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, 2014

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: 24,474,139 shares outstanding as of October 22, 2014.

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, 2014 and December 31, 2013	3
		Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2014 and 2013	4
		Unaudited Condensed Consolidated Statement of Shareholders' Equity for the Nine Months Ended September 30, 2014	5
		Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2014 and 2013	6
		Notes to Unaudited Condensed Consolidated Financial Statements	7
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	28
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
	Item 4.	Controls and Procedures	52
PART II.	OTHER INFORMATION
	Item 1.	Legal Proceedings	52
	Item 1A.	Risk Factors	52
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
	Item 3.	Defaults Upon Senior Securities	52
	Item 4.	Mine Safety Disclosures	52
	Item 5.	Other Information	52
	Item 6.	Exhibits	53
Signatures			54
Exhibit Index			55

2

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par values)	September 30, 2014			December 31, 2013
ASSETS:
Cash and cash equivalents	$	17,168		$	128,725
Restricted cash	8,898			13,902
Mortgage loans held for sale	76,983			81,810
Inventory	893,964			690,934
Property and equipment - net	11,430			10,536
Investment in unconsolidated joint ventures	40,769			35,266
Deferred income taxes, net of valuation allowance of $9.3 million at December 31, 2013	102,882			110,911
Other assets	41,060			38,092
TOTAL ASSETS	$	1,193,154		$	1,110,176
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Accounts payable	$	97,873		$	70,226
Customer deposits	14,202			11,262
Other liabilities	74,203			71,341
Community development district (“CDD”) obligations	3,056			3,130
Obligation for consolidated inventory not owned	1,700			1,775
Notes payable bank - homebuilding	14,400			—
Notes payable bank - financial services operations	73,778			80,029
Notes payable - other	8,530			7,790
Convertible senior subordinated notes due 2017	57,500			57,500
Convertible senior subordinated notes due 2018	86,250			86,250
Senior notes	228,369			228,070
TOTAL LIABILITIES	659,861			617,373
Commitments and contingencies (Note 6)	—			—
SHAREHOLDERS' EQUITY:
Preferred shares - $.01 par value; authorized 2,000,000 shares; 2,000 shares issued and outstanding at both September 30, 2014 and December 31, 2013	48,163			48,163
Common shares - $.01 par value; authorized 58,000,000 and 38,000,000 shares at September 30, 2014 and December 31, 2013, respectively; issued 27,092,723 shares at both September 30, 2014 and December 31, 2013	271			271
Additional paid-in capital	238,095			236,060
Retained earnings	298,772			262,625
Treasury shares - at cost - 2,618,584 and 2,734,780 shares at September 30, 2014 and December 31, 2013, respectively	(52,008		)	(54,316		)
TOTAL SHAREHOLDERS' EQUITY	533,293			492,803
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,193,154		$	1,110,176

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)	2014			2013			2014			2013
Revenue	$	330,767		$	275,195		$	847,216		$	700,475
Costs and expenses:
Land and housing	261,636			218,150			666,817			556,799
Impairment of inventory and investment in unconsolidated joint ventures	622			2,136			1,426			4,237
General and administrative	21,724			18,261			61,320			52,389
Selling	21,955			17,999			58,175			47,383
Equity in income of unconsolidated joint ventures	(22		)	(278		)	(62		)	(278		)
Interest	2,649			3,449			9,549			12,186
Loss on early extinguishment of debt	—			1,726			—			1,726
Total costs and expenses	308,564			261,443			797,225			674,442
Income before income taxes	22,203			13,752			49,991			26,033
Provision (benefit) for income taxes	8,586			(111,559		)	10,188			(111,129		)
Net income	13,617			125,311			39,803			137,162
Preferred dividends	1,218			1,219			3,656			2,438
Excess of fair value over book value of preferred shares redeemed	—			—			—			2,190
Net income to common shareholders	$	12,399		$	124,092		$	36,147		$	132,534
Earnings per common share:
Basic	$	0.51		$	5.09		$	1.48		$	5.61
Diluted	$	0.44		$	4.22		$	1.30		$	4.79
Weighted average shares outstanding:
Basic	24,474			24,358			24,454			23,642
Diluted	29,921			29,745			29,900			28,410

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, 2014
	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, 2013	2,000	$	48,163	24,357,943	$	271	$	236,060		$	262,625		$	(54,316	)	$	492,803
Net income	—	—		—	—		—			39,803			—			39,803
Dividends to shareholders, $609.375 per preferred share	—	—		—	—		—			(3,656		)	—			(3,656		)
Stock options exercised	—	—		108,848	—		(702		)	—			2,162			1,460
Stock-based compensation expense	—	—		—	—		2,504			—			—			2,504
Deferral of executive and director compensation	—	—		—	—		379			—			—			379
Executive and director deferred compensation distributions	—	—		7,348	—		(146		)	—			146			—
Balance at September 30, 2014	2,000	$	48,163	24,474,139	$	271	$	238,095		$	298,772		$	(52,008	)	$	533,293

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)	2014			2013
OPERATING ACTIVITIES:
Net income	$	39,803		$	137,162
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Inventory valuation adjustments and abandoned land transaction write-offs	1,426			4,237
Equity in income of unconsolidated joint ventures	(62		)	(278		)
Mortgage loan originations	(470,345		)	(426,636		)
Proceeds from the sale of mortgage loans	477,728			439,151
Fair value adjustment of mortgage loans held for sale	(2,556		)	(1,782		)
Capitalization of originated mortgage servicing rights	(3,046		)	—
Amoritzation of mortgage servicing rights	548			—
Depreciation	3,733			3,777
Amortization of debt discount and debt issue costs	2,329			2,555
Loss on early extinguishment of debt	—			1,726
Stock-based compensation expense	2,504			1,835
Deferred income tax expense	17,320			9,190
Deferred tax asset valuation allowances	(9,291		)	(120,836		)
Change in assets and liabilities:
Cash held in escrow	92			148
Inventory	(196,139		)	(142,642		)
Other assets	(4,582		)	(2,443		)
Accounts payable	27,647			38,114
Customer deposits	2,940			4,679
Accrued compensation	(3,247		)	1,767
Other liabilities	6,487			9,840
Net cash used in operating activities	(106,711		)	(40,436		)
INVESTING ACTIVITIES:
Change in restricted cash	4,912			(7,274		)
Purchase of property and equipment	(2,347		)	(1,654		)
Return of capital from unconsolidated joint ventures	619			1,522
Investment in unconsolidated joint ventures	(16,818		)	(25,496		)
Net proceeds from sale of mortgage servicing rights	2,135			—
Net cash used in investing activities	(11,499		)	(32,902		)
FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior subordinated notes due 2018	—			86,250
Proceeds from (repayments of) bank borrowings - net	8,149			(12,343		)
Principal proceeds from (repayments of) notes payable-other and CDD bond obligations	740			(2,979		)
Dividends paid on preferred shares	(3,656		)	(2,438		)
Net proceeds from issuance of common shares	—			54,617
Redemption of preferred shares	—			(50,352		)
Debt issue costs	(40		)	(5,463		)
Proceeds from exercise of stock options	1,460			2,640
Excess tax deficiency from stock-based payment arrangements	—			383
Net cash provided by financing activities	6,653			70,315
Net decrease in cash and cash equivalents	(111,557		)	(3,023		)
Cash and cash equivalents balance at beginning of period	128,725			145,498
Cash and cash equivalents balance at end of period	$	17,168		$	142,475
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest — net of amount capitalized	$	3,074		$	4,977
Income taxes	$	551		$	679
NON-CASH TRANSACTIONS DURING THE PERIOD:
Community development district infrastructure	$	(74	)	$	(1,215	)
Consolidated inventory not owned	$	(75	)	$	(17,529	)
Distribution of single-family lots from unconsolidated joint ventures	$	10,758		$	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 the Company. 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, 2013 (the “2013 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 2013 Form 10-K, as the same may be updated from time to time in our subsequent filings with the SEC.

Impact of New Accounting Standards

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. ASU 2014-15 will be effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the Company’s condensed consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company beginning January 1, 2017 and, at that time, the Company may adopt the new standard under the full retrospective approach or the modified retrospective approach. Early adoption is not permitted.  The Company is currently evaluating the method and impact the adoption of ASU 2014-09 will have on the Company’s unaudited condensed consolidated financial statements and 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

7

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. Fair value measurement results in a better presentation of the changes in fair values of the loans and the derivative instruments used to economically hedge them.

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, 2014 and December 31, 2013:

Description of Financial Instrument (in thousands)	September 30, 2014		December 31, 2013
Best efforts contracts and related committed IRLCs	$	4,616	$	2,494
Uncommitted IRLCs	56,470		49,710
FMBSs related to uncommitted IRLCs	57,000		48,000
Best efforts contracts and related mortgage loans held for sale	41,058		63,386
FMBSs related to mortgage loans held for sale	34,000		20,000
Mortgage loans held for sale covered by FMBSs	33,736		19,884

The table below shows the level and measurement of assets and liabilities measured on a recurring basis at September 30, 2014 and December 31, 2013:

Description of Financial Instrument (in thousands)	Fair Value Measurements September 30, 2014			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	$	76,983		$	—	$	76,983		$	—
Forward sales of mortgage-backed securities	(41		)	—		(41		)	—
Interest rate lock commitments	434			—		434			—
Best-efforts contracts	51			—		51			—
Total	$	77,427		$	—	$	77,427		$	—

Description of Financial Instrument (in thousands)	Fair Value Measurements December 31, 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	$	81,810		$	—	$	81,810		$	—
Forward sales of mortgage-backed securities	745			—		745			—
Interest rate lock commitments	(319		)	—		(319		)	—
Best-efforts contracts	479			—		479			—
Total	$	82,715		$	—	$	82,715		$	—

The following table sets forth the amount of gain (loss) 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, 2014 and 2013:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2014			2013			2014			2013
Mortgage loans held for sale	$	(959	)	$	3,365		$	2,556		$	1,782
Forward sales of mortgage-backed securities	398			(5,262		)	(786		)	(2,224		)
Interest rate lock commitments	(144		)	1,677			753			941
Best-efforts contracts	164			(193		)	(428		)	(176		)
Total (loss) gain recognized	$	(541	)	$	(413	)	$	2,095		$	323

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, 2014			September 30, 2014
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	$	41
Interest rate lock commitments	Other assets	434		Other liabilities	—
Best-efforts contracts	Other assets	51		Other liabilities	—
Total fair value measurements		$	485		$	41

	Asset Derivatives			Liability Derivatives
	December 31, 2013			December 31, 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	$	745	Other liabilities	$	—
Interest rate lock commitments	Other assets	—		Other liabilities	319
Best-efforts contracts	Other assets	479		Other liabilities	—
Total fair value measurements		$	1,224		$	319

Assets Measured on a Non-Recurring Basis

The Company assesses inventory for recoverability on a quarterly basis based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. Determining the fair value of a community’s inventory involves a number of variables, estimates and projections, which are Level 3 measurement inputs. See Note 1, “Summary of Significant Accounting Policies - Inventory” in the Company's 2013 Form 10-K for additional information regarding the Company’s methodology for determining fair value.

The Company uses significant assumptions to evaluate the recoverability of its inventory. As of September 30, 2014, the Company's projections generally assume a gradual improvement in market conditions over time. The Company assumed no increase in weighted average sales price or assumed weighted average costs to build and deliver homes in 2014, an increase ranging from 2% to 4% in 2015 and 2016, and a 2% increase in in 2017 and beyond. If communities are not recoverable based on the 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 Company estimates the fair value of each impaired community by determining the present value of the estimated future cash flows and discounting those cash flow projections using an appropriate risk-adjusted interest rate. As of September 30, 2014, we utilized discount rates ranging from 13% to 16% in our valuations.

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. Changes in our key assumptions, including estimated average selling price, construction and development costs, absorption pace (reflecting any product mix change strategies implemented or to be implemented), selling strategies, alternative land uses (including disposition of all or a portion of the land owned), or discount rates, could materially impact future cash flow and fair value estimates.

The table below shows the level and measurement of the Company's assets measured on a non-recurring basis as of and for the three and nine months ended September 30, 2014 and 2013:

		Three Months Ended September 30,				Nine Months Ended September 30,
Description (in thousands)	Hierarchy	2014		2013 (2)		2014		2013 (2)
Adjusted basis of inventory (1)	Level 3	$	76	$	1,975	$	1,605	$	3,876
Total losses		622		2,136		1,426		4,237
Initial basis of inventory		$	698	$	4,111	$	3,031	$	8,113

(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.

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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, 2014, we increased our total investment in such joint venture arrangements from December 31, 2013 by $5.5 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 interest in these LLCs as of September 30, 2014 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.

As of September 30, 2014, 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 the VIE as we do not have the ability to control the activities that most significantly impact its economic performance. As a result, we are not considered the primary beneficiary of the VIE and are not required to consolidate the VIE or any of the LLCs in which we have an interest into our financial statements. We instead recorded the VIE and the LLCs 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 in Note 1, “Summary of Significant Accounting Policies - Inventory” in the Company's 2013 Form 10-K. Determining the fair value of investments in unconsolidated joint ventures involves a number of variables, many of which are interrelated and require management to make certain assumptions. As of September 30, 2014, the Company used a discount rate of 16% in determining the fair value of its 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. 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, changes in market conditions, and/or changes in management's intentions with respect to the investment, a change in assumptions could result and impairment could occur. During the three and nine months ended September 30, 2014 and 2013, the Company did not record any impairment charges on its investments in unconsolidated joint ventures.

We believe that the Company's maximum exposure related to its investment in these unconsolidated joint ventures as of September 30, 2014 is the amount invested of $40.8 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), 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 both September 30, 2014 and December 31, 2013 were $0.8 million of capitalized interest and other costs.

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.

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The following table presents the carrying amounts and fair values of the Company's financial instruments at September 30, 2014 and December 31, 2013. 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, 2014				December 31, 2013
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash, cash equivalents and restricted cash	$	26,066	$	26,066	$	142,627	$	142,627
Mortgage loans held for sale	76,983		76,983		81,810		81,810
Split dollar life insurance policies	189		189		171		171
Notes receivable	4,406		3,778		3,151		2,784
Commitments to extend real estate loans	434		434		—		—
Best-efforts contracts for committed IRLCs and mortgage loans held for sale	51		51		479		479
Forward sales of mortgage-backed securities	—		—		745		745
Liabilities:
Notes payable - banks	88,178		88,178		80,029		80,029
Notes payable - other	8,530		8,012		7,790		7,452
Convertible senior subordinated notes due 2017	57,500		63,322		57,500		74,391
Convertible senior subordinated notes due 2018	86,250		86,142		86,250		95,845
Senior notes due 2018	228,369		240,350		228,070		248,975
Commitments to extend real estate loans	—		—		319		319
Forward sales of mortgage-backed securities	41		41		—		—
Off-Balance Sheet Financial Instruments:
Letters of credit	—		595		—		413

The following methods and assumptions were used by the Company in estimating its fair value disclosures of financial instruments at September 30, 2014 and December 31, 2013:

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, 2014 and December 31, 2013. 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.

Notes Payable - Banks. The Company is a party to three primary credit agreements: (1) a $200 million unsecured revolving credit facility dated July 18, 2013, with M/I Homes, Inc. as borrower and guaranteed by the Company's wholly owned homebuilding subsidiaries (the “Credit Facility”); (2) a $110 million secured mortgage warehousing agreement, with M/I Financial as borrower, amended on March 28, 2014 (the “MIF Mortgage Warehousing Agreement”); and (3) a $15 million mortgage repurchase agreement, with M/I Financial as borrower, amended on November 6, 2013 (the “MIF Mortgage Repurchase Facility”). For each of these credit facilities, the interest rate is based on a variable rate index, and thus their carrying value is a reasonable estimate of fair value. The interest rate available to the Company during the third quarter of 2014 fluctuated with the Alternate Base Rate or the Eurodollar Rate (for the Credit Facility) or LIBOR (for the MIF Mortgage Warehousing Agreement and the MIF Mortgage Repurchase Facility). Refer to Note 12 for additional information regarding the Credit Facility.

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 $28.2 million and $25.8 million represent potential commitments at September 30, 2014 and December 31, 2013, 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.

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NOTE 3. Inventory

A summary of the Company's inventory as of September 30, 2014 and December 31, 2013 is as follows:

(In thousands)	September 30, 2014		December 31, 2013
Single-family lots, land and land development costs	$	402,352	$	323,673
Land held for sale	2,898		8,059
Homes under construction	419,931		305,499
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2014 - $6,732;    December 31, 2013 - $5,173)	42,356		34,433
Community development district infrastructure	3,056		3,130
Land purchase deposits	21,638		14,365
Consolidated inventory not owned	1,733		1,775
Total inventory	$	893,964	$	690,934

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, 2014 and December 31, 2013, we had 999 homes (with a carrying value of $159.9 million) and 798 homes (with a carrying value of $123.3 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.

