30, 2013. The effective rates are not reflective of our historical tax rate or our effective tax rate in future periods due to our deferred tax asset valuation allowance.

LIQUIDITY AND CAPITAL RESOURCES

Overview of Capital Resources and Liquidity

At September 30, 2013, we had $158.3 million of cash, cash equivalents and restricted cash, with $142.5 million of this amount comprised of unrestricted cash and cash equivalents. We believe that our balance of unrestricted cash and available borrowing options, including availability under our Credit Facility (described in further detail below), along with proceeds from home deliveries and other sources of liquidity, will be sufficient to fund our currently anticipated working capital needs, investment in land and land development, construction of homes, planned capital spending, and debt service requirements for at least the next twelve months. However, we routinely monitor current operational requirements, financial market conditions, and credit relationships and we may choose to issue new debt and/or equity securities as management deems necessary.

Our net income or loss historically does not approximate cash flow from operating activities. The difference between net income or loss and cash flow from operating activities is primarily caused by changes in inventory levels together with changes in receivables, prepaid and other assets, interest and other accrued liabilities, deferred income taxes, accounts payable, mortgage loans and liabilities, and non-cash charges relating to depreciation, stock compensation awards and impairment losses for inventory, among other things.

At September 30, 2013 and December 31, 2012, our ratio of net debt to net capital was 37% and 39%, respectively, calculated as total debt minus total cash, cash equivalents and restricted cash, divided by the sum of total debt minus total cash, cash equivalents and restricted cash plus shareholders' equity. The decrease compared to December 31, 2012 was due to an increase in shareholder’s equity, primarily related to our net earnings, which included the reversal of a majority of our valuation allowance against our deferred tax assets, along with $54.6 million of additional paid in capital resulting from the issuance of 2.461 million of our common shares in March 2013, partially offset by the redemption of 2,000 of our Series A Preferred Shares during the second quarter of 2013 for $50.4 million and the increase in debt as a result of the issuances of our 2018 Convertible Senior Subordinated Notes. We believe that the ratio of net debt to net capital is useful in understanding the leverage employed in our operations and comparing us with other homebuilders.

Operating Cash Flow Activities

During the nine month period ended September 30, 2013, we used$40.4 million of cash in our operating activities, compared to cash used in operating activities of $16.3 million during the nine months ended September 30, 2012. As is typical in the homebuilding industry, our primary uses of cash in operating our business are for land purchases, land development expenditures, home construction, interest expense, selling expenses, and general and administrative expenses. The primary source of cash is typically revenues from home deliveries, along with revenues from our financial services operations.

The net increase of $24.1 million in cash used in operating activities during the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012 was primarily due to the $71.4 millionincrease in the net change in total inventory, offset, in part, by an $18.7 million improvement in pretax income for the nine month period (as more fully described within the “Summary of Financial Results” section above) as well as net changes of $15.1 million in accounts payable and a $13.1 million net increase related to proceeds from the sale of mortgage loans net of the amount of mortgage loan originations.

Due to our debt and equity offerings in both the third quarter of 2012 and the first quarter of 2013, as well as our net earnings for the year ended December 31, 2012 and the nine months ended September 30, 2013, we had the flexibility to invest capital to grow our operations during the nine months ended September 30, 2013. We spent $156.7 million on land purchases and $67.5 million on land development, for total land spending of $224.2 million during the nine months ended September 30, 2013.

Based upon our business activity levels, liquidity, leverage, market conditions, and opportunities for land in our markets, we currently estimate that we will spend approximately $300 million to $350 million on land purchases and land development during 2013, including the $224.2 million spent during the nine months ended September 30, 2013. However, land transactions are subject to a number of factors, including our financial condition and market conditions, as well as satisfaction of various conditions related to specific properties. We will continue to monitor market conditions and our ongoing pace of home deliveries and adjust our land spending accordingly. The planned increase in our land spending in 2013 compared with 2012 is driven primarily by our growth

44

objectives and the ability of our divisions to contract for land in our markets on terms that meet our risk and return targets. In addition, we expect a larger portion of our land investment will continue to shift from finished lot purchases to land acquisition and development, which will result in increased inventory levels. Over the past several years, the majority of our land investments have been purchases of finished lots in most of our markets. During 2012 and throughout the nine months ended September 30, 2013, we have begun increasing the amount of our investments in undeveloped land and our land development spending as the availability of finished lots in attractive locations declined in many of our markets.

In the normal course of our business, in addition to our land purchases, we have continued to enter into land option agreements, taking into consideration current and projected market conditions, in order to secure land for the construction of homes in the future. Pursuant to these land option agreements, we have deposits and prepaid acquisition costs totaling $26.0 million as of September 30, 2013 as consideration for the right to purchase land and lots in the future, including the right to purchase $340.1 million of land and lots during 2013 through 2019.

Investing Cash Flow Activities

During the nine months ended September 30, 2013, we used$32.9 million of cash for investing activities, compared to generating$25.9 million of cash from investing activities in the nine months ended September 30, 2012. The $58.8 million difference was partially due to the change in restricted cash, which decreased$39.7 million from the nine months ended September 30, 2012, primarily as a result of an amendment to the Company's Prior Credit Facility in January of 2012 that permitted the Company to release $25.0 million of restricted cash that had been pledged to the lenders under the Prior Credit Facility. At September 30, 2013, restricted cash consisted of homebuilding cash the Company had pledged as collateral in accordance with our secured Letter of Credit Facilities. In addition, we increased our investment in unconsolidated joint ventures by $24.5 million during the nine months ended September 30, 2013 primarily due to joint investments with other builders in two separate land developments in our Southern region.

Financing Cash Flow Activities

During the nine months ended September 30, 2013, we generated$70.3 million of cash from our financing activities, compared to generating$90.4 million of cash during the nine months ended September 30, 2012. The decrease in cash generated was primarily the result of the amount by which the proceeds from our issuances of common shares, senior notes and convertible senior notes during the nine months ended September 30, 2012 exceeded the proceeds from our issuances of common shares and convertible senior notes during the same period in 2013, along with the redemption of 2,000 of our Series A Preferred Shares during the second quarter of 2013, offset by the repayment of senior notes during the second quarter of 2012. In addition, we increased our repayments of bank borrowings within the Financial Services Segment during the nine months ended September 30, 2013 compared with the nine months ended September 30, 2012.

The financing needs of our homebuilding and financial services operations depend on anticipated sales volume in the current year as well as future years, inventory levels and related turnover, forecasted land and lot purchases, debt maturity dates, and other Company plans. We fund these operations with cash flows from operating activities, borrowings under our credit facilities, and, from time to time, issuances of new debt and/or equity securities, as management deems necessary.

Included in the table below is a summary of our available sources of cash from financing sources as of September 30, 2013:

(In thousands)	Expiration Date	Outstanding Balance		Available Amount
Notes payable – homebuilding (a)	7/18/2016	$	—	$	186,058
Notes payable – financial services (b)	3/28/2014	$	55,614	$	463

(a) On July 18, 2013, we entered into the Credit Facility which replaced our Prior Credit Facility that was scheduled to mature on December 31, 2014. The available amount is computed in accordance with the borrowing base calculation under the Credit Facility, which totaled $352.9 million of availability at September 30, 2013, such that the the full $200 million commitment amount of the facility was available, less any borrowings and letters of credit outstanding. There we no borrowings and $13.9 million of letters of credit outstanding at September 30, 2013, leaving $186.1 million available. The commitment amount can be increased from $200 million up to $225 million in the aggregate, contingent on obtaining additional commitments from lenders. The Credit Facility has an expiration date of July 18, 2016.

(b) The available amount is computed in accordance with the borrowing base calculations under M/I Financial Corp.'s $100 million secured mortgage warehousing agreement as amended and restated on March 29, 2013 (the “MIF Mortgage Warehousing Agreement”) and M/I Financial's mortgage repurchase agreement dated November 13, 2012, as amended (the “MIF Mortgage Repurchase Facility”), each of which may be increased by pledging additional mortgage collateral.  The maximum aggregate commitment amount of M/I Financial's warehousing agreements is $115 million. The MIF Mortgage Warehousing Agreement has an expiration date of March 28, 2014 and the MIF Mortgage Repurchase Facility has an expiration date of November 12, 2013.

45

Notes Payable - Homebuilding.

Homebuilding Credit Facility.

On July 18, 2013, the Company entered into the Credit Facility which provides for an aggregate commitment amount of $200 million, including a $100 million sub-facility for letters of credit. In addition, the Credit Facility has an accordion feature under which the Company may increase the aggregate commitment amount of the Credit Facility up to $225 million, subject to certain conditions, including obtaining additional commitments from existing or new lenders. The Credit Facility matures on July 18, 2016. Borrowings under the Credit Facility are at the Alternate Base Rate plus 2.25% or at the Eurodollar Rate plus 3.25%.

The Credit Facility replaced the Prior Credit Facility that was scheduled to mature on December 31, 2014. The letters of credit that were outstanding under the Prior Credit Facility became outstanding letters of credit under the Credit Facility. The Company incurred no prepayment penalties in connection with the termination and replacement of the Prior Credit Facility.

Borrowings under the Credit Facility are unsecured and availability is subject to, among other things, a borrowing base equal to 100% of unrestricted cash, plus 100% of escrow proceeds receivable, plus 90% of the book value of units under contract, plus 75% of the book value of inventory homes and model homes, plus 65% of the book value of finished lots, plus 50% of the book value of lots under development, and plus 35% of the book value of entitled land, less the amount of other senior indebtedness of the Company, which totaled $234.1 million at September 30, 2013. As of September 30, 2013, borrowing availability under the Credit Facility was $352.9 million in accordance with the borrowing base calculation, such that the the full $200 million commitment amount of the facility was available, less any borrowings and letters of credit outstanding. There were no borrowings outstanding and $13.9 million of letters of credit outstanding under the Credit Facility at September 30, 2013, leaving net remaining borrowing availability of $186.1 million.

The Company's obligations under the Credit Facility are guaranteed by all of the Company's subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries, subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries. The guarantors for the Credit Facility are the same subsidiaries that guarantee the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes, and the 2018 Convertible Senior Subordinated Notes.

The Credit Facility is governed by a Credit Agreement dated July 18, 2013. The Credit Facility contains various representations, warranties and affirmative, negative and financial covenants. The covenants, as more fully described and defined in the Credit Agreement, require, among other things, that the Company must maintain a minimum level of Consolidated Tangible Net Worth, maintain a leverage ratio not in excess of 60%, and maintain as of the end of each fiscal quarter either a minimum Interest Coverage Ratio of 1.50 to 1.00 or liquidity not less than the total amount of interest incurred during the period of twelve months ending on the last day of such fiscal quarter. In addition, the Credit Facility contains covenants that limit the amount of the Company's unsold owned land, secured indebtedness, and the number of unsold housing units and model homes, as well as the amount of Investments in Unrestricted Subsidiaries and Joint Ventures.

As of September 30, 2013, the Company was in compliance with all covenants of the Credit Facility. The following table summarizes the most significant restrictive covenant thresholds under the Credit Facility and our compliance with such covenants as of September 30, 2013:

Financial Covenant		Covenant Requirement			Actual
		(Dollars in millions)
Consolidated Tangible Net Worth	≥	$	298.9		$	448.9
Leverage Ratio	≤	60		%	38		%
Interest Coverage Ratio	≥	1.5 to 1.0			3.1 to 1.0
Investments in Unrestricted Subsidiaries and Joint Ventures	≤	$	134.7		$	22.3
Unsold Housing Units and Model Homes	≤	1,208			714

Homebuilding Letter of Credit Facilities. The Company is party to three secured credit agreements for the issuance of letters of credit outside of the Credit Facility (collectively, the “Letter of Credit Facilities”). During the three months ended September 30, 2013, the Company extended the maturity dates of two of the Letter of Credit Facilities for an additional year to August 31, 2014 and September 30, 2014, respectively, and increased the maximum available amount under the facility maturing on September 30, 2014 from $8.0 million to $10.0 million. The maturity dates for the Letter of Credit Facilities range from June 1, 2014 to

46

September 30, 2014. Under the terms of the Letter of Credit Facilities, letters of credit can be issued for maximum terms ranging from one year up to three years. The Letter of Credit Facilities contain cash collateral requirements ranging from 101% to 105%. Upon maturity or the earlier termination of the Letter of Credit Facilities, letters of credit that have been issued under the Letters of Credit Facilities remain outstanding with cash collateral in place through the respective expiration dates.

The agreements governing the Letter of Credit Facilities contain limits for the issuance of letters of credit ranging from $5.0 million to $10.0 million, for a combined letter of credit capacity of $20.0 million, of which $1.4 million was uncommitted at September 30, 2013 and could be withdrawn at any time. As of September 30, 2013, there was a total of $15.5 million of letters of credit issued under the Letter of Credit Facilities, which was collateralized with $15.8 million of restricted cash.

Notes Payable - Financial Services.

MIF Mortgage Warehousing Agreement.The MIF Mortgage Warehousing Agreement is used to finance eligible residential mortgage loans originated by M/I Financial. In March 2013, M/I Financial amended and restated the MIF Mortgage Warehousing Agreement, which, among other things, increased the maximum borrowing availability from $70.0 million to $80.0 million and provided for an accordion feature which allows for an increase of the maximum borrowing availability of up to an additional $20.0 million (subject to certain conditions, including obtaining additional commitments from existing or new lenders), extended the expiration date to March 28, 2014, and increased the maximum principal amount permitted to be outstanding at any one time in aggregate under all warehouse credit lines from $100.0 million to $125.0 million. M/I Financial pays interest on each advance under the MIF Mortgage Warehousing Agreement at a per annum rate equal to the greater of (1) the floating LIBOR rate plus 275 basis points and (2) 3.50%. During the second quarter of 2013, M/I Financial exercised the accordion feature under the MIF Mortgage Warehousing Agreement to increase the amount of our maximum borrowing availability to $100.0 million by obtaining $20.0 million in additional bank commitments.

The MIF Mortgage Warehousing Agreement is secured by certain mortgage loans originated by M/I Financial and are “warehoused” prior to their sale to investors. The MIF Mortgage Warehousing Agreement provides for limits with respect to certain loan types that can secure outstanding borrowings. There are currently no guarantors of the MIF Mortgage Warehousing Agreement.

As of September 30, 2013, there was $47.8 million outstanding under the MIF Mortgage Warehousing Agreement and M/I Financial was in compliance with all covenants. The financial covenants, as more fully described and defined in the MIF Mortgage Warehousing Agreement, are summarized in the following table, which also sets forth M/I Financial's compliance with such covenants as of September 30, 2013:

Financial Covenant		Covenant Requirement		Actual
		(Dollars in millions)
Leverage Ratio	≤	10.0 to 1.0		4.9 to 1.0
Liquidity	≥	$	5.0	$	14.7
Adjusted Net Income	>	$	0.0	$	8.0
Tangible Net Worth	≥	$	10.0	$	13.6

MIF Mortgage Repurchase Facility. In November 2012, M/I Financial entered into the MIF Mortgage Repurchase Facility, an additional mortgage financing agreement structured as a mortgage repurchase facility with a maximum borrowing availability of $15.0 million, to provide the Company with additional financing capacity.

The MIF Mortgage Repurchase Facility has an expiration date of November 12, 2013 and is used to finance eligible residential mortgage loans originated by M/I Financial. M/I Financial pays interest on each advance under the MIF Mortgage Repurchase Facility at a per annum rate equal to the floating LIBOR rate plus 350 or 412.5 basis points depending on the loan type. The covenants in the MIF Mortgage Repurchase Facility are substantially similar to the covenants in the MIF Mortgage Warehousing Agreement. The MIF Mortgage Repurchase Facility provides for limits with respect to certain loan types that can secure outstanding borrowings, which are similar to the restrictions in the MIF Mortgage Warehousing Agreement. There are currently no guarantors of the MIF Mortgage Repurchase Facility. As of September 30, 2013, there was $7.8 million outstanding under the MIF Mortgage Repurchase Facility. M/I Financial was in compliance with all covenants as of September 30, 2013.

As is typical for similar credit facilities in the mortgage origination industry, at closing, the expiration of the MIF Mortgage Repurchase Facility was set at approximately one year and is under consideration for extension annually by the participating lenders. We expect to extend the MIF Mortgage Repurchase Facility on or prior to the current expiration date of November 12, 2013, but we cannot provide any assurance that we will be able to obtain such an extension.

47

Convertible Senior Subordinated Notes. In March 2013, the Company issued $86.3 million aggregate principal amount of 2018 Convertible Senior Subordinated Notes. The 2018 Convertible Senior Subordinated Notes bear interest at a rate of 3.0% per year, payable semiannually in arrears on March 1 and September 1 of each year. The 2018 Convertible Senior Subordinated Notes mature on March 1, 2018. At any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2018 Convertible Senior Subordinated Notes into the Company's common shares. The conversion rate initially equals 30.9478 shares per $1,000 of their principal amount. This corresponds to an initial conversion price of approximately $32.31 per common share, which equates to approximately 2.7 million common shares. The conversion rate is subject to adjustment upon the occurrence of certain events. The 2018 Convertible Senior Subordinated Notes are fully and unconditionally guaranteed on a senior subordinated unsecured basis by those subsidiaries of the Company that are guarantors under the Company's 2018 Senior Notes and 2017 Convertible Senior Subordinated Notes. The 2018 Convertible Senior Subordinated Notes are senior subordinated unsecured obligations of the Company and the subsidiary guarantors and are subordinated in right of payment to our existing and future senior indebtedness and are also effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The indenture governing the 2018 Convertible Senior Subordinated Notes provides that the Company may not redeem the 2018 Convertible Senior Subordinated Notes prior to March 6, 2016, but also contains provisions requiring the Company to repurchase the 2018 Convertible Senior Subordinated Notes (subject to certain exceptions), at a holder's option, upon the occurrence of a fundamental change (as defined in the indenture).

On or after March 6, 2016, the Company may redeem for cash any or all of the 2018 Convertible Senior Subordinated Notes (except for any 2018 Convertible Senior Subordinated Notes that the Company is required to repurchase in connection with a fundamental change), but only if the last reported sale price of the Company's common shares exceeds 130% of the applicable conversion price for the 2018 Convertible Senior Subordinated Notes on each of at least 20 applicable trading days. The 20 trading days do not need to be consecutive, but must occur during a period of 30 consecutive trading days that ends within 10 trading days immediately prior to the date the Company provides the notice of redemption. The redemption price for the 2018 Convertible Senior Subordinated Notes to be redeemed will equal 100% of the principal amount, plus accrued and unpaid interest, if any.

In September 2012, the Company issued $57.5 million aggregate principal amount of 2017 Convertible Senior Subordinated Notes. The 2017 Convertible Senior Subordinated Notes bear interest at a rate of 3.25% per year, payable semiannually in arrears on March 15 and September 15 of each year. The 2017 Convertible Senior Subordinated Notes mature on September 15, 2017. At any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2017 Convertible Senior Subordinated Notes into the Company's common shares. The conversion rate initially equals 42.0159 shares per $1,000 of principal amount. This corresponds to an initial conversion price of approximately $23.80 per common share which equates to approximately 2.4 million common shares. The conversion rate is subject to adjustment upon the occurrence of certain events. The 2017 Convertible Senior Subordinated Notes are fully and unconditionally guaranteed on a senior subordinated unsecured basis by those subsidiaries of the Company that are guarantors under the Company's 2018 Senior Notes and the 2018 Convertible Senior Subordinated Notes. The 2017 Convertible Senior Subordinated Notes are senior subordinated unsecured obligations of the Company and the subsidiary guarantors and are be subordinated in right of payment to our existing and future senior indebtedness. The 2017 Convertible Senior Subordinated Notes are also effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The indenture governing the 2017 Convertible Senior Subordinated Notes provides that the Company may not redeem the notes prior to their stated maturity date, but also contains provisions requiring the Company to repurchase the 2017 Convertible Senior Subordinated Notes (subject to certain exceptions), at a holder's option, upon the occurrence of a fundamental change (as defined in the indenture).

Senior Notes. In November 2010, the Company issued $200 million aggregate principal amount of 2018 Senior Notes. In May 2012, we issued an additional $30 million of 2018 Senior Notes under our 2018 Senior Notes indenture for a total outstanding balance of $230 million.

The 2018 Senior Notes bear interest at a rate of 8.625% per year, payable semi-annually in arrears on May 15 and November 15 of each year, and mature on November 15, 2018. The 2018 Senior Notes are fully and unconditionally guaranteed jointly and severally by all of our subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries in accordance with the terms of the indenture governing the 2018 Senior Notes. The guarantors as of September 30, 2013 for the 2018 Senior Notes are the same subsidiaries that guarantee the Company's obligations under the Credit Facility, the 2017 Convertible Senior Subordinated Notes, and the 2018 Convertible Senior Subordinated Notes. The 2018 Senior Notes and the related guarantees are general, unsecured senior obligations of the Company and the subsidiary guarantors and rank equally in right of payment with all our existing and future unsecured senior indebtedness.  The 2018 Senior Notes are effectively

48

subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness.

Certain covenants are set forth in the indenture governing the 2018 Senior Notes. The covenants, as more fully described and defined in the indenture, limit the ability of the Company and the restricted subsidiaries to, among other things: incur additional indebtedness; make certain payments, including dividends, or repurchase any shares, in an aggregate amount exceeding our “restricted payments basket,” as defined in the indenture; make Investments in other entities, in the form of capital contributions or loans or purchases of securities, in an aggregate amount exceeding our “restricted payments basket,” except for certain Permitted Investments; and create or incur liens (other than Permitted Liens), consolidate or merge with or into other companies, or liquidate or sell or transfer all or substantially all of our assets.

These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2018 Senior Notes. As of September 30, 2013, the Company was in compliance with all terms, conditions, and financial covenants under the indenture.

The “restricted payments basket,” as defined in the indenture, is equal to $40 million (1) plus 50% of our aggregate consolidated net income (or minus 100% of our aggregate consolidated net loss) since October 1, 2010 and excluding the income or loss from Unrestricted Subsidiaries, plus (2) 100% of the net cash proceeds from the sale of qualified equity interests, plus other items and subject to other exceptions. At September 30, 2013, our restricted payments basket had a positive balance of $127.5 million. We are permitted to make Investments (in addition to Permitted Investments) and/or to pay dividends on, and repurchase, our common shares and Series A Preferred Shares to the extent of such positive balance.

The increase in the balance of our restricted payments basket from the second quarter of 2013 was primarily due to the net income of our Restricted Subsidiaries during the third quarter of 2013, offset partially by a $1.2 million dividend payment made on our outstanding Series A Preferred Shares on September 16, 2013. See “Preferred Shares” below for more information.

Weighted Average Borrowings. For the three months ended September 30, 2013 and 2012, our weighted average borrowings outstanding were $396.8 million and $294.7 million, respectively, with a weighted average interest rate of 7.51% and 8.83%, respectively. For the nine months ended September 30, 2013 and 2012, our weighted average borrowings outstanding were $387.2 million and $279.1 million, respectively, with a weighted average interest rate of 7.67% and 9.01%, respectively. The increase in borrowings was primarily the result of the issuance of the $57.5 million aggregate principal amount of 2017 Convertible Senior Subordinated Notes in the third quarter of 2012 and the issuance of the $86.3 million aggregate principal amount of 2018 Convertible Senior Subordinated Notes in the first quarter of 2013. Our rate decreased primarily due to the addition of our two convertible debt issuances, which have significantly lower interest rates compared to our debt outstanding in the same periods in 2012.

At September 30, 2013, we had no outstanding borrowings under the Credit Facility nor did we borrow under the Credit Facility or the Prior Facility during the nine months ended September 30, 2013. We do not expect to incur borrowings under the Credit Facility for the remainder of 2013. The actual amount borrowed will depend on various factors, including the timing and amount of land and house construction expenditures, payroll and other general and administrative expenses, and cash receipts from home closings, as well as other cash receipts and payments.  We experience significant variation in cash from week to week due to the timing of such receipts and payments.  The amount borrowed would also be impacted by any capital markets transactions or additional financing executed by the Company during the quarter, if any.

There were $13.9 million of letters of credit issued and outstanding under the Credit Facility at September 30, 2013. During the nine months ended September 30, 2013, the average daily amount of letters of credit outstanding under the Credit Facility was $15.2 million and the maximum amount of letters of credit outstanding under the Credit Facility was $17.3 million.

At September 30, 2013, M/I Financial had $47.8 million outstanding under the MIF Mortgage Warehousing Agreement.  During the nine months ended September 30, 2013, the average daily amount outstanding under the MIF Mortgage Warehousing Agreement was $21.0 million and the maximum amount outstanding was $61.3 million.

At September 30, 2013, M/I Financial had $7.8 million outstanding under the MIF Mortgage Repurchase Facility.  During the nine months ended September 30, 2013, the average daily amount outstanding under the MIF Mortgage Repurchase Facility was $5.3 million and the maximum amount outstanding was $14.5 million.

Preferred Shares. On March 15, 2007, we issued 4,000,000 depositary shares, each representing 1/1000^th of a Series A Preferred Share, or 4,000 Series A Preferred Shares in the aggregate, for net proceeds of $96.3 million. The Series A Preferred Shares have

49

a liquidation preference equal to $25 per depositary share (plus an amount equal to all accrued and unpaid dividends (whether or not earned or declared) for the then current quarterly dividend period accrued to but excluding the date of final distribution). Dividends on the Series A Preferred Shares are non-cumulative and, if declared by us, are paid at an annual rate of 9.75%. Dividends are payable quarterly in arrears, if declared by us, on March 15, June 15, September 15 and December 15. If there is a change of control of the Company and if the Company's corporate credit rating is withdrawn or downgraded to a certain level (together constituting a “change of control event”), the dividends on the Series A Preferred Shares will increase to 10.75% per year. We may redeem the Series A Preferred Shares in whole or in part (provided, that any redemption that would reduce the aggregate liquidation preference of the Series A Preferred Shares below $25 million in the aggregate would be restricted to a redemption in whole only) at any time or from time to time at a cash redemption price equal to $25 per depositary share (plus an amount equal to all accrued and unpaid dividends (whether or not earned or declared) for the then current quarterly dividend period accrued to but excluding the redemption date). Holders of the Series A Preferred Shares have no right to require redemption of the Series A Preferred Shares. The Series A Preferred Shares have no stated maturity, are not subject to any sinking fund provisions, are not convertible into any other securities, and will remain outstanding indefinitely unless redeemed by us. Holders of the Series A Preferred Shares have no voting rights, except with respect to those specified matters set forth in the Company's Amended and Restated Articles of Incorporation or as otherwise required by applicable Ohio law, and no preemptive rights. The outstanding depositary shares are listed on the New York Stock Exchange under the trading symbol “MHO-PrA.” There is no separate public trading market for the Series A Preferred Shares except as represented by the depositary shares.

The indenture governing our 2018 Senior Notes limits our ability to pay dividends on, and repurchase, our common shares and Series A Preferred Shares to the amount of the positive balance in our “restricted payments basket,” as defined in the indenture. The restricted payments basket was $127.5 million at September 30, 2013. We are permitted by the indenture to pay dividends on, and repurchase, our common shares and Series A Preferred Shares to the extent of such positive balance in our restricted payments basket.

On April 10, 2013, we redeemed 2,000 of our outstanding Series A Preferred Shares for $50.4 million of cash.

During the third quarter of 2013, we paid a quarterly dividend in an aggregate amount of $1.2 million on our Series A Preferred Shares for the third quarter of 2013 on September 16, 2013 to holders of record as of September 1, 2013.

The determination to pay future dividends on, or make future repurchases of, our common shares or Series A Preferred Shares will be at the discretion of our board of directors and will depend upon our results of operations, financial condition, capital requirements and compliance with debt covenants and the terms of our Series A Preferred Shares, and other factors deemed relevant by our board of directors.

CONTRACTUAL OBLIGATIONS

There have been no material changes to our contractual obligations appearing in the Contractual Obligations section of Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2012, except for our new Credit Facility entered into on July 18, 2013 and our 2018 Convertible Senior Subordinated Notes, both described above in the “Liquidity and Capital Resources” section.

OFF-BALANCE SHEET ARRANGEMENTS

Our off-balance sheet arrangements relating to our homebuilding operations include unconsolidated joint ventures, land option agreements, guarantees and indemnifications associated with acquiring and developing land, and the issuance of letters of credit and completion bonds. Our use of these arrangements is for the purpose of securing the most desirable lots on which to build homes for our homebuyers in a manner that we believe reduces the overall risk to the Company.  Additionally, in the ordinary course of its business, our financial services operations issue guarantees and indemnities relating to the sale of loans to third parties.

Unconsolidated Joint Ventures and Variable Interest Entities.  In order to minimize our investment and risk of land exposure in a single location, we have periodically partnered with other land developers or homebuilders to share in the land investment and development of a property through joint ownership and development agreements, joint ventures, and other similar arrangements. We believe that the Company's maximum exposure related to its investment in these joint venture arrangements as of September 30, 2013 is the total amount invested of $34.1 million, which is reported as Investment in Unconsolidated Joint Ventures on our Unaudited Condensed Consolidated Balance Sheets, in addition to a $2.5 million note due to the Company from one of the unconsolidated joint ventures (reported in Other Assets). We expect to invest further amounts in these joint venture arrangements as development of the properties progresses.

50

For joint venture arrangements where a special purpose entity is established to own the property, we generally enter into limited liability company or similar arrangements (“LLCs”) with the other partners. The Company's ownership in these LLCs as of September 30, 2013 ranged from 25% to 61%. These entities typically engage in land development activities for the purpose of distributing or selling developed lots to the Company and its partners in the LLC. With respect to our investments in these LLCs, we are required to evaluate whether or not such entities should be consolidated into our financial statements. We initially perform these evaluations when each new entity is created and upon any events that require reconsideration of the entity. In order to determine if we should consolidate an LLC, we determine (1) if the LLC is a Variable Interest Entity (“VIE”) and (2) if we are the primary beneficiary of the entity. To determine whether we are the primary beneficiary of an entity, we consider whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. This analysis considers, among other things, whether we have the ability to determine the budget and scope of land development work, if any; the ability to control financing decisions for the VIE; the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with M/I Homes; and the ability to change or amend the existing option contract with the VIE. If it is determined we are not able to control such activities, we are not considered the primary beneficiary of the VIE.

As of September 30, 2013, we have determined that one of the LLCs in which we have an interest meets the requirements of a VIE due to a lack of equity at risk in the entity. However, we have determined that we do not have substantive control over any of these entities, including our VIE, as we do not have the ability to control the activities that most significantly impact their economic performance. As a result, none of these LLCs are required to be consolidated into our financial statements and the entities are instead recorded in Investment in Unconsolidated Joint Ventures on our Unaudited Condensed Consolidated Balance Sheets.

Land Option Agreements.  In the ordinary course of business, the Company enters into land option agreements in order to secure land for the construction of homes in the future.  Pursuant to these land option agreements, the Company typically provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices.  Because the entities holding the land under the option agreement may meet the criteria for VIEs, the Company evaluates all land option agreements to determine if it is necessary to consolidate any of these entities.  

At September 30, 2013, “Consolidated Inventory Not Owned” was $1.6 million, all of which related to specific performance obligations. At September 30, 2013, the corresponding liability of $1.6 million has been classified as Obligation for Consolidated Inventory Not Owned on our Unaudited Condensed Consolidated Balance Sheets.

Other than the Consolidated Inventory Not Owned balance, the Company currently believes that its maximum exposure as of September 30, 2013 related to its land option agreements is equal to the amount of the Company's outstanding deposits and prepaid acquisition costs, which totaled $26.0 million, including cash deposits of $13.4 million, prepaid acquisition costs of $4.2 million and letters of credit of $8.4 million.

Letters of Credit and Completion Bonds.  The Company provides standby letters of credit and completion bonds for development work in progress, deposits on land and lot purchase agreements and miscellaneous deposits.  As of September 30, 2013, the Company had outstanding $91.8 million of completion bonds and standby letters of credit, some of which were issued to various local governmental entities, that expire at various times through October 2018.  Included in this total are: (1) $59.2 million of performance bonds and $13.6 million of performance letters of credit that serve as completion bonds for land development work in progress; (2) $15.8 million of financial letters of credit; and (3) $3.2 million of financial bonds.  The development agreements under which we are required to provide completion bonds or letters of credit are generally not subject to a required completion date and only require that the improvements are in place in phases as houses are built and sold.  In locations where development has progressed, the amount of development work remaining to be completed is typically less than the remaining amount of bonds or letters of credit due to timing delays in obtaining release of the bonds or letters of credit.

Guarantees and Indemnities. In the ordinary course of business, M/I Financial enters into agreements that guarantee purchasers of its mortgage loans that M/I Financial will repurchase a loan if certain conditions occur.  The risks associated with these guarantees are offset by the value of the underlying assets, and the Company accrues its best estimate of the probable loss on these loans.  Additionally, the Company has provided certain other guarantees and indemnities in connection with the acquisition and development of land by our homebuilding operations.  Refer to Note 6 of our Unaudited Condensed Consolidated Financial Statements for additional details relating to our guarantees and indemnities.

INTEREST RATES AND INFLATION

Our business is significantly affected by general economic conditions within the United States and, particularly, by the impact of interest rates and inflation. Inflation can have a long-term impact on us because increasing costs of land, materials and labor can

51

result in a need to increase the sales prices of homes. In addition, inflation is often accompanied by higher interest rates, which can have a negative impact on housing demand and the costs of financing land development activities and housing construction. Higher interest rates also may decrease our potential market by making it more difficult for homebuyers to qualify for mortgages or to obtain mortgages at interest rates that are acceptable to them.  The impact of increased rates can be offset, in part, by offering variable rate loans with lower interest rates.  In conjunction with our mortgage financing services, hedging methods are used to reduce our exposure to interest rate fluctuations between the commitment date of the loan and the time the loan closes. Rising interest rates, as well as increased materials and labor costs, may reduce gross margins. An increase in material and labor costs is particularly a problem during a period of declining home prices. Conversely, deflation can impact the value of real estate and make it difficult for us to recover our land costs. Therefore, either inflation or deflation could adversely impact our future results of operations.