NOTE 4. Capitalized Interest

The Company capitalizes interest during land development and home construction.  Capitalized interest is charged to land and housing costs and expenses as the related inventory is delivered to a third party.  The summary of capitalized interest for the three and nine months ended September 30, 2014 and 2013 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Capitalized interest, beginning of period	$	14,831		$	14,260		$	13,802		$	15,376
Interest capitalized to inventory	5,161			3,940			13,141			10,045
Capitalized interest charged to land and housing costs and expenses	(4,281		)	(4,074		)	(11,232		)	(11,295		)
Capitalized interest, end of period	$	15,711		$	14,126		$	15,711		$	14,126
Interest incurred	$	7,810		$	7,389		$	22,690		$	22,231

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NOTE 5. 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 considered 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, 2014 and 2013 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Warranty reserves, beginning of period	$	11,220		$	10,388		$	12,291		$	10,438
Warranty expense on homes delivered during the period	1,923			1,999			4,962			5,004
Changes in estimates for pre-existing warranties	1,047			321			1,937			422
Settlements made during the period	(3,508		)	(1,952		)	(8,508		)	(5,108		)
Warranty reserves, end of period	$	10,682		$	10,756		$	10,682		$	10,756

Guarantees

In the ordinary course of business, M/I Financial, LLC (“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 the terms of the loan within the first six months after the sale of the loan. Loans totaling approximately $45.1 million and $5.2 million were covered under these guarantees as of September 30, 2014 and December 31, 2013, respectively. The increase in loans covered by these guarantees from December 31, 2013 is a result of a change in the mix of investors and their related purchase terms. A portion of the revenue paid to M/I Financial for providing the guarantees on these loans was deferred at September 30, 2014, 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, 2014. The risk associated with the guarantees above is partially 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 $6.9 million and $8.2 million at September 30, 2014 and December 31, 2013, respectively. The risk associated with the guarantees above is partially 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. Loans totaling approximately $2.0 million and $1.5 million were covered under these guarantees as of September 30, 2014 and December 31,

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2013, respectively. 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 these guarantees to third parties totaling $2.4 million and $3.1 million at September 30, 2014 and December 31, 2013, respectively, which is management's best estimate of the Company's liability.

At September 30, 2014, 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 11), 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”).

NOTE 6. Commitments and Contingencies

At September 30, 2014, the Company had outstanding approximately $123.6 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 September 2019. Included in this total are: (1) $80.4 million of performance and maintenance bonds and $14.0 million of performance letters of credit that serve as completion bonds for land development work in progress; (2) $14.2 million of financial letters of credit, of which $7.7 million represent deposits on land and lot purchase agreements; and (3) $15.0 million of financial bonds.

At September 30, 2014, the Company also had options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $475.6 million. Purchase of properties under these agreements is contingent upon satisfaction of certain requirements by the Company and the sellers.

The Company and certain of its subsidiaries have been named as defendants in certain claims, complaints and legal actions that 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 September 30, 2014 and December 31, 2013, we had $0.2 million and $0.3 million reserved for legal expenses, respectively.

NOTE 7. Debt

Notes Payable - Homebuilding

The Credit Facility matures on July 18, 2016, and provides revolving credit financing for the Company with a maximum borrowing availability of $200 million and a sub-limit of $100 million for the issuance of letters of credit. 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. 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. At September 30, 2014, the Company was in compliance with all financial covenants of the Credit Facility.

At September 30, 2014, borrowing availability under the Credit Facility in accordance with the borrowing base calculation was $358.6 million, so the full amount of the $200 million facility was available. There were $14.4 million borrowings outstanding and $19.6 million of letters of credit outstanding, leaving net remaining borrowing availability of $166.0 million as of September 30, 2014.

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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 (as defined in Note 11), 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 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 Company’s obligations under the Credit Facility 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. Our obligations under the Credit Facility are effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness.

Refer to Note 12 for additional discussion of the Company’s Credit Facility.

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”), with maturities ranging from June 1, 2015 to September 30, 2015. During the three months ended September 30, 2014, the Company extended the maturity dates on two of the Letter of Credit Facilities for an additional year to June 1, 2015 and September 30, 2015, respectively. 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 $2.3 million was uncommitted at September 30, 2014 and could be withdrawn at any time. At September 30, 2014 and December 31, 2013, there was $8.6 million and $13.4 million of outstanding letters of credit in aggregate under the Company's three Letter of Credit Facilities, respectively, which were collateralized with $8.8 million and $13.7 million of the Company's cash, respectively.

Notes Payable — Financial Services

In March 2014, M/I Financial entered into an amendment to the MIF Mortgage Warehousing Agreement, which, among other things, increased the maximum borrowing availability to $110.0 million and included 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 27, 2015, increased the maximum principal amount permitted to be outstanding at any one time in aggregate under all warehouse credit lines to $150.0 million, and, effective with the quarter ending September 30, 2014, increased M/I Financial's minimum required tangible net worth requirement from $10.0 million to $11.0 million and the minimum required liquidity requirement from $5.0 million to $5.5 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) 3.0%.

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, as amended on November 6, 2013, has an expiration date of November 5, 2014 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 275 or 300 basis points depending on the loan type. M/I Financial expects to enter into another amendment to the MIF Mortgage Repurchase Facility prior to its expiration that would extend its term for an additional year, but M/I Financial cannot provide any assurances that it will be able to obtain such an extension.

At September 30, 2014 M/I Financial's total combined maximum borrowing availability under the two credit facilities was $125.0 million, an increase from $115.0 million at December 31, 2013. At September 30, 2014 and December 31, 2013, M/I Financial had $73.8 million and $80.0 million outstanding on a combined basis under its credit facilities, respectively, and was in compliance with all financial covenants of those agreements for both periods.

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. As of both September 30, 2014 and December 31, 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. 

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The 2018 Senior Notes are effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The 2018 Senior Notes contain certain covenants, as more fully described and defined in the indenture, which 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”; make certain investments; and create or incur certain 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, 2014, the Company was in compliance with all terms, conditions, and covenants under the indenture.

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 (as defined in Note 11), 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. As of September 30, 2014, the guarantors for the 2018 Senior Notes are the same subsidiaries that guarantee the Credit Facility, the 2017 Convertible Senior Subordinated Notes, and the 2018 Convertible Senior Subordinated Notes.

The Company may redeem all or any portion of the 2018 Senior Notes on or after November 15, 2014 at a stated redemption price, together with accrued and unpaid interest thereon. The redemption price will initially be 104.313% of the principal amount outstanding, but will decline to 102.156% of the principal amount outstanding if redeemed during the 12-month period beginning on November 15, 2015, and will further decline to 100.000% of the principal amount outstanding if redeemed on or after November 15, 2016, but prior to maturity.

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” 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, 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. The restricted payments basket was $145.7 million at September 30, 2014. 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.

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, 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,

17

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, 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).

Notes Payable - Other

The Company had other borrowings, which are reported in Notes Payable - Other in our Unaudited Condensed Consolidated Balance Sheets, totaling $8.5 million and $7.8 million as of September 30, 2014 and December 31, 2013, respectively.  The balance consists primarily of a mortgage note payable with a $4.5 million principal balance outstanding at September 30, 2014 (and $4.8 million principal balance outstanding at December 31, 2013), which is secured by an office building, matures in 2017 and carries an interest rate of 8.1%. The remaining balance is made up of other notes payable incurred through the normal course of business.

18

NOTE 8. 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, 2014 and 2013:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share amounts)	2014			2013			2014			2013
NUMERATOR
Net income	$	13,617		$	125,311		$	39,803		$	137,162
Preferred stock dividends	(1,218		)	(1,219		)	(3,656		)	(2,438		)
Excess of fair value over book value of preferred shares redeemed	—			—			—			(2,190		)
Net income to common shareholders	12,399			124,092			36,147			132,534
Interest on 3.25% convertible senior subordinated notes due 2017	368			611			1,110			1,833
Interest on 3.00% convertible senior subordinated notes due 2018	496			824			1,497			1,851
Diluted income available to common shareholders	$	13,263		$	125,527		$	38,754		$	136,218
DENOMINATOR
Basic weighted average shares outstanding	24,474			24,358			24,454			23,642
Effect of dilutive securities:
Stock option awards	214			183			223			246
Deferred compensation awards	148			119			138			111
3.25% convertible senior subordinated notes due 2017	2,416			2,416			2,416			2,416
3.00% convertible senior subordinated notes due 2018	2,669			2,669			2,669			1,995
Diluted weighted average shares outstanding - adjusted for assumed conversions	29,921			29,745			29,900			28,410
Earnings per common share:
Basic	$	0.51		$	5.09		$	1.48		$	5.61
Diluted	$	0.44		$	4.22		$	1.30		$	4.79
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	1,286			998			1,243			951

For the three and nine months ended September 30, 2014 and 2013, the effect of convertible debt was included in the diluted earnings per share calculations.

NOTE 9. Income Taxes

During the three and nine months ended September 30, 2014, the Company recorded a tax provision of $8.6 million and $10.2 million, respectively. The amounts reflect income tax expense related to the respective periods' pre-tax earnings as well as a $9.3 million benefit for the nine months ended September 30, 2014 from the reversal of our remaining state deferred tax asset valuation allowance. During the three and nine months ended September 30, 2013, the Company recorded a tax benefit of $111.6 million and $111.1 million, respectively. The amounts reflect income tax expense related to the respective periods' pre-tax earnings as well as a $111.6 million benefit for the three and nine months ended September 30, 2013 from the reversal of a majority of our deferred tax asset valuation allowance.The effective tax rate for the three months ended September 30, 2014 was 38.7%. The effective tax rate for the nine months ended September 30, 2014 was 20.4%. The effective tax rate for the nine months ended September 30, 2014 is not reflective of our historical tax rate or our effective tax rate in future periods due to our state deferred tax asset valuation allowance reversals in 2014. The effective tax rate for the same periods in 2013 was not meaningful due to the effects of the deferred tax asset valuation allowance and federal and state tax net operating losses (“NOLs”), and there is no correlation between the effective tax rate and the amount of pre-tax income for those periods.

In accordance with ASC 740-10, Income Taxes, we determine our net deferred tax assets by taxing jurisdiction. We evaluate our net deferred tax assets, including the benefit from NOLs, by jurisdiction to determine if a valuation allowance is required. Companies must assess 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 considers, among other matters, the nature, frequency and severity of 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. We recorded a full valuation allowance against all of our deferred tax assets during 2008 due to economic conditions and the weight of negative evidence at that time.

19

During the year ended December 31, 2013, we reversed the valuation allowance against our federal deferred tax assets and our deferred tax assets in most of our state jurisdictions because the weight of the positive evidence in those jurisdictions exceeded that of the negative evidence. However, at December 31, 2013, we retained a valuation allowance for certain states which have shorter carryforward periods for utilization of NOL carryovers or lower current earnings relative to their NOL carryforward balance. In 2014, we determined that it is more likely than not that our state NOL carryforwards should be able to be realized, and we reversed the remaining state deferred tax valuation allowance of $9.3 million during the nine months ended September 30, 2014.

At September 30, 2014, the Company had federal NOL carryforwards of approximately $53.3 million and federal credit carryforwards of $6.5 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 $13.6 million of state NOL carryforwards at September 30, 2014. State NOLs may be carried forward from 5 to 20 years, depending on the tax jurisdiction, with $7.0 million expiring between 2014 and 2027 and $6.6 million expiring between 2028 and 2032, absent sufficient state taxable income.

NOTE 10. 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.

20

The following table shows, by segment: revenue; operating income; interest expense; and income before income taxes for the three and nine months ended September 30, 2014 and 2013:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Revenue:
Midwest homebuilding	$	118,319		$	82,689		$	283,472		$	222,890
Southern homebuilding	118,150			96,275			299,472			216,181
Mid-Atlantic homebuilding	86,718			89,550			242,357			239,061
Financial services (a)	7,580			6,681			21,915			22,343
Total revenue	$	330,767		$	275,195		$	847,216		$	700,475
Operating income:
Midwest homebuilding (b)	$	12,802		$	5,114		$	26,771		$	11,696
Southern homebuilding (b)	10,215			8,271			24,741			15,222
Mid-Atlantic homebuilding (b)	6,511			8,433			18,888			18,961
Financial services (a)	3,804			3,827			12,204			13,451
Less: Corporate selling, general and administrative expense	(8,502		)	(6,996		)	(23,126		)	(19,663		)
Total operating income	$	24,830		$	18,649		$	59,478		$	39,667
Interest expense:
Midwest homebuilding	$	450		$	1,023		$	2,211		$	3,852
Southern homebuilding	968			1,405			3,927			4,510
Mid-Atlantic homebuilding	829			659			2,392			2,809
Financial services (a)	402			362			1,019			1,015
Total interest expense	$	2,649		$	3,449		$	9,549		$	12,186
Equity in income of unconsolidated joint ventures	(22		)	(278		)	(62		)	(278		)
Loss on early extinguishment of debt	—			1,726			—			1,726
Income before income taxes	$	22,203		$	13,752		$	49,991		$	26,033

(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, 2014, operating income was reduced by $0.6 million related to the impairment of future communities in the Midwest region. For the nine months ended September 30, 2014, operating income was reduced by $0.8 million related to the impairment of operating communities in the Midwest region and $0.6 million related to the impairment of future communities in the Midwest region. For the three months ended September 30, 2013, operating income was reduced by $0.5 million related to the impairment of operating communities in the Midwest region and $1.7 million related to the impairment of future communities in the Midwest region. For the nine months ended September 30, 2013, operating income was reduced by $0.5 million related to the impairment of operating communities, $2.5 million related to the impairment of future communities, and $1.3 million related to the impairment of land held for sale in the Midwest region. There were no impairment charges in the Mid-Atlantic or Southern regions for the three and nine months ended September 30, 2014 and 2013.

The following tables show total assets by segment at September 30, 2014 and December 31, 2013:

	September 30, 2014
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	4,671	$	12,332	$	4,635	$	—	$	21,638
Inventory (a)	310,559		315,169		246,598		—		872,326
Investments in unconsolidated joint ventures	2,980		37,789		—		—		40,769
Other assets	10,806		23,995		11,069		212,551		258,421
Total assets	$	329,016	$	389,285	$	262,302	$	212,551	$	1,193,154

21

	December 31, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,003	$	7,107	$	5,255	$	—	$	14,365
Inventory (a)	248,218		236,505		191,847		—		676,570
Investments in unconsolidated joint ventures	5,331		29,935		—		—		35,266
Other assets	10,571		982		11,050		361,372		383,975
Total assets	$	266,123	$	274,529	$	208,152	$	361,372	$	1,110,176

(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 11. 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 M/I Homes, Inc. (the parent company and the issuer of the aforementioned guaranteed notes), 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, 2014, 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.

22

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Three Months Ended September 30, 2014
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	323,187	$	7,580		$	—		$	330,767
Costs and expenses:
Land and housing	—		261,636		—			—			261,636
Impairment of inventory and investment in unconsolidated joint ventures	—		622		—			—			622
General and administrative	—		17,811		3,913			—			21,724
Selling	—		21,955		—			—			21,955
Equity in income of unconsolidated joint ventures	—		—		(22		)	—			(22		)
Interest	—		2,248		401			—			2,649
Total costs and expenses	—		304,272		4,292			—			308,564
Income before income taxes	—		18,915		3,288			—			22,203
Provision for income taxes	—		7,428		1,158			—			8,586
Equity in subsidiaries	13,617		—		—			(13,617		)	—
Net income	13,617		11,487		2,130			(13,617		)	13,617
Preferred dividends	1,218		—		—			—			1,218
Net income to common shareholders	$	12,399	$	11,487	$	2,130		$	(13,617	)	$	12,399

	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	125,311		122,821			2,490			(125,311		)	125,311
Preferred dividends	1,219		—			—			—			1,219
Net income to common shareholders	$	124,092	$	122,821		$	2,490		$	(125,311	)	$	124,092

23

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Nine Months Ended September 30, 2014
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	825,301	$	21,915		$	—		$	847,216
Costs and expenses:
Land and housing	—		666,817		—			—			666,817
Impairment of inventory and investment in unconsolidated joint ventures	—		1,426		—			—			1,426
General and administrative	—		51,159		10,161			—			61,320
Selling	—		58,175		—			—			58,175
Equity in income of unconsolidated joint ventures	—		—		(62		)	—			(62		)
Interest	—		8,530		1,019			—			9,549
Total costs and expenses	—		786,107		11,118			—			797,225
Income before income taxes	—		39,194		10,797			—			49,991
Provision for income taxes	—		5,991		4,197			—			10,188
Equity in subsidiaries	39,803		—		—			(39,803		)	—
Net income	39,803		33,203		6,600			(39,803		)	39,803
Preferred dividends	3,656		—		—			—			3,656
Net income to common shareholders	$	36,147	$	33,203	$	6,600		$	(39,803	)	$	36,147

	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	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 to common shareholders	$	132,534	$	129,086		$	8,076		$	(137,162	)	$	132,534

24

CONDENSED CONSOLIDATING BALANCE SHEET
	September 30, 2014
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	3,811	$	13,357	$	—		$	17,168
Restricted cash	—		8,898		—		—			8,898
Mortgage loans held for sale	—		—		76,983		—			76,983
Inventory	—		893,964		—		—			893,964
Property and equipment - net	—		11,119		311		—			11,430
Investment in unconsolidated joint ventures	—		22,286		18,483		—			40,769
Deferred income taxes, net of valuation allowances	—		101,849		1,033		—			102,882
Investment in subsidiaries	567,407		—		—		(567,407		)	—
Intercompany assets	330,075		—		—		(330,075		)	—
Other assets	7,930		23,576		9,554		—			41,060
TOTAL ASSETS	$	905,412	$	1,065,503	$	119,721	$	(897,482	)	$	1,193,154
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	97,302	$	571	$	—		$	97,873
Customer deposits	—		14,202		—		—			14,202
Intercompany liabilities	—		309,906		20,169		(330,075		)	—
Other liabilities	—		68,711		5,492		—			74,203
Community development district obligations	—		3,056		—		—			3,056
Obligation for consolidated inventory not owned	—		1,700		—		—			1,700
Notes payable banks - homebuilding	—		14,400		—		—			14,400
Notes payable bank - financial services operations	—		—		73,778		—			73,778
Notes payable - other	—		8,530		—		—			8,530
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Convertible senior subordinated notes due 2018	86,250		—		—		—			86,250
Senior notes	228,369		—		—		—			228,369
TOTAL LIABILITIES	372,119		517,807		100,010		(330,075		)	659,861
SHAREHOLDERS’ EQUITY	533,293		547,696		19,711		(567,407		)	533,293
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	905,412	$	1,065,503	$	119,721	$	(897,482	)	$	1,193,154

25

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	113,407	$	15,318	$	—		$	128,725
Restricted cash	—		13,902		—		—			13,902
Mortgage loans held for sale	—		—		81,810		—			81,810
Inventory	—		690,934		—		—			690,934
Property and equipment - net	—		10,267		269		—			10,536
Investment in unconsolidated joint ventures	—		13,525		21,741		—			35,266
Deferred income taxes, net of valuation allowances	—		109,763		1,148		—			110,911
Investment in subsidiaries	535,879		—		—		(535,879		)	—
Intercompany assets	318,852		—		—		(318,852		)	—
Other assets	9,892		17,180		11,020		—			38,092
TOTAL ASSETS	$	864,623	$	968,978	$	131,306	$	(854,731	)	$	1,110,176
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	69,887	$	339	$	—		$	70,226
Customer deposits	—		11,262		—		—			11,262
Intercompany liabilities	—		296,229		22,623		(318,852		)	—
Other liabilities	—		64,413		6,928		—			71,341
Community development district obligations	—		3,130		—		—			3,130
Obligation for consolidated inventory not owned	—		1,775		—		—			1,775
Notes payable bank - financial services operations	—		—		80,029		—			80,029
Notes payable - other	—		7,790		—		—			7,790
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Convertible senior subordinated notes due 2018	86,250		—		—		—			86,250
Senior notes	228,070		—		—		—			228,070
TOTAL LIABILITIES	371,820		454,486		109,919		(318,852		)	617,373
SHAREHOLDERS’ EQUITY	492,803		514,492		21,387		(535,879		)	492,803
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	864,623	$	968,978	$	131,306	$	(854,731	)	$	1,110,176

26

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30, 2014
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	8,275		$	(124,022	)	$	17,311		$	(8,275	)	$	(106,711	)
INVESTING ACTIVITIES:
Restricted cash	—			4,912			—			—			4,912
Purchase of property and equipment	—			(2,222		)	(125		)	—			(2,347		)
Investments in and advances to unconsolidated joint ventures	—			(12,080		)	(4,738		)	—			(16,818		)
Return of capital from unconsolidated joint ventures	—			—			619			—			619
Net proceeds from the sale of mortgage servicing rights	—			—			2,135			—			2,135
Net cash used in investing activities	—			(9,390		)	(2,109		)	—			(11,499		)
FINANCING ACTIVITIES:
Proceeds from (repayments of) bank borrowings - net	—			14,400			(6,251		)	—			8,149
Principal proceeds from note payable - other and community development district bond obligations	—			740			—			—			740
Proceeds from exercise of stock options	1,460			—			—			—			1,460
Intercompany financing	(6,079		)	8,676			(2,597		)	—			—
Dividends paid	(3,656		)	—			(8,275		)	8,275			(3,656		)
Debt issue costs	—			—			(40		)	—			(40		)
Net cash (used in) provided by financing activities	(8,275		)	23,816			(17,163		)	8,275			6,653
Net decrease in cash and cash equivalents	—			(109,596		)	(1,961		)	—			(111,557		)
Cash and cash equivalents balance at beginning of period	—			113,407			15,318			—			128,725
Cash and cash equivalents balance at end of period	$	—		$	3,811		$	13,357		$	—		$	17,168

	Nine Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	7,100		$	(60,703	)	$	20,267		$	(7,100	)	$	(40,436	)
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		)
FINANCING ACTIVITIES:
Repayments from bank borrowings - net	—			—			(12,343		)	—			(12,343		)
Principal repayments from 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 of preferred shares	(50,352		)	—			—			—			(50,352		)
Proceeds from exercise of stock options	2,640			—			—			—			2,640
Proceeds from issuance of common shares	54,617			—			—			—			54,617
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		)
Excess tax deficiency from stock-based payment arrangements	383			—			—			—			383
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

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NOTE 12. Subsequent Events

On October 20, 2014, the Company entered into a First Amendment to the Credit Facility (the “First Amendment”), which, among other things, (a) extended the maturity date of the Credit Facility to October 20, 2018, (b) reduced the Eurodollar margin initially from 3.25% to 2.50% and reduced the Alternate Base Rate margin initially from 2.25% to 1.50%, in each case subject to adjustment based on the Company's leverage ratio, (c) increased the maximum borrowing availability under the facility from $200 million to $300 million, (d) increased the accordion feature under which the aggregate principal amount can be increased to up to $400 million, subject to obtaining additional commitments, (e) modified the borrowing base to provide for additional availability, (f) increased the sub-facility for letters of credit to $125 million, and (g) increased the required minimum tangible net worth to $353.9 million, plus (i) 50% of cumulative consolidated net income, earned from and after June 30, 2014, and (ii) 50% of the net proceeds of any equity offerings of the Company occurring on or after June 30, 2014, excluding proceeds used to refinance the Series A Preferred Shares.

The Credit Facility, as amended by the First Amendment (the “Amended Credit Facility”), contains various representations, warranties and covenants that the Company considers customary for such facilities. Under the terms of the Amended Credit Facility, we are required, among other things, to maintain compliance with various covenants, including financial covenants relating to a minimum consolidated tangible net worth requirement, a minimum interest coverage ratio or liquidity requirement, and a maximum leverage ratio.

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 more than 89,000 homes since we commenced homebuilding activities in 1976.  The Company's homes are marketed and sold under the M/I Homes brand (M/I Homes and Showcase Collection (exclusively by M/I)). We also operate under the name Triumph Homes in certain communities in our Houston, Texas market. 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, 2013 (the “2013 Form 10-K”) for more information regarding those risk factors.

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

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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 2013 Form 10-K 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, 2014 as compared to those disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our 2013 Form 10-K.

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RESULTS OF OPERATIONS

The Company’s segment information is presented on the basis that its 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 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

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

We believe that housing market conditions, in general, remain healthy despite a moderation in the pace of new contracts in 2014's first nine months when compared to the same period in 2013. We believe this moderation is due to a number of factors, including (1) reduced affordability in certain markets as a result of higher average sales prices, (2) a tepid economic recovery and uneven job creation, (3) harsh weather conditions experienced early in 2014, which delayed the opening of certain of our new communities, (4) a general lengthening of our community development cycle time due to volume of overall new housing developments and (5) the imposition of lower loan limits on government-sponsored mortgages beginning in January 2014. Despite these factors, our new contracts improved by 3% in the quarter ended September 30, 2014 when compared to 2013's third quarter. Our new contracts declined by 3% for the nine months ended September 30, 2014. Although our new contracts declined during the nine months ended September 30, 2014 compared to our new contracts during the nine months ended September 30, 2013, we experienced improvements in most of our financial and operating metrics for the three and nine months ended September 30, 2014.

During the nine months ended September 30, 2014, we reported revenue of $847.2 million, a 20.9%increase compared to the same period in 2013, and achieved net income of $39.8 million, of which $30.5 million ($0.99 per diluted share) related to our core profitability, and $9.3 million ($0.31 per diluted share) related to the accounting benefit from income taxes associated with the reversal of our remaining state deferred tax asset valuation allowance (see Note 9 to our Unaudited Condensed Consolidated Financial Statements for further information). We also achieved our highest year-to-date gross and operating margins since 2006, with gross margin and operating margin reaching 21.1% and 7.0%, respectively, for the nine months ended September 30, 2014. We believe our improved results of operations are attributable to (1) our strategic growth and investment in new communities, along with a shift in our mix of communities towards better performing locations within each of our markets; (2) our continued progress in shifting our housing investment to markets with stronger economic growth, including expansion into new markets; (3) our continued focus on controlling overall costs; and (4) the contributions from our financial services operations. Please see further discussion of our financial and operating metrics below in the “Summary of Company Results” and “Year Over Year Comparison” sections.

Summary of Company Results

Summary of Financial Results

For the quarter ended September 30, 2014, we achieved net income to common shareholders of $12.4 million, or $0.44 per diluted share, which included $1.2 million of dividend payments made to holders of our Series A Preferred Shares and $0.6 million of pre-tax impairment charges. This compares to net income to common shareholders of $124.1 million, or $4.22 per diluted share, for the third quarter of 2013, 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

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$1.7 million charge related to the early termination of our $140 million secured revolving credit facility (the “Terminated Credit Facility”) and $1.2 million of dividend payments made to holders of our Series A Preferred Shares. For the nine months ended September 30, 2014, we achieved net income to common shareholders of $36.1 million, or $1.30 per diluted share, which included a $9.3 million accounting benefit from income taxes associated with the reversal of the remaining valuation allowance against our state deferred tax assets, $3.7 million of dividend payments made to holders of our Series A Preferred Shares and $1.4 million of pre-tax impairment charges. This compares to net income to common shareholders of $132.5 million, or $4.79 per diluted share, for the nine months ended September 30, 2013, 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 $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.

During the quarter ended September 30, 2014, we recorded total revenue of $330.8 million, of which $315.4 million was from homes delivered, $7.8 million was from land sales and $7.6 million was from our financial services operations. Revenue from homes delivered increased19% driven primarily by a 13%increase in the average sales price of homes delivered ($36,000 per home delivered) and 48 additional homes delivered in 2014's third quarter compared to the same period in 2013. Revenue from land sales increased$5.2 million during the third quarter of 2014 primarily due to larger land sales in our Southern and Mid-Atlantic regions compared to prior year. Revenue in our financial services segment increased13% to $7.6 million in the third quarter of 2014 primarily due to the factors discussed below in our “Year Over Year Comparison” section. For the nine months ended September 30, 2014, we recorded total revenue of $847.2 million, of which $809.4 million was from homes delivered, $15.9 million was from land sales and $21.9 million was from our financial services operations. Revenue from homes delivered increased22% driven primarily by 264 additional homes delivered in the nine months ended September 30, 2014 compared to the same period in 2013 and a 9%increase in the average sales price of homes delivered ($26,000 per home delivered). Revenue from land sales increased$3.1 million from 2013's first nine months primarily due to larger land sales in our Southern and Mid-Atlantic regions compared to prior year. Revenue in our financial services segment decreased2% to $21.9 million for the nine months ended September 30, 2014 primarily due to the factors discussed below in our “Year Over Year Comparisons” section.

Total gross margin increased$13.6 million in the third quarter of 2014 compared to the third quarter of 2013, primarily as a result of a $12.7 millionimprovement in the gross margin of our homebuilding operations and a $0.9 million improvement in gross margin from our financial services operations. The increase in homebuilding gross margin for the third quarter of 2014 resulted primarily from the 13%increase in the average sales price of homes delivered ($36,000 per home delivered) and the 48 unit increase in the number of homes delivered. For the nine months ended September 30, 2014, total gross margin increased$39.5 million compared to the nine months ended September 30, 2013, which was largely the result of a $40.0 millionimprovement in the gross margin of our homebuilding operations, offset partially by a $0.4 million decline in gross margin from our financial services operations. The increase in homebuilding gross margin for the nine months ended September 30, 2014 resulted primarily from the 264 unit increase in the number of homes delivered and the 9%increase in the average sales price of homes delivered ($26,000 per home delivered).

The increased sales prices for both the three and nine months ended September 30, 2014 were driven 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 and a shift in the mix of homes delivered to higher priced and larger homes. We also experienced better pricing leverage in select locations and submarkets. The pricing and unit improvements were partially offset by higher average lot and construction costs related to both the mix of homes delivered as well as cost increases associated with homebuilding industry conditions and normal supply and demand dynamics. During the nine month period ended September 30, 2014, we were able to pass a majority of the higher costs on to our homebuyers in the form of higher sales prices and lower incentives. However, recent moderation in the pace of improvement in the homebuilding industry may make it more difficult to continue to fully offset any additional increases in lot, material, labor and land costs that we may experience going forward.

Selling, general and administrative expense increased$7.4 million and $19.7 million for the three and nine months ended September 30, 2014, respectively, which offset, in part, the increase in our gross margins discussed above. For the third quarter of 2014, selling expense increased$4.0 million from the prior year's third quarter and increased slightly as a percentage of revenue to 6.6% compared to 6.5% in the third quarter of 2013.Variable selling expense for sales commissions contributed $2.2 million to the increase in selling expense due to the increase in the number of homes delivered and the higher average sales price. The increase in selling expense was also attributable to a $1.8 millionincrease in non-variable selling expense primarily related to a $1.3 millionincrease in expenses associated with our sales offices and models related to our new community openings and a $0.5 millionincrease related to our new Austin and Dallas/Fort Worth markets. General and administrative expense increased$3.4 million during the third quarter of 2014 and remained flat at 6.6% as a percentage of revenue for both the third quarter of 2014 and 2013. This dollar increase was primarily due to a $0.7 millionincrease in payroll-related expense, resulting primarily from the increase

31

in our employee count, a $0.7 millionincrease associated with our new Austin and Dallas/Fort Worth markets, a $0.6 millionincrease in share based and variable incentive compensation expense associated with our improved financial performance, a $0.4 millionincrease in land abandonment charges, and a $0.4 millionincrease due to the absence of bad debt recoveries that occurred in the third quarter of 2013, and various other miscellaneous expense increases. For the nine months ended September 30, 2014, selling expense increased$10.8 million from the nine months ended September 30, 2013 and increased slightly as a percentage of revenue to 6.9% compared to 6.8% in the nine months ended September 30, 2013. Variable selling expense for sales commissions contributed $6.5 million to the increase due to the increase in the number of homes delivered and the higher average sales price. The increase in selling expense was also attributable to a $4.3 millionincrease in non-variable selling expense primarily related to a $3.3 millionincrease in expenses associated with our sales offices and models, resulting from the increase in our number of average communities compared to prior year's number of average communities, and a $1.0 millionincrease related to our new Austin and Dallas/Fort Worth markets. General and administrative expense increased$8.9 million compared to the nine months ended September 30, 2013 but improved as a percentage of revenue from 7.5% in the nine months ended September 30, 2013 to 7.2% in the nine months ended September 30, 2014. The increase in general and administrative expenses was primarily due to a $3.1 millionincrease in payroll-related expense, resulting primarily from a 19%increase in our employee count related to our average community count growth, a $2.4 millionincrease in share based and variable incentive compensation expense associated with our improved financial performance, a $1.7 millionincrease associated with our new Austin and Dallas/Fort Worth markets, a $1.1 million increase due to the absence of bad debt recoveries that occurred during the nine months ended September 30, 2013, and a $0.6 millionincrease in land abandonment charges. Overall, our selling, general and administrative expense was 13.2% and 14.1% of revenue for the three months and nine months ended September 30, 2014, respectively, compared to 13.2% and 14.2% for the same periods in 2013, respectively. We continue to focus on cost control and reducing our selling, general and administrative expense at both the divisional and corporate levels as a percentage of revenue.

Summary of Operational Results

In addition to the improving financial results noted above, certain of our operational metrics also improved. For the quarter ended September 30, 2014, we achieved a 5%increase in the number of homes delivered and a 13%increase in the average sales price of homes delivered compared to the same period a year ago. For the nine months ended September 30, 2014, we achieved an 11%increase in the number of homes delivered and a 10%increase in the average sales price of homes delivered compared to 2013's first nine months. We also experienced a 10%increase in the average sales price of homes in backlog and a 6%increase in the overall sales value of our backlog at September 30, 2014 compared to September 30, 2013, along with the 3%increase in new contracts for the three months ended September 30, 2014 compared to the same period in 2013.