52

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our primary market risk results from fluctuations in interest rates. We are exposed to interest rate risk through borrowings under our revolving credit and mortgage repurchase facilities, consisting of the Credit Facility, the MIF Mortgage Warehousing Agreement, and the MIF Mortgage Repurchase Facility which permit borrowings of up to $315 million, subject to availability constraints. Additionally, M/I Financial is exposed to interest rate risk associated with its mortgage loan origination services.

Interest Rate Lock Commitments: Interest rate lock commitments (“IRLCs”) are extended to certain home-buying customers who have applied for a mortgage loan and meet certain defined credit and underwriting criteria. Typically, the IRLCs will have a duration of less than six months; however, in certain markets, the duration could extend to twelve months.

Some IRLCs are committed to a specific third party investor through the use of best-efforts whole loan delivery commitments matching the exact terms of the IRLC loan. Uncommitted IRLCs are considered derivative instruments and are fair value adjusted, with the resulting gain or loss recorded in current earnings.

Forward Sales of Mortgage-Backed Securities: Forward sales of mortgage-backed securities (“FMBSs”) are used to protect uncommitted IRLC loans against the risk of changes in interest rates between the lock date and the funding date. FMBSs related to uncommitted IRLCs are classified and accounted for as non-designated derivative instruments and are recorded at fair value, with gains and losses recorded in current earnings.

Mortgage Loans Held for Sale: Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. During the intervening period between when a loan is closed and when it is sold to an investor, the interest rate risk is covered through the use of a best-efforts contract or by FMBSs. The FMBSs are classified and accounted for as non-designated derivative instruments, with gains and losses recorded in current earnings.

The table below shows the notional amounts of our financial instruments at September 30, 2013 and December 31, 2012:

	September 30,		December 31,
Description of financial instrument (in thousands)	2013		2012
Best-effort contracts and related committed IRLCs	$	4,417	$	1,184
Uncommitted IRLCs	79,594		25,854
FMBSs related to uncommitted IRLCs	80,000		26,000
Best-effort contracts and related mortgage loans held for sale	3,025		25,441
FMBSs related to mortgage loans held for sale	55,000		44,000
Mortgage loans held for sale covered by FMBSs	54,720		44,524

The table below shows the measurement of assets and liabilities at September 30, 2013 and December 31, 2012:

	September 30,			December 31,
Description of Financial Instrument (in thousands)	2013			2012
Mortgage loans held for sale	$	60,388		$	71,121
Forward sales of mortgage-backed securities	(1,971		)	253
Interest rate lock commitments	942			1
Best-efforts contracts	(179		)	(3		)
Total	$	59,180		$	71,372

The following table sets forth the amount of loss recognized on assets and liabilities for the three months ended September 30, 2013 and 2012:

	Three Months Ended September 30,
Description (in thousands)	2013			2012
Mortgage loans held for sale	$	3,365		$	328
Forward sales of mortgage-backed securities	(5,262		)	(838		)
Interest rate lock commitments	1,677			341
Best-efforts contracts	(193		)	(84		)
Total loss recognized	$	(413	)	$	(253	)

53

The following table provides the expected future cash flows and current fair values of borrowings under our credit facilities and mortgage loan origination services that are subject to market risk as interest rates fluctuate, as of September 30, 2013:

	Expected Cash Flows by Period																					Fair Value
(Dollars in thousands)	2013			2014			2015			2016			2017			Thereafter			Total			9/30/2013
ASSETS:
Mortgage loans held for sale:
Fixed rate	$	59,589		$	—		$	—		$	—		$	—		$	—		$	59,589		$	59,009
Weighted average interest rate	4.35		%	—		%	—		%	—		%	—		%	—		%	4.35		%
Variable rate	1,369			—			—			—			—			—			1,369			1,379
Weighted average interest rate	3.22		%	—		%	—		%	—		%	—		%	—		%	3.22		%
LIABILITIES:
Long-term debt — fixed rate	$	—		$	—		$	—		$	—		$	57,500		$	316,250		$	373,750		$	399,409
Weighted average interest rate	—		%	—		%	—		%	—		%	3.25		%	7.09		%	6.50		%
Short-term debt — variable rate	55,614			—			—			—			—			—			55,614			55,614
Weighted average interest rate	3.53		%	—		%	—		%	—		%	—		%	—		%	3.53		%

54

ITEM 4:  CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

An evaluation of the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended) was performed by the Company's management, with the participation of the Company's principal executive officer and principal financial officer.  Based on that evaluation, the Company's principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II - OTHER INFORMATION

Item 1. Legal Proceedings

The Company and certain of its subsidiaries have been named as defendants in certain claims, complaints and legal actions which are incidental to our business. Certain of the liabilities resulting from these matters are covered by insurance. While management currently believes that the ultimate resolution of these matters, individually and in the aggregate, will not have a material effect on the Company's financial position, results of operations and cash flows, such matters are subject to inherent uncertainties. The Company has recorded a liability to provide for the anticipated costs, including legal defense costs, associated with the resolution of these matters. However, there exists the possibility that the costs to resolve these could differ from the recorded estimates and, therefore, have a material effect on the Company's net income for the periods in which the matters are resolved.

Item 1A. Risk Factors

There have been no material changes to the risk factors appearing in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as updated by our Quarterly Reports on Form 10-Q for the three months ended March 31, 2013 and June 30, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Recent Sales of Unregistered Securities — None.

(b) Use of Proceeds — Not Applicable.

(c) Purchases of Equity Securities

There were no purchases made by, or on behalf of, the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended) of the Company's common shares or Series A Preferred Shares during the three months ended September 30, 2013.

See Note 9 to our Unaudited Condensed Consolidated Financial Statements and the “Liquidity and Capital Resources” section above for more information regarding the limit imposed by the indenture governing our 2018 Senior Notes on our ability to pay dividends on, and repurchase, our common shares and Series A Preferred Shares to the amount of the positive balance in our “restricted payments basket,” as defined in the indenture.

Item 3. Defaults Upon Senior Securities - None.

Item 4. Mine Safety Disclosures - None.

Item 5. Other Information - None.

55

Item 6. Exhibits

The exhibits required to be filed herewith are set forth below.

Exhibit Number	Description
10.1	Fourth Amendment to Letter of Credit Agreement between M/I Homes, Inc. and Regions Bank (Filed herewith).
10.2	Fourth Amended and Restated Master Letter of Credit Facility Agreement between M/I Homes, Inc. and U.S. Bank National Association (Filed herewith).
10.3	Surrender of Policy and Termination of Agreement with Respect to Collateral Assignment Split-Dollar Agreement (Filed herewith).
31.1	Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
31.2	Certification by Phillip G. Creek, Chief Financial Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
32.1	Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
32.2	Certification by Phillip G. Creek, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
101.INS	XBRL Instance Document. (Furnished herewith.)
101.SCH	XBRL Taxonomy Extension Schema Document. (Furnished herewith.)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document. (Furnished herewith.)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document. (Furnished herewith.)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document. (Furnished herewith.)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document. (Furnished herewith.)

56

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		M/I Homes, Inc.
		(Registrant)
Date:	October 25, 2013	By:	/s/ Robert H. Schottenstein
			Robert H. Schottenstein
			Chairman, Chief Executive Officer and
			President
			(Principal Executive Officer)
Date:	October 25, 2013	By:	/s/ Ann Marie W. Hunker
			Ann Marie W. Hunker
			Vice President, Corporate Controller
			(Principal Accounting Officer)

57

EXHIBIT INDEX
Exhibit Number	Description
10.1	Fourth Amendment to Letter of Credit Agreement between M/I Homes, Inc. and Regions Bank (Filed herewith).
10.2	Fourth Amended and Restated Master Letter of Credit Facility Agreement between M/I Homes, Inc. and U.S. Bank National Association (Filed herewith).
10.3	Surrender of Policy and Termination of Agreement with Respect to Collateral Assignment Split-Dollar Agreement (Filed herewith).
31.1	Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
31.2	Certification by Phillip G. Creek, Chief Financial Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
32.1	Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
32.2	Certification by Phillip G. Creek, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
101.INS	XBRL Instance Document. (Furnished herewith.)
101.SCH	XBRL Taxonomy Extension Schema Document. (Furnished herewith.)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document. (Furnished herewith.)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document. (Furnished herewith.)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document. (Furnished herewith.)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document. (Furnished herewith.)

58

EX-10.1

Exhibit 10.1

FOURTH AMENDMENT TO LETTER OF CREDIT AGREEMENT

THIS FOURTH AMENDMENT TO LETTER OF CREDIT AGREEMENT (“this Amendment”) dated as of August 31, 2013 (the “Effective Date”) is entered into by M/I HOMES, INC., an Ohio corporation (the "Borrower"), and REGIONS BANK, an Alabama banking corporation (the "Lender").

Recitals

A.The Borrower and the Lender are parties to a certain Letter of Credit Agreement dated as of July 27, 2009 as amended by a First Amendment thereto dated as of August 16, 2010, by a Second Amendment thereto dated as of August 31, 2011 and by a Third Amendment thereto dated as of August 31, 2012 (as amended, the “Credit Agreement”).

B.The Borrower has requested that the Lender amend the Credit Agreement to make certain modifications to the Credit Agreement as set forth herein.

C.The Lender has agreed to make such modifications, provided that the Borrower and the Lender enter into this Amendment.

Agreement

NOW, THEREFORE, in consideration of the foregoing recitals and in further consideration of the mutual agreements set forth herein, the Borrower and the Lender hereby agree as follows, with such agreements to become effective as of the Effective Date:

1.Rules of Construction. This Amendment is subject to the rules of construction set forth in the Credit Agreement.

2.Definitions. Capitalized terms used in this Amendment and not otherwise defined herein have the meanings defined for them in the Credit Agreement.

3.Representations and Warranties of Borrower. The Borrower represents and warrants to the Lender as follows:

(a)Representations and Warranties in Financing Documents. All of the representations and warranties set forth in the Financing Documents are true and correct on and as of the Effective Date, except to the extent that such representations and warranties expressly relate to an earlier date.

(b)No Default. As of the Effective Date, the Borrower is in compliance with all the terms and provisions set forth in the Financing Documents on its part to be observed or performed, and no Event of Default, nor any event that upon notice or lapse of time or both would constitute such an Event of Default, has occurred and is continuing.

(c)Borrower's Organizational Documents. The Borrower's organizational documents have not been amended since August 31, 2012.

4.Amendment to Credit Agreement. The definition of “Termination Date” set forth in Section 1.1 of the Credit Agreement shall be amended to read, in its entirety, as follows:

“Termination Date” shall mean August 31, 2014.

5.Fees and Legal Expenses. The Borrower hereby agrees to pay all reasonable invoiced legal costs and expenses incurred in connection with the review, analysis and preparation of this Amendment. Such expenses and legal costs shall be payable upon the execution of this Amendment and shall be non-refundable.

6.References in Financing Documents. All references in the Financing Documents to the "Credit Agreement" shall mean the Credit Agreement as amended by this Amendment.

7.Financing Documents to Remain in Effect. Except as specifically modified by this Amendment, the Credit Agreement and the other Financing Documents shall remain in full force and effect in accordance with their respective terms.

8.No Novation, etc. Nothing contained in this Amendment shall be deemed to constitute a novation of the terms of the Financing Documents, nor impair any liens granted to the Lender thereunder, nor release any obligor from liability for any of the Obligations, nor affect any of the rights, powers or remedies of the Lender under the Financing Documents, nor constitute a waiver of any provision thereof, except as specifically set forth in this Amendment.

9.Governing Law, Successors and Assigns, etc. This Amendment shall be governed by and construed in accordance with the laws of the State of Alabama and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

10.Headings. The descriptive headings of the sections of this Amendment are for convenient reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

11.Entire Agreement. This Amendment constitutes the entire understanding to date of the parties hereto regarding the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements of the parties thereto with respect to the subject matter hereof.

12.Severability. If any provision of this Amendment shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

13.Counterparts. This Amendment may be executed in any number of counterparts, each of which so executed shall be deemed an original, but all such counterparts shall together constitute but one and the same instrument.

14.No Waiver. Nothing contained herein shall be construed as a waiver or acknowledgement of, or consent to any breach of or Event of Default under the Credit Agreement and the Financing Documents not specifically mentioned herein, and the waivers and consents granted herein are effective only in the specific instance and for the purposes for which given.

15.Effect of this Amendment. This Amendment amends and supplements the Credit Agreement and shall be construed as if it were a part thereof for all purposes. Any representation or warranty contained herein that shall prove to be false or misleading in any material respect at the time made shall constitute an Event of Default under the Credit Agreement and the other Financing Documents in accordance with the Credit Agreement as if such representation or warranty had been contained in the Credit Agreement, and any default by the Borrower in the performance or observance of any provision of this Amendment shall constitute an Event of Default under that section as if such provision had been contained in the Credit Agreement.

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the Borrower and the Lender have caused this Amendment to be executed and delivered by their duly authorized representatives to be effective as of the Effective Date.

M/I HOMES, INC.

By

Title:

REGIONS BANK

ByIts:

[Signature Page to Fourth Amendment to Letter of Credit Agreement]

EX-10.2

Exhibit 10.2

FOURTH AMENDED AND RESTATED MASTER LETTER OF CREDIT FACILITY AGREEMENT

This Fourth Amended and Restated Master Letter of Credit Facility Agreement (this "Agreement") is entered into at Columbus, Ohio, as of the 30th day of September, 2013 (the “Effective Date”), by and between U.S. BANK NATIONAL ASSOCIATION, a national banking association (the "Bank"), and M/I HOMES, INC., an Ohio corporation (the "Company").

1. Letter of Credit Facility.

1.1    Generally. Subject to the terms and conditions hereof, Bank, upon the proper application by the Company, will issue standby letters of credit in the form of Exhibit "A" attached hereto, or such other form as the Bank may approve from time to time (each, a "Letter of Credit" and collectively, “Letters of Credit”), provided that the aggregate stated value of Letters of Credit issued hereunder and under the Superseded Agreements (as hereinafter defined) outstanding at any one time shall in no event exceed $10,000,000.00 (the "Facility"), and provided, further, that all Letters of Credit issued under this Section 1.1 shall expire not later than thirty-seven (37) months from the date of issuance. The Company's right to obtain the issuance of Letters of Credit under the Facility shall terminate on September 30, 2014.

Each request for a Letter of Credit submitted by the Company shall, at the option of the Bank, be accompanied by the following materials (collectively, the "LC Application Materials"):

a. An application (the "Application") in the form of Exhibit "B" attached hereto and made a part hereof, or such other form as the Bank may require from time to time;

b. Cash (the "Cash Collateral") in an amount equal to not less than 101% of the face amount of the applicable Letter of Credit, which the Bank shall deposit in an Account (hereinafter defined);

c. Such information as the Bank reasonably requests regarding the intended use of the Letter of Credit;

d. Such other documents or materials as the Bank may request from time to time.

With respect to each request for the issuance of a Letter of Credit, the Company shall present the LC Application Materials to the Bank not later than noon, Columbus, Ohio time, on a Business Day that is not less than four (4) Business Days prior to the Business Day on which issuance of the Letter of Credit is desired. "Business Day" means a day which is not a Saturday or Sunday or a legal holiday and on which the Bank is not required by law or other governmental action to close in Ohio.

Each Letter of Credit issued by the Bank shall be deemed issued subject to the following:

a. The executed reimbursement agreement (the "Reimbursement Agreement") dated July 27, 2009, and attached hereto as Exhibit "C"; and

b. The executed security agreement (the "Security Agreement") dated July 27, 2009, and attached hereto as Exhibit "D".

At the request of the Company, and subject to the terms and conditions of this Agreement, the Bank shall issue Letters of Credit on behalf of one or more Company Subsidiaries (hereinafter defined), provided, however, that the applicable Company Subsidiary(ies) and the Company shall be jointly and severally liable for all obligations pursuant to this Agreement, the Reimbursement Agreement, and the other Loan Documents.

Notwithstanding anything in the Reimbursement Agreement to the contrary, to the extent that any provision of this Agreement or the Security Agreement is inconsistent with the Reimbursement Agreement, the terms of this Agreement and the Security Agreement shall prevail. Specifically, without limitation: (i) the security interest granted by the Company to the Bank pursuant to the Reimbursement Agreement shall be limited to the Collateral (as defined in the Security Agreement), and the Bank shall not file any financing statement that contains a collateral description that is broader than such definition of Collateral, and (ii) except for the Collateral and the Cash Collateral, as to which the Bank’s rights shall include all rights contained in this Agreement, the Reimbursement Agreement and the Security Agreement, the Bank shall not set off or apply any deposits (general or special, time or demand, provisional or final) at any time held or other indebtedness at any time owing by Bank to or for the credit or the account of the Company.

1.2Account(s). The Bank shall deposit the Cash Collateral in one or more accounts at the Bank specified in the Security Agreement (each, an "Account"). Each Account shall be an interest bearing account (unless the Company requests a non-interest bearing account) satisfactory to the Bank, including as of the Effective Date, without limitation, money market accounts and commercial paper open accounts. The Cash Collateral applicable to a given Letter of Credit shall be held in the Account until the earlier of (a) the occurrence of a draw pursuant to the Letter of Credit, or (b) the expiration of the Letter of Credit. Upon the expiration of a Letter of Credit, provided that no draws have been made upon such Letter of Credit, Bank shall remit to the Company an amount equal to the Cash Collateral together with any interest earned thereon.

1.3    Letter of Credit Draws. In the event that the Bank pays any sum (a "LC Draw Amount") drawn by the beneficiary of an outstanding Letter of Credit (a "LC Draw"), interest shall immediately start to accrue on the LC Draw Amount at the Adjusted One Month LIBOR Rate (hereinafter defined), and such interest shall continue to accrue until reimbursement in full to the Bank. In the event that the LC Draw Amount (together with accrued interest) has not been repaid to Bank within ten (10) Business Days, then the Bank may, without further notice to the Company and at Bank’s sole option, reimburse itself from the Account applicable to the Letter of Credit. In the event that the funds contained in the Account are not sufficient to reimburse the Bank for the LC Draw Amount plus accrued interest, the Bank shall have the right to declare any remaining funds due and payable by written notice to the Company. Such funds shall continue to bear interest at the Adjusted One Month LIBOR Rate until fully repaid by the Company.

2. Interest Rate; Fees.

2.1    Adjusted One Month LIBOR Rate. As used herein, "Adjusted One Month LIBOR Rate" shall mean an annual rate equal to two and one-half percent (2.50%) plus the greater of: (a) the One-Month LIBOR Rate, or (b) one and one-half percent (1.50%). "One Month LIBOR Rate" shall mean the one-month LIBOR rate quoted by the Bank from Reuters Screen LIBOR01 Page or any successor thereto, which shall be that one-month LIBOR rate in effect two New York Banking Days prior to the Reprice Date, adjusted for any reserve requirement and any subsequent costs arising from a change in government regulation, such rate rounded up to the nearest one-sixteenth percent and such rate to be reset monthly on each Reprice Date. The term "New York Banking Day"means any date (other than a Saturday or Sunday) on which commercial banks are open for business in New York, New York. The term "Reprice Date" means the first day of each

month. If an LC Draw occurs other than on the Reprice Date, the initial one-month LIBOR rate shall be that one-month LIBOR rate in effect two New York Banking Days prior to the date of the LC Draw, which rate plus the percentage described above shall be in effect until the next Reprice Date. Lender’s internal records of applicable interest rates shall be determinative in the absence of manifest error.

2.2    Fees, Costs, Expenses. In consideration of the issuance of each Letter of Credit, the Company agrees to pay to the Bank, for the sole benefit of the Bank, Bank's customary letter of credit negotiation and documentation fees (which fees shall not exceed $500.00 for each Letter of Credit), all such fees being due and payable at the time of issuance of such Letter of Credit.

With respect to the period through September 30, 2013, the Company also agrees to pay to the Bank a fee (which shall accrue on a daily basis, but be due and payable quarterly in arrears upon the issuance of a statement to the Company by the Bank) equal to the sum of (a) an amount equal to an annualized rate of one and one-half percent (1.50%) on the daily outstanding balance of all Letters of Credit pursuant to the Facility during such calendar quarter; and (b) an amount equal to an annualized rate of one-quarter of one percent (0.25%) on the daily unused portion of the Facility during such calendar quarter (i.e., $8,000,000.00 minus the daily outstanding balance of all Letters of Credit pursuant to the Facility).

With respect to the period after September 30, 2013 through September 30, 2014, the Company also agrees to pay to the Bank a fee (which shall accrue on a daily basis, but be due and payable quarterly in arrears upon the issuance of a statement to the Company by the Bank) equal to the sum of (a) an amount equal to an annualized rate of one and one-half percent (1.50%) on the daily outstanding balance of all Letters of Credit pursuant to the Facility during such calendar quarter; and (b) an amount equal to an annualized rate of one-quarter of one percent (0.25%) on the daily unused portion of the Facility during such calendar quarter (i.e., $10,000,000.00 minus the daily outstanding balance of all Letters of Credit pursuant to the Facility).

With respect to the period following September 30, 2014, the Company shall, in addition, pay to the Bank a variable fee (which shall be due and payable quarterly in arrears upon the issuance of a statement to the Company by the Bank) equal to an annualized rate of one and one-half percent (1.50%) on the average daily outstanding balance of all Letters of Credit pursuant to the Facility during such calendar quarter; such quarterly payments shall continue until a quarter occurs when there are no such outstanding Letters of Credit.

Additionally, the Company agrees to pay on demand by the Bank all other reasonable and actual costs and expenses incidental to or incurred in connection with (a) the Facility and the preparation of this Agreement and the other Loan Documents (as hereinafter defined), and any subsequent amendments or modifications thereof, (b) the enforcement of the rights of the Bank in connection therewith, and (c) any litigation, contest, dispute, proceeding or action in any way relating to the Collateral (as hereinafter defined), this Agreement or the other Loan Documents, whether any of the foregoing are incurred prior to or after maturity, the occurrence of an Event of Default, or the rendering of a judgment. Such costs and expenses shall include, but not be limited to, reasonable attorneys' fees and out-of-pocket expenses of the Bank. All indebtedness, debts and liabilities, including, without limitation, principal, interest, indemnification obligations, prepayment fees, late charges, collection costs, attorneys' fees and expenses, of the Company to the Bank arising under or in connection with this Agreement or the other Loan Documents are hereafter referred to collectively as the "Obligations.")

Upon the occurrence of an Event of Default as defined in Section 6.1, the payment of any fees, costs and expenses set forth in this Section 2.2 may be charged (via automatic debit) by the Bank to any Account.

All fees shall be fully earned by the Bank, as applicable, pursuant to the foregoing provisions of this Agreement on the due date thereof and, except as otherwise set forth herein or required by applicable law,

shall not be subject to rebate, refund or proration. All fees provided for in this Section 2.2 shall be deemed to be for compensation for services and are not, and shall not be deemed to be, interest or any other charge for the use, forbearance or detention of money.

2.3 Letter of Credit Reserves. If any change in any law or regulation or in the interpretation or application thereof by any court or other governmental authority charged with the administration thereof shall either (a) impose, modify, deem or make applicable any reserve, special deposit, assessment or similar requirements against Letters of Credit issued by the Bank, or (b) impose on the Bank any other condition regarding this Agreement or the Facility, and the result of any event referred to in clause (a) or (b) above shall be to increase the cost to the Bank of issuing or maintaining any Letter of Credit or the Facility (which increase in cost shall be the result of the Bank's reasonable allocation of the aggregate of such cost increases resulting from such events), then, upon demand by the Bank, the Company shall immediately pay to the Bank additional amounts which shall be sufficient to compensate the Bank for such increased cost, together with interest on each such amount from the date demanded until payment in full thereof at a rate per annum equal to the Adjusted Daily LIBOR Rate. A certificate as to such increased cost incurred by the Bank, submitted by the Bank to the Company, shall be conclusive, absent manifest error, as to the amount thereof. This provision shall survive the termination of this Agreement and shall remain in full force and effect until there is no existing or future obligation of the Bank under any Letter of Credit.

2.4Further Assurances. The Company hereby agrees to do and perform any and all acts and to execute any and all further instruments reasonably requested by the Bank more fully to effect the purposes of this Agreement and the issuance of Letters of Credit hereunder, and further agrees to execute any and all instruments reasonably requested by the Bank in connection with the obtaining and/or maintaining of any insurance coverage applicable to any Letter of Credit.

3. Warranties and Representations. In order to induce the Bank to enter into this Agreement and to make the Facility available to the Company, the Company warrants and represents to the Bank that each of the following statements is true and correct:

3.1     Corporate Organization and Authority. The Company (a) is a corporation duly organized, validly existing and in good standing under the laws of the State of Ohio; (b) has all requisite corporate power and authority and all necessary licenses and permits to own and operate its properties and to carry on its business as now conducted and as presently proposed to be conducted; and (c) is not doing business or conducting any activity in any jurisdiction in which it has not duly qualified and become authorized to do business, except where the failure to so qualify will not have a Material Adverse Effect. "Material Adverse Effect" means a material adverse effect upon (i) the business (present or future), condition (financial or otherwise), operations, performance or properties of the Company, (ii) the ability of the Company to perform its obligations under this Agreement, the Reimbursement Agreement, the Security Agreement and/or the other documents contemplated herein or therein and/or executed in connection herewith or therewith, any mortgage, any guaranty, or any other agreement or instrument (collectively, the "Loan Documents"), or (iii) the rights and remedies of the Bank under the Loan Documents.

3.2    Borrowing is Legal and Authorized. (a) The Executive Committee of the Board of Directors of the Company has duly authorized the execution and delivery of the Loan Documents, and the Loan Documents constitute valid and binding obligations of the Company enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, moratorium and other similar laws affecting creditors' rights generally; and (b) the execution of the Loan Documents and the compliance by the Company with the applicable provisions thereof (i) are within the corporate powers of the Company, and (ii) are legal and will not conflict with, result in any breach in any of the provisions of, constitute a default under, or result in the creation of any lien or encumbrance upon any property of the Company under the provisions of, any

agreement, charter instrument, bylaw or other instrument to which the Company is a party or by which it is bound.

3.3     Taxes. All tax returns required to be filed by the Company in any jurisdiction have in fact been filed, and all taxes, estimated payments, assessments, fees and other governmental charges or levies upon the Company, or upon any of its property or assets or in respect of its franchises, businesses or income, which are due and payable have been paid, except those (a) contested in good faith by the Company, by appropriate proceedings diligently instituted and conducted, and (b) with respect to which any reserve or other appropriate provision, as shall be required in accordance with generally accepted accounting principles consistently applied ("GAAP"), shall have been made therefor. The Company does not know of any proposed additional tax assessment against it. The accruals for taxes on the books of the Company for its current fiscal period are adequate.

3.4Compliance with Law. The Company is not in violation of any laws, ordinances, governmental rules or regulations to which it is subject, except to the extent that such a violation or failure does not have or is not likely to have a Material Adverse Effect.

3.5    Litigation; Adverse Effects. There is no action, suit, audit, proceeding, administrative proceeding, investigation or arbitration (or series of related actions, suits, audits, proceedings, investigations or arbitrations) before or by any governmental authority or private arbitrator pending or, to the knowledge of the Company, threatened against the Company or any property of the Company challenging the validity or the enforceability of any of the Loan Documents, or which, if adversely determined, shall have or is reasonably likely to have a Material Adverse Effect. The Company is not subject to or in default with respect to any final judgment, writ, injunction, restraining order or order of any nature, decree, rule or regulation of any court or governmental authority, in each case which shall have or is likely to have a Material Adverse Effect.

3.6     No Insolvency. On the date of this Agreement and after giving effect to all indebtedness of the Company, the Company (a) will be able to pay its obligations as they become due and payable; (b) has assets, the present fair saleable value of which exceeds the amount that will be required to pay its probable liability on its obligations as the same become absolute and matured; (c) has sufficient property, the sum of which at a fair valuation exceeds all of the Company's indebtedness; and (d) will have sufficient capital to engage in its business. The determination of the foregoing for the Company takes into account all of the Company's properties and liabilities, regardless of whether, or the amount at which, any such property or liability is included on a balance sheet of the Company prepared in accordance with GAAP, including property such as contingent contribution or subrogation rights, business prospects and goodwill. The determination of the sum of the Company's properties at the present fair salable value has been made on a going concern basis.

3.7    Government Consent. Neither the nature of the Company or of its business or properties, nor any relationship between the Company and any other entity or person, nor any circumstance in connection with the execution of this Agreement, is such as to require a consent, approval or authorization of, or filing, registration or qualification with, any governmental authority on the part of the Company as a condition to the execution and delivery of the Loan Documents.

3.8    No Defaults. No event has occurred and no condition exists which would constitute an Event of Default pursuant to this Agreement. The Company is not in violation in any respect of any term of any material agreement, charter instrument, bylaw or other material instrument to which it is a party or by which it may be bound, which violation would have a Material Adverse Effect.

3.9    Warranties and Representations. On the date of the issuance of any Letter of Credit pursuant to the Facility, the warranties and representations set forth in this Section 3 shall be true and correct on and as of such date with the same effect as though such warranties and representations had been made on and as of such date, except to the extent that such warranties and representations expressly relate to an earlier date.

4. Company Business Covenants. The Company covenants that on and after the date of this Agreement until terminated pursuant to the terms of this Agreement, or so long as any of the indebtedness provided for herein remains unpaid:

4.1     Payment of Taxes. The Company shall pay all taxes, estimated payments, assessments and governmental charges or levies imposed upon it or its property or assets or in respect of any of its franchises, businesses, income or property before any penalty or interest accrues thereon; provided, however, that no such taxes, estimated payments, assessments and governmental charges are required to be paid if being contested in good faith by the Company, by appropriate proceedings diligently instituted and conducted, without any of the same becoming a lien upon the Cash Collateral, and if such reserve or other appropriate provision, if any, as shall be required in accordance with GAAP, shall have been made therefor.

4.2    Maintenance of Properties and Corporate Existence. The Company shall do or cause to be done all things necessary (i) to preserve and keep in full force and effect its existence, rights and franchises, and (ii) to maintain its status as a corporation duly organized and existing and in good standing under the laws of the state of its organization.

4.3    Subsidiaries. Except as disclosed in Schedule 4.3 attached hereto as amended from time to time (the "Company Subsidiaries"), the Company has no wholly-owned subsidiaries and conducts business only in the name of the Company. The Company will promptly notify the Bank upon the creation of any additional Company Subsidiaries; provided, that so long as Bank is a lender in the Company’s primary credit agreement, notices to Bank as lender as required under such credit agreement of the creation of any additional Company Subsidiaries shall satisfy the requirements of this Section 4.3.

5. Financial Information and Reporting. As long as the Company is listed on the New York Stock Exchange, is publicly traded and timely Securities and Exchange Commission filings for the Company are generally available on EDGAR Online, the Company will have no additional financial information or reporting requirements hereunder, but if any of the foregoing shall cease to be true, then at the request of the Bank, the Company shall provide such tax returns and other financial information and reports as the Bank may from time to time reasonably require.

6. Default.

6.1     Events of Default. Each of the following shall constitute an "Event of Default" hereunder: (a) the Company fails to make any payment of fees, principal or interest in connection with this Agreement when due; (b) the Company fails to perform or observe any covenant contained in Sections 1, 2, 3, 4 or 5 of this Agreement; (c) the Company fails to comply with any other provision of this Agreement or (subject to any shorter cure period as may be set forth in any of the following agreements) any provision contained in any security agreement, reimbursement agreement or other agreement now or hereafter executed by the Company in connection with the Facility in favor of the Bank, and such failure continues for more than 10 days after such failure shall first become known to any officer of the Company; (d) any warranty, representation or other statement by or on behalf of the Company contained in this Agreement or in any other Loan Document or in any instrument or certificate furnished in compliance with or in reference hereto or thereto is false or misleading in any material respect; (e) the Company becomes insolvent or makes an assignment for the benefit of creditors, or consents to the appointment of a trustee, receiver or liquidator; (f) bankruptcy,

reorganization, composition, arrangement, insolvency, dissolution or liquidation proceedings are instituted by the Company, or bankruptcy, reorganization, composition, arrangement, insolvency, dissolution or liquidation proceedings are instituted against the Company which are not stayed or dismissed within 60 days; (g) the default by Company or any Company Subsidiary with respect to any Obligation or indebtedness to the Bank; or (h) a Change of Control of the Company shall have occurred.

For purposes of this Agreement, a "Change of Control" of the Company shall mean any of the following: (a) any Person or group (as that term is understood under Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations thereunder) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of a percentage (based on voting power, in the event different classes of stock shall have different voting powers) of the voting stock of the Company equal to at least fifty percent (50%); or (b) as of any date a majority of the Board of Directors of the Company consists of individuals who were not either (i) directors of the Company as of the corresponding date of the previous year, (ii) selected or nominated to become directors by the Board of Directors of the Company of which a majority consisted of individuals described in clause (b)(i) above or (iii) selected or nominated to become directors by the Board of Directors of the Company of which a majority consisted of individuals described in clause (b)(i) above and individuals described in clause (b)(ii) above. For purposes of the definition of “Change of Control,” “Person” shall mean shall mean an individual, a partnership (including without limitation a joint venture), a limited liability company (including without limitation a joint venture), a corporation (including without limitation a joint venture), a business trust, a joint stock company, a trust, an unincorporated association or any other entity of whatever nature (including without limitation a joint venture).

6.2    Default Remedies. If an Event of Default exists, the Bank may immediately exercise any right, power or remedy permitted to the Bank by law or any provision of this Agreement and the Security Agreement, provided that any outstanding Letter of Credit for which the Bank has Cash Collateral in accordance with the requirements of this Agreement and the Security Agreement shall remain in full force and effect in accordance with its terms, subject to the Bank’s rights pursuant to this Agreement and the Security Agreement with respect to the Cash Collateral that secures such Letter of Credit. In addition, following the occurrence of an Event of Default, the Bank shall have no further obligation to issue additional Letters of Credit pursuant to the Facility.

7. Miscellaneous.

7.1    Notices. All communications under the Loan Documents shall be in writing and shall be mailed by certified mail, postage prepaid, or sent by commercial overnight courier:

(i) if to the Bank, at the following address, or at such other address as may have been furnished in writing to the Company by the Bank:

U.S. Bank National Association

10 West Broad Street, 12^th Floor

Columbus, Ohio 43215

Attn: Commercial Real Estate

(ii) if to the Company, at the following address, or at such other address as may have been furnished in writing to the Bank by the Company:

M/I Homes, Inc.

3 Easton Oval

Columbus, Ohio 43219

Attn: Chief Financial Officer

(b) Any notice so addressed and stamped, if mailed by certified mail, shall be deemed to be given on the second business day following the postmark date, or if sent by commercial overnight courier, shall be deemed to be given when delivered.

7.2    Successors and Assigns. This Agreement and the Loan Documents shall inure to the benefit of and be binding upon the heirs, successors and assigns of each of the parties. Notwithstanding the foregoing, the Company shall not have the right to assign its rights or obligations under this Agreement or the Loan Documents.

7.3    Entire Agreement. The Loan Documents embody the entire agreement and understanding between the Company and the Bank and supersede all prior agreements and understandings between the Company and the Bank relating to the subject matter thereof.

7.4    Reinstatement. Notwithstanding any other provision of this Agreement, all of the rights, claims, interests and authorizations in favor of the Bank under this Agreement shall be reinstated and revived, and all of such rights, claims, interests and authorizations shall be fully enforceable, if at any time any amount paid to the Bank or any of their respective affiliates on account of any Obligation is thereafter required to be restored or returned by the Bank as a result of the bankruptcy, insolvency or reorganization of the Company, or any other person, or as a result of any other fact or circumstance, all as though such amount had not been paid.

7.5    Amendment and Waiver; Duplicate Originals. All references to this Agreement and the other Loan Documents shall also include all amendments, extensions, renewals, modifications and substitutions thereto and thereof. The provisions of this Agreement and the other Loan Documents may be amended, and the observance of any term of this Agreement and the other Loan Documents may be waived, with (and only with) the written consent of the Company and the Bank; provided, however that nothing herein shall change the sole discretion of the Bank (as set forth elsewhere in this Agreement) to make advances, determinations, decisions or to take or refrain from taking other actions. Two or more duplicate originals of this Agreement may be signed by the parties, each of which shall be an original but all of which together shall constitute one and the same instrument. This Agreement amends, restates, releases and supersedes that certain Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of July 27, 2009, that certain Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of August 16, 2010, that certain Second Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of September 30, 2011, and that certain Third Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of September 30, 2012 (collectively, the “Superseded Agreements”).

7.6    Severability; Enforceability; Governing Law; Jurisdiction; Venue; and Service of Process. Any provision of this Agreement or the other Loan Documents which is prohibited or unenforceable in any jurisdiction, as to such jurisdiction, shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. No delay or failure or other course of conduct by the Bank in the exercise of any power or right shall operate as a waiver thereof, nor shall any single or partial exercise of the same preclude any other or further exercise thereof, or the exercise of any other power or right. All of the rights and remedies of the Bank, whether

evidenced hereby or by any other agreement or instrument, shall be cumulative and may be exercised singularly or concurrently.

The validity of this Agreement and the other Loan Documents, their construction, interpretation and enforcement, and the rights of the parties hereto and thereto shall be determined under, governed by and construed in accordance with the laws of the State of Ohio (without reference to the choice of law principles thereof), but giving effect to applicable federal laws. The parties agree that all actions or proceedings arising in connection with this Agreement and the other Loan Documents shall be tried and litigated only in the state and federal courts located in the County of Franklin, State of Ohio.

The Company hereby submits, for itself and in respect of its property, generally and unconditionally, to the jurisdiction of the aforesaid courts and waives, to the extent permitted under applicable law, any right it may have to assert the doctrine of forum non conveniens or to object to venue to the extent any proceeding is brought in accordance with this Section 7.6.

The Company hereby waives personal service of the summons, complaint or other process issued in any action or proceeding and agrees that service of such summons, complaint or other process may be made by registered or certified mail addressed to the Company at the address for notices set forth in Section 7.1 of this Agreement and that service so made shall be deemed completed upon the earlier of the Company's actual receipt thereof or 3 days after deposit in the United States mails, proper postage prepaid.

Nothing in this Agreement shall be deemed or operate to affect the right of the Bank to serve legal process in any other manner permitted by law, or to preclude the enforcement by the Bank of any judgment or order obtained in such forum or the taking of any action under this Agreement or the other Loan Documents to enforce same in any other appropriate forum or jurisdiction.

7.7    No Consequential Damages. No claim may be made by the Company, or by any of its affiliates, or their respective directors, officers, employees, attorneys or agents, against the Bank, or any of its affiliates, directors, officers, employees, attorneys or agents for any special, indirect or consequential damages in respect of any breach or wrongful conduct (whether the claim therefor is based on contract, tort or duty imposed by law) in connection with, arising out of or in any way related to the transactions contemplated and relationship established by the Loan Documents, or any act, omission or event occurring in connection therewith, and the Company hereby waives, releases and agrees not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

7.8    Indemnity; Assumption of Risk. The Company agrees to indemnify the Bank, and its affiliates, directors, officers, employees, agents and advisors (each an "Indemnitee"), against, and hold each Indemnitee harmless from, any and all claims, liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever (including, without limitation, reasonable fees and disbursements of counsel) which may be imposed on, incurred by, or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any other Loan Document or any other document, agreement or instrument contemplated hereby or thereby, the performance by the parties hereto or thereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Letter of Credit or the use of the proceeds therefrom (including any refusal by the Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), or (iii) any actual or prospective claim, litigation, proceeding or investigation (including, without limitation, any investigation instituted or conducted by any governmental agency or instrumentality) relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to

any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.

As among the Company and the Bank, the Company assumes all risks of the acts and omissions of, or misuse of Letters of Credit by the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Bank shall not be responsible (other than as a result of its gross negligence or willful misconduct): (i) for the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of a Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent, or forged; (ii) for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) for failure of the beneficiary of a Letter of Credit to comply fully with conditions required in order to draw upon such Letter of Credit; (iv) for errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex, facsimile transmission or otherwise; (v) for errors in interpretation of technical terms; (vi) for any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit or of the proceeds of any drawing under such Letter of Credit; or (viii) for any consequences arising from causes beyond the control of the Bank including, without limitation, any act or omission, whether rightful or wrongful, of any government, court or other governmental agency or authority. None of the above shall affect, impair, or prevent the vesting of any of the Bank's rights or powers under this subsection 7.8.

7.9    WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY HERETO HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT, OR ANY RELATIONSHIP AMONG THE COMPANY AND THE BANK. THIS PROVISION IS A MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE FINANCING DESCRIBED HEREIN OR IN ANY OTHER LOAN DOCUMENT.

7.10    Interest Rate Limitation. Notwithstanding anything in this Agreement to the contrary, if at any time the interest rate applicable to the Facility, together with all fees, charges and other amounts which are treated as interest on the Facility under applicable law (collectively the "Charges"), shall exceed the maximum lawful rate (the "Maximum Rate") which may be contracted for, charged, taken, received or reserved by the Bank in accordance with applicable law, the rate of interest payable in respect of the Facility hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate.

7.11    Important Information About Procedures For Opening A New Account. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an Account. When the Company opens an Account the Bank will ask for the depositor's name, address and other information that will allow the Bank to identify the depositor. The Bank may also ask to see other documents that substantiate the depositor's identity.

7.12    Capital Adequacy. If there shall occur, after the date of this Agreement, any adoption or implementation of, or change to, any Regulation, or interpretation or administration thereof, which shall have the effect of imposing on Bank (or Bank’s holding company) anyincrease or expansion of or any new: tax (excluding taxes on or measured by its overall income and franchise taxes), charge, fee, assessment or deduction of any kind whatsoever, or reserve, capital adequacy, special deposits or similar requirements

against credit extended by, assets of, or deposits with or for the account of Bank or otherconditions affecting the extensions of credit evidenced by the Letters of Credit, and the result of any of the foregoing is that Bank (or Bank’s holding company) has incurred increased costs or reductions in the amounts received or receivable by it hereunder in an amount that Bank reasonably deems to be material,then the Company shall pay to Bank such additional amount as Bank reasonably deems necessary to compensate Bank for any increased cost to Bank attributable to the extension(s) of credit evidenced by the Letters of Credit and/or for any reduction in the rate of return on Bank’s capital and/or Bank’s revenue attributable to such extension(s) of credit. As used above, the term "Regulation" shall include any federal, state or international law, governmental or quasi-governmental rule, regulation, policy, guideline or directive (including but not limited to the Dodd-Frank Wall Street Reform and Consumer Protection Act and enactments, issuances or similar pronouncements by the Bank for International Settlements, the Basel Committee on Banking Regulations and Supervisory Practices or any similar authority and any successor thereto) that applies to Bank. Bank’s determination of the additional amount(s) due under this Section 7.12, in accordance with the foregoing, shall be binding in the absence of manifest error, and such amount(s) shall be payable within thirty (30) days of demand and, if recurring, as otherwise billed by Bank. Such demand or bill or any notice provided therewith shall set forth in reasonable detail the basis for Bank’s determination and the calculation of such amounts. Notwithstanding anything in this Agreement to the contrary, Bank shall not demand compensation for any reduction referred to in this Section 7.12 or payment or reimbursement of other amounts under this Section 7.12 if it shall not at the time be the general policy or practice of Bank to demand such compensation, payment or reimbursement in similar circumstances under comparable provisions of other letter of credit facility agreements.

7.13    Definitions, Exhibits and Schedules.

Definitions:

"Account" is defined in Section 1.2.

"Act" is defined in Section 7.11.

"Adjusted One Month LIBOR Rate" is defined in Section 2.1.

"Agreement" is defined in the preamble.

"Application" is defined in Section 1.1.

"Bank" is defined in the preamble.

"Business Day" is defined in Section 1.1.

"Cash Collateral" is defined in Section 1.1.

"Change of Control" is defined in Section 6.1.

"Charges" is defined in Section 7.10.

"Company" is defined in the preamble.

"Company Subsidiaries" is defined in Section 4.3.

"Event of Default" is defined in Section 6.1.

"Facility" is defined in Section 1.1.

"GAAP" is defined in Section 3.3.

"LC Application Materials" is defined in Section 1.1.

"LC Draw" is defined in Section 1.3.

"LC Draw Amount" is defined in Section 1.3.

"Letter of Credit" is defined in Section 1.1.

"Loan Documents" is defined in Section 3.1.

"Material Adverse Effect" is defined in Section 3.1.

"Maximum Rate" is defined in Section 7.10.

"New York Banking Day" is defined in Section 2.1.

"Obligations" is defined in Section 2.2.

"One Month LIBOR Rate" is defined in Section 2.1.

"Reimbursement Agreement" is defined in Section 1.1.

“Person” is defined in Section 6.1.

"Reprice Date" is defined in Section 2.1.

"Security Agreement" is defined in Section 1.1.

"Superseded Agreements" is defined in Section 7.5.

Exhibits:

Exhibit AForm of Letter of Credit

Exhibit BForm of Application

Exhibit CReimbursement Agreement

Exhibit DSecurity Agreement

Schedules:

Schedule 4.3Schedule of Company Subsidiaries

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the Company and the Bank have caused this Agreement to be duly executed as of the Effective Date first written above.

M/I HOMES, INC.,

an Ohio corporation

By:

Its: Senior Vice President, Finance and Business Development and Treasurer

U.S. BANK NATIONAL ASSOCIATION,

a national banking association

By:

Its:

EXHIBIT A

Form of Letter of Credit

U.S. BANK NATIONAL ASSOCIATIONSWIFT: USBKUS44STL

INTERNATIONAL DEPT. SL-MO-L2IL TELEX:

721 LOCUST STREET TELEPHONE: 314-418-2875

ST. LOUIS, MO 63101FACSIMILE: 314-418-1376

DATE:

BENEFICIARY:

OUR IRREVOCABLE LETTER OF CREDIT NO. SLCLSTL0XXXX

GENTLEMEN:

WE HEREBY ISSUE OUR IRREVOCABLE LETTER OF CREDIT NO. SLCLSTL0XXXX IN FAVOR OF YOURSELVES FOR THE ACCOUNT OF UP TO THE AGGREGATE AMOUNT OF USD (AMOUNT IN WORDS AND 00/100 UNITED STATES DOLLARS) AVAILABLE BY YOUR DRAFT AT SIGHT DRAWN ON U.S. BANK NATIONAL ASSOCIATION, ST. LOUIS, MISSOURI ACCOMPANIED BY:

A DATED AND SIGNED STATEMENT APPEARING ON ITS FACE TO BE EXECUTED BY

BENEFICIARY OR DULY AUTHORIZED AGENT THEREOF CERTIFYING THAT:

“

.”

THIS INSTRUMENT MUST BE PRESENTED WITH THE ABOVE REFERENCED DOCUMENTS FOR NEGOTIATION.

DRAFTS MUST BE DRAWN AND PRESENTED AT U.S. BANK NATIONAL ASSOCIATION, INTERNATIONAL DEPT., SL-MO-L2IL, 721 LOCUST STREET, ST. LOUIS, MISSOURI 63101 NOT LATER THAN (EXPIRY DATE).

EACH DRAFT MUST STATE THAT IT IS “DRAWN UNDER U.S. BANK NATIONAL ASSOCIATION, ST. LOUIS, MISSOURI LETTER OF CREDIT NO. SLCLSTL0XXXX DATED (ISSUANCE DATE).”

WE HEREBY ENGAGE WITH THE DRAWERS OF ALL DRAFTS DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS OF THIS CREDIT, THAT SUCH DRAFTS WILL BE DULY HONORED UPON PRESENTATION TO THE DRAWEE.

CANCELLATION OF LETTER OF CREDIT PRIOR TO EXPIRY: THIS LETTER OF CREDIT AND AMENDMENTS, IF ANY, MUST BE RETURNED TO US FOR CANCELLATION WITH BENEFICIARY’S STATEMENT THAT THE LETTER OF CREDIT IS BEING RETURNED FOR CANCELLATION. IN THE ABSENCE OF BENEFICIARY’S STATEMENT WE WILL CONSIDER THE LETTER OF CREDIT RETURNED FOR CANCELLATION.

THIS CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (2007 REVISION) INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NUMBER 600.

VERY TRULY YOURS,

U.S. BANK NATIONAL ASSOCIATION

________________________________

AUTHORIZED SIGNATURE/

EXHIBIT B

Form of Application

Bank Use Only: LC No. Date Rec'd
800 NicoIlet Mall	1420 Fifth Ave	811 E Wisconsin Ave.	721 Locust SI.	111 SW 5th Ave.
BC-MN-H2OG	PlIWA.T9IN	MO-WI-46N	SL-MO-L2IL	PD-OR-T5CE
Minneapolis, MN 55402	Seattle, WA 98101	Milwaukee, WI 53202	St. Louis, MO 63101	Portland, OR 97204
(866) 359-2503 15854	(206)344-2398	(414) 765-5626	(3141418-2875	(503) 275-7951
FAX (612) 303-5226	FAX (206) 344-5365	FAX (414) 765-448576112	FAX (314) 418-1376	FAX (503) 275-5132

APPLICATION FOR STANDBY LETTER OF CREDIT

The undersigned ("Applicant") hereby requests U.S. Bank National Association (Bank") to establish an irrevocable Letter of Credit (hereinafter "Credit") as set forth below in such language as Bank may deem appropriate, with such variations from such terms as Bank may determine in its discretion are necessary and are not materially inconsistent with this Application. and to forward the same directly, or through Bank's correspondent, to the Beneficiary.

In Favor of ("Beneficiary (") (include name & address):	For the Account of Applicant (or, if different from Applicant, the "Account
	Party") (include name & address)
Advising Bank (if any):	Amount  $ Expiration Date.
To be available by drafts at sight drawn on Bank or, at Bank's op ion, by a written or authenticated SWIFT/telex demand for payment.
o If checked, Applicant requests Bank to issue the Credit in the form of the attached document signed by Applicant and labeled "Exhibit A'.
The Credit shall be subject to the current revision of (choose one): o the International Standby Practices (ISP), published by the International Chamber of Commerce ("ICC"). or o the Uniform Customs and Practice for Documentary Credits (UCP), published by the ICC.
Document(s), if any, required to accompany drawing(s):
Additional Conditions:

In consideration of Bank's issuance of the Credit, Applicant agrees to the terms and conditions as set forth herein, in any attachments, exhibits or addenda, and in the most recent Continuing Reimbursement Agreement executed by Applicant.

Applicant Name:	Account Number:
Authorized Signature;	Telephone:
Printed Name. Title:	Date:

If the Account Party listed above is not the Applicant: In consideration of Bank's issuance of the Credit, the Account Party hereby agrees. if Applicant fails to pay when due any amounts owing to Bank under this Application, Applicant's Continuing Reimbursement Agreement, or the Credit, the Account Party shall pay the same to Bank upon demand.

Account Party Name:	Account Number
Authorized Signature:	Telephone:
Printed Name: Title:	Date:

Draft Version 4 - Last Revised 5 December 2006Rev 2006

EXHIBIT C

Form of Reimbursement Agreement

Form of Reimbursement Agreement

US BANK

CONTINUING REIMBURSEMENT AGREEMENT FOR

LETTERS OF CREDIT

Including U.S. Bank Global Trade WoricaSM

This Continuing Reimbursement Agreement for Letters of Credit is made effective this 27th day of July, 2009 by and between U.S. BANK NATIONAL ASSOCIATION ("Bank') and MA HOMES, INC, ("Applicant).

In consideration of the issuance by Bank or an affiliate of Bank (each such affiliated issuer, an "Other Issuer') of one or more Credits, Applicant agrees that the following terms shall apply to each Application and each Credit issued by Bank or any Other Issuer (either or both referred to herein as "Bank").

IThe Credit,

(a)From time to time, Applicant may request Bank to issue or to request one of its subsidiaries or affiliates to issue one or more letters of credit (each, a 'Credit') substantially in accordance with the terms of any application (each, an 'Application') submitted to Bank by Applicant. All Credits will be deemed irrevocable unless otherwise stated in an Application. Bank may either issue the Credit or request one of its affiliates to issue the Credit. Bank may sell, assign or participate all or any part of its rights and obligations under this Agreement, the Application and the Credit, Without limiting the foregoing, any Other Issuer may sell a participation in all or any part of its rights and obligations under this Agreement and the Credit to Bank.

(b)Bank hereby is authorized to set forth in the Credit the terms appearing in the Application, with such modifications as Bank in its discretion may determine are appropriate or necessary and are not materially different from such terms,

(c)All communications relating to the Credit will be sent at Applicant's risk. Bank shall have no responsibility for any inaccuracy of translation, or any error or delay in transmission or delivery by mail, telecommunication or any other method outside of Bank's reasonable control. including all communications made through a correspondent.

(d)Neither Bank no its correspondents shall be in any way responsible for the performance of any beneficiary's obligations to Applicant or for the form, sufficiency, accuracy, genuineness, authority of person signing, falsification or legal effect, of any documents required by the Credit it such documents appear in order on their face. Whether the documents conform to the terms of the Credit and whether arty demand is timely and in proper form shall be independently determined by Bank in its sole discretion, which determination shall be final and binding on Applicant.

(e)Subject to Section 8(b), Bank may in its discretion honor Applicant's request to increase the amount of the Credit, extend the time for making and honoring of demands under the Credit and otherwise modify the terms and conditions governing the Credit. In the event of any extension of the maturity or time for negotiation or presentation of the drafts or documents or any other modification of the terms or provisions of, or increase in the amount of, the Credit at the request or with the consent of Applicant, this Agreement shall be binding upon Applicant with regard to (i) the Credit as so increased or otherwise modified, (ii) drafts, documents and properly covered thereby, (iii) any action taken by Bank or Bank's correspondents in accordance with such extension, increase or other modification; and (w) any draft paid by Bank or any of Bank's correspondents which is dated on or before the expiration of any time limit expressed in the Credit, regardless of when drawn or presented for payment and when or whether negotiated, provided the required documents are presented prior to the expiration of the Credit.

(f)Applicant shall promptly review all information, documents and instruments delivered to Applicant from time to time by Bank, Including any Credits upon issuance and any amendments and all related presentations and negotiations, and shall notify Bank Within five banking days after receipt if Applicant claims that Bank has failed to comply with Applicant's instructions or Bank's obligations with respect to the Credit, has wrongfully honored or dishonored any presentation under the Credit or claims any other irregularity. It Applicant does not so notify Bank within such time period, Applicant shall be conclusively deemed to have waived and shall be precluded from asserting such claim(s).

2. Internet-Based Letter of Credit Services ("Internet ServIces"1.

(a)If requested by Applicant and agreed to by Bank, Bank will grant Applicant access to Bank's letter of credit-related Internet Services. U.S. Bank Global Trade Works is an example of one such Internet Service, Bank's Internet Services may be used by Applicant for the processing and issuance of Credits in accordance with the terms of this Agreement Bank shall post Rules of Use of the Internet Services within each such Service. Applicant's initial use of an Internet Service shall constitute Applicant's acceptance of the Rules of Use.

(b)Applicant agrees to use the Internet Services In accordance with the security procedures established by Bank. Due to emerging technologies and ensuing changes in security practices, Bank reserves the right to supplement or change its security procedures from time to time upon reasonable notice to Applicant. Applicant shall designate one or more Security Administrators. The Security Administrator is responsible for setting up Applicant's Internet Services and for establishing internal security procedures related to such services, Including without limitation, accepting software for delivery, assigning users, establishing authority levels, distributing passwords and other security devices and procedures related to the Internet Services. Designation of any Security Administrator may be amended or revoked upon written notice to Bank. Bank shall have a reasonable time to act on any such notice.

(c)Applicant Is responsible for maintaining the security and confidentiality of all IDS, passwords and other security devices issued to or by Applicant (collectively, 'Applicant's Internal Security Service). Applicant shall not permit unauthorized individuals to use Applicant's Internal Security Devices to access the Internet Services. Applicant is responsible for the actions of any individuals using Applicants Internal Security Devices to access to the Internet Services and Applicant shall be bound by any transmission to Bank that is accepted in accordance with the established security procedures. Applicant shall promptly notify Bank if Applicant has actual knowledge that its Internal Security Devices have been compromised. Applicant agrees to defend and indemnify Bank against any claims, losses, damages, costs, expenses, fines and other liabilities arising out of Applicant's failure to maintain the security and confidentiality of Applicant's Internal Security Devices or arising out of the unlawful use of any Internet Services by Applicant or any person who obtains access to the Internet Services using Applicants Internal Security Devices.

3. Reimbursement Obligations Applicant promises to pay Bank on demand at the address specified In the Application for Credit n the following amounts:

(a) The amount of each draft or other request for payment (hereinafter called a 'draft") drawn under the Credit (whether drawn before, on or, if In accordance with the law applicable to the Credit, after the expiration date stated In the Credit). For amounts payable in United States

currency, Applicant agrees to reimburse Bank in United States currency. For amounts payable in other currencies, Applicant agrees to reimburse Bank an equivalent amount In United Slates currency at Bank's then current selling rate for such foreign currencies or Applicant will reimburse Bank by sending the foreign currency amount due Bank by wire transfer to the account and location designated by Bank, or at Bank's option, in any other currency, piece, form and manner acceptable to Bank. Upon request, Applicant wilt pay Bank in advance, in United States currency, alt sums necessary for Bank to pay all such drafts upon presentation whether payable in United States currency or otherwise If the draft is a time draft, Applicant shall make payment without demand sufficiently in advance of its maturity to enable Bank to arrange tar funds to reach the place of payment when due.

(a)All commissions, at the rate fixed by Bank, shall be payable from time to time at such intervals as Bank may require and shall be nonrefundable, whether or not the Credit is drawn upon, reduced in time or amount or otherwise modified. Applicant also agrees to pay all of Bank's other standard tees and charges related to Credits,

(b)All taxes, levies, imposts, duties, charges, fees, deductions or withholdings of any nature whatsoever paid or incurred by Bank in connection with this Agreement, the Credit or any related transactions, and any liability with respect thereto (including but not limited to interest, penalties and expenses),

(c)Interest on all amounts due under this Agreement from the applicable due date until paid will be variable at the per annum rate fixed from time to time by Bank. Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed. Interest accrued hereunder shall be due and payable on the first day of each calendar month.

(a) Without limiting Applicant's obligations to any Other Issuer, but without duplication, Applicant promises to pay Bank on demand, at the Bank International Banking Office designated by Bank, an amount equal to all amounts which Bank pays or becomes obligated to pay to any Other Issuer with respect to the Credit, whether as a participant in the Credit or otherwise.

notwithstanding any other provision of this Agreement, Applicant's obligation to make any payment hereunder to any Other Issuer shall, to the extent of such payment, be satisfied by payment to Bank as set forth In this Agreement.

(g) Applicant hereby authorizes Bank to automatically deduct from any of as accounts with Bank, all amounts which become due to Bank under this Agreement. Applicant will pay all fees on the account which result from the automatic deductions, including any overdraft/NSF charges. If for any reason Bank does not charge the account for any amount due, or it an automatic deduction is reversed, the amount due is still owing to Bank as set forth herein.

4 Security and Insurance

(a)As security for payment of any and all of Applicant's obligations to Bank and any other Issuer under this Agreement, any Credit or any other indebtedness of Applicant to Bank and any Other Issuer, Applicant hereby grants Bank a continuous and continuing interest In (I) all property of Applicant or in which Applicant has an interest (including, but not limited to, all bank accounts Applicant maintains with Bank and all proceeds thereof) and which Is now or hereafter for any reason in the possession or control of, or in transit to, Bank, Bank's affiliates or the agent or bailee thereof, and (ii) any and all bills of lading, other documents of title, policies, certificates of insurance, chattel paper, and general Intangibles accompanying or relative to a Credit or any drafts drawn thereunder, and any and all inventory, goods and other property shipped under, in connection with or relative to a Credit or any drafts drawn thereunder. In addition to all other rights which Bank may have, Applicant hereby authorizes Bank to set off and apply any and all deposits (general of special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by Bank to or for the credit or the account of Applicant against any and all of the obligations of Applicant now or hereafter existing under this Agreement, irrespective of whether Bank shall have made any demand under this Agreement and although such deposits, indebtedness or obligations may be unmatured or contingent.

(b)If at any time Bank requires collateral (or additional collateral), Applicant will, on demand, assign and deliver to Bank as security for any and all obligations of Applicant now or hereafter existing under this Agreement collateral of a type and value satisfactory to Bank or make such cash payment as Bank may require and execute and deliver to Bank such security agreements, pledge agreements, or other documents requested by Bank covering such collateral,

(c)Al Bank's request, Applicant will execute any financing statements and other documents or instruments as Bank may require to perfect the security interests granted or contemplated hereunder and will pay the cost of any filings in connection therewith.

(d)For commercial credits, Applicant shall keep any property described in the Credit adequately covered by Insurance satisfactory to Bank, issued by companies satisfactory to Bank, and at Bank's request will furnish certificates or evidence thereof and will assign insurance policies or certificates to Bank and make losses, adjustments or proceeds payable to Bank. It any such policies procured by Applicant fails to provide for payment of the loss thereunder. Applicant hereby makes the loss payable to Bank under such policy and assigns to Bank all proceeds of such policy and agrees to accept proceeds of all insurance as Bank's agent and to hold same in trust for Bank, arid forthwith to deliver the same to Bank, with Applicant's endorsement where necessary, and Bank or any of Banks officers are hereby Irrevocably empowered, with power of substitution, to endorse any check in the name of Applicant received In payment of any loss or adjustment.

(e)Bank shall not be liable for any failure to collect or demand payment of, or to protest or give any notice of non-payment of, any collateral or any part thereof or for any delay in so doing, nor shall Bank be under any obligation to take any action whatsoever with respect to the collateral or any part thereof. Bank shall use reasonable care in the custody and preservation of the collateral in Bank's possession but need not take any steps to preserve rights against prior parties or to keep the collateral identifiable. Bank shall have no obligation to comply with any recording, re-recording, filing, re-filing or other legal requirement necessary to establish or maintain the validity, ovary or enforceability of, or Bank's right in and to, the collateral, or any part thereof. Bank may exercise any right of Applicant with respect to any collateral. Bank may endorse Applicant's name on any and all notes, checks, drafts, bills of exchange, money orders or commercial paper included in the collateral or representing the proceeds thereof.

5. Default and Remedies:

(a) Time is of the essence in this Agreement, The occurrence of any of the following shall be an Event of Default hereunder

(I) Default in payment or performance of any of Applicant's obligations hereunder or under any promissory note or other agreement between Bank and Applicant;

(ii) Default under any security documents securing Applicant's obligations hereunder, whether executed by Applicant or any other person;

(ill) Levy or proceeding against any property of Applicant or any guarantor of Applicant's obligations hereunder ('Guarantor);

(i)Death, dissolution, termination of existence, insolvency or business failure of, appointment of a receiver for any part of the property of, assignment for the benefit of creditors by, commencement of any proceeding under any bankruptcy or insolvency laws by or against, or entry of judgment against, Applicant or any Guarantor,

(ii)Any warranty, representation or statement made or furnished to Bank by Applicant or any Guarantor proves to have been false in any material respect when made or furnished;

(iii)Any event which gives the holder of any debt obligation of Applicant or any Guarantor the right to accelerate its maturity, whether or not such right is exercised;

(iv)Any guaranty of Applicant's obligations hereunder ceases to be, or is asserted by any person not to be, in full force and effect; or

(v)Any material adverse change in the financial condition or management Of Applicant or any Guarantor, or if Bank for any reason in good faith, deems itself insecure.

(b) Upon the occurrence of any Event of Default and at any time thereafter, Bank at its option and in addition to all other rights of Bank under this Agreement, any related agreement and applicable law, may (I) without notice or demand declare the amount for which the Credit was issued and any other amounts owing hereunder immediately due and payable; and (ii) exercise any and all rights and remedies of a secured party under the Uniform Commercial Code and other applicable law.

6. Certain Warranties.

(a)Applicant warrants that the execution, delivery and performance of this Agreement are within its authority and are not in contravention of law, of any terms of any agreement, instrument, order or judgment to which Applicant is a party or by which it or its property may be bound or of any provision of its charter document or bylaws, and that it has obtained all necessary approvals and consents therefor.

(b)Applicant represents and warrants that any Credit, and transactions related thereto, shall be in compliance with any federal, state, local and foreign laws, regulations, treaties or customs applicable to Bank or Customer, including without limitation the regulations promulgated by Office of Foreign Assets Control (OFAC), and any other foreign or domestic legal restriction on doing business with certain individuals or countries.

(c)Applicant will procure promptly all necessary licenses for the export, import, shipping or warehousing of, or payment for property covered by the Credit and will comply with all foreign and U.S. laws, rules and regulations (including exchange control regulations) now or hereafter applicable to the transaction related to the Credit or applicable to the execution, delivery and performance by Applicant of this Agreement.

7. Changes to Laws and Regulations. If any adoption of or change in law or regulation, or in the interpretation or administration thereof by any official authority shall impose on Bank any tax, charge, fee, deduction or withholding of any kind whatsoever, or shall Impose or modify any reserve requirements, standards regarding capital adequacy or any other conditions affecting this Agreement or the Credit, and the result of any of the foregoing shall be to Increase the cost to Bank of issuing and maintaining the Credit, reduce the amount of any sum receivable by Bank hereunder or reduce the rate of return on Bank's capital, then Applicant shall pay to Bank upon demand such additional amount or amounts as Bank may specify to be necessary to compensate Bank for such additional costs incurred or reduction suffered.

8. General Terms and Conditions.

(a)Each Application shall be subject to all terms and conditions of this Agreement. In addition, this Agreement shall apply to each Credit issued or confirmed by Bank at the request of Applicant, including, without limitation, all Credits (if any) previously opened and outstanding on the date hereof

(b)Notwithstanding any other term hereof, Applicant understands and agrees that the Credit can be revoked or amended only with the consent of the beneficiary of the Credit, Bank or Other Issuer of the Credit and any confirming bank.

(c)If Applicant requests Bank to issue a Credit for the account of a third party, whether affiliated with Applicant or otherwise (the 'Account Party'), the Account Party shall have no rights against Bank Bank may deal with Applicant as if Applicant were the named Account Party.

(d)Applicant shall give Bank prior written notice of any change of name, address or place of business. Any notice of any nature by Applicant to Bank must be given at Bank's office to which the application was submitted.

(e)The singular includes the plural. If Applicant consists of more than one person. the obligations of Applicant hereunder are loint and several and are binding upon any marital community of which any Applicant is a member. This Agreement shall be binding on Applicant, its successors and assigns, and shall inure to the benefit of Bank or Bank's successors, transferees and assigns. Notwithstanding the foregoing, Applicant may not assign its rights under this agreement without Bank's prior written consent.

(f)Notwithstanding the title appearing on any Credit instrument, the rights and obligations of Bank and Applicant with respect to the Credit shall be as set forth herein.

(g)The Application and/or the Credit will set forth which rules or customs apply to the corresponding Credit. Such rules and customs may include, but are not limited to, the International Standby Practices, as published by the International Chamber of Commerce (^-1SP") or the Uniform Customs and Practice for Documentary Credits, as published by the International Chamber of Commerce ("UCP'). In any event, the rules or practices set forth in the Credit are incorporated herein and shall govern the Credit. This Agreement and the Credit shall be governed by the internal laws of the State in which the credit was issued and the United States of America (the 'Governing Laws'), except to the extent such laws are inconsistent with the rules adopted in the Application as set forte above.

(h)When possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement.