We continue to invest in communities and markets that we believe will help 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, 2014, we opened 37 communities and closed 47 communities. However, new contracts declined by 3% during the nine months ended September 30, 2014 compared to the same period in 2013and the number of homes in our backlog at September 30, 2014declined by 3% compared to September 30, 2013. Our absorption rates per community also declined from 2.4 for the nine months ended September 30, 2013 to 2.1 for the nine months ended September 30, 2014. We believe the declines in new contracts, units in backlog and absorption pace from 2013's first nine months resulted from the general moderation in the rate of improvement in the housing market during the nine months ended September 30, 2014 compared to 2013's same period. In addition, the timing of the planned opening of several of our new communities was unfavorably impacted due to both harsh winter weather conditions earlier in 2014 and a general lengthening of the cycle time for new community development due to the increased volume of overall new housing developments.

Outlook

Looking ahead, we continue to believe that the fundamentals supporting continued moderate improvements in the housing industry remain in place. We believe our results will remain largely dependent on (1) our ability to open new communities as planned, (2) traffic levels, (3) the extent of job growth and consumer confidence, and (4) stability in mortgage loan underwriting standards and interest rates.

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:

• profitably growing our presence in our existing markets, including opening new communities;

• reviewing new markets for investment opportunities;

• maintaining a strong balance sheet; and

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

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With these objectives in mind, we took a number of steps during the nine months ended September 30, 2014 to position the Company for the remainder of 2014 and beyond, including investing $183.7 million in land acquisitions and $93.2 million in land development to help grow our presence in our existing markets. We currently estimate that we will spend a total of approximately $375 million to $425 million on land purchases and land development in 2014, including the $276.9 million spent during the nine months ended September 30, 2014. However, given varying results in each of our local markets, we will continue to adjust our strategies and investments based on housing demand and our performance in each of our markets.

Despite our positive expectations, it is unclear whether our financial results will continue to improve at the rate they did in 2013 and the nine months ended September 30, 2014. Going forward, we believe our abilities to leverage our fixed costs, obtain land at desired rates of return, and open and grow our active communities provide our best opportunities to continue improving our financial results. However, we can provide no assurance that the rate of positive annual trends and/or sequential trends experienced in our financial and operating metrics in 2013 and the nine months ended September 30, 2014 will continue throughout the remainder of 2014.

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The following table shows, by segment, revenue; gross margin; selling, general and administrative expense; operating income (loss); interest expense; and income before income taxes for the three and nine months ended September 30, 2014 and 2013:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Revenue:
Midwest homebuilding	$	118,319		$	82,689		$	283,472		$	222,890
Southern homebuilding	118,150			96,275			299,472			216,181
Mid-Atlantic homebuilding	86,718			89,550			242,357			239,061
Financial services (a)	7,580			6,681			21,915			22,343
Total revenue	$	330,767		$	275,195		$	847,216		$	700,475
Gross margin:
Midwest homebuilding	$	22,848		$	13,406		$	54,627		$	35,156
Southern homebuilding	22,563			17,992			57,959			40,077
Mid-Atlantic homebuilding	15,518			16,830			44,472			41,863
Financial services (a)	7,580			6,681			21,915			22,343
Total gross margin	$	68,509		$	54,909		$	178,973		$	139,439
Selling, general and administrative expense:
Midwest homebuilding	$	10,046		$	8,292		$	27,856		$	23,460
Southern homebuilding	12,348			9,721			33,218			24,855
Mid-Atlantic homebuilding	9,007			8,397			25,584			22,902
Financial services (a)	3,776			2,854			9,711			8,892
Corporate	8,502			6,996			23,126			19,663
Total selling, general and administrative expense	$	43,679		$	36,260		$	119,495		$	99,772
Operating income (loss):
Midwest homebuilding	$	12,802		$	5,114		$	26,771		$	11,696
Southern homebuilding	10,215			8,271			24,741			15,222
Mid-Atlantic homebuilding	6,511			8,433			18,888			18,961
Financial services (a)	3,804			3,827			12,204			13,451
Corporate	(8,502		)	(6,996		)	(23,126		)	(19,663		)
Total operating income	$	24,830		$	18,649		$	59,478		$	39,667
Interest expense:
Midwest homebuilding	$	450		$	1,023		$	2,211		$	3,852
Southern homebuilding	968			1,405			3,927			4,510
Mid-Atlantic homebuilding	829			659			2,392			2,809
Financial services (a)	402			362			1,019			1,015
Total interest expense	$	2,649		$	3,449		$	9,549		$	12,186
Equity in income of unconsolidated joint ventures	(22		)	(278		)	(62		)	(278		)
Loss on early extinguishment of debt	—			1,726			—			1,726
Income before income taxes	$	22,203		$	13,752		$	49,991		$	26,033

(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 refinancing.

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The following tables show total assets by segment at September 30, 2014 and December 31, 2013:

	At September 30, 2014
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	4,671	$	12,332	$	4,635	$	—	$	21,638
Inventory (a)	310,559		315,169		246,598		—		872,326
Investments in unconsolidated joint ventures	2,980		37,789		—		—		40,769
Other assets	10,806		23,995		11,069		212,551		258,421
Total assets	$	329,016	$	389,285	$	262,302	$	212,551	$	1,193,154

	At December 31, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,003	$	7,107	$	5,255	$	—	$	14,365
Inventory (a)	248,218		236,505		191,847		—		676,570
Investments in unconsolidated joint ventures	5,331		29,935		—		—		35,266
Other assets	10,571		982		11,050		361,372		383,975
Total assets	$	266,123	$	274,529	$	208,152	$	361,372	$	1,110,176

(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.

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Reportable Segments

The following table presents, by reportable segment, selected operating and financial information as of and for the three and nine months ended September 30, 2014 and 2013:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2014		2013		2014		2013
Midwest Region
Homes delivered	381		307		931		837
New contracts, net	325		318		1,093		1,062
Backlog at end of period	707		643		707		643
Average sales price per home delivered	$	307	$	269	$	300	$	263
Average sales price of homes in backlog	$	336	$	297	$	336	$	297
Aggregate sales value of homes in backlog	$	237,407	$	190,932	$	237,407	$	190,932
Revenue homes	$	117,113	$	82,641	$	278,974	$	220,018
Revenue third party land sales	$	1,206	$	48	$	4,498	$	2,872
Operating income homes	$	12,456	$	5,110	$	25,427	$	12,681
Operating income (loss) land	$	346	$	4	$	1,344	$	(985	)
Number of average active communities	61		66		64		63
Number of active communities, end of period	62		66		62		66
Southern Region
Homes delivered	344		354		949		794
New contracts, net	327		289		1,026		1,043
Backlog at end of period	526		590		526		590
Average sales price per home delivered	$	328	$	269	$	307	$	269
Average sales price of homes in backlog	$	323	$	287	$	323	$	287
Aggregate sales value of homes in backlog	$	169,676	$	169,547	$	169,676	$	169,547
Revenue homes	$	112,673	$	95,315	$	291,785	$	213,518
Revenue third party land sales	$	5,477	$	960	$	7,687	$	2,663
Operating income homes	$	9,905	$	7,924	$	24,284	$	13,845
Operating income land	$	310	$	347	$	457	$	1,377
Number of average active communities	50		43		51		40
Number of active communities, end of period	51		46		51		46
Mid-Atlantic Region
Homes delivered	260		276		736		721
New contracts, net	240		262		771		889
Backlog at end of period	321		374		321		374
Average sales price per home delivered	$	329	$	319	$	324	$	322
Average sales price of homes in backlog	$	346	$	341	$	346	$	341
Aggregate sales value of homes in backlog	$	111,003	$	127,610	$	111,003	$	127,610
Revenue homes	$	85,571	$	87,930	$	238,682	$	231,840
Revenue third party land sales	$	1,147	$	1,620	$	3,675	$	7,221
Operating income homes	$	6,145	$	8,116	$	17,904	$	17,397
Operating income land	$	366	$	317	$	984	$	1,564
Number of average active communities	35		35		37		35
Number of active communities, end of period	34		35		34		35
Total Homebuilding Regions
Homes delivered	985		937		2,616		2,352
New contracts, net	892		869		2,890		2,994
Backlog at end of period	1,554		1,607		1,554		1,607
Average sales price per home delivered	$	320	$	284	$	309	$	283
Average sales price of homes in backlog	$	333	$	304	$	333	$	304
Aggregate sales value of homes in backlog	$	518,086	$	488,089	$	518,086	$	488,089
Revenue homes	$	315,357	$	265,886	$	809,441	$	665,376
Revenue third party land sales	$	7,830	$	2,628	$	15,860	$	12,756
Operating income homes	$	28,506	$	21,150	$	67,615	$	43,923
Operating income land	$	1,022	$	668	$	2,785	$	1,956
Number of average active communities	146		144		152		138
Number of active communities, end of period	147		147		147		147

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	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2014		2013		2014		2013
Financial Services
Number of loans originated	701		689		1,801		1,783
Value of loans originated	$	191,935	$	165,660	$	470,345	$	426,637
Revenue	$	7,580	$	6,681	$	21,915	$	22,343
Less: Selling, general and administrative expense	3,776		2,854		9,711		8,892
Interest expense	402		362		1,019		1,015
Income before income taxes	$	3,402	$	3,465	$	11,185	$	12,436

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.

The composition of our homes delivered, new contracts, net and backlog is constantly changing and may be based on a dissimilar mix of communities between periods as new communities open and existing communities wind down. Further, home types and individual homes within a community can range significantly in price due to differing square footage, option selections, lot sizes and quality and location of lots. These variations may result in a lack of meaningful comparability between homes delivered, new contracts, net and backlog due to the changing mix between periods.

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, 2014 and 2013:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Midwest	19.0	%	18.0	%	17.1	%	18.6	%
Southern	17.4	%	17.2	%	18.4	%	14.7	%
Mid-Atlantic	10.1	%	15.2	%	9.4	%	11.6	%
Total cancellation rate	16.2	%	16.9	%	15.7	%	15.3	%

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 Comparison

Three Months Ended September 30, 2014 Compared to Three Months Ended September 30, 2013

Midwest Region. Our Midwest region had operating income of $12.8 million for the three months ended September 30, 2014, a $7.7 millionincrease from our operating income of $5.1 million for the three months ended September 30, 2013. The increase in operating income was primarily the result of a $35.6 millionimprovement in our homebuilding revenue, offset partially by a $1.7 millionincrease in selling, general, and administrative expense.

For the quarter ended September 30, 2014, homebuilding revenue in our Midwest region increased$35.6 million, from $82.7 million in the third quarter of 2013 to $118.3 million in the third quarter of 2014. This 43%increase in homebuilding revenue was the result of a 14%increase in the average sales price of homes delivered ($38,000 per home delivered), a 24%increase in the number of homes delivered (74 units) and a $1.2 millionincrease in land sale revenue. Our homebuilding gross margin improved$9.4 million and yielded a gross margin percentage of 19.3% for the quarter ended September 30, 2014, a 310 basis point

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improvement when compared to the same period in 2013. This gross margin improvement resulted primarily from the revenue improvements described above as well as a $1.5 milliondecrease in asset impairment charges taken in the third quarter of 2014 compared to the same period in 2013, partially offset by higher lot and construction costs related to both the mix of homes delivered and cost increases in labor and materials associated with housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$1.7 million, from $8.3 million for the quarter ended September 30, 2013 to $10.0 million for the quarter ended September 30, 2014 but declined as a percentage of revenue to 8.5% compared to 10.0% for the same period in 2013. The increase in selling, general and administrative expense was attributable, in part, to a $1.9 millionincrease in selling expense, which was primarily due to (1) a $1.3 millionincrease in variable selling expenses resulting from increases in sales commissions produced by the higher average sales price of homes delivered and number of homes delivered and (2) a $0.6 millionincrease in expenses primarily related to our design centers and sales offices. The increase in selling, general and administrative expense was offset, in part, by a decrease in general and administrative expense, which was primarily due to a decrease in land related expenses.

During the three months ended September 30, 2014, we experienced a 2%increase in new contracts in our Midwest region, from 318 in the third quarter of 2013 to 325 for the third quarter of 2014. Backlog increased10% from 643 homes at September 30, 2013 to 707 homes at September 30, 2014, with an average sales price in backlog of $336,000 at September 30, 2014 compared to $297,000 at September 30, 2013. We were able to achieve positive operating results in our Midwest region compared to prior year's third quarter due to higher-end product offerings, improving sub-market conditions and more attractive community locations. During both the three months ended September 30, 2014 and 2013, we opened four communities in our Midwest region. Our monthly absorption rate in our Midwest region increased to 1.8 per community for 2014's third quarter, compared to 1.6 per community in 2013's third quarter.

Southern Region.Our Southern region had operating income of $10.2 million for the quarter ended September 30, 2014, a $1.9 millionincrease from our operating income of $8.3 million for the third quarter of 2013. The increase in operating income was primarily the result of a $21.9 millionimprovement in our homebuilding revenue offset partially by a $2.6 millionincrease in selling, general and administrative expense.

During the three months ended September 30, 2014, homebuilding revenue in our Southern region increased$21.9 million, from $96.3 million in the third quarter of 2013 to $118.2 million in the third quarter of 2014. This 23%increase in homebuilding revenue was the result of a 22%increase in the average sales price of homes delivered ($59,000 per home delivered) as a result of a change in product mix to a higher priced product in 2014 than in 2013, partially offset by a 3%decrease in the number of homes delivered (10 units). Our homebuilding gross margin improved$4.6 million and yielded a gross margin percentage of 19.1% for the quarter ended September 30, 2014 compared to 18.7% for the quarter ended September 30, 2013. The improvement in our gross margin is primarily reflective of the revenue improvements described above partially offset by higher lot and construction costs related to both the mix of homes delivered and cost increases associated with housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$2.6 million from $9.7 million in the third quarter of 2013 to $12.3 million in the third quarter of 2014 and increased as a percentage of revenue to 10.5% for the three months ended September 30, 2014 compared to 10.1% for the third quarter of 2013 as a result of additional expenses related to our new Austin and Dallas/Fort Worth divisions. The increase in selling, general and administrative expense was attributable, in part, to a $1.8 millionincrease in selling expense, which was due to (1) a $1.1 millionincrease in variable selling expenses resulting from increases in sales commissions from the higher average sales price of homes delivered, (2) a $0.5 millionincrease related to expenses associated with our new Austin and Dallas/Fort Worth markets and (3) a $0.2 millionincrease in expenses related to our design centers and sales offices related to our increased average community count. The increase in selling, general and administrative expense was also attributable to a $0.8 millionincrease in general and administrative expense, which was primarily due to a $0.6 millionincrease in payroll-related and other miscellaneous expenses associated with our new Austin and Dallas/Fort Worth divisions and a $0.2 millionincrease in compensation expenses resulting from the increase in employee count related to our community count growth.

During the three months ended September 30, 2014, we experienced a 13%increase in new contracts in our Southern region, from 289 in the third quarter of 2013 to 327 for the third quarter of 2014, primarily due to contributions from our new Austin and Dallas/Fort Worth divisions. Average sales price in backlog increased to $323,000 at September 30, 2014 from $287,000 at September 30, 2013 due to improvements in the product and market mix. However, backlog decreased11% from 590 homes at September 30, 2013 to 526 homes at September 30, 2014 due to increased competition and the opening of certain of our new communities later in the quarter than we anticipated. During the three months ended September 30, 2014, we opened seven communities in our Southern region compared to nine during 2013's third quarter. Our monthly absorption rate in our Southern region was 2.2 per community in the third quarter of 2014, the same as in the third quarter of 2013.

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Mid-Atlantic Region. Our Mid-Atlantic region had operating income of $6.5 million for the quarter ended September 30, 2014, a $1.9 milliondecrease from our operating income of $8.4 million in the third quarter of 2013. The decrease in operating income was primarily the result of a $2.8 milliondecrease in our homebuilding revenue as well as a $0.6 millionincrease in selling, general and administrative expense.

For the three month period ended September 30, 2014, homebuilding revenue in our Mid-Atlantic region decreased$2.8 million from $89.6 million in the third quarter of 2013 to $86.7 million in the third quarter of 2014. This 3%decrease in revenue was attributable to a 6%decrease in the number of homes delivered (16 units) and a $0.5 milliondecrease in land sale revenue, offset, in part, by a 3%increase in the average sales price of homes delivered related to a change in product and market mix. Homebuilding gross margin declined$1.3 million compared to the third quarter of 2013 and yielded a gross margin percentage of 17.9%, compared to 18.8% for the quarter ended September 30, 2013. This decline in gross margin percentage resulted from the decline in revenue described above as well as higher construction costs related to both the mix of homes delivered and cost increases in labor and materials associated with housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$0.6 million from $8.4 million in the third quarter of 2013 to $9.0 million in the third quarter of 2014 and increased as a percentage of revenue from 9.4% to 10.4% as a result of upfront community costs incurred that have not yet been leveraged by the related revenue from home deliveries. The dollar increase in selling, general and administrative expense was attributable to a $0.4 millionincrease in selling expense, which was primarily due to an increase in expenses related to our design centers and sales offices, and a $0.2 millionincrease in general and administrative expense, which was due to an increase in land related expenses.