(1) Applicant hereby indemnifies and agrees to defend and hold harmless Bank, its officers, directors, agents, successors and assigns, from and against any and all liabilities, claims, demands, losses and expenses (including without limitation legal costs and attorney fees incurred in any appellate proceeding, proceeding under the bankruptcy code or receivership and post-judgment attorney fees incurred in enforcing any judgment), arising from or in connection with this Agreement, the Credit or any related transaction, except to the extent such claims arise from Bank's gross negligence or willful misconduct.

(j) Any action, inaction or omission taken or suffered by Bank or by any of Bank's correspondents under or In connection with the Credit or any relative drafts, documents or property, if in good faith and in conformity with foreign or United States laws, regulations or customs applicable thereto, shall be binding upon Applicant and shall not place Bank or any of Bank's correspondents under any resulting liability to Applicant.

Without limiting the generality of the foregoing. Bank and Bank's correspondents may act in reliance upon any oral, telephonic, telegraphic, electronic or written request or notice believed in good faith to have been authorized by Applicant, whether or not in fact given or signed by an authorized person.

(k) Bank's waiver of any right on any occasion or occasions shall not be construed as a bar or waiver of any other right or of such right on any other occasion. Applicant hereby waives and agrees not to assert any defense under any applicable statute of limitations, to the fullest extent permitted by law,

(l) Without notice to any Applicant and Without affecting Bank's rights or Applicant's obligations, Bank may deal in any manner with any person who at any time is liable for, or provides any collateral for, any obligations of Applicant to Bank. Without limiting the foregoing, Bank may impair, release (with or without substitution of new collateral) and fall to perfect a security interest in, any collateral provided by any person; and sue, tail to sue, agree not to sue, release, and settle or compromise with, any person.

(m) Except as otherwise provided herein or in any Credit, all notices and other communications required or permitted to be given to any party hereto shall be in writing or an electronic medium that is retrievable in a perceivable form and shall be deemed given when delivered by hand, electronically, by overnight courier, or when deposited in the United States mail, postage prepaid, addressed as set forth in the Application.

(n) Whether or not litigation or arbitration is commenced, Applicant promises to pay all attorney fees and other costs and expenses incurred by Bank in collecting overdue amounts or construing or enforcing any provision of this Agreement or the Credit, including but not limited to reasonable attorney fees at trial, in any arbitration, appellate proceeding, proceeding under the bankruptcy code or receivership and post-judgment attorney fees incurred in enforcing any judgment.

(o) If the Credit is issued pursuant to a ban agreement or other separate agreement, the terms of such other agreement shall control in the event of a conflict between the terms of this Agreement and such other agreement.

(p) This Agreement is a continuing agreement and shall remain in effect until terminated, amended or replaced. This Agreement may be terminated by Applicant or Bank by giving notice of termination to the other and may be amended or replaced by a written agreement signed by Applicant and accepted by Bank; provided, however that no such termination, amendment or replacement shall atter or affect the undertaking of Applicant or Bank with respect to any Credit issued, or commitment to issue, prior to such termination, amendment or replacement.

(q) This Agreement, as supplemented by the laws, rules and customs incorporated herein by subpart (g) to this part, and as supplemented by the terms of the Application, it any, constitutes the entire understanding between Bank and Applicant with respect to the matters treated herein and specifically supersedes any prior or contemporaneous oral agreements.

(r) Nothing in this Agreement shall be construed as imposing any obligation on Bank to issue any Credit Each Credit shall be issued by Bank in its sole discretion and at Its sole option.

(s) Bank is authorized, but not obligated, to record electronically or otherwise any telephone and other oral communications between Bank and Applicant.

(t) All terms and conditions on the attached Schedule 1, and any replacement Schedule 1 are hereby incorporated herein. Applicant may change the provisions of Schedule 1 by executing and delivering a new Schedule 1 to Bank,

(u) In the event Applicant submits an Application or other instruction by facsimile transmission (each, a "Faxed Document"), Applicant agrees: (I) each Faxed Document shall be deemed to be an original document and shall be effective for all purposes as if It were an original; (ii) Applicant shall retain the original of any Faxed Document and shall deliver it to Bank upon request; (ill) if Applicant sends Bank a manually signed confirmation of a Faxed Document, Bank shall have no duty to compare it to Me previously received Faxed Document nor shall a have any liability or duty to act should the contents of the written confirmation differ therefrom. Any manually signed confirmation of a Faxed Document must be conspicuously marked 'Previously transmitted by facsimile". Bank will not be liable for issuance of duplicate letters of credit or amendments thereto that result from Bank's receipt of confirmations not so marked; (iv) Bank cannot effectively determine whether a particular facsimile request is valid, Therefore Applicant shall have sole responsibility for the security of using facsimile transmissions and for any authorized or unauthorized Faxed Document received by Bank, purportedly on behalf of Applicant.

9. IMPORTANT NOTICE.ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING PREPAYMENT OF A DEBT INCLUDING VERBAL PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE.

Applicant acknowledges receipt of a completed copy of this Agreement.

IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the day and year first above written.

APPLICANT:BANK

Mil HOMES, INC.U.S.BANK NATIONAL ASSOCIATION

By:______________________By:______________________

Name:Name:

Title:Title:

SCHEDULE 1

AUTHORIZATION

CONTINUING REIMBURSEMENT AGREEMENT FOR

LETTERS OF CREDIT

The provisions of this Schedule 1 are hereby incorporated into and made a part of the Continuing Reimbursement Agreement for Letters of Credit ("Agreement') executed by and between U.S. BANK NATIONAL ASSOCIATION, ("Bank') and MA HOMES, INC. ("Applicant"), dated July 27, 2009. Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Agreement.

1.    In addition to those authorized through U.S. Bank Global Trade Works or other electronic letter of credit application system offered by Bank, if applicable, any one of the persons whose name, title and signature appears below is authorized to give instructions to Bank and to execute and/or transmit Applications, requests for amendments, requests lot extensions and other communications of any nature regarding any Credit issued by Bank For Applicant

NAME	TITLE	SIGNATURE
Phillip G. Creek	Exec. VP & CFO
Ann Marie Hunker	Corp. Controller & CAO
William Roberts	VP & Treasurer

2.    In addition to those authorized through U.S. Bank Global Trade Works or other electronic letter of credit application system offered by Bank, if applicable, the following persons are entitled to waive discrepancies contained in documents presented under a Credit (Applicant understands that upon any such waiver, Applicant is obligated to reimburse Bank to the same extent as if the documents fully complied with the terms of the Credit.).

NAME	TITLE	TELEPHONE NUMBER
Phillip G. Creek	Exec. VP & CFO	614-418-8000
Ann Marie Hunker	Corp. Controller & CAO
William Roberts	VP & Treasurer

3.    Bank is instructed to automatically deduct from Account No all amounts which become due under the Agreement. Should there be insufficient funds in this account to reimburse Bank, Bank is authorized to deduct any remaining amounts due from any of Applicant's accounts with Bank.

4.    This Schedule 1 shall be effective upon receipt by Bank. Bank may rely on this Schedule Iuntil it has been revoked in writing by Applicant and Bank has a reasonable opportunity to act on any such revocation.

APPLICANT:	BANK
M/I HOMES, INC.	U.S. BANK NATIONAL ASSOCIATION
By: ______________________________	By: ______________________________
Title	Title
Date	Date

M/I HOMES

February 1, 2010

Ms. Oretha Rogers

US Bank

Senior Loan Administrator

Commercial Real Estate

CN-OH-BD12

10 West Broad Street, 12^1x' Floor

Columbus, OH 43215

Re: Authorization for Letters of Credit

Dear Ms. Rogers:

Enclosed please find a revised Schedule I to the Letter of Credit Agreement dated July 27, 2009. Please remove William A. Roberts as an authorized person and add Kevin Hake.

If you have any questions regarding this request, please contact Charlotte Stout at 614-418-8237 or cstout@mihomes.corn.

Sincerely,

Phillip O. Creek EVP, CFO

Enclosure

3 Easton Oval Suite 600 Columbus, Ohio 0210 614/418-8000 614/418-8080 Fax

lister! on the New York Stock Exchange

SCHEDULE I

AUTHORIZATION

CONTINUING REIMBURSEMENT AGREEMENT FOR '

LETTERS OF CREDIT

The provisions of Ibis Schedule 1 are hereby incorporated Into and made a part of the Continuing Reimbursement Agreement for Letters of Credit (*Agreement') executed by and between U.S. BANK NATIONAL ASSOCIATION, ("Bank') and MA HOMES, INC, (*Applicant"), dated July 27, 2009. Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Agreement.

I.     In addition to those authorized through U.S. Bank Global Trade Works or other electronic letter of credit application system offered by Bank, If applicable, any one of the persons whose name. fills and signature appears below is authorized to give Instructions to Bank and to execute and/or transmit Applications, requests for amendments; requests for extensions and other communications of any nature regarding any Credit issued by Bank for Applicant

NAME	TITLE	SIGNATURE
Phillip G. Creek	Exec. VP & CFO
Ann Marie Hunker	Corp. Controller & CAO
Kevin Hake	VP, Finance

2.     In addition to those authorized through U.S. Bank Global Trade Works or other electletter of credit application system offerer/ by

Bank, if applicable, the following persona are entitled to waive discrepancies contained in documents presented under a Credit. (Applicant understands that upon any such waiver, Applicant Is obligated to reimburse Bank to the same extent as II the documents fully complied with the terms of the Credit.):

NAME	TITLE	TELEPHONE NUMBER
Phillip G. Creek	Exec. VP & CFO	614-418-8000
Ann Marie Hunker	Corp. Controller & CAO
Kevin Hake	VP, Finance

3,     Bank is instructed to automatically deduct from Account No.all amounts which become due under the Agreement. Should there

be insufficient funds in this account to reimburse Bank, Bank is authorized to deduct any remaining amounts due from any of Applicant's accounts with Bank.

4.     This Schedule 1 shall be effective upon receipt by Bank. Bank may rely on this Schedule I until it has been revoked in writing by Applicant and Bank has a reasonable opportunity to act on any such revocation

APPLICANT:	BANK
M/I HOMES, INC.	U.S. BANK NATIONAL ASSOCIATION
By: ______________________________	By: ______________________________
Title	Title
Date	Date

EXHIBIT D

Security Agreement

SECURITY AGREEMENT

(Pledge of Deposit Account)

DEBTOR: WI Homes, Inc,

ADDRESS: 3 Easton Oval, Columbus, Ohio 43219

DATE:July_.27, 2009                                                 

The undersigned ("Debtor whether one or more), for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby jointly and severally grant, pledge and assign to U.S. BANK NATIONAL ASSOCIATION, a national banking association ("Bank"), a security interest in the following deposit account (the "Account") whether Debtor's interest in the Account be now owned or existing or hereafter arising or acquired, together with all substitutions and replacements therefor, all books and records relating thereto, all interest and increases arising therefrom or payable in respect thereto, whether in cash, property or otherwise, and whether now or hereafter earned, paid or made, and all cash and non-cash proceeds thereof including, but not limited to, notes, drafts, checks and instruments:

Account DescriptionPrincipal Amount of

Name and Address of Depositoryand NumberAccount Balance Assigned

U.S. Bank National Association13011679473

(all of the foregoing hereinafter sometimes called the "Collateral").

If the Account is less than the entire amount of the deposit account, any reduction of the monies comprising such deposit account shall be deemed first to be a reduction of monies other than those comprising the Account, unless the amount of such reduction is received by Bank. Nothing set forth in this paragraph shall authorize or be construed to authorize Debtor to spend, withdraw, reduce, pledge, transfer, assign or otherwise dispose of the Collateral except upon the prior written consent of Bank.

The security interest hereby granted is to secure the prompt and full payment and complete performance of all Obligations of Debtor to Bank. The word "Obligations" means all indebtedness, debts and liabilities (including principal, interest, late charges, collection costs, attorneys' fees to the extent permitted by law and the like) of Debtor to Bank in connection with Letters of Credit issued pursuant to any applicable Reimbursement Agreement(s) (as said terms are defined in the Credit Agreement hereinafter defined), whether now existing or hereafter arising, either created by Debtor alone or together with another or others, primary or secondary, secured or unsecured, absolute or contingent, liquidated or unliquidated, direct or indirect, whether evidenced by note, draft, application for letter of credit, reimbursement agreement or otherwise, and any and all renewals of or substitutes therefor.

1.General Representations and Covenants:    Debtor represents, warrants and covenants as

follows:

(a)Except for the security interest granted hereby, Debtor is, or as to Collateral arising or to be acquired after the date hereof, shall be, the sole, exclusive and record owner of the Collateral, and the Collateral is and shall remain free from any and all liens, security interests, encumbrances, claims and interests.

(b)    Debtor shall, at Debtor's expense, perform, do, make, procure, execute and deliver all acts, things, certificates, instruments, passbooks, writings and other assurances as Bank may at any time request or require to protect, assure or enforce its interests, rights and remedies created by, provided in or emanating from this agreement.

(c) If any of the Collateral is not now evidenced by a certificate, instrument, passbook or writing, and if at any time during the term of this agreement, a certificate, instrument, passbook or writing shall be used or issued to evidence Debtor's interest in the Collateral, Debtor shall, immediately upon learning of the same, notify in writing the loan officer who is handling Debtor's Obligations on behalf of Bank that such has occurred, or that such is going to occur, and shall assist. Bank in order to ensure that Bank obtains possession of that evidence or otherwise perfects its security interest in the certificate, instrument, passbook or writing evidencing the Collateral.

(d) Debtor shall not create, permit or suffer to exist, and shall take such action as is necessary to remove, any claim to or interest in or lien or encumbrance upon the Collateral, other than the security interest granted hereby, and shall defend the right, title and interest of Bank in and to the Collateral against all claims and demands of all persons and entities at any time claiming the same or any interest therein.

(e) Subject to any limitation stated therein or in connection therewith, all information furnished by Debtor concerning the Collateral or otherwise in connection with the Obligations, is or shall be at the time the same is furnished, accurate, correct and complete in all material respects.

(f) Debtor's legal name, state of organization and chief executive office are as set forth at the beginning of this Agreement. Unless Bank consents in writing to a change in Debtor's legal name or state of organization prior to such a change, Debtor shall not change its legal name or state of organization.

2.    Preservation and Disposition of Collateral.

(a)Debtor shall not spend, withdraw, reduce, pledge, transfer, assign or otherwise dispose of the Account or any portion thereof. Bank shall be entitled to condition withdraws from the Account upon the receipt of such matters as it may reasonably request, including, but not limited to, evidence that Debtor is in full compliance with each of the terms and conditions of, and that no Event of Default exists under that certain Master Letter of Credit Facility Agreement dated as of July 27, 2009 (the "Credit Agreement"), evidencing the Obligations.

(b) Debtor shall advise Bank promptly, in writing and in reasonable detail, (i) of any material encumbrance upon or claim asserted against any of the Collateral; and (ii) of the occurrence of any event that would have a material effect upon the aggregate value of the Collateral or upon the security interest of Bank.

(c)At its option, Bank may discharge taxes, liens, security interests or other encumbrances at any time levied or placed on or arising in connection with the Collateral. Debtor agrees to reimburse Bank upon demand for any payment made or any expense incurred (including reasonable attorneys' fees to the extent permitted by law) by Bank pursuant to the foregoing authorization. Should Debtor fail to pay said sum to Bank upon demand, interest shall accrue thereon, from the date of demand until paid in full, at the highest rate set forth in any document or instrument evidencing any of the Obligations.

3.    Extensions and Compromises. With respect to any Collateral held by Bank as security for the Obligations, Debtor assents to all extensions or postponements of the time of payment thereof or any other indulgence in connection therewith, to each substitution, exchange or release of Collateral, to the addition or release of any party primarily or secondarily liable, to the acceptance of partial payments thereon and to the settlement, compromise or adjustment thereof, all in such manner and at such time or times as Bank may deem advisable. Bank shall have no duty as to the collection or protection of Collateral or any income therefrom, nor as to the preservation of any right pertaining thereto, beyond the safe custody of Collateral in the possession of Bank.

4.    Bank's Authorization. Debtor hereby irrevocably authorizes Bank and any officer or agent thereof, in the place and stead of Debtor and in the name of Debtor or in Bank's own name, in Bank's discretion, to take any and all appropriate action and to execute, authenticate and deliver any and all documents, instruments and records that may be necessary or desirable to accomplish the purposes of this Agreement. Without limiting the generality of the foregoing, Debtor hereby authorizes Bank, on behalf of Debtor, without notice to or assent by Debtor.

Debtor hereby ratifies all that the Bank shall lawfully do or cause to be done by virtue hereof.

The authorization granted to Bank hereunder is solely to protect its interests in the Collateral and shall not impose any duty upon Bank to exercise the same. Bank shall be accountable only for amounts that Bank actually receives as a result of the exercise of such authorization and neither Bank nor any of its officers, directors, employees or agents shall be responsible to Debtor for any act or failure to act, except for Bank's own gross negligence or willful misconduct.

5.    Default. If any event of default in the payment of any of the Obligations or in the performance of any of the terms, conditions, or provisions of any instrument or document evidencing the Obligations secured by this agreement or in the performance of any covenant contained herein shall occur and be continuing; or if any warranty, representation or statement made or furnished to Bank by Debtor proves to have been false in any material respect when made or furnished; or if Bank shall, in the exercise of commercially reasonable judgment, deem itself insecure as to the prospect of payment of any of the Obligations:

(a)Bank may, at its option and without notice, declare the unpaid balance of any or all of the Obligations immediately due and payable and this agreement and any or all of the Obligations in default and may immediately apply any or all of the Collateral to the payment of the Obligations; and

(b)Bank and its nominees shall have the additional rights and remedies of a secured party under this agreement, under any other instrument or agreement securing, evidencing or relating to the Obligations and under the law of the State of Ohio including, but not limited to, the right to demand and receive the Collateral from any of the depositories designated above. To the extent permitted by applicable law, Debtor waives all claims, damages and demands against Bank arising out of Bank's collection, receipt, retention or disposition of the Collateral including, but not limited to, any claim based upon the early withdrawal or redemption of the Collateral by Bank. Debtor shall remain liable for any deficiency if the Collateral is insufficient to pay all amounts to which Bank is entitled. Debtor shall also be liable for the costs of collecting any of the Obligations or otherwise enforcing the terms thereof or of this agreement including reasonable attorneys' fees to the extent permitted by law.

6.    General. Debtor agrees that if Bank is the depository for any Account, Bank may reduce the rate of interest on such Account, at any time and from time to time, in order to comply with any laws or regulations, including those that require the rate of interest applicable to any Obligation to exceed any rate of interest payable with respect to such Account. Any provision of this agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any otherjurisdiction. Bank shall not be deemed to have waived any of its rights hereunder or under any other agreement, instrument or paper signed by Debtor unless such waiver be in writing and signed by Bank. No delay or omission on the part of Bank in exercising any right shall operate as a waiver of such right or any other right. All of Bank's rights and remedies, whether evidenced hereby or by any other agreement, instrument or paper, shall be cumulative and may be exercised singularly or concurrently. Any written demand upon or written notice to the Debtor shall be given in accordance with the Loan Agreement shall be effective when deposited in the mails addressed to the Debtor at the address shown at the beginning of this Agreement. This agreement and all rights and obligations hereunder, including matters of construction, validity and performance, shall be governed by the law of the State of Ohio. The provisions hereof shall, as the case may require, bind or inure to the benefit of, the respective heirs, successors, legal representatives and assigns of Debtor and Bank..

[Remainder of This Page Intentionally Left Blank]

IN WITNESS WHEREOF, Debtor has signed this Agreement as of the date first above written.

DEBTOR:

M/I HOMES, INC., an Ohio corporation

By: _____________________

Print Name: Phillip G. Creek

Its: Exec VP & CFO

EX-10.3

Exhibit 10.3

Surrender of Policy

and

Termination of Agreement

with Respect to

Collateral Assignment Split-Dollar Agreement

Dated:, 2013

This Surrender of Policy and Termination of Agreement with Respect to Collateral Assignment Split-Dollar Agreement (this “Agreement”) is made and entered into as of the day of , 2013, by and among M/I Homes, Inc., an Ohio corporation, formerly known as M/I Schottenstein Homes, Inc. (the “Employer”), Robert H. Schottenstein, an individual residing in Ohio (the “Employee”), and Jeri B. Block, as successor trustee of the Robert H. Schottenstein 1996 Insurance Trust (the “Trust”), created by that certain Trust Agreement between Robert H. Schottenstein, as grantor, and Janice K. Schottenstein, as trustee, dated April 15, 1996 (the “Trust Agreement”).

WITNESSETH:

WHEREAS, Employer, Employee and Janice K. Schottenstein, as trustee of the Trust, entered into a Collateral Assignment Split-Dollar Agreement dated September 24, 1997 (the “Split-Dollar Agreement”) with respect to life insurance policy number SV50186001 (the “Policy”) issued by John Hancock Life (the “Insurer”) on the life of Employee;

WHEREAS, Jeri B. Block is currently serving as the successor trustee of the Trust;

WHEREAS, pursuant to the terms of the Split-Dollar Agreement, the successor trustee of the Trust owns the Policy, but the Employer has an interest in the Policy equal to “Employer’s Net Interest” which is defined in paragraph 4 of the Split-Dollar Agreement as “the Employer’s Gross Interestminus the outstanding balance (if any) of all Policy loans made to the Employer (including all accrued and unpaid interest thereon)” and the “Employer’s Gross Interest” is defined in paragraph 4 of the Split-Dollar Agreement as “the aggregate amount of all premiums paid by the Employer with respect to the Policyminus the aggregate amount of all reimbursements of such premium payments by” the trustee or successor trustee of the Trust;

WHEREAS, paragraph 7 of the Split-Dollar Agreement provides that if the Policy is surrendered or canceled for any reason (other than the death of Employee), then the net proceeds resulting from such surrender or cancellation shall be distributed to Employer in an amount equal to “the Employer’s Net Interest; provided, however, in no event shall the amount payable to the Employer exceed the entire amount of such net proceeds” and the remaining balance of the net proceeds, if any, shall be distributed to the successor trustee of the Trust;

WHEREAS, paragraph 9 of the Split-Dollar Agreement provides that the Split-Dollar Agreement shall terminate without notice upon the written agreement of the successor trustee of the Trust and Employer;

WHEREAS, the current cash value of the Policy is approximately 586,762.60, the current Employer’s Gross Interest in the Policy is approximately $624,800.00, and the current Employer’s Net Interest in the Policy is approximately $577,001.00;

WHEREAS, the parties hereto now desire to surrender the Policy to the Insurer and terminate the Split-Dollar Agreement on the most efficient basis possible with the following results: (i) the successor trustee of the Trust will release its entire interest in the Policy; (ii) Employer will release its entire interest in the Policy; (iii) the Split-Dollar Agreement will be terminated and of no further effect; and (iv) upon receipt the net proceeds from the surrender of the Policy, the successor trustee of the Trust will distribute the sum of $577,001 to Employer as payment in full with respect to Employer’s interest in the Policy, all in accordance with the provisions of the Split Dollar Agreement.

NOW THEREFORE, in consideration of the mutual promises contained below, the parties hereto agree to the foregoing and as follows:

1.The successor trustee of the Trust shall surrender the Policy to the Insurer in exchange for its current cash surrender value.

2.Employer shall terminate and release its collateral assignment of the Policy in exchange for its receipt of the agreement of the successor trustee of the Trust to distribute to Employer the sum of $577,001 from the net proceeds from the surrender of the Policy.

3.The successor trustee of the Trust shall distribute $577,001 of the net proceeds received from the surrender of the Policy to Employer.

4.Employer shall accept $577,001 form the surrender of the Policy as payment in full from the successor trustee of the Trust and shall not assert any claim for the payment of any further amounts from the successor trustee of the Trust.

5.The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.

6.The parties agree to take such actions as are desirable to allow the rights and duties specified in this Agreement to be brought into effect. The parties each agree to execute and deliver all documents which may be desirable to bring into effect the intent of this Agreement or to carry out its provisions.

7.This Agreement, and the rights of the parties, shall be governed by, and construed in accordance with, the laws of the State of Ohio.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

M/I HOMES, INC. (formerly known as M/I Schottenstein Homes, Inc.) By:______________________________ Its:______________________________ _______________________________________ Robert H. Schottenstein _______________________________________________ Jeri B. Block, as successor trustee of the Robert H. Schottenstein 1996 Insurance Trust

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Robert H. Schottenstein, certify that:
1.	I have reviewed this Quarterly Report on Form 10-Q of M/I Homes, Inc. for the fiscal quarter ended June 30, 2013;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/Robert H. Schottenstein	Date:	October 25, 2013
Robert H. Schottenstein
Chairman, Chief Executive Officer and
President

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Phillip G. Creek, certify that:
1.	I have reviewed this Quarterly Report on Form 10-Q of M/I Homes, Inc. for the fiscal quarter ended June 30, 2013;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/Phillip G. Creek	Date:	October 25, 2013
Phillip G. Creek
Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of M/I Homes, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert H. Schottenstein, Chairman, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/Robert H. Schottenstein	Date:	October 25, 2013
Robert H. Schottenstein
Chairman, Chief Executive Officer and
President

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of M/I Homes, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Phillip G. Creek, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/Phillip G. Creek	Date:	October 25, 2013
Phillip G. Creek
Executive Vice President and Chief Financial Officer

XML

Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. At September 30, 2013, the Company's net gross deferred tax asset balance was $126.6 million, of which $127.6 million were gross deferred tax assets (reported as such on the Company's consolidated balance sheets, net of a $14.9 million valuation allowance), and $1.0 million were gross deferred tax liabilities (included in other liabilities on the Company's consolidated balance sheets).

In accordance with ASC 740-10, Income Taxes, we evaluate our deferred tax assets, including the benefit from net operating losses (“NOLs”) and tax credit carryforwards, to determine if a valuation allowance is required. Companies must assess, using significant judgments, whether a valuation allowance should be established based on the consideration of all available evidence using a “more likely than not” standard with significant weight being given to evidence that can be objectively verified. This assessment gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, our experience with operating losses and our experience of utilizing tax credit carryforwards and tax planning alternatives. Based upon a review of all available evidence, we recorded a full valuation allowance against our deferred tax assets during 2008 due to economic conditions and the weight of negative evidence at the time.

During the quarter ended September 30, 2013, the Company concluded that it was more likely than not that the majority of its deferred tax assets would be utilized. This conclusion was based on a detailed evaluation of all relevant evidence, both positive and negative. The Company is required to use judgment in considering the relative impact of negative and positive evidence when determining the need for a valuation allowance for its deferred tax asset. The weight given to the potential effect of negative and positive evidence shall be commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is needed.

The positive evidence considered by the Company in its evaluation for each of our taxing jurisdictions was the objective evidence related to our past and current financial results, including a period of sustained profitability comprising six consecutive quarters of pre-tax net income totaling $43.2 million, and the projected utilization of a majority of our current NOL carryforwards and temporary differences as they reverse in the carryforward periods, generally 20 years. Other positive evidence considered, among other things, was our expectation of continued earnings, and continued indications of a sustained recovery in the housing markets in which the Company operates, as evidenced by the significant increases experienced by the Company in several key financial indicators compared to the prior year, including new contracts, revenues, backlog sales value, new home deliveries and declining overhead leverage as a percent of revenue. We believe that economic data, such as recent and forecasted increases in housing starts, homebuilding volume and average sales prices, also affirm the recovery in the housing industry. We believe historically low mortgage rates, affordable home prices, reduced foreclosures, and a favorable home ownership to rental comparison continue to drive the recovery in the housing industry.

The most significant direct negative evidence that currently exists is that the Company is currently in a four-year cumulative loss position, which period represents our estimated business cycle. However, at September 30, 2013, the Company's cumulative four-year loss has declined significantly as a result of six consecutive quarters of profitability and, based on the Company's current earnings level, the Company will realize a majority of its deferred tax assets. Other negative evidence considered was the recent rise in mortgage interest rates and the potential impact of such rise on our business. While we believe it has caused a temporary slow down in the pace of the housing recovery and related trends compared to previous quarters in 2013, we believe the demand for housing continues to increase new contracts, as evidenced by the 15%increase in new contracts that we experienced during the three months ended September 30, 2013 when compared to the same period in 2012 as well as other factors.

Based on its analysis of positive and negative evidence, the Company concluded that the objective positive evidence outweighed the negative evidence, and that the Company will more likely than not realize a majority of its deferred tax assets. In accordance with GAAP, when a change in valuation allowance is recognized as a result of a change in judgment in an interim period, a portion of the valuation allowance to be reversed must be spread over the remaining interim periods. Accordingly, the Company reversed $111.6 million of its deferred tax asset valuation allowance during the third quarter of 2013 and retained a $4.7 million valuation allowance for estimated utilization pertaining to estimated earnings in the fourth quarter of 2013. In addition to the retained $4.7 million valuation allowance, the Company retained an additional $10.2 million valuation allowance for certain state jurisdictions which have a shorter NOL carryforward utilization period or a large NOL carryforward relative to their current earnings. In future periods, the remaining valuation allowance for these state jurisdictions will be evaluated to determine if sufficient positive evidence indicates that it is more likely than not that an additional portion of the underlying state NOL carryforwards will be realized. The Company's net gross deferred tax assets were $126.6 million at September 30, 2013, which, inclusive of our valuation allowance, results in a net deferred tax asset of $111.6 million.

The tax effects of the significant temporary differences that comprise the deferred tax assets and liabilities are as follows:

(In thousands)	September 30, 2013			December 31, 2012
Deferred tax assets:
Warranty, insurance and other accruals	$	11,487		11,378
Inventory	17,417			22,612
State taxes	71			(64	)
Net operating loss carryforward	98,007			102,475
Deferred charges	613			336
Total deferred tax assets	127,595			136,737
Deferred tax liabilities:
Depreciation	397			804
Prepaid expenses	639			184
Total deferred tax liabilities	1,036			988
Net total deferred tax assets	126,559			135,749
Less valuation allowance	(14,913		)	(135,749	)
Total deferred tax assets, net of valuation allowance	111,646			—

The benefit from income taxes consists of the following:

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2013			2012		2013			2012
Current:
Federal	$	2		$	—	$	2		$	—
State	$	85		$	138	$	515		$	(955	)
	$	87		$	138	$	517		$	(955	)
(In thousands)
Deferred:
Federal	$	(104,751	)	$	—	$	(104,751	)	$	—
State	$	(6,895	)	$	—	$	(6,895	)	$	—
	(111,646		)	—		(111,646		)	—
Total	$	(111,559	)	$	138	$	(111,129	)	$	(955	)

At September 30, 2013, the Company had federal NOL carryforwards of approximately $77.8 million and federal credit carryforwards of $4.3 million. Federal NOL carryforwards may be carried forward up to 20 years to offset future taxable income. Our federal carryforward benefits begin to expire in 2028. The Company had $15.9 million of state NOL carryforwards at September 30, 2013. State NOLs may be carried forward from 5 to 20 years, depending on the tax jurisdiction, with $8.9 million expiring between 2013 and 2027 and $7.0 million expiring between 2028 and 2032, absent sufficient state taxable income. As of September 30, 2013, we have recorded a $10.2 million valuation allowance against these state NOLs.

XML

Income Taxes Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current Federal Tax Expense (Benefit)	$ 2,000	$ 0	$ 2,000	$ 0
Current State and Local Tax Expense (Benefit)	85,000	138,000	515,000	(955,000)
Current Income Tax Expense (Benefit)	87,000	138,000	517,000	(955,000)
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Deferred Federal Income Tax Expense (Benefit)	(104,751,000)	0	(104,751,000)	0
Deferred State and Local Income Tax Expense (Benefit)	(6,895,000)	0	(6,895,000)	0
Deferred Income Tax Expense (Benefit)	(111,646,000)	0	(111,646,000)	0
Income Tax Expense (Benefit)	$ (111,559,000)	$ 138,000	$ (111,129,000)	$ (955,000)

XML

Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement of Operations [Abstract]
Revenue	$ 275,195	$ 208,875	$ 700,475	$ 510,994
Costs and Expenses [Abstract]
Land and housing	218,150	164,452	556,799	408,893
Impairment of inventory and investment in unconsolidated joint ventures	2,136	1,309	4,237	1,876
General and administrative	18,261	16,016	52,389	42,299
Selling	17,999	14,647	47,383	38,483
Interest	3,449	3,999	12,186	12,066
Equity in income of unconsolidated joint ventures	(278)	0	(278)	0
Loss on early extinguishment of debt	1,726	0	1,726	0
Total costs and expenses	261,443	200,423	674,442	503,617
Income (loss) before income taxes	13,752	8,452	26,033	7,377
(Benefit) provision for income taxes	(111,559)	138	(111,129)	(955)
Net income (loss)	125,311	8,314	137,162	8,332
Preferred Dividends	1,219	0	2,438	0
Excess of fair value over book value of preferred shares redeemed	0	0	2,190	0
Net income to common shareholders	$ 124,092	$ 8,314	$ 132,534	$ 8,332
Earnings (loss) per common share:
Basic	$ 5.09	$ 0.43	$ 5.61	$ 0.44
Diluted	$ 4.22	$ 0.42	$ 4.79	$ 0.43
Weighted Average Number of Shares Outstanding [Abstract]
Basic	24,358	19,434	23,642	19,014
Diluted	29,745	20,273	28,410	19,238

XML

Valuation Adjustments and Write-offs

9 Months Ended

Sep. 30, 2013

Valuation Adjustments and Write offs [Abstract]

Valuation Adjustments and Write-offs [Text Block]

Valuation Adjustments and Write-offs

The Company assesses inventory for recoverability on a quarterly basis, by reviewing for impairment whenever events or changes in local or national economic conditions indicate that the carrying amount of an asset may not be recoverable.

A summary of the Company’s valuation adjustments and write-offs for the three and nine months ended September 30, 2013 and 2012 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2013		2012		2013		2012
Impairment of operating communities:
Midwest	$	481	$	—	$	481	$	10
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of operating communities (a)	$	481	$	—	$	481	$	10
Impairment of future communities:
Midwest	$	1,655	$	1,309	$	2,465	$	1,771
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of future communities (a)	$	1,655	$	1,309	$	2,465	$	1,771
Impairment of land held for sale:
Midwest	$	—	$	—	$	1,291	$	95
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of land held for sale (a)	$	—	$	—	$	1,291	$	95
Option deposits and pre-acquisition costs write-offs:
Midwest	$	—	$	—	$	—	$	36
Southern	—		—		—		110
Mid-Atlantic	—		—		—		110
Total option deposits and pre-acquisition costs write-offs (b)	$	—	$	—	$	—	$	256
Impairment of investments in unconsolidated joint ventures:
Midwest	$	—	$	—	$	—	$	—
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of investments in unconsolidated joint ventures (a)	$	—	$	—	$	—	$	—
Total impairments and write-offs of option deposits and pre-acquisition costs	$	2,136	$	1,309	$	4,237	$	2,132

(a) Amounts are recorded within Impairment of inventory and investment in unconsolidated joint ventures in the Company's Unaudited Condensed Consolidated Statements of Operations.

(b) Amounts are recorded within General and administrative expenses in the Company's Unaudited Condensed Consolidated Statements of Operations.

XML

Guarantees and Indemnifications Guarantees and Indemnifications (Tables)

9 Months Ended

Sep. 30, 2013

Warranty Accrual Rollforward [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

A summary of warranty activity for the three and nine months ended September 30, 2013 and 2012 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Warranty reserves, beginning of period	$	10,388		$	8,733		$	10,438		$	9,025
Warranty expense on homes delivered during the period	1,999			1,646			5,004			4,021
Changes in estimates for pre-existing warranties	321			141			422			231
Settlements made during the period	(1,952		)	(1,524		)	(5,108		)	(4,281		)
Warranty reserves, end of period	$	10,756		$	8,996		$	10,756		$	8,996

XML

Business Segments Business Segments - Valuation Adjustments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Impaired Long-Lived Assets Held and Used [Line Items]
Total Of Valuation Adjustments And Write Offs	$ 2,136	$ 1,309	$ 4,237	$ 2,132
Midwest Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Total Of Valuation Adjustments And Write Offs	2,136	1,309	4,237	1,912
Southern Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Total Of Valuation Adjustments And Write Offs	0	0	0	110
Mid-Atlantic Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Total Of Valuation Adjustments And Write Offs	$ 0	$ 0	$ 0	$ 110

XML

Business Segments

9 Months Ended

Sep. 30, 2013

Business Segments [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segments

The Company’s segment information is presented on the basis that the chief operating decision makers use in evaluating segment performance.  The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our 13 individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding regions; and (3) our consolidated financial results.  We have determined our reportable segments as follows: Midwest homebuilding, Southern homebuilding, Mid-Atlantic homebuilding and financial services operations.  The homebuilding operating segments that are included within each reportable segment have similar operations and exhibit similar long-term economic characteristics.  Our homebuilding operations include the acquisition and development of land, the sale and construction of single-family attached and detached homes, and the occasional sale of lots to third parties.  The homebuilding operating segments that comprise each of our reportable segments are as follows:

Midwest	Southern	Mid-Atlantic
Columbus, Ohio	Tampa, Florida	Washington, D.C.
Cincinnati, Ohio	Orlando, Florida	Charlotte, North Carolina
Indianapolis, Indiana	Houston, Texas	Raleigh, North Carolina
Chicago, Illinois	San Antonio, Texas
	Austin, Texas
	Dallas/Fort Worth, Texas

Our financial services operations include the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company's homes.

The following table shows, by segment, revenue, operating income and interest expense for the three and nine months ended September 30, 2013 and 2012, as well as the Company’s income before income taxes for such periods:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Revenue:
Midwest homebuilding	$	82,689		$	79,015		$	222,890		$	198,994
Southern homebuilding	96,275			50,828			216,181			123,400
Mid-Atlantic homebuilding	89,550			72,649			239,061			172,977
Financial services (a)	6,681			6,383			22,343			15,623
Total revenue	$	275,195		$	208,875		$	700,475		$	510,994
Operating income:
Midwest homebuilding (b)	$	5,114		$	3,940		$	11,696		$	9,012
Southern homebuilding (b)	8,271			6,144			15,222			9,837
Mid-Atlantic homebuilding (b)	8,433			5,787			18,961			9,496
Financial services (a)	3,827			3,960			13,451			8,606
Less: Corporate selling, general and administrative expense	(6,996		)	(7,380		)	(19,663		)	(17,508		)
Total operating income	$	18,649		$	12,451		$	39,667		$	19,443
Interest expense:
Midwest homebuilding	$	1,023		$	1,243		$	3,852		$	4,181
Southern homebuilding	1,405			999			4,510			2,543
Mid-Atlantic homebuilding	659			1,342			2,809			4,248
Financial services (a)	362			415			1,015			1,094
Total interest expense	$	3,449		$	3,999		$	12,186		$	12,066
Equity in income of unconsolidated joint ventures	(278		)	—			(278		)	—
Loss on early extinguishment of debt	1,726			—			1,726			—
Income before income taxes	$	13,752		$	8,452		$	26,033		$	7,377

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of a small amount of mortgage re-financing.

(b) For the three months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $2.1 million and $1.3 million, respectively. These charges reduced operating income by $2.1 million and $1.3 million in the Midwest region for the three months ended September 30, 2013 and 2012, respectively. There were no charges in the Mid-Atlantic or Southern regions for the three months ended September 30, 2013 and 2012.

For the nine months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $4.2 million and $2.1 million, respectively. These charges reduced operating income by $4.2 million and $1.9 million in the Midwest region for the nine months ended September 30, 2013 and 2012, respectively, and $0.1 million in each of the Southern and Mid-Atlantic regions for the nine months ended September 30, 2012. There were no charges in the Mid-Atlantic or Southern regions for the nine months ended September 30, 2013.

The following tables show total assets by segment at September 30, 2013 and December 31, 2012:

	September 30, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,141	$	7,737	$	3,477	$	—	$	13,355
Inventory (a)	241,233		212,665		209,083		—		662,981
Investments in unconsolidated joint ventures	5,200		28,888		—		—		34,088
Other assets	7,699		14,186		9,146		341,612		372,643
Total assets	$	256,273	$	263,476	$	221,706	$	341,612	$	1,083,067

	December 31, 2012
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	1,462	$	4,612	$	2,653	$	—	$	8,727
Inventory (a)	196,554		157,302		194,234		—		548,090
Investments in unconsolidated joint ventures	5,121		6,611		—		—		11,732
Other assets	4,421		8,436		7,759		242,135		262,751
Total assets	$	207,558	$	176,961	$	204,646	$	242,135	$	831,300

(a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.

XML

Debt MIF Warehousing Agreement (Details) (USD $)			3 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 MIF Amended and Restated [Member]
Debt Instrument [Line Items]
Maximum Borrowing Capacity under Warehousing Line excluding Accordion			$ 80,000,000
Optional increase in borrowing availability for MIF			20,000,000
Maximum Borrowing Capacity under MIF Warehousing Line			100,000,000
Aggreate Maximum Principal Amount Permitted to be Outstanding Under All Warehousing Credit Lines			125,000,000
LIBOR basis points			275
Debt Instrument, Basis Spread on Variable Rate			3.50%
Maximum Borrowing Availability under all Credit Lines	115,000,000
Notes Payable - Financial Services	$ 55,614,000	$ 67,957,000

XML

Business Segments Business Segments - Assets (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	$ 13,355	$ 8,727
Inventory	662,981	548,090
Investments in unconsolidated joint ventures	34,088	11,732
Other assets	372,643	262,751
Total assets	1,083,067	831,300
Midwest Homebuilding [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	2,141	1,462
Inventory	241,233	196,554
Investments in unconsolidated joint ventures	5,200	5,121
Other assets	7,699	4,421
Total assets	256,273	207,558
Southern Homebuilding [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	7,737	4,612
Inventory	212,665	157,302
Investments in unconsolidated joint ventures	28,888	6,611
Other assets	14,186	8,436
Total assets	263,476	176,961
Mid-Atlantic Homebuilding [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	3,477	2,653
Inventory	209,083	194,234
Investments in unconsolidated joint ventures	0	0
Other assets	9,146	7,759
Total assets	221,706	204,646
Corporate, Financial Services and Unallocated [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	0	0
Inventory	0	0
Investments in unconsolidated joint ventures	0	0
Other assets	341,612	242,135
Total assets	$ 341,612	$ 242,135

XML

Inventory Inventory Parentheticals (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Parantheticals - Inventory [Abstract]
Model Home Accumulated Depreciation	$ 5,242	$ 4,883

XML

Business Segments Business Segments (Tables)

9 Months Ended

Sep. 30, 2013

Business Segments [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table shows, by segment, revenue, operating income and interest expense for the three and nine months ended September 30, 2013 and 2012, as well as the Company’s income before income taxes for such periods:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Revenue:
Midwest homebuilding	$	82,689		$	79,015		$	222,890		$	198,994
Southern homebuilding	96,275			50,828			216,181			123,400
Mid-Atlantic homebuilding	89,550			72,649			239,061			172,977
Financial services (a)	6,681			6,383			22,343			15,623
Total revenue	$	275,195		$	208,875		$	700,475		$	510,994
Operating income:
Midwest homebuilding (b)	$	5,114		$	3,940		$	11,696		$	9,012
Southern homebuilding (b)	8,271			6,144			15,222			9,837
Mid-Atlantic homebuilding (b)	8,433			5,787			18,961			9,496
Financial services (a)	3,827			3,960			13,451			8,606
Less: Corporate selling, general and administrative expense	(6,996		)	(7,380		)	(19,663		)	(17,508		)
Total operating income	$	18,649		$	12,451		$	39,667		$	19,443
Interest expense:
Midwest homebuilding	$	1,023		$	1,243		$	3,852		$	4,181
Southern homebuilding	1,405			999			4,510			2,543
Mid-Atlantic homebuilding	659			1,342			2,809			4,248
Financial services (a)	362			415			1,015			1,094
Total interest expense	$	3,449		$	3,999		$	12,186		$	12,066
Equity in income of unconsolidated joint ventures	(278		)	—			(278		)	—
Loss on early extinguishment of debt	1,726			—			1,726			—
Income before income taxes	$	13,752		$	8,452		$	26,033		$	7,377

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of a small amount of mortgage re-financing.

(b) For the three months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $2.1 million and $1.3 million, respectively. These charges reduced operating income by $2.1 million and $1.3 million in the Midwest region for the three months ended September 30, 2013 and 2012, respectively. There were no charges in the Mid-Atlantic or Southern regions for the three months ended September 30, 2013 and 2012.

For the nine months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $4.2 million and $2.1 million, respectively. These charges reduced operating income by $4.2 million and $1.9 million in the Midwest region for the nine months ended September 30, 2013 and 2012, respectively, and $0.1 million in each of the Southern and Mid-Atlantic regions for the nine months ended September 30, 2012. There were no charges in the Mid-Atlantic or Southern regions for the nine months ended September 30, 2013.

The following tables show total assets by segment at September 30, 2013 and December 31, 2012:

	September 30, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,141	$	7,737	$	3,477	$	—	$	13,355
Inventory (a)	241,233		212,665		209,083		—		662,981
Investments in unconsolidated joint ventures	5,200		28,888		—		—		34,088
Other assets	7,699		14,186		9,146		341,612		372,643
Total assets	$	256,273	$	263,476	$	221,706	$	341,612	$	1,083,067

	December 31, 2012
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	1,462	$	4,612	$	2,653	$	—	$	8,727
Inventory (a)	196,554		157,302		194,234		—		548,090
Investments in unconsolidated joint ventures	5,121		6,611		—		—		11,732
Other assets	4,421		8,436		7,759		242,135		262,751
Total assets	$	207,558	$	176,961	$	204,646	$	242,135	$	831,300

(a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.

XML

Income Taxes Income Taxes (Tables)

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of the significant temporary differences that comprise the deferred tax assets and liabilities are as follows:

(In thousands)	September 30, 2013			December 31, 2012
Deferred tax assets:
Warranty, insurance and other accruals	$	11,487		11,378
Inventory	17,417			22,612
State taxes	71			(64	)
Net operating loss carryforward	98,007			102,475
Deferred charges	613			336
Total deferred tax assets	127,595			136,737
Deferred tax liabilities:
Depreciation	397			804
Prepaid expenses	639			184
Total deferred tax liabilities	1,036			988
Net total deferred tax assets	126,559			135,749
Less valuation allowance	(14,913		)	(135,749	)
Total deferred tax assets, net of valuation allowance	111,646			—

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The benefit from income taxes consists of the following:

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2013			2012		2013			2012
Current:
Federal	$	2		$	—	$	2		$	—
State	$	85		$	138	$	515		$	(955	)
	$	87		$	138	$	517		$	(955	)
(In thousands)
Deferred:
Federal	$	(104,751	)	$	—	$	(104,751	)	$	—
State	$	(6,895	)	$	—	$	(6,895	)	$	—
	(111,646		)	—		(111,646		)	—
Total	$	(111,559	)	$	138	$	(111,129	)	$	(955	)

XML

Debt Debt (Details) (USD $)	3 Months Ended		9 Months Ended				3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 High Range Uncommittted Letter of Credit [Member]	Sep. 29, 2013 High Range Uncommittted Letter of Credit [Member]	Sep. 30, 2013 New Unsecured Credit Facility [Member]	Sep. 30, 2013 Prior Credit Facility [Member]	Jul. 17, 2013 Prior Credit Facility [Member]	Sep. 30, 2013 Maximum [Member] New Unsecured Credit Facility [Member]	Sep. 30, 2013 Minimum [Member] New Unsecured Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity							$ 200,000,000
Line of Credit Facility, Expiration Date							Jul. 18, 2016	Dec. 31, 2014
Loss on early extinguishment of debt	1,726,000	0	1,726,000	0
Optional increase in borrowing availability							25,000,000
Line of Credit Facility, Maximum Borrowing Capacity							225,000,000		140,000,000
Sub-limit for letters of credit							100,000,000
Credit Facility, Basis Spread on Variable Rate										3.25%	2.25%
Leverage ratio	60.00%		60.00%
Unsold owned land threshold	125.00%		125.00%
Maximum Investment in unrestricted subsidiaries and JVs threshold	30.00%		30.00%
Interest Coverage Ratio	1.50		1.50
Debt Instrument, Unused Borrowing Capacity, Amount	352,900,000		352,900,000
Line of Credit Facility, Amount Outstanding	0		0
letters of credit outstanding under credit facility	13,900,000		13,900,000
Maximum borrowing availability subject to limit	186,100,000		186,100,000
Number of Secured Letters of Credit Outstanding under Credit Facility	3		3
Maximum available amounts under Letter of Credit Facilities					10,000,000	8,000,000
Letters of Credit Outstanding Under Letter of Credit Facilities	15,500,000		15,500,000
Restricted Cash for Secured Letter of Credit Agreements	$ 15,800,000		$ 15,800,000

XML

Fair Value Measurements Assets Measured on a Non-Recurring Basis (Details) (Fair Value, Inputs, Level 3 [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Fair Value, Inputs, Level 3 [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Adjusted basis of inventory	$ 1,975	$ 2,108	$ 3,876	$ 2,350
Impairments	2,136	1,309	4,237	1,876
Initial basis of inventory	$ 4,111	$ 3,417	$ 8,113	$ 4,226

XML

Valuation Adjustments and Write-offs Valuation Adjustments and Write-offs (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Total valuation adjustments and write-offs	$ 2,136	$ 1,309	$ 4,237	$ 2,132
Impairment of Operating Communities [Member]
Impairment of operating communities	481	0	481	10
Impairment of Future Communities [Member]
Impairment of future communities	1,655	1,309	2,465	1,771
Impairment of Land Held for Sale [Member]
Impairment of land held for sale	0	0	1,291	95
Option Deposits and Pre-Acquisition Write-Offs [Member]
Option deposits and pre-acquisition costs write-offs	0	0	0	256
Impairment of Investments in unconsolidated joint ventures [Member]
Impairment of investments in unconsolidated joint ventures	0	0	0	0
Midwest Homebuilding [Member] | Impairment of Operating Communities [Member]
Impairment of operating communities	481	0	481	10
Midwest Homebuilding [Member] | Impairment of Future Communities [Member]
Impairment of future communities	1,655	1,309	2,465	1,771
Midwest Homebuilding [Member] | Impairment of Land Held for Sale [Member]
Impairment of land held for sale	0	0	1,291	95
Midwest Homebuilding [Member] | Option Deposits and Pre-Acquisition Write-Offs [Member]
Option deposits and pre-acquisition costs write-offs	0	0	0	36
Midwest Homebuilding [Member] | Impairment of Investments in unconsolidated joint ventures [Member]
Impairment of investments in unconsolidated joint ventures	0	0	0	0
Southern Homebuilding [Member] | Impairment of Operating Communities [Member]
Impairment of operating communities	0	0	0	0
Southern Homebuilding [Member] | Impairment of Future Communities [Member]
Impairment of future communities	0	0	0	0
Southern Homebuilding [Member] | Impairment of Land Held for Sale [Member]
Impairment of land held for sale	0	0	0	0
Southern Homebuilding [Member] | Option Deposits and Pre-Acquisition Write-Offs [Member]
Option deposits and pre-acquisition costs write-offs	0	0	0	110
Southern Homebuilding [Member] | Impairment of Investments in unconsolidated joint ventures [Member]
Impairment of investments in unconsolidated joint ventures	0	0	0	0
Mid-Atlantic Homebuilding [Member] | Impairment of Operating Communities [Member]
Impairment of operating communities	0	0	0	0
Mid-Atlantic Homebuilding [Member] | Impairment of Future Communities [Member]
Impairment of future communities	0	0	0	0
Mid-Atlantic Homebuilding [Member] | Impairment of Land Held for Sale [Member]
Impairment of land held for sale	0	0	0	0
Mid-Atlantic Homebuilding [Member] | Option Deposits and Pre-Acquisition Write-Offs [Member]
Option deposits and pre-acquisition costs write-offs	0	0	0	110
Mid-Atlantic Homebuilding [Member] | Impairment of Investments in unconsolidated joint ventures [Member]
Impairment of investments in unconsolidated joint ventures	$ 0	$ 0	$ 0	$ 0

XML

Earnings per Share Earnings per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share Calculation [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 125,311		$ 8,314	$ 137,162	$ 8,332
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Preferred Dividends	(1,219)	1,219	0	(2,438)	0
Excess of fair value over book value of preferred shares redeemed	0		0	(2,190)	0
Net Income (Loss) Available to Common Stockholders, Diluted	125,527		8,442	136,218	8,332
Weighted Average Number of Shares Outstanding, Basic	24,358		19,434	23,642	19,014
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Incremental Common Shares Attributable to Stock Options	183		187	246	92
Incremental Common Shares Attributable to Deferred Compensation	119		127	111	132
Weighted Average Number of Shares Outstanding, Diluted	29,745		20,273	28,410	19,238
Earnings Per Share, Basic	$ 5.09		$ 0.43	$ 5.61	$ 0.44
Earnings Per Share, Diluted	$ 4.22		$ 0.42	$ 4.79	$ 0.43
Anti-dilutive stock equivalent awards not included in the calculation of diluted loss per share	998		695	951	1,003
2017 Convertible Senior Notes [Member]
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Interest on Convertible Debt, Net of Tax	611		128	1,833	0
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Incremental Common Shares Attributable to Conversion of Debt Securities	2,416		525	2,416	0
2018 Convertible Senior Notes [Member]
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Interest on Convertible Debt, Net of Tax	$ 824		$ 0	$ 1,851	$ 0
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Incremental Common Shares Attributable to Conversion of Debt Securities	2,669		0	1,995	0

XML

Fair Value Measurements (Loss) Gain On Assets and Liabilities Measured On A Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	$ (413)	$ (253)	$ 323	$ (243)
Mortgage Loans Held for Sale [Member]
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	3,365	328	1,782	431
Forward Sales or Mortgage Backed Securities [Member]
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	(5,262)	(838)	(2,224)	(925)
Interest Rate Lock Commitments [Member]
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	1,677	341	941	328
Best Efforts Contracts [Member]
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	$ (193)	$ (84)	$ (176)	$ (77)

XML

Guarantees and Indemnifications Guarantees (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Total of Loans Covered by Guarantees	$ 6,100,000	$ 3,100,000
Total of Guaranteed Loans Inquired About	8,400,000	7,900,000
Total Loans Indemnified to third parties	1,000,000	1,000,000
Loan Repurchase Guarantee Liability	2,900,000	2,600,000
2018 Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes	227,970,000	227,670,000
Debt Instrument, Interest Rate, Stated Percentage	8.625%
2017 Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.25%
Convertible subordinated debt	57,500,000	57,500,000
2018 Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.00%
Convertible subordinated debt	86,250,000	0
Face Value [Member] | 2018 Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes	$ 230,000,000

XML

Earnings per Share Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The table below presents a reconciliation between basic and diluted weighted average shares outstanding, net income available to common shareholders and basic and diluted income per share for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(In thousands, except per share amounts)	2013			2012		2013			2012
NUMERATOR
Net income	$	125,311		$	8,314	$	137,162		$	8,332
Preferred stock dividends	(1,219		)	—		(2,438		)	—
Excess of fair value over book value of preferred shares redeemed	—			—		(2,190		)	—
Interest on 3.25% convertible senior subordinated notes due 2017	611			128		1,833			—
Interest on 3.00% convertible senior subordinated notes due 2018	824			—		1,851			—
Net income to common shareholders	125,527			8,442		136,218			8,332
DENOMINATOR
Basic weighted average shares outstanding	24,358			19,434		23,642			19,014
Effect of dilutive securities:
Stock option awards	183			187		246			92
Deferred compensation awards	119			127		111			132
3.25% convertible senior subordinated notes due 2017	2,416			525		2,416			—
3.00% convertible senior subordinated notes due 2018	2,669			—		1,995			—
Diluted weighted average shares outstanding - adjusted for assumed conversions	29,745			20,273		28,410			19,238
Earnings per common share
Basic	$	5.09		$	0.43	$	5.61		$	0.44
Diluted	$	4.22		$	0.42	$	4.79		$	0.43
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	998			695		951			1,003

XML

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
OPERATING ACTIVITIES:
Net income (loss)	$ 137,162	$ 8,332
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Inventory valuation adjustments and abandoned land transaction write-offs	4,237	2,132
Equity in income of unconsolidated joint ventures	(278)	0
Bargain purchase gain	0	(1,219)
Mortgage loan originations	(426,636)	(355,075)
Proceeds from the sale of mortgage loans	439,151	354,443
Fair value adjustment of mortgage loans held for sale	(1,782)	(431)
Depreciation	3,777	4,940
Amortization of intangibles, debt discount and debt issue costs	2,555	1,822
Loss on early extinguishment of debt	1,726	0
Stock-based compensation expense	1,835	1,398
Increase (Decrease) in Deferred Income Taxes	9,190	3,721
Deferred tax asset valuation allowances	(120,836)	(3,721)
Other	0	50
Change in assets and liabilities:
Cash held in escrow	148	(37)
Inventory	(142,642)	(71,236)
Other assets	(2,443)	(4,030)
Accounts payable	38,114	23,016
Customer deposits	4,679	6,604
Accrued compensation	1,767	1,667
Other liabilities	9,840	11,303
Net cash (used in) provided by operating activities	(40,436)	(16,321)
INVESTING ACTIVITIES:
Change in restricted cash	(7,274)	32,391
Purchase of property and equipment	(1,654)	(858)
Return of capital from unconsolidated joint ventures	1,522	0
Acquisition, net of cash acquired	0	(4,707)
Investment in unconsolidated joint ventures	25,496	(949)
Net cash (used in) provided by investing activities	(32,902)	25,877
FINANCING ACTIVITIES:
Repayment of senior notes, including transaction costs	0	(41,443)
Net proceeds from issuance of senior notes	0	29,700
Repayments of bank borrowings - net	(12,343)	2,234
(Principal repayments of) proceeds from notes payable-other and CDD bond obligations	(2,979)	4,968
Dividends paid on preferred shares	(2,438)	0
Net proceeds from issuance of common shares	54,617	42,085
Redemption of preferred shares	(50,352)	0
Debt issue costs	5,463	(5,843)
Proceeds from exercise of stock options	2,640	1,215
Excess tax deficiency from stock-based payment arrangements	383	0
Net cash (used in) provided by financing activities	70,315	90,416
Net increase (decrease) in cash and cash equivalents	(3,023)	99,972
Cash and cash equivalents balance at beginning of period	145,498	59,793
Cash and cash equivalents balance at end of period	142,475	159,765
SUPPLEMENTAL DISCLOSURE OF CASH PAID DURING THE YEAR:
Interest — net of amount capitalized	4,977	5,442
Income taxes	679	280
NON-CASH TRANSACTIONS DURING THE PERIOD
Community development district infrastructure	(1,215)	(995)
Consolidated inventory not owned	(17,529)	3,608
Distribution of single-family lots from unconsolidated joint ventures	1,912	0
Deferral of executive and director compensation	305
Executive and director deferred compensation distributions	0
2018 Convertible Senior Notes [Member]
FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior subordinated notes	86,250	0
2017 Convertible Senior Notes [Member]
FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior subordinated notes	$ 0	$ 57,500

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Fair Value Measurements [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

There are three measurement input levels for determining fair value: Level 1, Level 2, and Level 3. Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

Assets Measured on a Recurring Basis

The Company measures both mortgage loans held for sale and interest rate lock commitments (“IRLCs”) at fair value. In the normal course of business, our financial services segment enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates.  The commitments become effective when the borrowers “lock-in” a specified interest rate within established time frames.  Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to an investor.  To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, the Company enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers.  The forward sale contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments.  The Company does not engage in speculative trading or derivative activities.  Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers or investors are undesignated derivatives, and accordingly, are marked to fair value through earnings.  Changes in fair value measurements are included in earnings in the accompanying statements of operations.

The fair value of mortgage loans held for sale is estimated based primarily on published prices for mortgage-backed securities with similar characteristics.  To calculate the effects of interest rate movements, the Company utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount.  The Company generally sells loans on a servicing released basis, and receives a servicing release premium upon sale.  Thus, the value of the servicing rights included in the fair value measurement is based upon contractual terms with investors and depends on the loan type. The Company applies a fallout rate to IRLCs when measuring the fair value of rate lock commitments.  Fallout is defined as locked loan commitments for which the Company does not close a mortgage loan and is based on management’s judgment and company experience.

The fair value of the Company’s forward sales contracts to broker/dealers solely considers the market price movement of the same type of security between the trade date and the balance sheet date.  The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value.

Interest Rate Lock Commitments. IRLCs are extended to certain home-buying customers who have applied for a mortgage loan and meet certain defined credit and underwriting criteria. Typically, the IRLCs will have a duration of less than six months; however, in certain markets, the duration could extend to twelve months.

Some IRLCs are committed to a specific third party investor through the use of best-efforts whole loan delivery commitments matching the exact terms of the IRLC loan. Uncommitted IRLCs are considered derivative instruments and are fair value adjusted, with the resulting gain or loss recorded in current earnings.

Forward Sales of Mortgage-Backed Securities. Forward sales of mortgage-backed securities (“FMBSs”) are used to protect uncommitted IRLC loans against the risk of changes in interest rates between the lock date and the funding date. FMBSs related to uncommitted IRLCs are classified and accounted for as non-designated derivative instruments and are recorded at fair value, with gains and losses recorded in current earnings.

Mortgage Loans Held for Sale.Mortgage loans held for sale consists primarily of single-family residential loans collateralized by the underlying property.  Generally, all of the mortgage loans and related servicing rights are sold to third-party investors shortly after origination.  During the intervening period between when a loan is closed and when it is sold to an investor, the interest rate risk is covered through the use of a best-efforts contract or by FMBSs. The FMBSs are classified and accounted for as non-designated derivative instruments, with gains and losses recorded in current earnings.

The table below shows the notional amounts of our financial instruments at September 30, 2013 and December 31, 2012:

Description of financial instrument (in thousands)	September 30, 2013		December 31, 2012
Best efforts contracts and related committed IRLCs	$	4,417	$	1,184
Uncommitted IRLCs	79,594		25,854
FMBSs related to uncommitted IRLCs	80,000		26,000
Best efforts contracts and related mortgage loans held for sale	3,025		25,441
FMBSs related to mortgage loans held for sale	55,000		44,000
Mortgage loans held for sale covered by FMBSs	54,720		44,524

The table below shows the level and measurement of assets and liabilities measured on a recurring basis at September 30, 2013 and December 31, 2012:

Description of Financial Instrument (in thousands)	Fair Value Measurements September 30, 2013			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	60,388		$	—	$	60,388		$	—
Forward sales of mortgage-backed securities	(1,971		)	—		(1,971		)	—
Interest rate lock commitments	942			—		942			—
Best-efforts contracts	(179		)	—		(179		)	—
Total	$	59,180		$	—	$	59,180		$	—

Description of Financial Instrument (in thousands)	Fair Value Measurements December 31, 2012			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	71,121		$	—	$	71,121		$	—
Forward sales of mortgage-backed securities	253			—		253			—
Interest rate lock commitments	1			—		1			—
Best-efforts contracts	(3		)	—		(3		)	—
Total	$	71,372		$	—	$	71,372		$	—

The following table sets forth the amount of (loss) gain recognized, within our revenue in the Unaudited Condensed Consolidated Statements of Operations, on assets and liabilities measured on a recurring basis for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2013			2012			2013			2012
Mortgage loans held for sale	$	3,365		$	328		$	1,782		$	431
Forward sales of mortgage-backed securities	(5,262		)	(838		)	(2,224		)	(925		)
Interest rate lock commitments	1,677			341			941			328
Best-efforts contracts	(193		)	(84		)	(176		)	(77		)
Total (loss) gain recognized	$	(413	)	$	(253	)	$	323		$	(243	)

The following tables set forth the fair value of the Company's derivative instruments and their location within the Unaudited Condensed Consolidated Balance Sheets for the periods indicated (except for mortgage loans held for sale which is disclosed as a separate line item):

	Asset Derivatives			Liability Derivatives
	September 30, 2013			September 30, 2013
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	—	Other liabilities	$	1,971
Interest rate lock commitments	Other assets	942		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	179
Total fair value measurements		$	942		$	2,150

	Asset Derivatives			Liability Derivatives
	December 31, 2012			December 31, 2012
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	253	Other liabilities	$	—
Interest rate lock commitments	Other assets	1		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	3
Total fair value measurements		$	254		$	3

Assets Measured on a Non-Recurring Basis

The Company assesses inventory for recoverability on a quarterly basis if events or changes in local or national economic conditions indicate that the carrying amount of an asset may not be recoverable. In conducting our quarterly review for indicators of impairment on a community level, we evaluate, among other things, margins on sales contracts in backlog, the margins on homes that have been delivered, expected changes in margins with regard to future home sales over the life of the community, expected changes in margins with regard to future land sales, the value of the land itself as well as any results from third party appraisals. We pay particular attention to communities in which inventory is moving at a slower than anticipated absorption pace, and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. We also evaluate communities where management intends to lower the sales price or offer incentives in order to improve absorptions even if the community's historical results do not indicate a potential for impairment. From the review of all of these factors, we identify communities whose carrying values may exceed their estimated undiscounted future cash flows and run a test for recoverability. For those communities whose carrying values exceed the estimated undiscounted future cash flows and which are deemed to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the communities exceeds the estimated fair value. Due to the fact that the Company's cash flow models and estimates of fair values are based upon management estimates and assumptions, unexpected changes in market conditions and/or changes in management's intentions with respect to the inventory may lead the Company to incur additional impairment charges in the future.

Our determination of fair value is based on projections and estimates, which are Level 3 measurement inputs.  Our analysis is completed at a phase level within each community; therefore, changes in local conditions may affect one or several of our communities. For all of the categories listed below, the key assumptions relating to the valuations are dependent on project-specific local market and/or community conditions and are inherently uncertain. Because each inventory asset is unique, there are numerous inputs and assumptions used in our valuation techniques. Market factors that may impact these assumptions include:

• historical project results such as average sales price and sales pace, if closings have occurred in the project;

• competitors' market and/or community presence and their competitive actions;

• project specific attributes such as location desirability and uniqueness of product offering;

• potential for alternative product offerings to respond to local market conditions; and

• current economic and demographic conditions and related trends and forecasts.

These and other market factors that may impact project assumptions are considered by personnel in our homebuilding divisions as they prepare or update the forecasts for each community. Quantitative and qualitative factors other than home sales prices could significantly impact the potential for future impairments. The sales objectives can differ between communities, even within a given sub-market. For example, facts and circumstances in a given community may lead us to price our homes with the objective of yielding a higher sales absorption pace, while facts and circumstances in another community may lead us to price our homes to minimize deterioration in our gross margins, although it may result in a slower sales absorption pace. Furthermore, the key assumptions included in our estimated future undiscounted cash flows may be interrelated. For example, a decrease in estimated base sales price or an increase in home sales incentives may result in a corresponding increase in sales absorption pace or a reduction in base house costs. Changes in our key assumptions, including estimated average selling price, construction and development costs, absorption pace, selling strategies, or discount rates, could materially impact future cash flow and fair value estimates.

As of September 30, 2013, our projections generally assume a gradual improvement in market conditions over time. If communities are not recoverable based on estimated future undiscounted cash flows, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The fair value of a community is estimated by discounting management's cash flow projections using an appropriate risk-adjusted interest rate. As of September 30, 2013, we utilized discount rates ranging from 13% to 16% in our valuations. The discount rate used in determining each asset's estimated fair value reflects the inherent risks associated with the related estimated cash flow stream, as well as current risk-free rates available in the market and estimated market risk premiums. For example, construction in progress inventory, which is closer to completion, will generally require a lower discount rate than land under development in communities consisting of multiple phases spanning several years of development.