During the three months ended September 30, 2014, we experienced an 8%decrease in new contracts in our Mid-Atlantic region, from 262 in the third quarter of 2013 to 240 in the third quarter of 2014, as well as a 14%decrease in the number of homes in backlog from 374 homes at September 30, 2013 to 321 homes at September 30, 2014. These declines were primarily attributable to the opening of new communities later in 2014's third quarter than the prior year, a change in product mix and the closing of certain communities that made significant contributions to the strong pace of new contracts in the third quarter of 2013. Average sales price of homes in backlog increased, however, from $341,000 at September 30, 2013 to $346,000 at September 30, 2014. We opened four communities in our Mid-Atlantic region during both the third quarter of 2014 and 2013. Our monthly absorption rate in our Mid-Atlantic region declined to 2.3 per community in the third quarter of 2014 from 2.5 per community in the third quarter of 2013 due to the decrease in new contracts compared to prior year.

Financial Services. Revenue from our mortgage and title operations increased$0.9 million (13%) from $6.7 million in the third quarter of 2013 to $7.6 million in the third quarter of 2014 as a result of : (1) a 2%increase in the number of loan originations, from 689 in the third quarter of 2013 to 701 in the third quarter of 2014 and (2) a 14%increase in the average loan amount from $240,000 in the quarter ended September 30, 2013 to $274,000 in the quarter ended September 30, 2014.

Operating income remained flat in the third quarter of 2014 in our mortgage and title operations compared to 2013's third quarter. While revenues increased by $0.9 million, selling general and administrative expense also increased by $0.9 million. The increase in selling, general, and administrative expense was primarily due to payroll related increases as a result of staffing offices in our Texas market.

At September 30, 2014, M/I Financial provided financing services in all of our markets. Approximately 81% of our homes delivered during the third quarter of 2014 were financed through M/I Financial which was the same rate as in the third quarter of 2013. Capture rate is influenced by financing availability and can fluctuate from quarter to quarter.

Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased$1.5 million, from $7.0 million in the third quarter of 2013 to $8.5 million in the third quarter of 2014. The increase was primarily due to a $0.5 millionincrease in payroll and variable incentive compensation, a $0.4 millionincrease due to the absence of a bad debt recovery that occurred in the prior year's third quarter, and various other miscellaneous expense increases.

Interest Expense - Net. Interest expense for the Company decreased by $0.8 million, from $3.4 million in the three months ended September 30, 2013 to $2.6 million in the three months ended September 30, 2014. This decrease was primarily the result of a decline in our weighted average borrowing rate from 7.51% in the third quarter of 2013 to 7.03% for third quarter of 2014 and increased capitalized interest as a result of our increased land development during the third quarter of 2014 compared to prior year. Partially offsetting this decrease was an increase in our weighted average borrowings from $396.8 million in 2013's third quarter to $441.1 million in 2014's third quarter related to an increase in bank borrowings attributable to higher land investment during the 2014's third quarter compared to 2013's third quarter.

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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 decrease in 2014 as compared to 2013 was primarily attributable to third party lot sales that occurred during 2013's third quarter.

Loss on Early Extinguishment of Debt. Loss on early extinguishment of debt was attributable to the write-off of unamortized debt issuance costs associated with the termination of our Terminated 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. Our overall effective tax rate was 38.7% for the three months ended September 30, 2014 and (811.2)% for the same period in 2013. Our 2014 effective tax rate primarily reflects tax expense of $8.6 million. The effective rate for the three months ended September 30, 2013 was not meaningful due to the effects of the deferred tax asset valuation allowance and federal and state tax net operating losses (“NOLs”), and there is no correlation between the effective tax rate and the amount of pre-tax income for the period. We expect our effective combined federal and state tax rate for the remainder of 2014 will be approximately 39.4% barring any changes in tax status and any change in our ability to recover remaining state tax loss carryforwards that did not meet the “more likely than not criteria.”

Nine Months Ended September 30, 2014 Compared to Nine Months Ended September 30, 2013

Midwest Region. Our Midwest region had operating income of $26.8 million for the nine months ended September 30, 2014, a $15.1 millionincrease from our operating income of $11.7 million for the nine months ended September 30, 2013. The increase in operating income was primarily the result of a $60.6 millionincrease in our homebuilding revenue, offset, in part, by a $4.4 millionincrease in selling, general, and administrative expense.

For the nine months ended September 30, 2014, homebuilding revenue in our Midwest region increased$60.6 million, from $222.9 million for the nine months ended September 30, 2013 to $283.5 million for the nine months ended September 30, 2014. This 27%increase in homebuilding revenue was the result of a 14%increase in the average sales price of homes delivered ($37,000 per home delivered), an 11%increase in the number of homes delivered (94 units) and a $1.6 millionincrease in land sale revenue. Our homebuilding gross margin improved$19.5 million and yielded a gross margin percentage of 19.3% for the first nine months of 2014, a 350 basis point improvement when compared to the same period in 2013. This gross margin percentage improvement resulted primarily from the revenue improvements described above as well as a $2.8 milliondecrease in asset impairment charges taken in the nine months ended September 30, 2014 compared to the same period in 2013, partially offset by higher lot and construction costs related to both the mix of homes delivered and cost increases in labor and materials associated with housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$4.4 million from $23.5 million for the nine months ended September 30, 2013 to $27.9 million for the nine months ended September 30, 2014 but declined as a percentage of revenue to 9.8% for the nine months ended September 30, 2014 from 10.5% for the nine months ended September 30, 2013. The increase in selling, general and administrative expense was attributable, in part, to a $4.2 millionincrease in selling expense, which was primarily due to (1) a $2.4 millionincrease in variable selling expenses resulting from increases in sales commissions produced by the higher average sales price of homes delivered and number of homes delivered and (2) a $1.8 millionincrease in expenses primarily related to our design centers and sales offices. The increase in selling, general and administrative expense was also attributable to an increase in general and administrative expense, which was primarily due to a $0.9 millionincrease in compensation expense resulting primarily from the increase in employee count related to our backlog growth, offset partially by a $0.4 milliondecrease in professional fees and a $0.3 milliondecrease in land-related expenses.

During the nine months ended September 30, 2014, we experienced a 3%increase in new contracts in our Midwest region, from 1,062 in the nine months ended September 30, 2013 to 1,093 for the nine months ended September 30, 2014. Backlog increased10% from 643 homes at September 30, 2013 to 707 homes at September 30, 2014, with an average sales price in backlog of $336,000 at September 30, 2014 compared to $297,000 at September 30, 2013. Despite the impact of harsh winter weather conditions and a moderation in the overall housing market when compared to 2013's same period, we were able to achieve positive operating results in our Midwest region compared to prior year's first nine months due to higher-end product offerings, improving sub-market conditions and more attractive community locations. During the nine months ended September 30, 2014, we opened 10 new communities in our Midwest region compared to 14 during 2013's first nine months. Our monthly absorption rate in our Midwest region was 1.9 per community in the nine months ended September 30, 2014, the same as in the nine months ended September 30, 2013.

Southern Region.Our Southern region had operating income of $24.7 million for the nine months ended September 30, 2014, a $9.5 millionincrease from our operating income of $15.2 million for the nine months ended September 30, 2013. The increase

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in operating income was primarily the result of an $83.3 millionimprovement in our homebuilding revenue, offset, in part, by an $8.3 millionincrease in selling, general, and administrative expense.

During the nine months ended September 30, 2014, homebuilding revenue in our Southern region increased$83.3 million, from $216.2 million in the nine months ended September 30, 2013 to $299.5 million in the nine months ended September 30, 2014. This 39%increase in homebuilding revenue was the result of a 20%increase in the number of homes delivered (155 units), a 14%increase in the average sales price of homes delivered ($38,000 per home delivered), and a $5.0 millionincrease in land sale revenue (as our homebuilding operations occasionally generate revenue from the sale of land and lots in addition to home sales). Our homebuilding gross margin increased$17.9 million and yielded a gross margin percentage of 19.4% for the nine months ended September 30, 2014 compared to 18.5% for the nine months ended September 30, 2013. The improvement in our gross margin percentage was primarily reflective of the improvements in the average sales price of homes delivered and the number of homes delivered described above, offset partially by a $0.9 milliondecrease in profit from the sale of land, compared to the nine months ended September 30, 2013, as well as higher construction and lot costs related to both the mix of homes delivered and cost increases in labor and materials associated with housing market conditions and normal supply and demand dynamics.

Selling, general and administrative expense increased$8.3 million from $24.9 million in the nine months ended September 30, 2013 to $33.2 million in the nine months ended September 30, 2014 but declined as a percentage of revenue to 11.1% for the nine months ended September 30, 2014 from 11.5% for the nine months ended September 30, 2013. The increase in selling, general and administrative expense was attributable, in part, to a $5.8 millionincrease in selling expense, which was due to (1) a $4.1 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, (2) a $1.0 millionincrease related to expenses associated with our new Austin and Dallas/Fort Worth markets and (3) a $0.7 millionincrease in expenses related to our design centers and sales offices as a result of our increased average community count. The increase in selling, general and administrative expense was also attributable to a $2.5 millionincrease in general and administrative expense, which was primarily due to a $1.6 millionincrease associated with our new Austin and Dallas/Fort Worth markets, a $0.4 millionincrease in land-related expenses, and a $0.3 millionincrease in compensation expense resulting primarily from the increase in employee count related to our average community count growth, as well as other miscellaneous expense increases.

Average sales price in backlog increased to $323,000 at September 30, 2014 from $287,000 at September 30, 2013 due to product and market mix. However, during the nine months ended September 30, 2014, we experienced a 2%decrease in new contracts in our Southern region, from 1,043 in the nine months ended September 30, 2013 to 1,026 for the nine months ended September 30, 2014. Backlog also decreased11% from 590 homes at September 30, 2013 to 526 homes at September 30, 2014. We believe the declines in new contracts and backlog were attributable to increased competition, the opening of certain new communities later in the quarter than we anticipated, and the closing of certain communities that made significant contributions to the strong pace of new contracts in the third quarter of 2013. Additionally, comparing new contracts levels in the nine months ended September 30, 2014 with the nine months ended September 30, 2013 was challenging as a result of our strong level of new contracts in the nine months ended September 30, 2013, which represented a 48%increase compared to 2012's first nine month period. During the nine months ended September 30, 2014, we opened 15 new communities in our Southern region compared to 21 during 2013's first nine months. Our monthly absorption rate in our Southern region declined from 2.9 per community in the nine months ended September 30, 2013 to 2.2 per community in the nine months ended September 30, 2014 due to an increase in the number of average communities during the nine months ended September 30, 2014 compared to 2013's first nine months as well as due to the decline in new contracts discussed above.

Mid-Atlantic Region. Our Mid-Atlantic region had operating income of $18.9 million for the nine months ended September 30, 2014, a $0.1 milliondecrease from our operating income of $19.0 million in the nine months ended September 30, 2013. The decrease in operating income was primarily the result of a $2.7 millionincrease in selling, general and administrative expense and a $0.6 milliondecrease in profit relating to the sale of land to third parties, offset partially by a $3.3 millionimprovement in our homebuilding revenue.

For the nine month period ended September 30, 2014, homebuilding revenue in our Mid-Atlantic region increased$3.3 million from $239.1 million in the nine months ended September 30, 2013 to $242.4 million in the nine months ended September 30, 2014. This 1%increase in revenue was attributable to a 2%increase in the number of homes delivered (15 units) and a 1%increase in the average sales price of homes delivered ($2,000 per home delivered), offset, in part, by a $3.5 milliondecrease in land sale revenue. Homebuilding gross margin increased $2.6 million compared to the nine months ended September 30, 2013 and yielded a gross margin percentage of 18.3%, which represents an 80 basis point improvement when compared to 17.5% for the nine months ended September 30, 2013. This improvement in gross margin resulted from gains due to a shift in product and market mix partially offset by 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.

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Selling, general and administrative expense increased$2.7 million from $22.9 million in the nine months ended September 30, 2013 to $25.6 million in the nine months ended September 30, 2014 and increased as a percentage of revenue from 9.6% to 10.6% as a result of upfront community costs incurred that have not yet been leveraged by the related revenue due to delays in community openings. The increase in selling, general and administrative expense was attributable, in part, to a $0.9 millionincrease in selling expense, which was due to an increase in expenses related to our design centers and sales offices related to our increased average community count. The increase in selling, general and administrative expense was attributable, in part, to a $1.8 millionincrease in general and administrative expense, which was primarily due to the absence of a $0.7 million bad debt recovery that occurred in the first quarter of 2013, a $0.5 million increase related to higher incentive compensation due to improved operating results, a $0.4 million increase in compensation expenses resulting primarily from the increase in employee count related to our average community count, and a $0.2 millionincrease in land-related expenses.

During the nine months ended September 30, 2014, we experienced a 13%decrease in new contracts in our Mid-Atlantic region, from 889 in the nine months ended September 30, 2013 to 771 in the nine months ended September 30, 2014 as well as a 14%decrease in the number of homes in backlog from 374 homes at September 30, 2013 to 321 homes at September 30, 2014. These declines were primarily attributable to delayed openings of certain new communities resulting from harsh weather conditions in the first quarter that impacted our new contract results and the closing of certain communities that made significant contributions to the strong pace of new contracts in the third quarter of 2013. The average sales price of homes in backlog increased from $341,000 at September 30, 2013 to $346,000 at September 30, 2014. During the nine months ended September 30, 2014, we opened 12 new communities in our Mid-Atlantic region compared to 12 during 2013's first nine months. Our monthly absorption rate in our Mid-Atlantic region declined to 2.4 per community in the nine months ended September 30, 2014 from 2.9 per community in the same period in 2013 due to the decrease in new contracts described above as well as the increase in our average community count compared to prior year.

Financial Services. Loan originations of our mortgage and title operations increased 1% from 1,783 in the nine months ended September 30, 2013 to 1,801 in the nine months ended September 30, 2014, and we experienced a 9%increase in the average loan amount from $239,000 in the nine months ended September 30, 2013 to $261,000 in the nine months ended September 30, 2014. Despite these increases, our revenue from our mortgage and title operations decreased$0.4 million (2%) from $22.3 million in the nine months ended September 30, 2013 to $21.9 million in the nine months ended September 30, 2014. This decline in revenue was primarily attributable to lower margins on the loans sold compared to 2013's first nine months. During the first nine months of 2013, we experienced higher profit margins on our loan sales and servicing retained transactions as supply and demand factors were more favorable and the refinance market was stronger during that time. Additionally, the product mix of our loans sold continued to shift from government to conventional financing, which generally yields lower margins on sale. Competition in the industry has also recently increased, partially as the result of the mortgage industry's lower refinancing volume. We expect this increased level of competition, and a more challenging pricing environment, to continue for the foreseeable future.

For the nine months ended September 30, 2014, we experienced a $1.2 milliondecrease in operating income in our mortgage and title operations compared to the nine months ended September 30, 2013, which was due to the decrease in revenue discussed above and an increase in selling, general and administrative expenses. Selling, general, and administrative expense for our mortgage and title operations increased$0.8 million for the nine months ended September 30, 2014 compared to the same period in 2013 primarily due to an increase in payroll related expenses as a result of staffing offices in our new Texas markets, offset partially by a $1.1 milliondecrease in expenses related to mortgage loans sold.

At September 30, 2014, M/I Financial provided financing services in all of our markets. Approximately 78% of our homes delivered during the nine months ended September 30, 2014 were financed through M/I Financial compared to 79% in the same period in 2013. 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$3.4 million, from $19.7 million in the nine months ended September 30, 2013 to $23.1 million in the nine months ended September 30, 2014. The increase was primarily due to a $1.2 millionincrease in share based and variable incentive compensation associated with our improved financial performance, a $0.7 millionincrease in payroll related expenses, a $0.4 millionincrease due to the absence of a bad debt recovery that occurred in the prior year, a $0.4 millionincrease in professional fees, and various other miscellaneous expense increases.

Interest Expense - Net. Interest expense for the Company decreased$2.7 million, from $12.2 million for the nine months ended September 30, 2013 to $9.5 million for the nine months ended September 30, 2014. This decrease was primarily the result of a decline in our weighted average borrowing rate from 7.67% in the nine months ended September 30, 2013 to 7.23% for 2014's first nine months due to the addition of our 2018 Convertible Senior Subordinated Notes issuance, which has a significantly lower interest rate compared to our other debt outstanding in the first nine months of 2013, as well as an increase in capitalized interest

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related to our increased land development in the nine months ended September 30, 2014 compared to the prior year period. Partially offsetting this decrease was an increase in our weighted average borrowings from $387.2 million in the nine months ended September 30, 2013 to $416.5 million in nine months ended September 30, 2014 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 due to an increase in bank borrowings during 2014's first nine months compared to the same period in 2013.

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 $0.2 million decrease in 2014 as compared to 2013 is primarily attributable to third party lot sales that occurred during prior year's third quarter.