Operating Communities.  If an indicator for impairment exists for existing operating communities, the recoverability of assets is evaluated by comparing the carrying amount of the assets to estimated future undiscounted net cash flows expected to be generated by the assets based on home sales.  These estimated cash flows are developed based primarily on management's assumptions relating to the specific community. The significant assumptions used to evaluate the recoverability of assets include: the timing of development and/or marketing phases; projected sales price and sales pace of each existing or planned community; the estimated land development, home construction, and selling costs of the community; overall market supply and demand; the local market; and competitive conditions. Management reviews these assumptions on a quarterly basis. While we consider available information to determine what we believe to be our best estimates as of the end of a reporting period, these estimates are subject to change in future reporting periods as facts and circumstances change. We believe the most critical assumptions in the Company's cash flow models are projected absorption pace for home sales, sales prices, and costs to build and deliver homes on a community by community basis.

In order to estimate the assumed absorption pace for home sales included in the Company's cash flow models, the Company analyzes the historical absorption pace in the community as well as other communities in the geographic area. In addition, the Company considers internal and external market studies and trends, which may include, but are not limited to, statistics on population demographics, unemployment rates, foreclosure sales, and availability of competing products in the geographic area where a community is located. When analyzing the Company's historical absorption pace for home sales and corresponding internal and external market studies, the Company places greater emphasis on more current metrics and trends such as the absorption pace realized in its most recent quarters and management's most current assessment of sales pace.

In order to estimate the sales prices included in its cash flow models, the Company considers the historical sales prices realized on homes it delivered in the community and other communities in the geographic area, as well as the sales prices included in its current backlog for such communities. In addition, the Company considers internal and external market studies and trends, which may include, but are not limited to, statistics on sales prices in neighboring communities, which include the impact of short sales, if any, and sales prices on similar products in non-neighboring communities in the geographic area where the community is located. When analyzing its historical sales prices and corresponding market studies, the Company places greater emphasis on more current metrics and trends such as the sales prices realized in its most recent quarters and the sales prices in current backlog. Based upon this analysis, the Company sets a sales price for each house type in the community which it believes will achieve an acceptable gross margin and sales pace in the community. This price becomes the price published to the sales force for use in its sales efforts. The Company then considers the average of these published sales prices when estimating the future sales prices in its cash flow models, assuming no increase in weighted average sales price in 2013, a 4% increase in 2014 and 2015, and a 2% increase in 2016 and beyond.

In order to arrive at the Company's assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors and subcontractors, adjusted for any anticipated cost reduction initiatives or increases in cost structure. With respect to overhead included in the cash flow models, the Company uses forecasted rates included in the Company's annual budget adjusted for actual experience that is materially different than budgeted rates. The Company anticipates no increase in assumed weighted average costs in 2013, a 4% increase in 2014 and 2015, and a 2% increase in 2016 and beyond.

Future communities. If an indicator of impairment exists for raw land, land under development, or lots that management anticipates will be utilized for future homebuilding activities, the recoverability of assets is evaluated by comparing the carrying amount of the assets to the estimated future undiscounted cash flows expected to be generated by the assets based on home sales, consistent with the evaluations performed for operating communities discussed above.

For raw land, land under development, or lots that management intends to market for sale to a third party, but that do not meet all of the criteria to be classified as land held for sale as discussed below, the estimated fair value of the assets is determined based on either the estimated net sales proceeds expected to be realized on the sale of the assets or the estimated fair value determined using cash flow valuation techniques.

If the Company has not yet determined whether raw land, land under development, or lots will be utilized for future homebuilding activities or marketed for sale to a third party, the Company assesses the recoverability of the inventory using a probability-weighted approach.

Land held for sale. Land held for sale includes land that meets all of the following six criteria: (1) management, having the authority to approve the action, commits to a plan to sell the asset; (2) the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; (4) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; (5) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company records land held for sale at the lower of its carrying value or estimated fair value less costs to sell. In performing the impairment evaluation for land held for sale, management considers, among other things, prices for land in recent comparable sales transactions, market analysis and recent bona fide offers received from outside third parties, as well as actual contracts. If the estimated fair value less the costs to sell an asset is less than the asset's current carrying value, the asset is written down to its estimated fair value less costs to sell.

Our quarterly assessments reflect management's best estimates. Due to the inherent uncertainties in management's estimates and uncertainties related to our operations and our industry as a whole, we are unable to determine at this time if and to what extent continuing future impairments will occur. Additionally, due to the volume of possible outcomes that can be generated from changes in the various model inputs for each community, we do not believe it is possible to create a sensitivity analysis that can provide meaningful information for the users of our financial statements.

Variable Interest Entities.In order to minimize our investment and risk of land exposure in a single location, we have periodically partnered with other land developers or homebuilders to share in the land investment and development of a property through joint ownership and development agreements, joint ventures, and other similar arrangements. During the nine month period ended September 30, 2013, we increased our total investment in such joint venture arrangements from December 31, 2012 by $22.4 million primarily due to a joint investment with another builder in a land development in our Southern region.

For joint venture arrangements where a special purpose entity is established to own the property, we generally enter into limited liability company or similar arrangements (“LLCs”) with the other partners. The Company's ownership in these LLCs as of September 30, 2013 ranged from 25% to 61%. These entities typically engage in land development activities for the purpose of distributing or selling developed lots to the Company and its partners in the LLC. With respect to our investments in these LLCs, we are required, under ASC 810-10, Consolidation (“ASC 810-10”), to evaluate whether or not such entities should be consolidated into our financial statements. We initially perform these evaluations when each new entity is created and upon any events that require reconsideration of the entity. In order to determine if we should consolidate an LLC, we determine (1) if the LLC is a Variable Interest Entity (“VIE”) and (2) if we are the primary beneficiary of the entity. To determine whether we are the primary beneficiary of an entity, we consider whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. This analysis considers, among other things, whether we have the ability to determine the budget and scope of land development work, if any; the ability to control financing decisions for the VIE; the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with M/I Homes; and the ability to change or amend the existing option contract with the VIE. If it is determined we are not able to control such activities, we are not considered the primary beneficiary of the VIE.

As of September 30, 2013, we have determined that one of the LLCs in which we have an interest meets the requirements of a VIE due to a lack of equity at risk in the entity. However, we have determined that we do not have substantive control over any of these entities, including our VIE, as we do not have the ability to control the activities that most significantly impact their economic performance. As a result, none of these LLCs are required to be consolidated into our financial statements and the entities are instead recorded in Investment in Unconsolidated Joint Ventures on our Unaudited Condensed Consolidated Balance Sheets.

We enter into option or purchase agreements to acquire land or lots, for which we generally pay non-refundable deposits. We also analyze these agreements under ASC 810-10 to determine whether we are the primary beneficiary of the VIE, if applicable, using an analysis similar to that described above. If we are deemed to be the primary beneficiary of the VIE, we will consolidate the VIE in our consolidated financial statements. In cases where we are the primary beneficiary, even though we do not have title to such land, we are required to consolidate these purchase/option agreements and reflect such assets and liabilities as Consolidated Inventory not Owned in our Unaudited Condensed Consolidated Balance Sheets.

Investment In Unconsolidated Joint Ventures.We use the equity method of accounting for investments in unconsolidated joint ventures over which we exercise significant influence but do not have a controlling interest. Under the equity method, our share of the unconsolidated joint ventures' earnings or loss, if any, is included in our statement of operations. We evaluate our investments in unconsolidated joint ventures for impairment at least quarterly as described below.

If the fair value of the investment is less than the investment's carrying value and the Company has determined that the decline in value is other than temporary, the Company would write down the value of the investment to fair value. The determination of whether an investment's fair value is less than the carrying value requires management to make certain assumptions regarding the amount and timing of future contributions to the unconsolidated joint venture, the timing of distribution of lots to the Company from the unconsolidated joint venture, the projected fair value of the lots at the time of distribution to the Company, and the estimated proceeds from, and timing of, the sale of land or lots to third parties. In determining the fair value of investments in unconsolidated joint ventures, the Company evaluates the projected cash flows associated with each unconsolidated joint venture. As of September 30, 2013, the Company used a discount rate of 16% in determining the fair value of investments in unconsolidated joint ventures. In addition to the assumptions management must make to determine if the investment's fair value is less than the carrying value, management must also use judgment in determining whether the impairment is other than temporary. The factors management considers are: (1) the length of time and the extent to which the market value has been less than cost; (2) the financial condition and near-term prospects of the company; and (3) the intent and ability of the Company to retain its investment in the unconsolidated joint venture for a period of time sufficient to allow for any anticipated recovery in market value. We believe that the Company's maximum exposure related to its investment in these unconsolidated joint ventures as of September 30, 2013 is the amount invested of $34.1 million (in addition to a $2.5 million note due to the Company from one of the unconsolidated joint ventures), although we expect to invest further amounts in these unconsolidated joint ventures as development of the properties progresses. Included in the Company's investment in unconsolidated joint ventures at September 30, 2013 and December 31, 2012 were $0.7 million and $0.8 million of capitalized interest and other costs, respectively.

Because of the high degree of judgment involved in developing these assumptions, it is possible that the Company may determine the investment is not impaired in the current period; however, due to the passage of time, change in market conditions, and/or changes in management's intentions with respect to the inventory, a change in assumptions could result and impairment could occur.

The table below summarizes the Company's assets measured on a non-recurring basis as of and for the three and nine months ended September 30, 2013 and 2012:

		Three Months Ended September 30,				Nine Months Ended September 30,
Description (in thousands)	Hierarchy	2013		2012 (2)		2013		2012 (2)
Adjusted basis of inventory (1)	Level 3	$	1,975	$	2,108	$	3,876	$	2,350
Impairments		2,136		1,309		4,237		1,876
Initial basis of inventory		$	4,111	$	3,417	$	8,113	$	4,226

(1) The fair values in the table above represent only assets whose carrying values were adjusted in the respective period.

(2) The carrying values for these assets may have subsequently increased or decreased from the fair value reported due to activities that have occurred since the measurement date.

Financial Instruments

Counterparty Credit Risk. To reduce the risk associated with losses that would be recognized if counterparties failed to perform as contracted, the Company limits the entities with whom management can enter into commitments. This risk of accounting loss is the difference between the market rate at the time of non-performance by the counterparty and the rate to which the Company committed.

The following table presents the carrying amounts and fair values of the Company's financial instruments at September 30, 2013 and December 31, 2012. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price).

	September 30, 2013				December 31, 2012
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash, cash equivalents and restricted cash	$	158,281	$	158,281	$	154,178	$	154,178
Mortgage loans held for sale	60,388		60,388		71,121		71,121
Split dollar life insurance policies	176		174		710		678
Notes receivable	3,312		3,180		8,787		7,460
Commitments to extend real estate loans	942		942		1		1
Forward sales of mortgage-backed securities	—		—		253		253
Liabilities:
Notes payable - banks	55,614		55,614		67,957		67,957
Notes payable - other	8,126		8,137		11,105		11,148
Convertible senior subordinated notes due 2017	57,500		65,406		57,500		74,175
Convertible senior subordinated notes due 2018	86,250		87,328		—		—
Senior notes due 2018	227,970		246,675		227,670		250,700
Best-efforts contracts for committed IRLCs and mortgage loans held for sale	179		179		3		3
Forward sales of mortgage-backed securities	1,971		1,971		—		—
Off-Balance Sheet Financial Instruments:
Letters of credit	—		659		—		493

The following methods and assumptions were used by the Company in estimating its fair value disclosures of financial instruments at September 30, 2013 and December 31, 2012:

Cash, Cash Equivalents and Restricted Cash. The carrying amounts of these items approximate fair value because they are short-term by nature.

Mortgage Loans Held for Sale, Forward Sales of Mortgage-Backed Securities, Commitments to Extend Real Estate Loans, Best-Efforts Contracts for Committed IRLCs and Mortgage Loans Held for Sale, 2017 Convertible Senior Subordinated Notes, 2018 Convertible Senior Subordinated Notes and 2018 Senior Notes. The fair value of these financial instruments was determined based upon market quotes at September 30, 2013 and December 31, 2012. The market quotes used were quoted prices for similar assets or liabilities along with inputs taken from observable market data by correlation. The inputs were adjusted to account for the condition of the asset or liability.

Split Dollar Life Insurance Policies and Notes Receivable. The estimated fair value was determined by calculating the present value of the amounts based on the estimated timing of receipts using discount rates that incorporate management's estimate of risk associated with the corresponding note receivable. During the third quarter of 2013, the balance of our split dollar life insurance policies decreased by $0.5 million due to the surrender of a policy (and termination of the related split-dollar agreement) by an officer.

Notes Payable - Banks. The interest rate available to the Company in the third quarter of 2013 fluctuated with the Alternate Base Rate or the Eurodollar Rate (for the Company's new $200 million unsecured revolving credit facility (the “Credit Facility”) or LIBOR (for M/I Financial Corp.'s $100 million secured mortgage warehousing agreement as amended and restated on March 29, 2013 (the “MIF Mortgage Warehousing Agreement”) and for M/I Financial's $15 million mortgage repurchase agreement dated November 13, 2012, as amended (the “MIF Mortgage Repurchase Facility”)), and thus their carrying value is a reasonable estimate of fair value. During the second quarter of 2013, M/I Financial exercised the accordion feature under the MIF Mortgage Warehousing Agreement to increase the maximum borrowing availability amount thereunder by $20.0 million to $100.0 million.

Notes Payable - Other. The estimated fair value was determined by calculating the present value of the future cash flows using the Company's current incremental borrowing rate.

Letters of Credit. Letters of credit of $29.4 million and $25.7 million represent potential commitments at September 30, 2013 and December 31, 2012, respectively. The letters of credit generally expire within one or two years. The estimated fair value of letters of credit was determined using fees currently charged for similar agreements.

XML

Capitalized Interest

9 Months Ended

Sep. 30, 2013

Capitalized Interest [Abstract]

capitalized interest [Text Block]

Capitalized Interest

The Company capitalizes interest during land development and home construction.  Capitalized interest is charged to cost of sales as the related inventory is delivered to a third party.  The summary of capitalized interest for the three and nine months ended September 30, 2013 and 2012 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Capitalized interest, beginning of period	$	14,260		$	17,967		$	15,376		$	18,869
Interest capitalized to inventory	3,940			2,574			10,045			7,128
Capitalized interest charged to cost of sales	(4,074		)	(3,755		)	(11,295		)	(9,211		)
Capitalized interest, end of period	$	14,126		$	16,786		$	14,126		$	16,786
Interest incurred	$	7,389		$	6,573		$	22,231		$	19,194

XML

Inventory

9 Months Ended

Sep. 30, 2013

Inventory [Abstract]

Inventory Disclosure [Text Block]

Inventory

A summary of the Company's inventory as of September 30, 2013 and December 31, 2012 is as follows:

(In thousands)	September 30, 2013		December 31, 2012
Single-family lots, land and land development costs	$	283,455	$	257,397
Land held for sale	6,899		8,442
Homes under construction	331,969		221,432
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2013 - $5,242;    December 31, 2012 - $4,883)	35,664		37,080
Community development district infrastructure	3,418		4,634
Land purchase deposits	13,355		8,727
Consolidated inventory not owned	1,576		19,105
Total inventory	$	676,336	$	556,817

Single-family lots, land and land development costs include raw land that the Company has purchased to develop into lots, costs incurred to develop the raw land into lots, and lots for which development has been completed, but which have not yet been used to start construction of a home.

Homes under construction include homes that are in various stages of construction. As of September 30, 2013 and December 31, 2012, we had 822 homes (with a carrying value of $110.0 million) and 649 homes (with a carrying value of $89.8 million), respectively, included in homes under construction that were not subject to a sales contract.

Model homes and furnishings include homes that are under construction or have been completed and are being used as sales models. The amount also includes the net book value of furnishings included in our model homes. Depreciation on model home furnishings is recorded using an accelerated method over the estimated useful life of the assets, typically three years.

The Company assesses inventory for recoverability on a quarterly basis. Refer to Note 2 of our Unaudited Condensed Consolidated Financial Statements for additional details relating to our procedures for evaluating our inventories for impairment.

Land purchase deposits include both refundable and non-refundable amounts paid to third party sellers relating to the purchase of land. On an ongoing basis, the Company evaluates the land option agreements relating to the land purchase deposits. In the period during which the Company makes the decision not to proceed with the purchase of land under an agreement, the Company writes off any deposits and accumulated pre-acquisition costs relating to such agreement.

XML

Capitalized Interest Capitalized Interest (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Capitalized Interest [Abstract]
Capitalized interest, beginning of period	$ 14,260	$ 17,967	$ 15,376	$ 18,869
Interest capitalized to inventory	3,940	2,574	10,045	7,128
Capitalized interest charged to cost of sales	(4,074)	(3,755)	(11,295)	(9,211)
Capitalized interest, end of period	14,126	16,786	14,126	16,786
Interest incurred	$ 7,389	$ 6,573	$ 22,231	$ 19,194

XML

Supplemental Guarantor Information Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 30, 2013

Supplemental Guarantor Information [Abstract]

Schedule Of Condensed Consolidating Statement Of Operations [Table Text Block]

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Three Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	268,514		$	6,681		$	—		$	275,195
Costs and expenses:
Land and housing	—		218,150			—			—			218,150
Impairment of inventory and investment in unconsolidated joint ventures	—		2,136						—			2,136
General and administrative	—		15,309			2,952			—			18,261
Selling	—		17,979			20			—			17,999
Equity in income of unconsolidated joint ventures	—		—			(278		)	—			(278		)
Interest	—		3,087			362			—			3,449
Loss on early extinguishment of debt	—		1,726			—			—			1,726
Total costs and expenses	—		258,387			3,056			—			261,443
Income before income taxes	—		10,127			3,625			—			13,752
(Benefit) provision for income taxes	—		(112,694		)	1,135			—			(111,559		)
Equity in subsidiaries	125,311		—			—			(125,311		)	—
Net income (loss)	125,311		122,821			2,490			(125,311		)	125,311
Preferred dividends	1,219		—			—			—			1,219
Net income (loss) to common shareholders	$	124,092	$	122,821		$	2,490		$	(125,311	)	$	124,092

	Three Months Ended September 30, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries		Eliminations			Consolidated
Revenue	$	—	$	202,492		$	6,383	$	—		$	208,875
Costs and expenses:
Land and housing	—		164,452			—		—			164,452
Impairment of inventory and investment in unconsolidated joint ventures	—		1,309			—		—			1,309
General and administrative	—		13,425			2,591		—			16,016
Selling	—		14,647			—		—			14,647
Interest	—		3,584			415		—			3,999
Total costs and expenses	—		197,417			3,006		—			200,423
Income before income taxes	—		5,075			3,377		—			8,452
(Benefit) provision for income taxes	—		(1,003		)	1,141		—			138
Equity in subsidiaries	8,314		—			—		(8,314		)	—
Net income (loss)	$	8,314	$	6,078		$	2,236	$	(8,314	)	$	8,314

Schedule Of Condensed Consolidating Balance Sheet [Table Text Block]

CONDENSED CONSOLIDATING BALANCE SHEET
	September 30, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	126,254	$	16,221	$	—		$	142,475
Restricted cash	—		15,806		—		—			15,806
Mortgage loans held for sale	—		—		60,388		—			60,388
Inventory	—		676,336		—		—			676,336
Property and equipment - net	—		10,139		207		—			10,346
Investment in unconsolidated joint ventures	—		14,656		19,432		—			34,088
Investment in subsidiaries	521,617		—		—		(521,617		)	—
Deferred income taxes, net of valuation allowances	—		112,164		518		—			112,682
Intercompany assets	319,136		—		—		(319,136		)	—
Other assets	10,547		12,389		8,010		—			30,946
TOTAL ASSETS	$	851,300	$	967,744	$	104,776	$	(840,753	)	$	1,083,067
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	85,383	$	421	$	—		$	85,804
Customer deposits	—		14,918		—		—			14,918
Intercompany liabilities	—		298,130		21,006		(319,136		)	—
Other liabilities	—		54,669		7,641		—			62,310
Community development district obligations	—		3,419		—		—			3,419
Obligation for consolidated inventory not owned	—		1,576		—		—			1,576
Notes payable bank - financial services operations	—		—		55,614		—			55,614
Notes payable - other	—		8,126		—		—			8,126
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Convertible senior subordinated notes due 2018	86,250		—		—		—			86,250
Senior notes	227,970		—		—		—			227,970
TOTAL LIABILITIES	371,720		466,221		84,682		(319,136		)	603,487
SHAREHOLDERS' EQUITY	479,580		501,523		20,094		(521,617		)	479,580
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	851,300	$	967,744	$	104,776	$	(840,753	)	$	1,083,067

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	126,334	$	19,164	$	—		$	145,498
Restricted cash	—		8,680		—		—			8,680
Mortgage loans held for sale	—		—		71,121		—			71,121
Inventory	—		540,761		16,056		—			556,817
Property and equipment - net	—		10,314		125		—			10,439
Investment in unconsolidated joint ventures	—		—		11,732		—			11,732
Investment in subsidiaries	391,555		—		—		(391,555		)	—
Intercompany assets	219,962		—		—		(219,962		)	—
Other assets	9,081		12,375		5,557		—			27,013
TOTAL ASSETS	$	620,598	$	698,464	$	123,755	$	(611,517	)	$	831,300
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	46,882	$	808	$	—		$	47,690
Customer deposits	—		10,239		—		—			10,239
Intercompany liabilities	—		205,389		14,573		(219,962		)	—
Other liabilities	—		44,230		5,742		—			49,972
Community development district obligations	—		4,634		—		—			4,634
Obligation for consolidated inventory not owned	—		3,549		15,556		—			19,105
Notes payable bank - financial services operations	—		—		67,957		—			67,957
Notes payable - other	—		11,105		—		—			11,105
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Senior notes	227,670		—		—		—			227,670
TOTAL LIABILITIES	285,170		326,028		104,636		(219,962		)	495,872
SHAREHOLDERS' EQUITY	335,428		372,436		19,119		(391,555		)	335,428
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	620,598	$	698,464	$	123,755	$	(611,517	)	$	831,300

(a) Certain amounts above have been reclassified from intercompany assets to intercompany liabilities as of December 31, 2012. These reclassifications relate solely to transactions between M/I Homes, Inc. and its subsidiaries and are immaterial to the Supplemental Condensed Consolidated Financial Statements. These reclassifications do not impact the Company's consolidated financial statements.

Schedule Of Condensed Consolidating Statement Of Cash Flows [Table Text Block]

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	7,100		$	(60,703	)	$	20,267		$	(7,100	)	$	(40,436	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			(7,274		)	—						(7,274		)
Purchase of property and equipment	—			(1,528		)	(126		)				(1,654		)
Investments in and advances to unconsolidated joint ventures	—			(14,657		)	(10,839		)	—			(25,496		)
Return of capital from unconsolidated joint ventures	—			—			1,522			—			1,522
Net cash used in investing activities	—			(23,459		)	(9,443		)	—			(32,902		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			(12,343		)	—			(12,343		)
Principal repayments of note payable - other and community development district bond obligations	—			(2,979		)	—			—			(2,979		)
Proceeds from issuance of convertible senior subordinated notes due 2018	86,250			—			—			—			86,250
Redemption of preferred shares	(50,352		)	—			—			—			(50,352		)
Proceeds from issuance of common shares	54,617			—			—			—			54,617
Proceeds from exercise of stock options	2,640			—			—			—			2,640
Excess tax benefits from stock-based payment arrangements	383			—			—			—			383
Intercompany financing	(98,200		)	92,463			5,737			—			—
Dividends paid	(2,438		)	—			(7,100		)	7,100			(2,438		)
Debt issue costs	—			(5,402		)	(61		)	—			(5,463		)
Net cash (used in) provided by financing activities	(7,100		)	84,082			(13,767		)	7,100			70,315
Net (decrease) increase in cash and cash equivalents	—			(80		)	(2,943		)	—			(3,023		)
Cash and cash equivalents balance at beginning of period	—			126,334			19,164			—			145,498
Cash and cash equivalents balance at end of period	$	—		$	126,254		$	16,221		$	—		$	142,475

	Nine Months Ended September 30, 2012
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	2,000		$	(20,546	)	$	4,225		$	(2,000	)	$	(16,321	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			32,391			—			—			32,391
Purchase of property and equipment	—			(786		)	(72		)	—			(858		)
Acquisition, net of cash acquired	—			(4,707		)	—			—			(4,707		)
Investments in and advances to unconsolidated joint ventures	—			—			(949		)	—			(949		)
Net cash provided by (used in) investing activities	—			26,898			(1,021		)	—			25,877
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowings - net	—			—			2,234			—			2,234
Repayment of Senior Notes	(41,443		)	—			—			—			(41,443		)
Principal proceeds from note payable - other and community development district bond obligations	—			4,968			—			—			4,968
Proceeds from issuance of convertible senior subordinated notes due 2017	57,500			—			—			—			57,500
Proceeds from issuance of common shares	42,085			—			—			—			42,085
Intercompany financing	(91,057		)	91,852			(795		)	—			—
Proceeds from issuance of senior notes	29,700			—			—			—			29,700
Dividends paid	—			—			(2,000		)	2,000			—
Debt issue costs	—			(5,812		)	(31		)	—			(5,843		)
Proceeds from exercise of stock options	1,215			—			—			—			1,215
Net cash provided by (used in) financing activities	(2,000		)	91,008			(592		)	2,000			90,416
Net increase in cash and cash equivalents	—			97,360			2,612			—			99,972
Cash and cash equivalents balance at beginning of period	—			43,539			16,254			—			59,793
Cash and cash equivalents balance at end of period	$	—		$	140,899		$	18,866		$	—		$	159,765

(a) Certain amounts above have been reclassified from intercompany financing to dividends paid and cash flows from operating activities for the nine months ended September 30, 2012. These reclassifications relate solely to transactions between M/I Homes, Inc. and its subsidiaries and are immaterial to the Supplemental Condensed Consolidated Financial Statements. These reclassifications do not impact the Company's consolidated financial statements.

XML

Fair Value Measurements Balance Sheet Location of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	$ 942	$ 254
Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	2,150	3
Forward Sales or Mortgage Backed Securities [Member] | Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	0	253
Forward Sales or Mortgage Backed Securities [Member] | Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	1,971	0
Interest Rate Lock Commitments [Member] | Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	942	1
Interest Rate Lock Commitments [Member] | Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	0	0
Best Efforts Contracts [Member] | Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	0	0
Best Efforts Contracts [Member] | Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	$ 179	$ 3

XML

Inventory Inventory (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Inventory [Abstract]
Single-family lots, land and land development costs	$ 283,455	$ 257,397
Land held for sale	6,899	8,442
Homes under construction	331,969	221,432
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2013 - $5,242; December 31, 2012 - $4,883)	35,664	37,080
Community development district infrastructure	3,418	4,634
Land Purchase Deposits	13,355	8,727
Consolidated Inventory Not Owned	1,576	19,105
Total Inventory	$ 676,336	$ 556,817

XML

Business Segments Business Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Segment Reporting Information [Line Items]
Revenue	$ 275,195	$ 208,875	$ 700,475	$ 510,994
Operating Income (Loss)	18,649	12,451	39,667	19,443
Interest	3,449	3,999	12,186	12,066
Equity in income of unconsolidated joint ventures	(278)	0	(278)	0
Loss on early extinguishment of debt	1,726	0	1,726	0
Income (loss) before income taxes	13,752	8,452	26,033	7,377
Midwest Homebuilding [Member]
Segment Reporting Information [Line Items]
Homebuilding revenue	82,689	79,015	222,890	198,994
Operating Income (Loss)	5,114	3,940	11,696	9,012
Interest	1,023	1,243	3,852	4,181
Southern Homebuilding [Member]
Segment Reporting Information [Line Items]
Homebuilding revenue	96,275	50,828	216,181	123,400
Operating Income (Loss)	8,271	6,144	15,222	9,837
Interest	1,405	999	4,510	2,543
Mid-Atlantic Homebuilding [Member]
Segment Reporting Information [Line Items]
Homebuilding revenue	89,550	72,649	239,061	172,977
Operating Income (Loss)	8,433	5,787	18,961	9,496
Interest	659	1,342	2,809	4,248
Financial Services [Member]
Segment Reporting Information [Line Items]
Financial services revenue	6,681	6,383	22,343	15,623
Operating Income (Loss)	3,827	3,960	13,451	8,606
Interest	362	415	1,015	1,094
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Selling, general and administrative expenses	$ (6,996)	$ (7,380)	$ (19,663)	$ (17,508)

XML

Earnings per Share Earnings per Share (Textuals) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Preferred Stock Dividends and Other Adjustments [Abstract]
Preferred Stock, Shares Outstanding	2,000			2,000		4,000
Preferred Stock, Dividends, Per Share, Cash Paid	$ 609.375			$ 609.375
Preferred Dividends	$ 1,219	$ (1,219)	$ 0	$ 2,438	$ 0
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount [Abstract]
Preferred shares redeemed during period				2,000
Excess of fair value over book value of preferred shares redeemed	0		0	2,190	0
Redemption of preferred shares				(50,352)	0
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Stock Issued During Period, Shares, New Issues				2,461,000
StockIssuedDuringPeriodPricePerShare				$ 23.50
Proceeds from Issuance of Common Stock				$ 54,617	$ 42,085

XML

Legal Liabilities Legal Liabilities (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Legal Liabilities [Abstract]
Amount Reserved for Legal Expenses	$ 0.3	$ 0.3

XML

Condensed Consolidated Balance Sheets (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Parentheticals - Balance Sheet [Abstract]
Deferred Tax Assets, Net of Valuation Allowance, Current	$ (14,913)	$ (135,749)
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	38,000,000	38,000,000
Common Stock, Shares, Issued	27,092,723	24,631,723
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	2,000,000	2,000,000
Preferred Stock, Shares Issued	2,000	4,000
Preferred Stock, Shares Outstanding	2,000	4,000
Treasury Stock, Shares	2,734,780	2,944,470

XML

Legal Liabilities

9 Months Ended

Sep. 30, 2013

Legal Liabilities [Abstract]

Legal Matters and Contingencies [Text Block]

Legal Liabilities

The Company and certain of its subsidiaries have been named as defendants in certain claims, complaints and legal actions which are incidental to our business. Certain of the liabilities resulting from these matters are covered by insurance. While management currently believes that the ultimate resolution of these matters, individually and in the aggregate, will not have a material effect on the Company's financial position, results of operations and cash flows, such matters are subject to inherent uncertainties. The Company has recorded a liability to provide for the anticipated costs, including legal defense costs, associated with the resolution of these matters. However, it is possible that the costs to resolve these matters could differ from the recorded estimates and, therefore, have a material effect on the Company's net income for the periods in which the matters are resolved. At both September 30, 2013 and December 31, 2012, we had $0.3 million reserved for legal expenses.