Loss on Early Extinguishment of Debt. Loss on early extinguishment of debt was attributable to the write-off of unamortized debt issuance costs associated with the termination of our Terminated 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. Our overall effective tax rate was 20.4% for the nine months ended September 30, 2014 and (426.9)% for the same period in 2013. Our 2014 effective tax rate primarily reflects tax expense of $19.5 million, offset by the reversal of $9.3 million of our state deferred tax asset valuation allowance. The effective rate is not reflective of our historical tax rate or our effective tax rate in future periods due to our state deferred tax asset valuation allowance. We expect our effective combined federal and state tax rate for the remainder of 2014 will be approximately 39.4% barring any changes in tax status and change in ability to recover remaining state tax loss carryforwards that did not meet the “more likely than not criteria.”

LIQUIDITY AND CAPITAL RESOURCES

Overview of Capital Resources and Liquidity.

At September 30, 2014, we had $26.1 million of cash, cash equivalents and restricted cash, with $17.2 million of this amount comprised of unrestricted cash and cash equivalents, which represents a $111.6 milliondecrease in unrestricted cash and cash equivalents from December 31, 2013. This decrease was primarily a result of our increased investment in inventory during the nine months ended September 30, 2014. Our principal uses of cash for the nine months ended September 30, 2014 were investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, and short-term working capital and debt service requirements, including the repayment of amounts outstanding under our credit lines. In order to fund these uses of cash, we used proceeds from home deliveries and the sale of mortgage loans, as well as excess cash balances, borrowings under our credit facilities, and other sources of liquidity.

We are actively acquiring and developing lots in our markets to replenish and grow our lot supply and active community count. We expect to continue to expand our business based on the anticipated level of demand for new homes in our markets. Accordingly, we expect our cash outlays for land purchases, land development, home construction and operating expenses will continue to exceed our cash generated by operations in the remaining three months of 2014. For this reason, we expect to continue to utilize our revolving credit facility.

During the nine months ended September 30, 2014, we delivered 2,616 homes, started 3,133 homes, and spent $183.7 million on land purchases and $93.2 million on land development. Based upon our business activity levels, market conditions, and opportunities for land in our markets, we currently estimate that we will spend approximately $375 million to $425 million on land purchases and land development during 2014, including the $276.9 million spent during the nine months ended September 30, 2014. We also continue to enter into land option agreements, taking into consideration current and projected market conditions, to secure land for the construction of homes in the future. Pursuant to these land option agreements, as of September 30, 2014, we have the right to purchase $475.6 million of land and lots during the remainder of 2014 through 2021.

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 2014 compared to 2013 is driven primarily by our growth objectives as we expand our business. In addition, we expect that a larger portion of our land investment will continue to shift from developed lot purchases to land acquisition and development, which will result in increased inventory levels.

Operating Cash Flow Activities. During the nine month period ended September 30, 2014, we used$106.7 million of cash in operating activities, compared to using$40.4 million of cash in operating activities during the nine months ended September 30, 2013. The increase in cash used in operating activities was primarily due to a $53.5 millionincrease in the change in inventory

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due to our increased land investment compared with the nine months ended September 30, 2013, as well as a $10.5 million reduction in the net increase of accounts payable.

Investing Cash Flow Activities. During the nine months ended September 30, 2014, we used$11.5 million of cash in investing activities, compared to using$32.9 million of cash in investing activities during the nine months ended September 30, 2013. The $21.4 milliondecrease was partially due to the change in restricted cash, which decreased $12.2 million from the nine months ended September 30, 2013, as the Company pledged less cash as collateral in accordance with our secured Letter of Credit Facilities. In addition, we invested $8.7 million more in our unconsolidated joint ventures during the nine months ended September 30, 2013 compared to the nine months ended September 30, 2014 primarily due to our entry into joint investments with other builders in two separate land developments in our Southern region in the first nine months of 2013.

Financing Cash Flow Activities. During the nine months ended September 30, 2014, we generated$6.7 million of cash from financing activities, compared to generating$70.3 million of cash during the nine months ended September 30, 2013. The change in cash from financing activities was primarily due to the absence of any debt or equity capital financing transactions or preferred share redemptions in 2014, compared with the first nine months of 2013, when $140.9 million of proceeds were received from equity and convertible debt financings, and $50.4 million of cash was used for the redemption of preferred shares.

At September 30, 2014 and December 31, 2013, our ratio of net debt to net capital was 45% 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 increase compared to December 31, 2013 was due to a decrease in our cash balance compared to December 31, 2013 due to our increased investment in inventory during the nine months ended September 30, 2014 as well as an increase in shareholders' equity, primarily related to our net earnings. We believe that this ratio provides useful information regarding our financial position, for understanding the leverage employed in our operations and for comparing us with other homebuilders.

We fund our operations with cash flows from operating activities, including proceeds from home closings and the sale of mortgage loans. We believe that these sources of cash, along with our balance of unrestricted cash and borrowing available under our credit facilities, will be sufficient to fund our currently anticipated working capital needs, investment in land and land development, construction of homes, operating expenses, planned capital spending, and debt service requirements for at least the next twelve months. In order to increase the amount available for borrowings under our credit facilities and enhance our liquidity, in October 2014 we increased the aggregate commitment amount and extended the maturity date of our primary homebuilding credit facility as described below. In addition, we routinely monitor current operational requirements, financial market conditions, and credit relationships and we may choose to seek additional capital by issuing new debt and/or equity securities to strengthen our liquidity or our long-term capital structure. 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 factors. If we seek such additional capital, there can be no assurance that we would be able to obtain such additional capital on terms acceptable to us, if at all, and such additional equity or debt financing could dilute the interests of our existing shareholders and/or increase our interest costs. The Company is a party to three primary credit agreements: (1) a $300 million unsecured revolving credit facility dated July 18, 2013 (the “Prior Credit Facility”), as amended by a First Amendment dated October 20, 2014, with M/I Homes, Inc. as borrower and guaranteed by the Company's wholly owned homebuilding subsidiaries (as amended, the “Amended Credit Facility”); (2) a $110 million secured mortgage warehousing agreement, with M/I Financial as borrower, amended on March 28, 2014 (the “MIF Mortgage Warehousing Agreement”); and (3) a $15 million mortgage repurchase agreement, with M/I Financial as borrower, amended on November 6, 2013 (the “MIF Mortgage Repurchase Facility”).

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Included in the table below is a summary of our available sources of cash from the Prior Credit Facility, the MIF Mortgage Warehousing Agreement and the MIF Mortgage Repurchase Facility as of September 30, 2014:

(In thousands)	Expiration Date	Outstanding Balance		Available Amount
Notes payable – homebuilding (a)	7/18/2016	$	14,400	$	165,992
Notes payable – financial services (b)	(b)	$	73,778	$	589

(a) The available amount under the Prior Credit Facility was computed in accordance with the borrowing base calculation, which totaled $358.6 million of availability at September 30, 2014, such that the full $200 million commitment amount of the facility was available, less any borrowings and letters of credit outstanding. There were $14.4 million in borrowings and $19.6 million of letters of credit outstanding at September 30, 2014, leaving $166.0 million available. The Amended Credit Facility will expire on October 20, 2018.

(b) The available amount is computed in accordance with the borrowing base calculations under the MIF Mortgage Warehousing Agreement and 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 $125 million. The MIF Mortgage Warehousing Agreement has an expiration date of March 27, 2015 and the MIF Mortgage Repurchase Facility has an expiration date of November 5, 2014. M/I Financial expects to enter into an amendment to the MIF Mortgage Repurchase Facility prior to its expiration that would extend its term for an additional year, but M/I Financial can provide no assurances that it will be able to obtain such an extension.

Notes Payable - Homebuilding.

Homebuilding Credit Facility.

The Amended Credit Facility provides for an aggregate commitment amount of $300 million, including a $125 million sub-facility for letters of credit. In addition, the Amended Credit Facility has an accordion feature under which the Company may increase the aggregate commitment amount up to $400 million, subject to certain conditions, including obtaining additional commitments from existing or new lenders. The Amended Credit Facility matures on October 20, 2018. Interest on amounts borrowed under the Amended Credit Facility is payable at either the Alternate Base Rate plus an initial margin of 150 basis points, or at the Eurodollar Rate plus a margin of 250 basis points, in each case subject to adjustment based on the Company's leverage ratio.

Borrowings under the Amended Credit Facility are unsecured and availability is subject to, among other things, a borrowing base calculated using various advance rates for different categories of inventory. The Amended Credit Facility contains various representations, warranties and affirmative, negative and financial covenants which require, among other things, that the Company maintain (1) a minimum level of Consolidated Tangible Net Worth of $353.9 million (which amount is subject to increase over time based on earnings and proceeds from equity offerings subsequent to June 30, 2014), (2) a leverage ratio not in excess of 60%, and (3) either a minimum Interest Coverage Ratio of 1.5 to 1.0 or a minimum liquidity amount. In addition, the Amended Credit Facility contains covenants that limit the amount of the Company's unsold owned land not to exceed 125% of the sum of tangible net worth and subordinated debt, secured indebtedness not to exceed $30.0 million, and the number of unsold housing units and model homes, as well as the amount of Investments in Unrestricted Subsidiaries and Joint Ventures. At closing of the Amended Credit Facility on October 20, 2014, we were in compliance with all closing conditions including all covenants. For more information regarding the terms of the Amended Credit Facility, refer to Note 12 of our Unaudited Condensed Consolidated Financial Statements.

As of September 30, 2014, the Company was in compliance with all covenants of the Prior Credit Facility.

Homebuilding Letter of Credit Facilities. The Company is party to three secured credit agreements for the issuance of letters of credit outside of the Amended Credit Facility (collectively, the “Letter of Credit Facilities”). During the three months ended September 30, 2014, the Company extended the maturity dates of two of the Letter of Credit Facilities for an additional year to August 31, 2015 and September 30, 2015, respectively. The maturity dates for the Letter of Credit Facilities range from June 1, 2015 to September 30, 2015. 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 Letter 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 $2.3 million was uncommitted at September 30, 2014 and could be withdrawn at any time. As of September 30, 2014, there was a total of $8.6 million of letters of credit issued under the Letter of Credit Facilities, which was collateralized with $8.8 million of restricted cash.

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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. The Agreement provides a maximum borrowing availability of $110.0 million and 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). The MIF Mortgage Warehousing Agreement has an expiration date of March 27, 2015. The maximum principal amount permitted to be outstanding at any one time in aggregate under all warehouse credit lines is $150.0 million. Effective with the quarter ending September 30, 2014, the minimum required tangible net worth requirement applicable to M/I Financial increased from $10.0 million to $11.0 million and the minimum required liquidity requirement applicable to M/I Financial increased from $5.0 million to $5.5 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) 3.0%.

The MIF Mortgage Warehousing Agreement is secured by certain mortgage loans originated by M/I Financial and that are being “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, although M/I Financial may, at its election, designate from time to time any one or more of its subsidiaries as guarantors.

As of September 30, 2014, there was $60.1 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, 2014:

Financial Covenant		Covenant Requirement		Actual
		(Dollars in millions)
Leverage Ratio	≤	10.0 to 1.0		6.52 to 1.0
Liquidity	≥	$	5.5	$	11.4
Adjusted Net Income	>	$	0.0	$	5.6
Tangible Net Worth	≥	$	11.0	$	12.6

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, as amended on November 6, 2013, has an expiration date of November 5, 2014 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 275 or 300 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, 2014, there was $13.6 million outstanding under the MIF Mortgage Repurchase Facility. M/I Financial was in compliance with all covenants as of September 30, 2014.

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 lender. M/I Financial expects to enter into an amendment to the MIF Mortgage Repurchase Facility prior to its expiration that would extend its term for an additional year, but M/I Financial cannot provide any assurance that it will be able to obtain such an extension.

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Senior Notes and Convertible Senior Subordinated Notes.

8.625% Senior Notes. In November 2010, the Company issued $200 million aggregate principal amount of 8.625% Senior Notes due 2018. 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 Company may redeem all or any portion of the 2018 Senior Notes on or after November 15, 2014 at a stated redemption price, together with accrued and unpaid interest thereon. The redemption price will initially be 104.313% of the principal amount outstanding, but will decline to 102.156% of the principal amount outstanding if redeemed during the 12-month period beginning on November 15, 2015, and will further decline to 100.000% of the principal amount outstanding if redeemed on or after November 15, 2016, but prior to maturity. See Note 7 to the Condensed Consolidated Financial Statements for more information regarding the 2018 Senior Notes.

3.0% Convertible Senior Subordinated Notes. In March 2013, the Company issued $86.3 million aggregate principal amount of 3.0% Convertible Senior Subordinated Notes due 2018. 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. See Note 7 to the Condensed Consolidated Financial Statements for more information regarding the 2018 Convertible Senior Subordinated Notes.

3.25% Convertible Senior Subordinated Notes. In September 2012, the Company issued $57.5 million aggregate principal amount of 3.25% Convertible Senior Subordinated Notes due 2017. 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. See Note 7 to the Condensed Consolidated Financial Statements for more information regarding the 2017 Convertible Senior Subordinated Notes.

Weighted Average Borrowings. For the three months ended September 30, 2014 and 2013, our weighted average borrowings outstanding were $441.1 million and $396.8 million, respectively, with a weighted average interest rate of 7.03% and 7.51%, respectively. The decline in our weighted average borrowing rate was attributable to increased capitalized interest related to our increased land development during the third quarter of 2014 compared to prior year. The increase in our weighted average borrowings related to an increase in bank borrowings during the quarter compared to 2013's third quarter.

At September 30, 2014, we had $14.4 million outstanding under the Prior Credit Facility. During the nine months ended September 30, 2014, the average daily amount outstanding under the Prior Credit Facility was $4.9 million and the maximum amount outstanding under the Prior Credit Facility was $41.4 million. Based on our current anticipated spending on land acquisition and development in 2014, and associated increases in our investment in inventory, including land and houses under construction, we expect to borrow under the Amended Credit Facility during the fourth quarter of 2014, with the estimated peak amount outstanding not anticipated to exceed $100 million. The actual amount borrowed in the fourth quarter of 2014 (and the estimated peak amount outstanding) and related timing are subject to numerous factors, including the timing and amount of land and house construction expenditures, payroll and other general and administrative expenses, cash receipts from home closings, other cash receipts and payments, any capital markets transactions or other additional financings by the Company and any repayments or redemptions of outstanding debt.  The Company may experience significant variation in cash and balances under the Amended Credit Facility from week to week due to the timing of such receipts and payments.

There were $19.6 million of letters of credit issued and outstanding under the Prior Credit Facility at September 30, 2014. During the nine months ended September 30, 2014, the average daily amount of letters of credit outstanding under the Prior Credit Facility was $15.9 million and the maximum amount of letters of credit outstanding under the Prior Credit Facility was $19.6 million.

At September 30, 2014, M/I Financial had $60.1 million outstanding under the MIF Mortgage Warehousing Agreement.  During the nine months ended September 30, 2014, the average daily amount outstanding under the MIF Mortgage Warehousing Agreement was $25.3 million and the maximum amount outstanding was $68.2 million.

At September 30, 2014, M/I Financial had $13.6 million outstanding under the MIF Mortgage Repurchase Facility.  During the nine months ended September 30, 2014, the average daily amount outstanding under the MIF Mortgage Repurchase Facility was $5.6 million and the maximum amount outstanding was $14.9 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 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

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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 $145.7 million at September 30, 2014. 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. We declared and paid a quarterly dividend of $609.375 per share on our Series A Preferred Shares in third quarter of 2014 for $1.2 million and have paid $3.7 million for the nine months ended September 30, 2014. The determination to pay future dividends on, and make future repurchases of, our common shares and 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.

Universal Shelf Registration. In October 2013, the Company filed a $400 million universal shelf registration statement with the SEC, which registration statement became effective on December 20, 2013. Pursuant to the registration statement, the Company may, from time to time, offer debt securities, common shares, preferred shares, depositary shares, warrants to purchase debt securities, common shares, preferred shares, depositary shares or units of two or more of those securities, rights to purchase debt securities, common shares, preferred shares or depositary shares, stock purchase contracts and units. The timing and amount of offerings, if any, will depend on market and general business conditions.

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, 2013, except for the First Amendment to the Credit Facility entered into on October 20, 2014, described above in Note 12 of our Unaudited Condensed Consolidated Financial Statements and the “Liquidity and Capital Resources” section.

OFF-BALANCE SHEET ARRANGEMENTS

Reference is made to Notes 2, 3, 5, and 6 in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements included in this Form 10-Q. These Notes discuss our off-balance sheet arrangements with respect to land acquisition contracts and option agreements, and land development joint ventures, including the nature and amounts of financial obligations relating to these items. In addition, these Notes discuss the nature and amounts of certain types of commitments that arise in the ordinary course of our land development and homebuilding operations, including commitments of land development joint ventures for which we might be obligated.

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.

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

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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, 2014, “Consolidated Inventory Not Owned” was $1.7 million, all of which related to specific performance obligations. At September 30, 2014, the corresponding liability of $1.7 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, 2014 related to its land option agreements is equal to the amount of the Company's outstanding deposits and prepaid acquisition costs, which totaled $34.0 million, including cash deposits of $21.6 million, prepaid acquisition costs of $4.7 million and letters of credit of $7.7 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, 2014, the Company had outstanding $123.6 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 September 2019.  Included in this total are: (1) $80.4 million of performance bonds and $14.0 million of performance letters of credit that serve as completion bonds for land development work in progress; (2) $14.2 million of financial letters of credit; and (3) $15.0 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 5 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 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.

49

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 $325 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, 2014 and December 31, 2013:

	September 30,		December 31,
Description of Financial Instrument (in thousands)	2014		2013
Best-effort contracts and related committed IRLCs	$	4,616	$	2,494
Uncommitted IRLCs	56,470		49,710
FMBSs related to uncommitted IRLCs	57,000		48,000
Best-effort contracts and related mortgage loans held for sale	41,058		63,386
FMBSs related to mortgage loans held for sale	34,000		20,000
Mortgage loans held for sale covered by FMBSs	33,736		19,884

The table below shows the measurement of assets and liabilities at September 30, 2014 and December 31, 2013:

	September 30,			December 31,
Description of Financial Instrument (in thousands)	2014			2013
Mortgage loans held for sale	$	76,983		$	81,810
Forward sales of mortgage-backed securities	(41		)	745
Interest rate lock commitments	434			(319		)
Best-efforts contracts	51			479
Total	$	77,427		$	82,715

The following table sets forth the amount of (loss) gain recognized on assets and liabilities for the three months ended September 30, 2014 and 2013:

	Three Months Ended September 30,
Description (in thousands)	2014			2013
Mortgage loans held for sale	$	(959	)	$	3,365
Forward sales of mortgage-backed securities	398			(5,262		)
Interest rate lock commitments	(144		)	1,677
Best-efforts contracts	164			(193		)
Total loss recognized	$	(541	)	$	(413	)

50

The following table provides the expected future cash flows and current fair values of mortgage loans held for sale, borrowings under our credit facilities and other borrowings that are subject to market risk as interest rates fluctuate, as of September 30, 2014:

	Expected Cash Flows by Period																					Fair Value
(Dollars in thousands)	2014			2015			2016			2017			2018			Thereafter			Total			9/30/2014
ASSETS:
Mortgage loans held for sale:
Fixed rate	$	74,371		$	—		$	—		$	—		$	—		$	—		$	74,371		$	73,122
Weighted average interest rate	4.01		%	—		%	—		%	—		%	—		%	—		%	4.01		%
Variable rate	$	3,923		$	—		$	—		$	—		$	—		$	—		$	3,923		$	3,861
Weighted average interest rate	3.13		%	—		%	—		%	—		%	—		%	—		%	3.13		%
LIABILITIES:
Long-term debt — fixed rate	$	385		$	820		$	366		$	57,803		$	316,614		$	887		$	376,875		$	392,441
Weighted average interest rate	3.37		%	3.37		%	3.37		%	3.25		%	7.07		%	3.37		%	6.47		%
Short-term debt — variable rate	$	73,778		$	—		$	—		$	—		$	—		$	—		$	73,778		$	73,778
Weighted average interest rate	2.98		%	—		%	—		%	—		%	—		%	—		%	2.98		%

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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, 2014 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, 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, 2014.

See Note 7 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.

52

Item 6. Exhibits

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

Exhibit Number	Description
10.1	Fifth Amendment to Letter of Credit Agreement between M/I Homes, Inc. and Regions Bank (Filed herewith).
10.2	Fifth Amended and Restated Master Letter of Credit Facility Agreement between M/I Homes, Inc. and U.S. Bank National Association (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.)

53

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 24, 2014	By:	/s/ Robert H. Schottenstein
			Robert H. Schottenstein
			Chairman, Chief Executive Officer and
			President
			(Principal Executive Officer)
Date:	October 24, 2014	By:	/s/ Ann Marie W. Hunker
			Ann Marie W. Hunker
			Vice President, Corporate Controller
			(Principal Accounting Officer)

54

EXHIBIT INDEX
Exhibit Number	Description
10.1	Fifth Amendment to Letter of Credit Agreement between M/I Homes, Inc. and Regions Bank (Filed herewith).
10.2	Fifth Amended and Restated Master Letter of Credit Facility Agreement between M/I Homes, Inc. and U.S. Bank National Association (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.)

55

EX-10.1

Exhibit 10.1

FIFTH AMENDMENT TO LETTER OF CREDIT AGREEMENT

THIS FIFTH AMENDMENT TO LETTER OF CREDIT AGREEMENT (“this Amendment”) dated as of August 31, 2014 (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, by a Third Amendment thereto dated as of August 31, 2012 and by a Fourth Amendment thereto dated as of August 31, 2013 (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, 2013.

4.Amendments to Credit Agreement. The Credit Agreement is hereby amended as follows:

(a)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, 2015.

(b)Section 2.1(a)(i) is hereby deleted in its entirety and replaced with the following:

(i)No Letter of Credit shall be issued that by its terms expires later than the Termination Date; provided, however, if any Letter of Credit does have an expiration date later than the Termination Date, (x) such Letter of Credit may expire by its terms on a date later than the Termination Date (but in no event beyond a date that is twenty-four months from the Termination Date), (y) the Borrower will maintain the Minimum Coverage Amount and (z) the Control and Pledge Agreement will remain in effect so long as any Letters of Credit are outstanding hereunder.

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

By

Its:

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

EX-10.2

Exhibit 10.2

FIFTH AMENDED AND RESTATED MASTER LETTER OF CREDIT FACILITY

AGREEMENT

This Fifth Amended and Restated Master Letter of Credit Facility Agreement (this "Agreement") is entered into at Columbus, Ohio, as of the 30th day of September, 2014 (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, 2015.

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.

1.3Letter 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, 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 after September 30, 2014 through September 30, 2015, 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, 2015, 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.

3.4.Compliance 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, 12th 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, 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, and that

certain Fourth Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of September 30, 2013 (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) any increase 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 other conditions 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
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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 2006    Rev 2006

EXHIBIT C

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").

1. The 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").

(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.

(b)    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,

(c)    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),

(d)    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.

(e)    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.

(f)    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);

(iv)     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,

(v)     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;

(vi)    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;

(vii)    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

(viii)    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.

(i)     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 alter 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 G. Creek

EVP, CFO

Enclosure

3 Easton Oval Suite 500 Columbus, Ohio 43219 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 electronic letter 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

M/I HOMES

May 4, 2012

Ms. Oretha Rogers

US Bank

Senior Loan Administrator

Commercial Real Estate

CN-OH-BD12

10 West Broad Street, 12^1x' Floor

Columbus, OH 43215

Dear Oretha:

Please consider this letter as authorization for the undersigned individuals to act on behalf of M/I Homes, Inc. in submitting applications for letters of credit to US Bank under the following credit facilities:

1. Second Amended and Restated Master Letter of Credit Facility Agreement dated September 30, 2011 between U.S. BANK NATIONAL ASSOCIATION, a national banking association, and M/I HOMES, Inc; and

2. Credit Agreement Dated June 9, 2010, as Amended, by and among M/I HOMES, Inc., as Borrower, the Lenders party thereto, including US BANK, and PNC BANK, NA, as Administrative Agent for the Lenders.

If you have any questions, please contact me at 614-418-8227.

Sincerely,

Kevin C. Hake

SVP, Finance and Treasurer

Enclosure

3 Easton Oval Suite 500 Columbus, Ohio 43219

M/I Homes, Inc.

May 4, 2012

Page 2

Authorized Individuals for Letter of Credit Applications:

Ann Marie Hunker, VP, Corporate Controller and CAO

Mark Kirkendall, VP, Housing and Land Controller

Randy Green, Assistant Treasurer

3 Easton Oval Suite 500 Columbus, Ohio 43219

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 Description    Principal Amount of

Name and Address of Depositoryand NumberAccount Balance Assigned

U.S. Bank National Association    13011679473

(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 other jurisdiction. 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-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 September 30, 2014;
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 24, 2014
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 September 30, 2014;
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 24, 2014
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 September 30, 2014, 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 24, 2014
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 September 30, 2014, 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 24, 2014
Phillip G. Creek
Executive Vice President and Chief Financial Officer

XML

Guarantees and Indemnifications Guarantees (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 2018 Senior Notes [Member]	Sep. 30, 2014 2017 Convertible Senior Notes [Member]	Sep. 30, 2014 2018 Convertible Senior Notes [Member]	Sep. 30, 2014 Face Value [Member]	May 08, 2012 Face Value [Member]	Nov. 12, 2010 Face Value [Member]
Debt Instrument [Line Items]
Senior notes	$ 228,369,000	$ 228,070,000				$ 230,000,000	$ 30,000,000	$ 200,000,000
Debt Instrument, Interest Rate, Stated Percentage			8.625%	3.25%	3.00%
Convertible senior subordinated notes due 2017	57,500,000	57,500,000
Convertible senior subordinated notes due 2018	86,250,000	86,250,000
Total of Loans Covered by Guarantees	45,100,000	5,200,000
Total of Guaranteed Loans Inquired About	6,900,000	8,200,000
Total Loans Indemnified to third parties	2,000,000	1,500,000
Loan Repurchase Guarantee Liability	$ 2,400,000	$ 3,100,000

XML

Supplemental Guarantor Information Supplemental Guarantor Information - Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	$ (106,711)	$ (40,436)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash	4,912	(7,274)
Purchase of property and equipment	(2,347)	(1,654)
Investment in unconsolidated joint ventures	(16,818)	(25,496)
Return of investment from Unconsolidated LLCs	619	1,522
Net Proceeds from Sale of Mortgage Servicing Rights	2,135	0
Net cash provided by (used in) investing activities	(11,499)	(32,902)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from (repayments of) bank borrowings - net	8,149	(12,343)
Principal repayments of note payable-other and community development district bond obligations	740	(2,979)
Proceeds from issuance of convertible senior subordinated notes	0	86,250
Redemption of preferred shares	0	(50,352)
Net proceeds from issuance of common shares	0	54,617
Proceeds from exercise of stock options	1,460	2,640
Excess tax deficiency from stock-based payment arrangements	0	383
Intercompany Financing	0	0
Dividends paid	(3,656)	(2,438)
Debt issue costs	(40)	(5,463)
Net cash (used in) provided by financing activities	6,653	70,315
Net increase (decrease) in cash and cash equivalents	(111,557)	(3,023)
Cash and cash equivalents balance at beginning of period	128,725	145,498
Cash and cash equivalents balance at end of period	17,168	142,475
Parent [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	8,275	7,100
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash	0	0
Purchase of property and equipment	0	0
Investment in unconsolidated joint ventures	0	0
Return of investment from Unconsolidated LLCs	0	0
Net Proceeds from Sale of Mortgage Servicing Rights	0
Net cash provided by (used in) investing activities	0	0
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from (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 convertible senior subordinated notes		86,250
Redemption of preferred shares		(50,352)
Net proceeds from issuance of common shares		54,617
Proceeds from exercise of stock options	1,460	2,640
Excess tax deficiency from stock-based payment arrangements		383
Intercompany Financing	(6,079)	(98,200)
Dividends paid	(3,656)	(2,438)
Debt issue costs	0	0
Net cash (used in) provided by financing activities	(8,275)	(7,100)
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	(124,022)	(60,703)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash	4,912	(7,274)
Purchase of property and equipment	(2,222)	(1,528)
Investment in unconsolidated joint ventures	(12,080)	(14,657)
Return of investment from Unconsolidated LLCs	0	0
Net Proceeds from Sale of Mortgage Servicing Rights	0
Net cash provided by (used in) investing activities	(9,390)	(23,459)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from (repayments of) bank borrowings - net	14,400	0
Principal repayments of note payable-other and community development district bond obligations	740	(2,979)
Proceeds from issuance of convertible senior subordinated notes		0
Redemption of preferred shares		0
Net proceeds from issuance of common shares		0
Proceeds from exercise of stock options	0	0
Excess tax deficiency from stock-based payment arrangements		0
Intercompany Financing	8,676	92,463
Dividends paid	0	0
Debt issue costs	0	(5,402)
Net cash (used in) provided by financing activities	23,816	84,082
Net increase (decrease) in cash and cash equivalents	(109,596)	(80)
Cash and cash equivalents balance at beginning of period	113,407	126,334
Cash and cash equivalents balance at end of period	3,811	126,254
Non-Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	17,311	20,267
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash	0	0
Purchase of property and equipment	(125)	(126)
Investment in unconsolidated joint ventures	(4,738)	(10,839)
Return of investment from Unconsolidated LLCs	619	1,522
Net Proceeds from Sale of Mortgage Servicing Rights	2,135
Net cash provided by (used in) investing activities	(2,109)	(9,443)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from (repayments of) bank borrowings - net	(6,251)	(12,343)
Principal repayments of note payable-other and community development district bond obligations	0	0
Proceeds from issuance of convertible senior subordinated notes		0
Redemption of preferred shares		0
Net proceeds from issuance of common shares		0
Proceeds from exercise of stock options	0	0
Excess tax deficiency from stock-based payment arrangements		0
Intercompany Financing	(2,597)	5,737
Dividends paid	(8,275)	(7,100)
Debt issue costs	(40)	(61)
Net cash (used in) provided by financing activities	(17,163)	(13,767)
Net increase (decrease) in cash and cash equivalents	(1,961)	(2,943)
Cash and cash equivalents balance at beginning of period	15,318	19,164
Cash and cash equivalents balance at end of period	13,357	16,221
Corporate Elimination [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	(8,275)	(7,100)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Change in restricted cash	0	0
Purchase of property and equipment	0	0
Investment in unconsolidated joint ventures	0	0
Return of investment from Unconsolidated LLCs	0	0
Net Proceeds from Sale of Mortgage Servicing Rights	0
Net cash provided by (used in) investing activities	0	0
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from (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 convertible senior subordinated notes		0
Redemption of preferred shares		0
Net proceeds from issuance of common shares		0
Proceeds from exercise of stock options	0	0
Excess tax deficiency from stock-based payment arrangements		0
Intercompany Financing	0	0
Dividends paid	8,275	7,100
Debt issue costs	0	0
Net cash (used in) provided by financing activities	8,275	7,100
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

XML

Income Taxes Net Operating Loss Carryforwards (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 13.6
Expiring beginning in 2028 [Member] | Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	53.3
Federal Tax Credit Carryforward, Amount	6.5
Expiring between 2012 and 2027 [Member] | State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	7.0
Expiring between 2028 and 2033 [Member] | State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 6.6

XML

Subsequent Events (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014 Rate
Subsequent Event [Line Items]
Percentage of cumulative consolidated net income after June 30, 2014 plus $353.9 million	50.00%
Percentage of net proceeds of any equity offerings after June 30, 2014 plus $353.9 million minimum tangible net worth	50.00%
First Amendment to New Unsecured Credit Facility [Member]
Subsequent Event [Line Items]
Minimum Tangible Net Worth	$ 353.9
Line of Credit Facility, Current Borrowing Capacity	300
Line of Credit Facility, Maximum Borrowing Capacity	400
Sub-limit for letters of credit	125
First Amendment to New Unsecured Credit Facility [Member] | Maximum [Member]
Subsequent Event [Line Items]
Credit Facility, Basis Spread on Variable Rate	2.50%
First Amendment to New Unsecured Credit Facility [Member] | Minimum [Member]
Subsequent Event [Line Items]
Credit Facility, Basis Spread on Variable Rate	1.50%
New Unsecured Credit Facility [Member]
Subsequent Event [Line Items]
Line of Credit Facility, Current Borrowing Capacity	200
Line of Credit Facility, Maximum Borrowing Capacity	225
Sub-limit for letters of credit	$ 100
New Unsecured Credit Facility [Member] | Maximum [Member]
Subsequent Event [Line Items]
Credit Facility, Basis Spread on Variable Rate	3.25%
New Unsecured Credit Facility [Member] | Minimum [Member]
Subsequent Event [Line Items]
Credit Facility, Basis Spread on Variable Rate	2.25%

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, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share Calculation [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 13,617	$ 125,311	$ 39,803	$ 137,162
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Preferred Dividends	(1,218)	(1,219)	(3,656)	(2,438)
Preferred Stock Redemption Premium	0	0	0	(2,190)
Net income to common shareholders	12,399	124,092	36,147	132,534
Net Income (Loss) Available to Common Stockholders, Diluted	13,263	125,527	38,754	136,218
Weighted Average Number of Shares Outstanding, Basic	24,474	24,358	24,454	23,642
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Incremental Common Shares Attributable to Stock Options	214	183	223	246
Incremental Common Shares Attributable to Deferred Compensation	148	119	138	111
Weighted Average Number of Shares Outstanding, Diluted	29,921	29,745	29,900	28,410
Earnings Per Share, Basic	$ 0.51	$ 5.09	$ 1.48	$ 5.61
Earnings Per Share, Diluted	$ 0.44	$ 4.22	$ 1.30	$ 4.79
Anti-dilutive stock equivalent awards not included in the calculation of diluted loss per share	1,286	998	1,243	951
2017 Convertible Senior Notes [Member]
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Interest on Convertible Debt, Net of Tax	368	611	1,110	1,833
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Incremental Common Shares Attributable to Conversion of Debt Securities	2,416	2,416	2,416	2,416
2018 Convertible Senior Notes [Member]
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Interest on Convertible Debt, Net of Tax	$ 496	$ 824	$ 1,497	$ 1,851
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Incremental Common Shares Attributable to Conversion of Debt Securities	2,669	2,669	2,669	1,995