XML

Condensed Consolidated Statement of Shareholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Preferred Shares [Member]	Common Shares [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Shares [Member]
Stockholders' Equity, Beginning Balance at Dec. 31, 2012	$ 335,428	$ 96,325	$ 246	$ 180,289	$ 117,048	$ (58,480)
Shares Outstanding, Beginning Balance at Dec. 31, 2012		4,000	21,687,253
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	137,162				137,162
Fair value over carrying value of preferred shares redeemed	0	2,190			(2,190)
Dividends, Preferred Stock	(2,438)				(2,438)
Common share issuance	2,461,000		2,461,000
Net proceeds from issuance of common shares	54,617		25	54,592
Preferred shares redeemed during period	2,000	(2,000)
Preferred shares redeemed, value	(50,352)	(50,352)
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation	383			383
Stock options exercised, shares			184,832
Stock options exercised	2,640			(1,031)		3,671
Stock-based compensation expense	1,835			1,835
Deferral of executive and director compensation	305			305
Executive and director deferred compensation distributions shares			24,858
Executive and director deferred compensation distributions	0			(493)		493
Stockholders' Equity, Ending Balance at Sep. 30, 2013	$ 479,580	$ 48,163	$ 271	$ 235,880	$ 249,582	$ (54,316)
Shares Outstanding, Ending Balance at Sep. 30, 2013		2,000	24,357,943

XML

Supplemental Guarantor Information Supplemental Guarantor Information - Income Statement (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue	$ 275,195		$ 208,875	$ 700,475	$ 510,994
Land and housing	218,150		164,452	556,799	408,893
Impairment of inventory and investment in unconsolidated joint ventures	2,136		1,309	4,237	1,876
General and administrative	18,261		16,016	52,389	42,299
Selling	17,999		14,647	47,383	38,483
Interest	3,449		3,999	12,186	12,066
Equity in income of unconsolidated joint ventures	(278)		0	(278)	0
Loss on early extinguishment of debt	1,726		0	1,726	0
Total costs and expenses	261,443		200,423	674,442	503,617
Income before income taxes	13,752		8,452	26,033	7,377
(Benefit) provision for income taxes	(111,559)		138	(111,129)	(955)
Equity In subsidiaries	0		0	0	0
Net income (loss)	125,311		8,314	137,162	8,332
Preferred Dividends	1,219	(1,219)	0	2,438	0
Excess of fair value over book value of preferred shares redeemed	0		0	2,190	0
Net income to common shareholders	124,092		8,314	132,534	8,332
Parent [Member]
Revenue	0		0	0	0
Land and housing	0		0	0	0
Impairment of inventory and investment in unconsolidated joint ventures	0		0	0	0
General and administrative	0		0	0	0
Selling	0		0	0	0
Interest	0		0	0	0
Equity in income of unconsolidated joint ventures	0			0
Loss on early extinguishment of debt	0			0
Total costs and expenses	0		0	0	0
Income before income taxes	0		0	0	0
(Benefit) provision for income taxes	0		0	0	0
Equity In subsidiaries	125,311		8,314	137,162	8,332
Net income (loss)	125,311		8,314	137,162	8,332
Preferred Dividends	1,219			2,438
Excess of fair value over book value of preferred shares redeemed				2,190
Net income to common shareholders	124,092			132,534
Guarantor Subsidiaries [Member]
Revenue	268,514		202,492	678,132	495,371
Land and housing	218,150		164,452	556,799	408,893
Impairment of inventory and investment in unconsolidated joint ventures	2,136		1,309	4,237	1,876
General and administrative	15,309		13,425	43,104	34,938
Selling	17,979		14,647	47,317	38,482
Interest	3,087		3,584	11,171	10,972
Equity in income of unconsolidated joint ventures	0			0
Loss on early extinguishment of debt	1,726			1,726
Total costs and expenses	258,387		197,417	664,354	495,161
Income before income taxes	10,127		5,075	13,778	210
(Benefit) provision for income taxes	(112,694)		(1,003)	(115,308)	(3,403)
Equity In subsidiaries	0		0	0	0
Net income (loss)	122,821		6,078	129,086	3,613
Preferred Dividends	0			0
Excess of fair value over book value of preferred shares redeemed				0
Net income to common shareholders	122,821			129,086
Non-Guarantor Subsidiaries [Member]
Revenue	6,681		6,383	22,343	15,623
Land and housing	0		0	0	0
Impairment of inventory and investment in unconsolidated joint ventures			0	0	0
General and administrative	2,952		2,591	9,285	7,361
Selling	20		0	66	1
Interest	362		415	1,015	1,094
Equity in income of unconsolidated joint ventures	(278)			(278)
Loss on early extinguishment of debt	0			0
Total costs and expenses	3,056		3,006	10,088	8,456
Income before income taxes	3,625		3,377	12,255	7,167
(Benefit) provision for income taxes	1,135		1,141	4,179	2,448
Equity In subsidiaries	0		0	0	0
Net income (loss)	2,490		2,236	8,076	4,719
Preferred Dividends	0			0
Excess of fair value over book value of preferred shares redeemed				0
Net income to common shareholders	2,490			8,076
Corporate Elimination [Member]
Revenue	0		0	0	0
Land and housing	0		0	0	0
Impairment of inventory and investment in unconsolidated joint ventures	0		0	0	0
General and administrative	0		0	0	0
Selling	0		0	0	0
Interest	0		0	0	0
Equity in income of unconsolidated joint ventures	0			0
Loss on early extinguishment of debt	0			0
Total costs and expenses	0		0	0	0
Income before income taxes	0		0	0	0
(Benefit) provision for income taxes	0		0	0	0
Equity In subsidiaries	(125,311)		(8,314)	(137,162)	(8,332)
Net income (loss)	(125,311)		(8,314)	(137,162)	(8,332)
Preferred Dividends	0			0
Excess of fair value over book value of preferred shares redeemed				0
Net income to common shareholders	$ (125,311)			$ (137,162)

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
ASSETS:
Cash and cash equivalents	$ 142,475	$ 145,498
Restricted cash	15,806	8,680
Mortgage loans held for sale	60,388	71,121
Inventory	676,336	556,817
Property and equipment - net	10,346	10,439
Investments in unconsolidated joint ventures	34,088	11,732
Deferred income taxes, net of valuation allowance of $14.9 million and $135.7 million at September 30, 2013 and December 31, 2012, respectively	112,682	0
Other assets	30,946	27,013
Total assets	1,083,067	831,300
LIABILITIES:
Accounts payable	85,804	47,690
Customer deposits	14,918	10,239
Other liabilities	62,310	49,972
Community development district (“CDD”) obligations	3,419	4,634
Obligation for consolidated inventory not owned	1,576	19,105
Notes payable bank - financial services operations	55,614	67,957
Notes payable - other	8,126	11,105
TOTAL LIABILITIES	603,487	495,872
Commitments and contingencies	0	0
SHAREHOLDERS' EQUITY:
Preferred shares - $.01 par value; authorized 2,000,000 shares; 2,000 and 4,000 shares issued at September 30, 2013 and December 31, 2012, respectively; 2,000 and 4,000 shares outstanding as of September 30, 2013 and December 31, 2012, respectively	48,163	96,325
Common shares - $.01 par value; authorized 38,000,000 shares; issued 27,092,723 and 24,631,723 shares at September 30, 2013 and December 31, 2012, respectively	271	246
Additional paid-in capital	235,880	180,289
Retained earnings	249,582	117,048
Treasury shares - at cost - 2,734,780 and 2,944,470 shares at September 30, 2013 and December 31, 2012, respectively	(54,316)	(58,480)
TOTAL SHAREHOLDERS' EQUITY	479,580	335,428
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,083,067	831,300
2017 Convertible Senior Notes [Member]
LIABILITIES:
Convertible subordinated debt	57,500	57,500
2018 Convertible Senior Notes [Member]
LIABILITIES:
Convertible subordinated debt	86,250	0
2018 Senior Notes [Member]
LIABILITIES:
Senior notes	$ 227,970	$ 227,670

XML

Income Taxes Income Taxes - Valuation Allowance (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Warranty, insurance and other accruals	$ 11,487	$ 11,378
Inventory	17,417	22,612
State taxes	71	(64)
Net operating loss carryforward	98,007	102,475
Deferred charges	613	336
Total deferred tax assets	127,595	136,737
Deferred Tax Assets, Net of Valuation Allowance, Current	(14,913)	(135,749)
Total deferred tax assets, net of valuation allowance	111,646	0
Depreciation	397	804
Prepaid expenses	639	184
Total deferred tax liabilities	1,036	988
Net deferred tax assets	$ 126,559	$ 135,749

XML

Fair Value Measurements Notional Amount of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Notional Disclosures [Abstract]
Best efforts contracts and related committed IRLCs	$ 4,417	$ 1,184
Uncommitted IRLCs	79,594	25,854
FMBSs related to uncommitted IRLCs	80,000	26,000
Best efforts contracts and related mortgage loans held for sale	3,025	25,441
FMBSs related to mortgage loans held for sale	55,000	44,000
Mortgage loans held for sale covered by FMBSs	$ 54,720	$ 44,524

XML

Capitalized Interest Capitalized Interest (Tables)

9 Months Ended

Sep. 30, 2013

Capitalized Interest [Abstract]

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

The summary of capitalized interest for the three and nine months ended September 30, 2013 and 2012 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Capitalized interest, beginning of period	$	14,260		$	17,967		$	15,376		$	18,869
Interest capitalized to inventory	3,940			2,574			10,045			7,128
Capitalized interest charged to cost of sales	(4,074		)	(3,755		)	(11,295		)	(9,211		)
Capitalized interest, end of period	$	14,126		$	16,786		$	14,126		$	16,786
Interest incurred	$	7,389		$	6,573		$	22,231		$	19,194

XML

Commitments and Contingencies Commitments and Contingencies (Details) (USD $)	Sep. 30, 2013
Commitments and Contingencies [Abstract]
Letters of credit and completion bonds	$ 91,800,000
Performance bonds outstanding	59,200,000
Performance letters of credit outstanding	13,600,000
Financial letters of credit	15,800,000
Financial letters of credit representing deposits on land and lot purchase agreements	8,359,000
Financial Bonds	3,200,000
Unrecorded conditional purchase obligation	$ 340,100,000

XML

Income Taxes Income Tax (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Valuation Allowance [Line Items]
Deferred Tax Assets, Net	$ 126,559,000		$ 135,749,000
Valuation Allowance, Deferred Tax Asset, Change in Amount	120,836,000	3,721,000
Deferred Tax Assets, Gross	127,595,000		136,737,000
Deferred Tax Liabilities, Gross	1,036,000		988,000
Six quarters cumulative net income	43,200,000
Percentage increase in new contracts during period	15.00%
Deferred Tax Assets, Net of Valuation Allowance, Current	(14,913,000)		(135,749,000)
Deferred Tax Assets, Net of Valuation Allowance	111,646,000		0
Internal Revenue Service (IRS) [Member]
Valuation Allowance [Line Items]
Deferred Tax Assets, Net of Valuation Allowance, Current	4,700,000
State and Local Jurisdiction [Member]
Valuation Allowance [Line Items]
Deferred Tax Assets, Net of Valuation Allowance, Current	$ 10,200,000

XML

Inventory Other Inventory Items - Homes under construction not subject to a sale contract (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Other Inventory, Gross [Abstract]
Number of Speculative Homes	822	649
Speculative Homes Carrying Value	$ 110.0	$ 89.8

XML

Fair Value Measurements Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Carrying (Reported) Amount, Fair Value Disclosure [Member]
ASSETS:
Cash, cash equivalents and restricted cash	$ 158,281	$ 154,178
Mortgage loans held for sale	60,388	71,121
Split dollar life insurance policies	176	710
Notes receivable	3,312	8,787
Commitments to extend real estate loans (assets)	942	1
Forward sales of mortgage-backed securities	0	253
LIABILITIES:
Note payable - banks	55,614	67,957
Notes payable - other	8,126	11,105
Best efforts contracts for committed IRLCs and mortgage loans held for sale	179	3
Forward sales of mortgage-backed securities	1,971	0
Off-Balance Sheet Letters of Credit	0	0
Estimate of Fair Value, Fair Value Disclosure [Member]
ASSETS:
Cash, cash equivalents and restricted cash	158,281	154,178
Mortgage loans held for sale	60,388	71,121
Split dollar life insurance policies	174	678
Notes receivable	3,180	7,460
Commitments to extend real estate loans (assets)	942	1
Forward sales of mortgage-backed securities	0	253
LIABILITIES:
Note payable - banks	55,614	67,957
Notes payable - other	8,137	11,148
Best efforts contracts for committed IRLCs and mortgage loans held for sale	179	3
Forward sales of mortgage-backed securities	1,971	0
Off-Balance Sheet Letters of Credit	659	493
2017 Convertible Senior Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
LIABILITIES:
Convertible subordinated debt	57,500	57,500
2017 Convertible Senior Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
LIABILITIES:
Convertible subordinated debt	65,406	74,175
2018 Convertible Senior Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
LIABILITIES:
Convertible subordinated debt	86,250	0
2018 Convertible Senior Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
LIABILITIES:
Convertible subordinated debt	87,328	0
2018 Senior Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
LIABILITIES:
Senior notes	227,970	227,670
2018 Senior Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
LIABILITIES:
Senior notes	$ 246,675	$ 250,700

XML

Fair Value Measurements Fair Value of Financial Instrument Assumptions (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value of Financial Instrument Assumptions [Line Items]
Split dollar life insurance policy change	$ 0.5
Letters of Credit Potential Commitments, Amount	29.4	25.7
Amended and Restated [Member]
Fair Value of Financial Instrument Assumptions [Line Items]
Maximum Borrowing Capacity under MIF Warehousing Line	100.0
Optional increase in borrowing availability for MIF	20.0
Repurchase Agreement [Member]
Fair Value of Financial Instrument Assumptions [Line Items]
Maximum Borrowing Capacity under MIF Warehousing Line	15.0
New Unsecured Credit Facility [Member]
Fair Value of Financial Instrument Assumptions [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 200

XML

Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

At September 30, 2013, the Company had outstanding approximately $91.8 million of completion bonds and standby letters of credit, some of which were issued to various local governmental entities that expire at various times through October 2018. Included in this total are: (1) $59.2 million of performance and maintenance bonds and $13.6 million of performance letters of credit that serve as completion bonds for land development work in progress; (2) $15.8 million of financial letters of credit, of which $8.4 million represent deposits on land and lot purchase agreements; and (3) $3.2 million of financial bonds.

At September 30, 2013, the Company also had options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $340.1 million. Purchase of properties under these agreements is contingent upon satisfaction of certain requirements by the Company and the sellers.

XML

Fair Value Measurements Assets and Liabilities Measured on a Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Total Fair Value - Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	$ 59,180	$ 71,372
Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	59,180	71,372
Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Mortgage Loans Held for Sale [Member] | Total Fair Value - Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	60,388	71,121
Mortgage Loans Held for Sale [Member] | Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Mortgage Loans Held for Sale [Member] | Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	60,388	71,121
Mortgage Loans Held for Sale [Member] | Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Forward Sales or Mortgage Backed Securities [Member] | Total Fair Value - Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	(1,971)	253
Forward Sales or Mortgage Backed Securities [Member] | Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Forward Sales or Mortgage Backed Securities [Member] | Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	(1,971)	253
Forward Sales or Mortgage Backed Securities [Member] | Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Interest Rate Lock Commitments [Member] | Total Fair Value - Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	942	1
Interest Rate Lock Commitments [Member] | Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Interest Rate Lock Commitments [Member] | Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	942	1
Interest Rate Lock Commitments [Member] | Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Best Efforts Contracts [Member] | Total Fair Value - Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	(179)	(3)
Best Efforts Contracts [Member] | Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Best Efforts Contracts [Member] | Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	(179)	(3)
Best Efforts Contracts [Member] | Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	$ 0	$ 0

XML

Guarantees and Indemnifications Warranty Rollforward (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Warranty Accrual Rollforward [Abstract]
Warranty reserves, beginning of period	$ 10,388	$ 8,733	$ 10,438	$ 9,025
Warranty expense on homes delivered during the period	1,999	1,646	5,004	4,021
Changes in estimates for pre-existing warranties	321	141	422	231
Settlements made during the period	(1,952)	(1,524)	(5,108)	(4,281)
Warranty reserves, end of period	$ 10,756	$ 8,996	$ 10,756	$ 8,996

XML

Earnings per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share

The table below presents a reconciliation between basic and diluted weighted average shares outstanding, net income available to common shareholders and basic and diluted income per share for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(In thousands, except per share amounts)	2013			2012		2013			2012
NUMERATOR
Net income	$	125,311		$	8,314	$	137,162		$	8,332
Preferred stock dividends	(1,219		)	—		(2,438		)	—
Excess of fair value over book value of preferred shares redeemed	—			—		(2,190		)	—
Interest on 3.25% convertible senior subordinated notes due 2017	611			128		1,833			—
Interest on 3.00% convertible senior subordinated notes due 2018	824			—		1,851			—
Net income to common shareholders	125,527			8,442		136,218			8,332
DENOMINATOR
Basic weighted average shares outstanding	24,358			19,434		23,642			19,014
Effect of dilutive securities:
Stock option awards	183			187		246			92
Deferred compensation awards	119			127		111			132
3.25% convertible senior subordinated notes due 2017	2,416			525		2,416			—
3.00% convertible senior subordinated notes due 2018	2,669			—		1,995			—
Diluted weighted average shares outstanding - adjusted for assumed conversions	29,745			20,273		28,410			19,238
Earnings per common share
Basic	$	5.09		$	0.43	$	5.61		$	0.44
Diluted	$	4.22		$	0.42	$	4.79		$	0.43
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	998			695		951			1,003

During both the second and third quarters of 2013, the Company declared a cash dividend of $609.375 per preferred share on its 2,000 outstanding Series A Preferred Shares. The dividend was paid on June 17, 2013 and September 16, 2013 to holders of record as of June 1, 2013 and September 1, 2013 for $1.2 million in cash, respectively.

In March 2013, the Company announced its intention to redeem 2,000 of its outstanding Series A Preferred Shares and recognized a $2.2 million non-cash equity charge in the first quarter of 2013 related to the excess of fair value over carrying value relating primarily to the original issuance costs that were paid in 2007. This charge reduced net income to common shareholders in the earnings per share calculation above for the nine month period ended September 30, 2013. On April 10, 2013, the Company redeemed the 2,000 Series A Preferred Shares for $50.4 million in cash.

In March 2013, the Company also issued 2.461 million common shares in a public offering at a price of $23.50 per share (for net proceeds of $54.6 million), which shares are included above in our total basic weighted average shares outstanding for the nine month period ended September 30, 2013.

For the three months ended September 30, 2013 and 2012 and for the nine months ended September 30, 2013, the effect of convertible debt was included in the diluted earnings per share calculations. For the nine months ended September 30, 2012, the effect of convertible debt was not included in the diluted earnings per share calculations as it would have been anti-dilutive.

XML

Guarantees and Indemnifications

9 Months Ended

Sep. 30, 2013

Guarantees [Abstract]

Guarantees [Text Block]

Guarantees and Indemnifications

Warranty

Warranty reserves are recorded for warranties under our Home Builder’s Limited Warranty (“HBLW”) and our 10-year (Texas markets only) and 30-year (all markets excluding Texas) transferable structural warranty in Other liabilities on the Company's Unaudited Condensed Consolidated Balance Sheets.

The warranty reserves for the HBLW are established as a percentage of average sales price and adjusted based on historical payment patterns determined, generally, by geographic area and recent trends. Factors that are given consideration in determining the HBLW reserves include: (1) the historical range of amounts paid per average sales price on a home; (2) type and mix of amenity packages added to the home; (3) any warranty expenditures not considered to be normal and recurring; (4) timing of payments; (5) improvements in quality of construction expected to impact future warranty expenditures; and (6) conditions that may affect certain projects and require a different percentage of average sales price for those specific projects. Changes in estimates for warranties occur due to changes in the historical payment experience and differences between the actual payment pattern experienced during the period and the historical payment pattern used in our evaluation of the warranty reserve balance at the end of each quarter. Actual future warranty costs could differ from our current estimated amount.

Our warranty reserves for our transferable structural warranty programs are established on a per-unit basis. While the structural warranty reserve is recorded as each house closes, the sufficiency of the structural warranty per unit charge and total reserve is re-evaluated on an annual basis, with the assistance of an actuary, using our own historical data and trends, industry-wide historical data and trends, and other project specific factors. The reserves are also evaluated quarterly and adjusted if we encounter activity that is inconsistent with the historical experience used in the annual analysis. These reserves are subject to variability due to uncertainties regarding structural defect claims for products we build, the markets in which we build, claim settlement history, insurance and legal interpretations, among other factors.

While we believe that our warranty reserves are sufficient to cover our projected costs, there can be no assurances that historical data and trends will accurately predict our actual warranty costs.

A summary of warranty activity for the three and nine months ended September 30, 2013 and 2012 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Warranty reserves, beginning of period	$	10,388		$	8,733		$	10,438		$	9,025
Warranty expense on homes delivered during the period	1,999			1,646			5,004			4,021
Changes in estimates for pre-existing warranties	321			141			422			231
Settlements made during the period	(1,952		)	(1,524		)	(5,108		)	(4,281		)
Warranty reserves, end of period	$	10,756		$	8,996		$	10,756		$	8,996

Guarantees

In the ordinary course of business, M/I Financial Corp. (“M/I Financial”), a 100%-owned subsidiary of M/I Homes, Inc., enters into agreements that guarantee certain purchasers of its mortgage loans that M/I Financial will repurchase a loan if certain conditions occur, primarily if the mortgagor does not meet those conditions of the loan within the first six months after the sale of the loan. Loans totaling approximately $6.1 million and $3.1 million were covered under the above guarantees as of September 30, 2013 and December 31, 2012, respectively.  A portion of the revenue paid to M/I Financial for providing the guarantees on the above loans was deferred at September 30, 2013, and will be recognized in income as M/I Financial is released from its obligation under the guarantees.  M/I Financial did not repurchase any loans under the above agreements during the nine months ended September 30, 2013. The risk associated with the guarantees above is offset by the value of the underlying assets.

M/I Financial has received inquiries concerning underwriting matters from purchasers of its loans regarding certain loans totaling approximately $8.4 million and $7.9 million at September 30, 2013 and December 31, 2012, respectively.  The risk associated with the guarantees above is offset by the value of the underlying assets.

M/I Financial has also guaranteed the collectability of certain loans to third party insurers (U.S. Department of Housing and Urban Development and U.S. Veterans Administration) of those loans for periods ranging from five to thirty years. As of both September 30, 2013 and December 31, 2012, the total of all loans indemnified to third party insurers relating to the above agreements was $1.0 million. The maximum potential amount of future payments is equal to the outstanding loan value less the value of the underlying asset plus administrative costs incurred related to foreclosure on the loans, should this event occur.

The Company has recorded a liability relating to the guarantees described above totaling $2.9 million and $2.6 million at September 30, 2013 and December 31, 2012, respectively, which is management's best estimate of the Company's liability.

At September 30, 2013, the Company had outstanding $230.0 million aggregate principal amount of 8.625% Senior Notes due 2018 (the “2018 Senior Notes”), $57.5 million aggregate principal amount of 3.25% Convertible Senior Subordinated Notes due 2017 (the “2017 Convertible Senior Subordinated Notes”) and $86.3 million aggregate principal amount of 3.0% Convertible Senior Subordinated Notes due 2018 (the “2018 Convertible Senior Subordinated Notes”). The Company's obligations under the 2018 Senior Notes and the Credit Facility are guaranteed jointly and severally on a senior unsecured basis by all of the Company's subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries (as defined in Note 13), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the Indenture for the 2018 Senior Notes. The Company's obligations under the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are guaranteed jointly and severally on a senior subordinated unsecured basis by the same subsidiaries of the Company that are guarantors for the 2018 Senior Notes and the Credit Facility (the “Guarantor Subsidiaries”). Refer to Note 9 for a description of the guarantees of the Credit Facility.

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2013

Basis of Presentation [Abstract]

Basis of Accounting [Text Block]

Basis of Presentation

The accompanying Unaudited Condensed Consolidated Financial Statements (the “financial statements”) of M/I Homes, Inc. and its subsidiaries (the “Company”) and notes thereto have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The financial statements include the accounts of M/I Homes, Inc. and its subsidiaries. All intercompany transactions have been eliminated. Results for the interim period are not necessarily indicative of results for a full year. In the opinion of management, the accompanying financial statements reflect all adjustments (all of which are normal and recurring in nature) necessary for a fair presentation of financial results for the interim periods presented. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 Form 10-K”).

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during that period. Actual results could differ from these estimates and have a significant impact on the financial condition and results of operations and cash flows. With regard to the Company, estimates and assumptions are inherent in calculations relating to valuation of inventory and investment in unconsolidated joint ventures, property and equipment depreciation, valuation of derivative financial instruments, accounts payable on inventory, accruals for costs to complete inventory, accruals for warranty claims, accruals for self-insured general liability claims, litigation, accruals for health care and workers' compensation, accruals for guaranteed or indemnified loans, stock-based compensation expense, income taxes, and contingencies. Items that could have a significant impact on these estimates and assumptions include the risks and uncertainties listed in “Item 1A. Risk Factors” in Part I of our 2012 Form 10-K, as the same may be updated from time to time in our subsequent filings with the SEC.

Reclassifications

The Company reclassified certain amounts presented in the Supplemental Condensed Consolidating Balance Sheet for the period ended December 31, 2012 and the Supplemental Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2012 included in Note 13. The Company believes these reclassifications are immaterial to the supplemental condensed consolidating financial statements which are presented as supplemental information. These reclassifications do not affect the Company's consolidated financial statements for either period.

Impact of New Accounting Standards

In January 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2013-01: Balance Sheet (Topic 210) - Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”). ASU 2013-01 amended ASU 2011-11 and will enhance disclosures required by the United States Generally Accepted Accounting Principles (“U.S. GAAP”) by requiring additional information about financial and derivative instruments that are either (1) offset in accordance with Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with Section 210-20-45 or Section 815-10-45. We are required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and for interim periods within those annual periods. The Company adopted this standard on January 1, 2013, and the adoption did not have a material impact on its Unaudited Condensed Consolidated Financial Statements.

In April 2013, the FASB issued ASU No. 2013-04: Liabilities (“ASU 2013-04”), which provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. ASU 2013-04 is effective for us beginning January 1, 2014. The Company does not anticipate the adoption of this guidance will have a material impact on its Unaudited Condensed Consolidated Financial Statements or disclosures.

In July 2013, the FASB issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). The amendments in ASU 2013-11 are intended to end inconsistent practices regarding the presentation of unrecognized tax benefits on the balance sheet. An entity will be required to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. An entity is required to apply the amendments prospectively for annual reporting periods beginning after December 15, 2013, and for interim periods within those annual periods. Early adoption and retrospective application are permitted. The Company does not anticipate the adoption of this guidance will have a material impact on its Unaudited Condensed Consolidated Financial Statements or disclosures.

XML

Income Taxes Net Operating Loss Carryforwards (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 15.9
Expiring beginning in 2028 [Member] | Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	77.8
Federal Tax Credit Carryforward, Amount	4.3
Expiring between 2012 and 2027 [Member] | State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	8.9
Expiring between 2028 and 2033 [Member] | State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 7.0

XML

Debt Senior Notes (Details) (USD $)	3 Months Ended	9 Months Ended				3 Months Ended		3 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 2018 Senior Notes [Member]	Dec. 31, 2012 2018 Senior Notes [Member]	Sep. 30, 2013 2017 Convertible Senior Notes [Member]	Dec. 31, 2012 2017 Convertible Senior Notes [Member]	Sep. 30, 2013 2018 Convertible Senior Notes [Member]	Dec. 31, 2012 2018 Convertible Senior Notes [Member]	Sep. 30, 2013 Face Value [Member] 2018 Senior Notes [Member]
Debt Instrument [Line Items]
Convertible subordinated debt						$ 57,500,000	$ 57,500,000	$ 86,250,000	$ 0
Debt Instrument, Interest Rate, Stated Percentage				8.625%		3.25%		3.00%
Debt Instrument, Convertible, Conversion Ratio						42.0159		30.9478
Debt Instrument Convertible Principal Amount Used In Conversion Rate Calculation						1,000		1,000
Debt Instrument, Convertible, Conversion Price						$ 23.80		$ 32.31
Stock Issued During Period, Shares, Other						2,400,000		2,700,000
Senior notes				227,970,000	227,670,000					230,000,000
Preferred Stock, Dividend Rate, Percentage		9.75%
Restricted Payments Basket	127,500,000	127,500,000
Preferred shares redeemed during period		2,000
Redemption of preferred shares		50,352,000	0
Dividends, Preferred Stock	$ 1,200,000	$ (2,438,000)

XML

Fair Value Measurements Cash Flow Model Critical Assumptions (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Increase in Investments in Unconsolidated LLCs and other joint agreements	$ 22.4
Limited Partners' Contributed Capital	34.1
Notes Receivable, Related Parties	2.5
Capitalized Interest and Other Costs Included in Investment in Unconsolidated LLCs and other joint agreements	$ 0.7	$ 0.8
Minimum [Member]
Equity Method Investment, Ownership Percentage	25.00%
Discount Rate Used in Determining Fair Value of Investments in Unconsolidated LLCs and other joint agreements	13.00%
Maximum [Member]
Equity Method Investment, Ownership Percentage	61.00%
Discount Rate Used in Determining Fair Value of Investments in Unconsolidated LLCs and other joint agreements	16.00%
2013 [Member]
Weighted Average Sales Price Increase	0.00%
Weighted Average Increase of Assumed Costs	0.00%
2014 and 2015 [Member]
Weighted Average Sales Price Increase	4.00%
Weighted Average Increase of Assumed Costs	4.00%
2016 and Beyond [Member]
Weighted Average Sales Price Increase	2.00%
Weighted Average Increase of Assumed Costs	2.00%

XML

Supplemental Guarantor Information Supplemental Guarantor Information - Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
ASSETS:
Cash and cash equivalents	$ 142,475	$ 145,498	$ 159,765	$ 59,793
Restricted cash	15,806	8,680
Mortgage loans held for sale	60,388	71,121
Inventory	676,336	556,817
Property and equipment - net	10,346	10,439
Investments in unconsolidated joint ventures	34,088	11,732
Investment in subsidiaries	0	0
Deferred Tax Assets, Net of Valuation Allowance	112,682	0
Intercompany	0	0
Other assets	30,946	27,013
TOTAL ASSETS	1,083,067	831,300
LIABILITIES:
Accounts payable	85,804	47,690
Customer deposits	14,918	10,239
Intercompany liabilities	0	0
Other liabilities	62,310	49,972
Community development district (“CDD”) obligations	3,419	4,634
Obligation for consolidated inventory not owned	1,576	19,105
Note payable bank - financial services operations	55,614	67,957
Notes payable - other	8,126	11,105
TOTAL LIABILITIES	603,487	495,872
TOTAL SHAREHOLDERS' EQUITY	479,580	335,428
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,083,067	831,300
Parent [Member]
ASSETS:
Cash and cash equivalents	0	0	0	0
Restricted cash	0	0
Mortgage loans held for sale	0	0
Inventory	0	0
Property and equipment - net	0	0
Investments in unconsolidated joint ventures	0	0
Investment in subsidiaries	521,617	391,555
Deferred Tax Assets, Net of Valuation Allowance	0
Intercompany	319,136	219,962
Other assets	10,547	9,081
TOTAL ASSETS	851,300	620,598
LIABILITIES:
Accounts payable	0	0
Customer deposits	0	0
Intercompany liabilities	0	0
Other liabilities	0	0
Community development district (“CDD”) obligations	0	0
Obligation for consolidated inventory not owned	0	0
Note payable bank - financial services operations	0	0
Notes payable - other	0	0
TOTAL LIABILITIES	371,720	285,170
TOTAL SHAREHOLDERS' EQUITY	479,580	335,428
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	851,300	620,598
Guarantor Subsidiaries [Member]
ASSETS:
Cash and cash equivalents	126,254	126,334	140,899	43,539
Restricted cash	15,806	8,680
Mortgage loans held for sale	0	0
Inventory	676,336	540,761
Property and equipment - net	10,139	10,314
Investments in unconsolidated joint ventures	14,656	0
Investment in subsidiaries	0	0
Deferred Tax Assets, Net of Valuation Allowance	112,164
Intercompany	0	0
Other assets	12,389	12,375
TOTAL ASSETS	967,744	698,464
LIABILITIES:
Accounts payable	85,383	46,882
Customer deposits	14,918	10,239
Intercompany liabilities	298,130	205,389
Other liabilities	54,669	44,230
Community development district (“CDD”) obligations	3,419	4,634
Obligation for consolidated inventory not owned	1,576	3,549
Note payable bank - financial services operations	0	0
Notes payable - other	8,126	11,105
TOTAL LIABILITIES	466,221	326,028
TOTAL SHAREHOLDERS' EQUITY	501,523	372,436
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	967,744	698,464
Non-Guarantor Subsidiaries [Member]
ASSETS:
Cash and cash equivalents	16,221	19,164	18,866	16,254
Restricted cash	0	0
Mortgage loans held for sale	60,388	71,121
Inventory	0	16,056
Property and equipment - net	207	125
Investments in unconsolidated joint ventures	19,432	11,732
Investment in subsidiaries	0	0
Deferred Tax Assets, Net of Valuation Allowance	518
Intercompany	0	0
Other assets	8,010	5,557
TOTAL ASSETS	104,776	123,755
LIABILITIES:
Accounts payable	421	808
Customer deposits	0	0
Intercompany liabilities	21,006	14,573
Other liabilities	7,641	5,742
Community development district (“CDD”) obligations	0	0
Obligation for consolidated inventory not owned	0	15,556
Note payable bank - financial services operations	55,614	67,957
Notes payable - other	0	0
TOTAL LIABILITIES	84,682	104,636
TOTAL SHAREHOLDERS' EQUITY	20,094	19,119
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	104,776	123,755
Corporate Elimination [Member]
ASSETS:
Cash and cash equivalents	0	0	0	0
Restricted cash	0	0
Mortgage loans held for sale	0	0
Inventory	0	0
Property and equipment - net	0	0
Investments in unconsolidated joint ventures	0	0
Investment in subsidiaries	(521,617)	(391,555)
Deferred Tax Assets, Net of Valuation Allowance	0
Intercompany	(319,136)	(219,962)
Other assets	0	0
TOTAL ASSETS	(840,753)	(611,517)
LIABILITIES:
Accounts payable	0	0
Customer deposits	0	0
Intercompany liabilities	(319,136)	(219,962)
Other liabilities	0	0
Community development district (“CDD”) obligations	0	0
Obligation for consolidated inventory not owned	0	0
Note payable bank - financial services operations	0	0
Notes payable - other	0	0
TOTAL LIABILITIES	(319,136)	(219,962)
TOTAL SHAREHOLDERS' EQUITY	(521,617)	(391,555)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	(840,753)	(611,517)
2017 Convertible Senior Notes [Member]
LIABILITIES:
Convertible subordinated debt	57,500	57,500
2017 Convertible Senior Notes [Member] | Parent [Member]
LIABILITIES:
Convertible subordinated debt	57,500	57,500
2017 Convertible Senior Notes [Member] | Guarantor Subsidiaries [Member]
LIABILITIES:
Convertible subordinated debt	0	0
2017 Convertible Senior Notes [Member] | Non-Guarantor Subsidiaries [Member]
LIABILITIES:
Convertible subordinated debt	0	0
2017 Convertible Senior Notes [Member] | Corporate Elimination [Member]
LIABILITIES:
Convertible subordinated debt	0	0
2018 Convertible Senior Notes [Member]
LIABILITIES:
Convertible subordinated debt	86,250	0
2018 Convertible Senior Notes [Member] | Parent [Member]
LIABILITIES:
Convertible subordinated debt	86,250
2018 Convertible Senior Notes [Member] | Guarantor Subsidiaries [Member]
LIABILITIES:
Convertible subordinated debt	0
2018 Convertible Senior Notes [Member] | Non-Guarantor Subsidiaries [Member]
LIABILITIES:
Convertible subordinated debt	0
2018 Convertible Senior Notes [Member] | Corporate Elimination [Member]
LIABILITIES:
Convertible subordinated debt	0
2018 Senior Notes [Member]
LIABILITIES:
Senior notes	227,970	227,670
2018 Senior Notes [Member] | Parent [Member]
LIABILITIES:
Senior notes	227,970	227,670
2018 Senior Notes [Member] | Guarantor Subsidiaries [Member]
LIABILITIES:
Senior notes	0	0
2018 Senior Notes [Member] | Non-Guarantor Subsidiaries [Member]
LIABILITIES:
Senior notes	0	0
2018 Senior Notes [Member] | Corporate Elimination [Member]
LIABILITIES:
Senior notes	$ 0	$ 0

XML

Supplemental Guarantor Information

9 Months Ended

Sep. 30, 2013

Supplemental Guarantor Information [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Supplemental Guarantor Information

The Company's obligations under the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are not guaranteed by all of the Company's subsidiaries and therefore, the Company has disclosed condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. The subsidiary guarantors of the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are the same.

The following condensed consolidating financial information includes balance sheets, statements of operations and cash flow information for the parent company, the Guarantor Subsidiaries, collectively, and for all other subsidiaries and joint ventures of the Company (the “Unrestricted Subsidiaries”), collectively. Each Guarantor Subsidiary is a direct or indirect 100%-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the (a) 2018 Senior Notes, on a joint and several senior unsecured basis, (b) the 2017 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis and (c) the 2018 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis.

There are no significant restrictions on the parent company's ability to obtain funds from its Guarantor Subsidiaries in the form of a dividend, loan, or other means.

As of September 30, 2013, each of the Company's subsidiaries is a Guarantor Subsidiary, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries, subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the Indenture for the 2018 Senior Notes.

In the condensed financial tables presented below, the parent company presents all of its 100%-owned subsidiaries as if they were accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the Guarantor Subsidiaries and Unrestricted Subsidiaries.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Three Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	268,514		$	6,681		$	—		$	275,195
Costs and expenses:
Land and housing	—		218,150			—			—			218,150
Impairment of inventory and investment in unconsolidated joint ventures	—		2,136						—			2,136
General and administrative	—		15,309			2,952			—			18,261
Selling	—		17,979			20			—			17,999
Equity in income of unconsolidated joint ventures	—		—			(278		)	—			(278		)
Interest	—		3,087			362			—			3,449
Loss on early extinguishment of debt	—		1,726			—			—			1,726
Total costs and expenses	—		258,387			3,056			—			261,443
Income before income taxes	—		10,127			3,625			—			13,752
(Benefit) provision for income taxes	—		(112,694		)	1,135			—			(111,559		)
Equity in subsidiaries	125,311		—			—			(125,311		)	—
Net income (loss)	125,311		122,821			2,490			(125,311		)	125,311
Preferred dividends	1,219		—			—			—			1,219
Net income (loss) to common shareholders	$	124,092	$	122,821		$	2,490		$	(125,311	)	$	124,092

	Three Months Ended September 30, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries		Eliminations			Consolidated
Revenue	$	—	$	202,492		$	6,383	$	—		$	208,875
Costs and expenses:
Land and housing	—		164,452			—		—			164,452
Impairment of inventory and investment in unconsolidated joint ventures	—		1,309			—		—			1,309
General and administrative	—		13,425			2,591		—			16,016
Selling	—		14,647			—		—			14,647
Interest	—		3,584			415		—			3,999
Total costs and expenses	—		197,417			3,006		—			200,423
Income before income taxes	—		5,075			3,377		—			8,452
(Benefit) provision for income taxes	—		(1,003		)	1,141		—			138
Equity in subsidiaries	8,314		—			—		(8,314		)	—
Net income (loss)	$	8,314	$	6,078		$	2,236	$	(8,314	)	$	8,314

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Nine Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	678,132		$	22,343		$	—		$	700,475
Costs and expenses:
Land and housing	—		556,799			—			—			556,799
Impairment of inventory and investment in unconsolidated joint ventures	—		4,237			—			—			4,237
General and administrative	—		43,104			9,285			—			52,389
Selling	—		47,317			66			—			47,383
Equity in income of unconsolidated joint ventures	—		—			(278		)	—			(278		)
Interest	—		11,171			1,015			—			12,186
Loss on early extinguishment of debt	—		1,726			—			—			1,726
Total costs and expenses	—		664,354			10,088			—			674,442
Income before income taxes	—		13,778			12,255			—			26,033
(Benefit) provision for income taxes	—		(115,308		)	4,179			—			(111,129		)
Equity in subsidiaries	137,162		—			—			(137,162		)	—
Net income (loss)	137,162		129,086			8,076			(137,162		)	137,162
Preferred dividends	2,438		—			—			—			2,438
Excess of fair value over book value of preferred shares redeemed	2,190		—			—			—			2,190
Net income (loss) to common shareholders	$	132,534	$	129,086		$	8,076		$	(137,162	)	$	132,534

	Nine Months Ended September 30, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Unrestricted Subsidiaries		Eliminations			Consolidated
Revenue	$	—	$	495,371		$	15,623	$	—		$	510,994
Costs and expenses:
Land and housing	—		408,893			—		—			408,893
Impairment of inventory and investment in unconsolidated joint ventures	—		1,876			—		—			1,876
General and administrative	—		34,938			7,361		—			42,299
Selling	—		38,482			1		—			38,483
Interest	—		10,972			1,094		—			12,066
Total costs and expenses	—		495,161			8,456		—			503,617
Income before income taxes	—		210			7,167		—			7,377
(Benefit) provision for income taxes	—		(3,403		)	2,448		—			(955		)
Equity in subsidiaries	8,332		—			—		(8,332		)	—
Net income (loss)	$	8,332	$	3,613		$	4,719	$	(8,332	)	$	8,332

CONDENSED CONSOLIDATING BALANCE SHEET
	September 30, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	126,254	$	16,221	$	—		$	142,475
Restricted cash	—		15,806		—		—			15,806
Mortgage loans held for sale	—		—		60,388		—			60,388
Inventory	—		676,336		—		—			676,336
Property and equipment - net	—		10,139		207		—			10,346
Investment in unconsolidated joint ventures	—		14,656		19,432		—			34,088
Investment in subsidiaries	521,617		—		—		(521,617		)	—
Deferred income taxes, net of valuation allowances	—		112,164		518		—			112,682
Intercompany assets	319,136		—		—		(319,136		)	—
Other assets	10,547		12,389		8,010		—			30,946
TOTAL ASSETS	$	851,300	$	967,744	$	104,776	$	(840,753	)	$	1,083,067
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	85,383	$	421	$	—		$	85,804
Customer deposits	—		14,918		—		—			14,918
Intercompany liabilities	—		298,130		21,006		(319,136		)	—
Other liabilities	—		54,669		7,641		—			62,310
Community development district obligations	—		3,419		—		—			3,419
Obligation for consolidated inventory not owned	—		1,576		—		—			1,576
Notes payable bank - financial services operations	—		—		55,614		—			55,614
Notes payable - other	—		8,126		—		—			8,126
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Convertible senior subordinated notes due 2018	86,250		—		—		—			86,250
Senior notes	227,970		—		—		—			227,970
TOTAL LIABILITIES	371,720		466,221		84,682		(319,136		)	603,487
SHAREHOLDERS' EQUITY	479,580		501,523		20,094		(521,617		)	479,580
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	851,300	$	967,744	$	104,776	$	(840,753	)	$	1,083,067

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	126,334	$	19,164	$	—		$	145,498
Restricted cash	—		8,680		—		—			8,680
Mortgage loans held for sale	—		—		71,121		—			71,121
Inventory	—		540,761		16,056		—			556,817
Property and equipment - net	—		10,314		125		—			10,439
Investment in unconsolidated joint ventures	—		—		11,732		—			11,732
Investment in subsidiaries	391,555		—		—		(391,555		)	—
Intercompany assets	219,962		—		—		(219,962		)	—
Other assets	9,081		12,375		5,557		—			27,013
TOTAL ASSETS	$	620,598	$	698,464	$	123,755	$	(611,517	)	$	831,300
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	46,882	$	808	$	—		$	47,690
Customer deposits	—		10,239		—		—			10,239
Intercompany liabilities	—		205,389		14,573		(219,962		)	—
Other liabilities	—		44,230		5,742		—			49,972
Community development district obligations	—		4,634		—		—			4,634
Obligation for consolidated inventory not owned	—		3,549		15,556		—			19,105
Notes payable bank - financial services operations	—		—		67,957		—			67,957
Notes payable - other	—		11,105		—		—			11,105
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Senior notes	227,670		—		—		—			227,670
TOTAL LIABILITIES	285,170		326,028		104,636		(219,962		)	495,872
SHAREHOLDERS' EQUITY	335,428		372,436		19,119		(391,555		)	335,428
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	620,598	$	698,464	$	123,755	$	(611,517	)	$	831,300

(a) Certain amounts above have been reclassified from intercompany assets to intercompany liabilities as of December 31, 2012. These reclassifications relate solely to transactions between M/I Homes, Inc. and its subsidiaries and are immaterial to the Supplemental Condensed Consolidated Financial Statements. These reclassifications do not impact the Company's consolidated financial statements.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	7,100		$	(60,703	)	$	20,267		$	(7,100	)	$	(40,436	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			(7,274		)	—						(7,274		)
Purchase of property and equipment	—			(1,528		)	(126		)				(1,654		)
Investments in and advances to unconsolidated joint ventures	—			(14,657		)	(10,839		)	—			(25,496		)
Return of capital from unconsolidated joint ventures	—			—			1,522			—			1,522
Net cash used in investing activities	—			(23,459		)	(9,443		)	—			(32,902		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			(12,343		)	—			(12,343		)
Principal repayments of note payable - other and community development district bond obligations	—			(2,979		)	—			—			(2,979		)
Proceeds from issuance of convertible senior subordinated notes due 2018	86,250			—			—			—			86,250
Redemption of preferred shares	(50,352		)	—			—			—			(50,352		)
Proceeds from issuance of common shares	54,617			—			—			—			54,617
Proceeds from exercise of stock options	2,640			—			—			—			2,640
Excess tax benefits from stock-based payment arrangements	383			—			—			—			383
Intercompany financing	(98,200		)	92,463			5,737			—			—
Dividends paid	(2,438		)	—			(7,100		)	7,100			(2,438		)
Debt issue costs	—			(5,402		)	(61		)	—			(5,463		)
Net cash (used in) provided by financing activities	(7,100		)	84,082			(13,767		)	7,100			70,315
Net (decrease) increase in cash and cash equivalents	—			(80		)	(2,943		)	—			(3,023		)
Cash and cash equivalents balance at beginning of period	—			126,334			19,164			—			145,498
Cash and cash equivalents balance at end of period	$	—		$	126,254		$	16,221		$	—		$	142,475

	Nine Months Ended September 30, 2012
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	2,000		$	(20,546	)	$	4,225		$	(2,000	)	$	(16,321	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			32,391			—			—			32,391
Purchase of property and equipment	—			(786		)	(72		)	—			(858		)
Acquisition, net of cash acquired	—			(4,707		)	—			—			(4,707		)
Investments in and advances to unconsolidated joint ventures	—			—			(949		)	—			(949		)
Net cash provided by (used in) investing activities	—			26,898			(1,021		)	—			25,877
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowings - net	—			—			2,234			—			2,234
Repayment of Senior Notes	(41,443		)	—			—			—			(41,443		)
Principal proceeds from note payable - other and community development district bond obligations	—			4,968			—			—			4,968
Proceeds from issuance of convertible senior subordinated notes due 2017	57,500			—			—			—			57,500
Proceeds from issuance of common shares	42,085			—			—			—			42,085
Intercompany financing	(91,057		)	91,852			(795		)	—			—
Proceeds from issuance of senior notes	29,700			—			—			—			29,700
Dividends paid	—			—			(2,000		)	2,000			—
Debt issue costs	—			(5,812		)	(31		)	—			(5,843		)
Proceeds from exercise of stock options	1,215			—			—			—			1,215
Net cash provided by (used in) financing activities	(2,000		)	91,008			(592		)	2,000			90,416
Net increase in cash and cash equivalents	—			97,360			2,612			—			99,972
Cash and cash equivalents balance at beginning of period	—			43,539			16,254			—			59,793
Cash and cash equivalents balance at end of period	$	—		$	140,899		$	18,866		$	—		$	159,765

(a) Certain amounts above have been reclassified from intercompany financing to dividends paid and cash flows from operating activities for the nine months ended September 30, 2012. These reclassifications relate solely to transactions between M/I Homes, Inc. and its subsidiaries and are immaterial to the Supplemental Condensed Consolidated Financial Statements. These reclassifications do not impact the Company's consolidated financial statements.

XML

Debt

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Debt

Notes Payable - Homebuilding

On July 18, 2013, the Company entered into the Credit Facility, which has a maximum borrowing availability of $200 million. The Credit Facility matures on July 18, 2016. The Credit Facility contains an uncommitted $25 million accordion feature under which its aggregate principal amount can be increased to up to $225 million, subject to certain conditions, including obtaining additional commitments from existing or new lenders, as well as a sub-limit of $100 million for the issuance of letters of credit. Interest on amounts borrowed under the Credit Facility is payable at a rate based on either the Alternate Base Rate plus 2.25% or at the Eurodollar Rate plus 3.25%. Borrowings under the Credit Facility are unsecured and availability is subject to, among other things, a borrowing base. The Credit Facility also contains certain financial covenants, including a minimum tangible net worth requirement and a maximum leverage covenant that prohibits the leverage ratio (as defined therein) from exceeding 60%. In addition, we are restricted from allowing the amount of unsold owned land to exceed exceed 125% of the sum of tangible net worth and subordinated debt, we are prohibited from making investments in Unrestricted Subsidiaries and Joint Ventures in excess of 30% of tangible net worth, and we are required to maintain either (i) an interest coverage ratio ( as defined therein) of at least 1.50 to 1.00 or (ii) liquidity (as defined therein) of an amount not less than our consolidated interest incurred during the trailing 12 months. At September 30, 2013, the Company was in compliance with all financial covenants of the Credit Facility.

The Credit Facility replaced the $140 million secured revolving credit facility (the “Prior Credit Facility”) that was scheduled to mature on December 31, 2014. The guarantors of the Credit Facility are the same subsidiaries that guarantee the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes. The Company incurred no prepayment penalties in connection with the termination and replacement of the Prior Credit Facility; however, the Company recorded a $1.7 million loss on early extinguishment of debt related to unamortized issuance fees on the Prior Credit Facility.

At September 30, 2013, borrowing availability under the Credit Facility in accordance with the borrowing base calculation was $352.9 million, so the full amount of the $200 million facility was available, and there were no borrowings outstanding and $13.9 million of letters of credit outstanding under the Credit Facility, leaving net remaining borrowing availability of $186.1 million as of September 30, 2013.

The Company is party to three secured credit agreements for the issuance of letters of credit outside of the Credit Facility (collectively, the “Letter of Credit Facilities”). During the three months ended September 30, 2013, the Company extended the maturity dates on two of the Letter of Credit Facilities for an additional year to August 31, 2014 and September 30, 2014, respectively, while also increasing the maximum available amount under the facility maturing on September 30, 2014 from $8.0 million to $10.0 million. At September 30, 2013, there was $15.5 million of outstanding letters of credit in aggregate under the Company's three Letter of Credit Facilities, which were collateralized with $15.8 million of the Company's cash.

Notes Payable — Financial Services

In March 2013, M/I Financial amended and restated the MIF Mortgage Warehousing Agreement, which, among other things, increased the maximum borrowing availability to $80.0 million and included an accordion feature which allowed for an increase of the maximum borrowing availability of up to an additional $20.0 million (subject to certain conditions, including obtaining additional commitments from existing or new lenders), extended the expiration date to March 28, 2014, and increased the maximum principal amount permitted to be outstanding at any one time in aggregate under all warehouse credit lines to $125.0 million. The interest rate was also adjusted to a per annum rate equal to the greater of (1) the floating LIBOR rate plus 275 basis points and (2) 3.50%. On June 3, 2013, M/I Financial exercised the accordion feature described above to increase the amount of our maximum borrowing availability under the MIF Mortgage Warehousing Agreement to $100.0 million by obtaining additional bank commitments totaling $20.0 million.

On November 13, 2012, M/I Financial entered into the MIF Mortgage Repurchase Facility with a maximum borrowing availability of $15.0 million and an expiration date of November 12, 2013. As is typical for similar credit facilities in the mortgage origination industry, at closing, the expiration of the MIF Mortgage Repurchase Facility was set at approximately one year and is under consideration for extension annually by the participating lenders. We expect to extend the MIF Mortgage Repurchase Facility on or prior to the current expiration date of November 12, 2013, but we cannot provide any assurance that we will be able to obtain such an extension.

At September 30, 2013, M/I Financial's total combined maximum borrowing availability under the two credit facilities was $115.0 million. At September 30, 2013, M/I Financial had $55.6 million outstanding on a combined basis under its credit facilities and was in compliance with all financial covenants of those agreements.

Convertible Senior Subordinated Notes

In March 2013, the Company issued $86.3 million aggregate principal amount of 2018 Convertible Senior Subordinated Notes. The 2018 Convertible Senior Subordinated Notes bear interest at a rate of 3.0% per year, payable semiannually in arrears on March 1 and September 1 of each year. The 2018 Convertible Senior Subordinated Notes mature on March 1, 2018. At any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2018 Convertible Senior Subordinated Notes into the Company's common shares. The conversion rate initially equals 30.9478 shares per $1,000 of principal amount. This corresponds to an initial conversion price of approximately $32.31 per common share, which equates to approximately 2.7 million common shares. The conversion rate is subject to adjustment upon the occurrence of certain events. The 2018 Convertible Senior Subordinated Notes are fully and unconditionally guaranteed on a senior subordinated unsecured basis by those subsidiaries of the Company that are guarantors under the Company's 2018 Senior Notes and 2017 Convertible Senior Subordinated Notes. The 2018 Convertible Senior Subordinated Notes are senior subordinated unsecured obligations of the Company and the subsidiary guarantors and are subordinated in right of payment to our existing and future senior indebtedness and are also effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The indenture governing the 2018 Convertible Senior Subordinated Notes provides that the Company may not redeem the 2018 Convertible Senior Subordinated Notes prior to March 6, 2016, but also contains provisions requiring the Company to repurchase the notes (subject to certain exceptions), at a holder's option, upon the occurrence of a fundamental change (as defined in the indenture).

On or after March 6, 2016, the Company may redeem for cash any or all of the 2018 Convertible Senior Subordinated Notes (except for any 2018 Convertible Senior Subordinated Notes that the Company is required to repurchase in connection with a fundamental change), but only if the last reported sale price of the Company's common shares exceeds 130% of the applicable conversion price for the notes on each of at least 20 applicable trading days. The 20 trading days do not need to be consecutive, but must occur during a period of 30 consecutive trading days that ends within 10 trading days immediately prior to the date the Company provides the notice of redemption. The redemption price for the 2018 Convertible Senior Subordinated Notes to be redeemed will equal 100% of the principal amount, plus accrued and unpaid interest, if any.

In September 2012, the Company issued $57.5 million aggregate principal amount of 2017 Convertible Senior Subordinated Notes. The 2017 Convertible Senior Subordinated Notes bear interest at a rate of 3.25% per year, payable semiannually in arrears on March 15 and September 15 of each year. The 2017 Convertible Senior Subordinated Notes mature on September 15, 2017. At any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2017 Convertible Senior Subordinated Notes into the Company's common shares. The conversion rate initially equals 42.0159 shares per $1,000 of principal amount. This corresponds to an initial conversion price of approximately $23.80 per common share, which equates to approximately 2.4 million common shares. The conversion rate is subject to adjustment upon the occurrence of certain events. The 2017 Convertible Senior Subordinated Notes are fully and unconditionally guaranteed on a senior subordinated unsecured basis by those subsidiaries of the Company that are guarantors under the Company's 2018 Senior Notes and 2018 Convertible Senior Subordinated Notes. The 2017 Convertible Senior Subordinated Notes are senior subordinated unsecured obligations of the Company and the subsidiary guarantors and are subordinated in right of payment to our existing and future senior indebtedness and are also effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The indenture governing the 2017 Convertible Senior Subordinated Notes provides that we may not redeem the notes prior to their stated maturity date, but also contains provisions requiring the Company to repurchase the 2017 Convertible Senior Subordinated Notes (subject to certain exceptions), at a holder's option, upon the occurrence of a fundamental change (as defined in the indenture).

Senior Notes

As of September 30, 2013, we had $230.0 million of our 2018 Senior Notes outstanding. The 2018 Senior Notes bear interest at a rate of 8.625% per year, payable semiannually in arrears on May 15 and November 15 of each year, and mature on November 15, 2018. The 2018 Senior Notes are general, unsecured senior obligations of the Company and the subsidiary guarantors and rank equally in right of payment with all our existing and future unsecured senior indebtedness.  The 2018 Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of our subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries in accordance with the terms of the indenture.

The indenture governing our 2018 Senior Notes limits our ability to pay dividends on, and repurchase, our common shares and our 9.75% Series A Preferred Shares (the “Series A Preferred Shares”) to the amount of the positive balance in our “restricted payments basket,” as defined in the indenture. The restricted payments basket was $127.5 million at September 30, 2013. The increase in the balance of our restricted payments basket from the second quarter of 2013 was primarily due to the net income of our Restricted Subsidiaries in the third quarter of 2013, offset partially by a $1.2 million dividend payment made on our Series A Preferred Shares on September 16, 2013. We are permitted to pay dividends on, and repurchase, our common shares and Series A Preferred Shares to the extent of the positive balance in our restricted payments basket. The determination to pay future dividends on, or make future repurchases of, our common shares or Series A Preferred Shares will be at the discretion of our board of directors and will depend upon our results of operations, financial condition, capital requirements and compliance with debt covenants and the terms of our Series A Preferred Shares, and other factors deemed relevant by our board of directors.

XML

Valuation Adjustments and Write-offs Valuation Adjustments and Write-offs (Tables)

9 Months Ended

Sep. 30, 2013

Valuation Adjustments and Write offs [Abstract]

Valuation Adjustments and Write-Offs [Table Text Block]

A summary of the Company’s valuation adjustments and write-offs for the three and nine months ended September 30, 2013 and 2012 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2013		2012		2013		2012
Impairment of operating communities:
Midwest	$	481	$	—	$	481	$	10
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of operating communities (a)	$	481	$	—	$	481	$	10
Impairment of future communities:
Midwest	$	1,655	$	1,309	$	2,465	$	1,771
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of future communities (a)	$	1,655	$	1,309	$	2,465	$	1,771
Impairment of land held for sale:
Midwest	$	—	$	—	$	1,291	$	95
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of land held for sale (a)	$	—	$	—	$	1,291	$	95
Option deposits and pre-acquisition costs write-offs:
Midwest	$	—	$	—	$	—	$	36
Southern	—		—		—		110
Mid-Atlantic	—		—		—		110
Total option deposits and pre-acquisition costs write-offs (b)	$	—	$	—	$	—	$	256
Impairment of investments in unconsolidated joint ventures:
Midwest	$	—	$	—	$	—	$	—
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of investments in unconsolidated joint ventures (a)	$	—	$	—	$	—	$	—
Total impairments and write-offs of option deposits and pre-acquisition costs	$	2,136	$	1,309	$	4,237	$	2,132

(a) Amounts are recorded within Impairment of inventory and investment in unconsolidated joint ventures in the Company's Unaudited Condensed Consolidated Statements of Operations.

(b) Amounts are recorded within General and administrative expenses in the Company's Unaudited Condensed Consolidated Statements of Operations.

XML

Fair Value Measurements Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Measurements [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The table below shows the notional amounts of our financial instruments at September 30, 2013 and December 31, 2012:

Description of financial instrument (in thousands)	September 30, 2013		December 31, 2012
Best efforts contracts and related committed IRLCs	$	4,417	$	1,184
Uncommitted IRLCs	79,594		25,854
FMBSs related to uncommitted IRLCs	80,000		26,000
Best efforts contracts and related mortgage loans held for sale	3,025		25,441
FMBSs related to mortgage loans held for sale	55,000		44,000
Mortgage loans held for sale covered by FMBSs	54,720		44,524

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The table below shows the level and measurement of assets and liabilities measured on a recurring basis at September 30, 2013 and December 31, 2012:

Description of Financial Instrument (in thousands)	Fair Value Measurements September 30, 2013			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	60,388		$	—	$	60,388		$	—
Forward sales of mortgage-backed securities	(1,971		)	—		(1,971		)	—
Interest rate lock commitments	942			—		942			—
Best-efforts contracts	(179		)	—		(179		)	—
Total	$	59,180		$	—	$	59,180		$	—

Description of Financial Instrument (in thousands)	Fair Value Measurements December 31, 2012			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	71,121		$	—	$	71,121		$	—
Forward sales of mortgage-backed securities	253			—		253			—
Interest rate lock commitments	1			—		1			—
Best-efforts contracts	(3		)	—		(3		)	—
Total	$	71,372		$	—	$	71,372		$	—

Schedule of Derivative Instruments, (Loss) Gain in Statement of Financial Performance [Table Text Block]

The following table sets forth the amount of (loss) gain recognized, within our revenue in the Unaudited Condensed Consolidated Statements of Operations, on assets and liabilities measured on a recurring basis for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2013			2012			2013			2012
Mortgage loans held for sale	$	3,365		$	328		$	1,782		$	431
Forward sales of mortgage-backed securities	(5,262		)	(838		)	(2,224		)	(925		)
Interest rate lock commitments	1,677			341			941			328
Best-efforts contracts	(193		)	(84		)	(176		)	(77		)
Total (loss) gain recognized	$	(413	)	$	(253	)	$	323		$	(243	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following tables set forth the fair value of the Company's derivative instruments and their location within the Unaudited Condensed Consolidated Balance Sheets for the periods indicated (except for mortgage loans held for sale which is disclosed as a separate line item):

	Asset Derivatives			Liability Derivatives
	September 30, 2013			September 30, 2013
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	—	Other liabilities	$	1,971
Interest rate lock commitments	Other assets	942		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	179
Total fair value measurements		$	942		$	2,150

	Asset Derivatives			Liability Derivatives
	December 31, 2012			December 31, 2012
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	253	Other liabilities	$	—
Interest rate lock commitments	Other assets	1		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	3
Total fair value measurements		$	254		$	3

Fair Value, Assets Measured on Nonrecurring Basis [Table Text Block]

The table below summarizes the Company's assets measured on a non-recurring basis as of and for the three and nine months ended September 30, 2013 and 2012:

		Three Months Ended September 30,				Nine Months Ended September 30,
Description (in thousands)	Hierarchy	2013		2012 (2)		2013		2012 (2)
Adjusted basis of inventory (1)	Level 3	$	1,975	$	2,108	$	3,876	$	2,350
Impairments		2,136		1,309		4,237		1,876
Initial basis of inventory		$	4,111	$	3,417	$	8,113	$	4,226

(1) The fair values in the table above represent only assets whose carrying values were adjusted in the respective period.

(2) The carrying values for these assets may have subsequently increased or decreased from the fair value reported due to activities that have occurred since the measurement date.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table presents the carrying amounts and fair values of the Company's financial instruments at September 30, 2013 and December 31, 2012. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price).

	September 30, 2013				December 31, 2012
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash, cash equivalents and restricted cash	$	158,281	$	158,281	$	154,178	$	154,178
Mortgage loans held for sale	60,388		60,388		71,121		71,121
Split dollar life insurance policies	176		174		710		678
Notes receivable	3,312		3,180		8,787		7,460
Commitments to extend real estate loans	942		942		1		1
Forward sales of mortgage-backed securities	—		—		253		253
Liabilities:
Notes payable - banks	55,614		55,614		67,957		67,957
Notes payable - other	8,126		8,137		11,105		11,148
Convertible senior subordinated notes due 2017	57,500		65,406		57,500		74,175
Convertible senior subordinated notes due 2018	86,250		87,328		—		—
Senior notes due 2018	227,970		246,675		227,670		250,700
Best-efforts contracts for committed IRLCs and mortgage loans held for sale	179		179		3		3
Forward sales of mortgage-backed securities	1,971		1,971		—		—
Off-Balance Sheet Financial Instruments:
Letters of credit	—		659		—		493

XML

DEI Document	9 Months Ended
	Sep. 30, 2013	Oct. 23, 2013
Entity Information [Line Items]
Entity Registrant Name	M I HOMES INC
Entity Central Index Key	0000799292
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		24,357,943

XML

Inventory Inventory (Tables)

9 Months Ended

Sep. 30, 2013

Inventory [Abstract]

Schedule of Inventory, Current [Table Text Block]

A summary of the Company's inventory as of September 30, 2013 and December 31, 2012 is as follows:

(In thousands)	September 30, 2013		December 31, 2012
Single-family lots, land and land development costs	$	283,455	$	257,397
Land held for sale	6,899		8,442
Homes under construction	331,969		221,432
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2013 - $5,242;    December 31, 2012 - $4,883)	35,664		37,080
Community development district infrastructure	3,418		4,634
Land purchase deposits	13,355		8,727
Consolidated inventory not owned	1,576		19,105
Total inventory	$	676,336	$	556,817

XML

Supplemental Guarantor Information Supplemental Guarantor Information - Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	$ (40,436)	$ (16,321)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash	(7,274)	32,391
Purchase of property and equipment	(1,654)	(858)
Acquisition, net of cash acquired	0	(4,707)
Investment in unconsolidated joint ventures	(25,496)	949
Return of capital from unconsolidated joint ventures	1,522	0
Net cash provided by (used in) investing activities	(32,902)	25,877
Net Cash Provided by (Used in) Financing Activities [Abstract]
Repayments of Senior Debt		(41,443)
Repayments of bank borrowings - net	(12,343)	2,234
Principal repayments of note payable-other and community development district bond obligations	(2,979)	4,968
Proceeds from Issuance of Senior Notes		(29,700)
Redemption of preferred shares	(50,352)	0
Net proceeds from issuance of common shares	54,617	42,085
Proceeds from exercise of stock options	2,640	1,215
Excess tax deficiency from stock-based payment arrangements	383	0
Intercompany Financing	0	0
Dividends paid	(2,438)	0
Debt issue costs	(5,463)	5,843
Net cash (used in) provided by financing activities	70,315	90,416
Net increase (decrease) in cash and cash equivalents	(3,023)	99,972
Cash and cash equivalents balance at beginning of period	145,498	59,793
Cash and cash equivalents balance at end of period	142,475	159,765
Parent [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	7,100	2,000
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash	0	0
Purchase of property and equipment	0	0
Acquisition, net of cash acquired		0
Investment in unconsolidated joint ventures	0	0
Return of capital from unconsolidated joint ventures	0
Net cash provided by (used in) investing activities	0	0
Net Cash Provided by (Used in) Financing Activities [Abstract]
Repayments of Senior Debt		(41,443)
Repayments of bank borrowings - net	0	0
Principal repayments of note payable-other and community development district bond obligations	0	0
Proceeds from Issuance of Senior Notes		29,700
Redemption of preferred shares	(50,352)
Net proceeds from issuance of common shares	54,617	42,085
Proceeds from exercise of stock options	2,640	1,215
Excess tax deficiency from stock-based payment arrangements	383
Intercompany Financing	(98,200)	(91,057)
Dividends paid	(2,438)	0
Debt issue costs	0	0
Net cash (used in) provided by financing activities	(7,100)	(2,000)
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents balance at beginning of period	0	0
Cash and cash equivalents balance at end of period	0	0
Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	(60,703)	(20,546)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash	(7,274)	32,391
Purchase of property and equipment	(1,528)	(786)
Acquisition, net of cash acquired		(4,707)
Investment in unconsolidated joint ventures	(14,657)	0
Return of capital from unconsolidated joint ventures	0
Net cash provided by (used in) investing activities	(23,459)	26,898
Net Cash Provided by (Used in) Financing Activities [Abstract]
Repayments of Senior Debt		0
Repayments of bank borrowings - net	0	0
Principal repayments of note payable-other and community development district bond obligations	(2,979)	4,968
Proceeds from Issuance of Senior Notes		0
Redemption of preferred shares	0
Net proceeds from issuance of common shares	0	0
Proceeds from exercise of stock options	0	0
Excess tax deficiency from stock-based payment arrangements	0
Intercompany Financing	92,463	91,852
Dividends paid	0	0
Debt issue costs	(5,402)	5,812
Net cash (used in) provided by financing activities	84,082	91,008
Net increase (decrease) in cash and cash equivalents	(80)	97,360
Cash and cash equivalents balance at beginning of period	126,334	43,539
Cash and cash equivalents balance at end of period	126,254	140,899
Non-Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	20,267	4,225
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash	0	0
Purchase of property and equipment	(126)	(72)
Acquisition, net of cash acquired		0
Investment in unconsolidated joint ventures	(10,839)	949
Return of capital from unconsolidated joint ventures	(1,522)
Net cash provided by (used in) investing activities	(9,443)	(1,021)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Repayments of Senior Debt		0
Repayments of bank borrowings - net	(12,343)	2,234
Principal repayments of note payable-other and community development district bond obligations	0	0
Proceeds from Issuance of Senior Notes		0
Redemption of preferred shares	0
Net proceeds from issuance of common shares	0	0
Proceeds from exercise of stock options	0	0
Excess tax deficiency from stock-based payment arrangements	0
Intercompany Financing	5,737	(795)
Dividends paid	(7,100)	(2,000)
Debt issue costs	(61)	31
Net cash (used in) provided by financing activities	(13,767)	(592)
Net increase (decrease) in cash and cash equivalents	(2,943)	2,612
Cash and cash equivalents balance at beginning of period	19,164	16,254
Cash and cash equivalents balance at end of period	16,221	18,866
Corporate Elimination [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	(7,100)	(2,000)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash		0
Purchase of property and equipment		0
Acquisition, net of cash acquired		0
Investment in unconsolidated joint ventures	0	0
Return of capital from unconsolidated joint ventures	0
Net cash provided by (used in) investing activities	0	0
Net Cash Provided by (Used in) Financing Activities [Abstract]
Repayments of Senior Debt		0
Repayments of bank borrowings - net	0	0
Principal repayments of note payable-other and community development district bond obligations	0	0
Proceeds from Issuance of Senior Notes		0
Redemption of preferred shares	0
Net proceeds from issuance of common shares	0	0
Proceeds from exercise of stock options	0	0
Excess tax deficiency from stock-based payment arrangements	0
Intercompany Financing	0	0
Dividends paid	7,100	2,000
Debt issue costs	0	0
Net cash (used in) provided by financing activities	7,100	2,000
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents balance at beginning of period	0	0
Cash and cash equivalents balance at end of period	0	0
2017 Convertible Senior Notes [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes	0	57,500
2017 Convertible Senior Notes [Member] | Parent [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes		57,500
2017 Convertible Senior Notes [Member] | Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes		0
2017 Convertible Senior Notes [Member] | Non-Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes		0
2017 Convertible Senior Notes [Member] | Corporate Elimination [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes		0
2018 Convertible Senior Notes [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes	86,250	0
2018 Convertible Senior Notes [Member] | Parent [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes	86,250
2018 Convertible Senior Notes [Member] | Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes	0
2018 Convertible Senior Notes [Member] | Non-Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes	0
2018 Convertible Senior Notes [Member] | Corporate Elimination [Member]
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from issuance of convertible senior subordinated notes	$ 0