XML

Fair Value Measurements Fair Value of Financial Instrument Assumptions (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value of Financial Instrument Assumptions [Line Items]
Letters of Credit Potential Commitments, Amount	$ 28.2	$ 25.8
Warehousing Agreement - First Amendment to Amended and Restated [Member]
Fair Value of Financial Instrument Assumptions [Line Items]
Maximum Borrowing Capacity under MIF Warehousing Line	110.0
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

Supplemental Guarantor Information Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 30, 2014

Supplemental Guarantor Information [Abstract]

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

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Three Months Ended September 30, 2014
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	323,187	$	7,580		$	—		$	330,767
Costs and expenses:
Land and housing	—		261,636		—			—			261,636
Impairment of inventory and investment in unconsolidated joint ventures	—		622		—			—			622
General and administrative	—		17,811		3,913			—			21,724
Selling	—		21,955		—			—			21,955
Equity in income of unconsolidated joint ventures	—		—		(22		)	—			(22		)
Interest	—		2,248		401			—			2,649
Total costs and expenses	—		304,272		4,292			—			308,564
Income before income taxes	—		18,915		3,288			—			22,203
Provision for income taxes	—		7,428		1,158			—			8,586
Equity in subsidiaries	13,617		—		—			(13,617		)	—
Net income	13,617		11,487		2,130			(13,617		)	13,617
Preferred dividends	1,218		—		—			—			1,218
Net income to common shareholders	$	12,399	$	11,487	$	2,130		$	(13,617	)	$	12,399

	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	125,311		122,821			2,490			(125,311		)	125,311
Preferred dividends	1,219		—			—			—			1,219
Net income to common shareholders	$	124,092	$	122,821		$	2,490		$	(125,311	)	$	124,092

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Nine Months Ended September 30, 2014
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	825,301	$	21,915		$	—		$	847,216
Costs and expenses:
Land and housing	—		666,817		—			—			666,817
Impairment of inventory and investment in unconsolidated joint ventures	—		1,426		—			—			1,426
General and administrative	—		51,159		10,161			—			61,320
Selling	—		58,175		—			—			58,175
Equity in income of unconsolidated joint ventures	—		—		(62		)	—			(62		)
Interest	—		8,530		1,019			—			9,549
Total costs and expenses	—		786,107		11,118			—			797,225
Income before income taxes	—		39,194		10,797			—			49,991
Provision for income taxes	—		5,991		4,197			—			10,188
Equity in subsidiaries	39,803		—		—			(39,803		)	—
Net income	39,803		33,203		6,600			(39,803		)	39,803
Preferred dividends	3,656		—		—			—			3,656
Net income to common shareholders	$	36,147	$	33,203	$	6,600		$	(39,803	)	$	36,147

	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	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 to common shareholders	$	132,534	$	129,086		$	8,076		$	(137,162	)	$	132,534

Schedule Of Condensed Consolidating Balance Sheet [Table Text Block]

CONDENSED CONSOLIDATING BALANCE SHEET
	September 30, 2014
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	3,811	$	13,357	$	—		$	17,168
Restricted cash	—		8,898		—		—			8,898
Mortgage loans held for sale	—		—		76,983		—			76,983
Inventory	—		893,964		—		—			893,964
Property and equipment - net	—		11,119		311		—			11,430
Investment in unconsolidated joint ventures	—		22,286		18,483		—			40,769
Deferred income taxes, net of valuation allowances	—		101,849		1,033		—			102,882
Investment in subsidiaries	567,407		—		—		(567,407		)	—
Intercompany assets	330,075		—		—		(330,075		)	—
Other assets	7,930		23,576		9,554		—			41,060
TOTAL ASSETS	$	905,412	$	1,065,503	$	119,721	$	(897,482	)	$	1,193,154
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	97,302	$	571	$	—		$	97,873
Customer deposits	—		14,202		—		—			14,202
Intercompany liabilities	—		309,906		20,169		(330,075		)	—
Other liabilities	—		68,711		5,492		—			74,203
Community development district obligations	—		3,056		—		—			3,056
Obligation for consolidated inventory not owned	—		1,700		—		—			1,700
Notes payable banks - homebuilding	—		14,400		—		—			14,400
Notes payable bank - financial services operations	—		—		73,778		—			73,778
Notes payable - other	—		8,530		—		—			8,530
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Convertible senior subordinated notes due 2018	86,250		—		—		—			86,250
Senior notes	228,369		—		—		—			228,369
TOTAL LIABILITIES	372,119		517,807		100,010		(330,075		)	659,861
SHAREHOLDERS’ EQUITY	533,293		547,696		19,711		(567,407		)	533,293
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	905,412	$	1,065,503	$	119,721	$	(897,482	)	$	1,193,154

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	113,407	$	15,318	$	—		$	128,725
Restricted cash	—		13,902		—		—			13,902
Mortgage loans held for sale	—		—		81,810		—			81,810
Inventory	—		690,934		—		—			690,934
Property and equipment - net	—		10,267		269		—			10,536
Investment in unconsolidated joint ventures	—		13,525		21,741		—			35,266
Deferred income taxes, net of valuation allowances	—		109,763		1,148		—			110,911
Investment in subsidiaries	535,879		—		—		(535,879		)	—
Intercompany assets	318,852		—		—		(318,852		)	—
Other assets	9,892		17,180		11,020		—			38,092
TOTAL ASSETS	$	864,623	$	968,978	$	131,306	$	(854,731	)	$	1,110,176
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	69,887	$	339	$	—		$	70,226
Customer deposits	—		11,262		—		—			11,262
Intercompany liabilities	—		296,229		22,623		(318,852		)	—
Other liabilities	—		64,413		6,928		—			71,341
Community development district obligations	—		3,130		—		—			3,130
Obligation for consolidated inventory not owned	—		1,775		—		—			1,775
Notes payable bank - financial services operations	—		—		80,029		—			80,029
Notes payable - other	—		7,790		—		—			7,790
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Convertible senior subordinated notes due 2018	86,250		—		—		—			86,250
Senior notes	228,070		—		—		—			228,070
TOTAL LIABILITIES	371,820		454,486		109,919		(318,852		)	617,373
SHAREHOLDERS’ EQUITY	492,803		514,492		21,387		(535,879		)	492,803
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	864,623	$	968,978	$	131,306	$	(854,731	)	$	1,110,176

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

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30, 2014
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	8,275		$	(124,022	)	$	17,311		$	(8,275	)	$	(106,711	)
INVESTING ACTIVITIES:
Restricted cash	—			4,912			—			—			4,912
Purchase of property and equipment	—			(2,222		)	(125		)	—			(2,347		)
Investments in and advances to unconsolidated joint ventures	—			(12,080		)	(4,738		)	—			(16,818		)
Return of capital from unconsolidated joint ventures	—			—			619			—			619
Net proceeds from the sale of mortgage servicing rights	—			—			2,135			—			2,135
Net cash used in investing activities	—			(9,390		)	(2,109		)	—			(11,499		)
FINANCING ACTIVITIES:
Proceeds from (repayments of) bank borrowings - net	—			14,400			(6,251		)	—			8,149
Principal proceeds from note payable - other and community development district bond obligations	—			740			—			—			740
Proceeds from exercise of stock options	1,460			—			—			—			1,460
Intercompany financing	(6,079		)	8,676			(2,597		)	—			—
Dividends paid	(3,656		)	—			(8,275		)	8,275			(3,656		)
Debt issue costs	—			—			(40		)	—			(40		)
Net cash (used in) provided by financing activities	(8,275		)	23,816			(17,163		)	8,275			6,653
Net decrease in cash and cash equivalents	—			(109,596		)	(1,961		)	—			(111,557		)
Cash and cash equivalents balance at beginning of period	—			113,407			15,318			—			128,725
Cash and cash equivalents balance at end of period	$	—		$	3,811		$	13,357		$	—		$	17,168

	Nine Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	7,100		$	(60,703	)	$	20,267		$	(7,100	)	$	(40,436	)
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		)
FINANCING ACTIVITIES:
Repayments from bank borrowings - net	—			—			(12,343		)	—			(12,343		)
Principal repayments from 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 of preferred shares	(50,352		)	—			—			—			(50,352		)
Proceeds from exercise of stock options	2,640			—			—			—			2,640
Proceeds from issuance of common shares	54,617			—			—			—			54,617
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		)
Excess tax deficiency from stock-based payment arrangements	383			—			—			—			383
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

XML

Business Segments Business Segments - Valuation Adjustments (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Impaired Long-Lived Assets Held and Used [Line Items]
Total valuation adjustments and write-offs	$ 622,000	$ 2,136,000	$ 1,426,000	$ 4,237,000
Impairment of Operating Communities [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Operating Communities	0	481,000	804,000	481,000
Impairment of Operating Communities [Member] | Midwest Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Operating Communities	0	481,000	804,000	481,000
Impairment of Operating Communities [Member] | Southern Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Operating Communities	0	0	0	0
Impairment of Operating Communities [Member] | Mid-Atlantic Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Operating Communities	0	0	0	0
Impairment of Future Communities [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Future Communities	622,000	1,655,000	622,000	2,465,000
Impairment of Future Communities [Member] | Midwest Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Future Communities	622,000	1,655,000	622,000	2,465,000
Impairment of Future Communities [Member] | Southern Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Future Communities	0	0	0	0
Impairment of Future Communities [Member] | Mid-Atlantic Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Future Communities	0	0	0	0
Impairment of Land Held for Sale [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Land With Intend To Sell Or Has Sold To Third Parties	0	0	0	1,291,000
Impairment of Land Held for Sale [Member] | Midwest Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Land With Intend To Sell Or Has Sold To Third Parties	0	0	0	1,291,000
Impairment of Land Held for Sale [Member] | Southern Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Land With Intend To Sell Or Has Sold To Third Parties	0	0	0	0
Impairment of Land Held for Sale [Member] | Mid-Atlantic Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Land With Intend To Sell Or Has Sold To Third Parties	0	0	0	0
Option Deposits and Pre-Acquisition Write-Offs [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Write Offs Of Option Deposits And Preacquisition Costs	0	0	0	0
Option Deposits and Pre-Acquisition Write-Offs [Member] | Midwest Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Write Offs Of Option Deposits And Preacquisition Costs	0	0	0	0
Option Deposits and Pre-Acquisition Write-Offs [Member] | Southern Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Write Offs Of Option Deposits And Preacquisition Costs	0	0	0	0
Option Deposits and Pre-Acquisition Write-Offs [Member] | Mid-Atlantic Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Write Offs Of Option Deposits And Preacquisition Costs	0	0	0	0
Impairment of Investments in Unconsolidated LLCs [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Investments In Unconsolidated Entities	0	0	0	0
Impairment of Investments in Unconsolidated LLCs [Member] | Midwest Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Investments In Unconsolidated Entities	0	0	0	0
Impairment of Investments in Unconsolidated LLCs [Member] | Southern Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Investments In Unconsolidated Entities	0	0	0	0
Impairment of Investments in Unconsolidated LLCs [Member] | Mid-Atlantic Homebuilding [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Valuation Adjustments To Investments In Unconsolidated Entities	$ 0	$ 0	$ 0	$ 0

XML

Debt Debt (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Line of Credit Facility [Line Items]
Debt Instrument, Unused Borrowing Capacity, Amount	$ 358,600,000
Line of Credit Facility, Amount Outstanding	14,400,000	0
letters of credit outstanding under credit facility	19,600,000
Maximum borrowing availability subject to limit	166,000,000
Number of Secured Letters of Credit Outstanding under Credit Facility	3
Aggregate Capacity of Secured Letters of Credit under Credit Facility	20,000,000
Uncommitted Letters of Credit	2,300,000
Letters of Credit Outstanding Under Letter of Credit Facilities	8,600,000	13,400,000
Restricted Cash for Secured Letter of Credit Agreements	8,800,000	13,700,000
Low Range Uncommitted Letter of Credit [Member]
Line of Credit Facility [Line Items]
Maximum available amounts under Letter of Credit Facilities	5,000,000
High Range Uncommittted Letter of Credit [Member]
Line of Credit Facility [Line Items]
Maximum available amounts under Letter of Credit Facilities	10,000,000
New Unsecured Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	200,000,000
Sub-limit for letters of credit	100,000,000
Optional increase in borrowing availability	25,000,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 225,000,000
Maximum [Member] | New Unsecured Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit Facility, Basis Spread on Variable Rate	3.25%
Minimum [Member] | New Unsecured Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit Facility, Basis Spread on Variable Rate	2.25%

XML

Capitalized Interest Capitalized Interest (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Capitalized Interest [Abstract]
Capitalized interest, beginning of period	$ 14,831	$ 14,260	$ 13,802	$ 15,376
Interest capitalized to inventory	5,161	3,940	13,141	10,045
Capitalized interest charged to land and housing costs and expenses	(4,281)	(4,074)	(11,232)	(11,295)
Capitalized interest, end of period	15,711	14,126	15,711	14,126
Interest incurred	$ 7,810	$ 7,389	$ 22,690	$ 22,231

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Supplemental Guarantor Information Supplemental Guarantor Information - Income Statement (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenue	$ 330,767	$ 275,195	$ 847,216	$ 700,475
Land and housing	261,636	218,150	666,817	556,799
Impairment of inventory and investment in unconsolidated joint ventures	622	2,136	1,426	4,237
General and administrative	21,724	18,261	61,320	52,389
Selling	21,955	17,999	58,175	47,383
Interest	2,649	3,449	9,549	12,186
Equity in loss (income) of unconsolidated joint ventures	(22)	(278)	(62)	(278)
Loss on early extinguishment of debt	0	1,726	0	1,726
Total costs and expenses	308,564	261,443	797,225	674,442
Income before income taxes	22,203	13,752	49,991	26,033
(Benefit) provision for income taxes	8,586	(111,559)	10,188	(111,129)
Equity In subsidiaries	0	0	0	0
Net income (loss)	13,617	125,311	39,803	137,162
Preferred Dividends	1,218	1,219	3,656	2,438
Excess of fair value over book value of preferred shares redeemed	0	0	0	2,190
Net income to common shareholders	12,399	124,092	36,147	132,534
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 loss (income) of unconsolidated joint ventures	0	0	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	13,617	125,311	39,803	137,162
Net income (loss)	13,617	125,311	39,803	137,162
Preferred Dividends	1,218	1,219	3,656	2,438
Excess of fair value over book value of preferred shares redeemed				2,190
Net income to common shareholders	12,399	124,092	36,147	132,534
Guarantor Subsidiaries [Member]
Revenue	323,187	268,514	825,301	678,132
Land and housing	261,636	218,150	666,817	556,799
Impairment of inventory and investment in unconsolidated joint ventures	622	2,136	1,426	4,237
General and administrative	17,811	15,309	51,159	43,104
Selling	21,955	17,979	58,175	47,317
Interest	2,248	3,087	8,530	11,171
Equity in loss (income) of unconsolidated joint ventures	0	0	0	0
Loss on early extinguishment of debt		1,726		1,726
Total costs and expenses	304,272	258,387	786,107	664,354
Income before income taxes	18,915	10,127	39,194	13,778
(Benefit) provision for income taxes	7,428	(112,694)	5,991	(115,308)
Equity In subsidiaries	0	0	0	0
Net income (loss)	11,487	122,821	33,203	129,086
Preferred Dividends	0	0	0	0
Excess of fair value over book value of preferred shares redeemed				0
Net income to common shareholders	11,487	122,821	33,203	129,086
Non-Guarantor Subsidiaries [Member]
Revenue	7,580	6,681	21,915	22,343
Land and housing	0	0	0	0
Impairment of inventory and investment in unconsolidated joint ventures	0	0	0	0
General and administrative	3,913	2,952	10,161	9,285
Selling	0	20	0	66
Interest	401	362	1,019	1,015
Equity in loss (income) of unconsolidated joint ventures	(22)	(278)	(62)	(278)
Loss on early extinguishment of debt		0		0
Total costs and expenses	4,292	3,056	11,118	10,088
Income before income taxes	3,288	3,625	10,797	12,255
(Benefit) provision for income taxes	1,158	1,135	4,197	4,179
Equity In subsidiaries	0	0	0	0
Net income (loss)	2,130	2,490	6,600	8,076
Preferred Dividends	0	0	0	0
Excess of fair value over book value of preferred shares redeemed				0
Net income to common shareholders	2,130	2,490	6,600	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 loss (income) of unconsolidated joint ventures	0	0	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	(13,617)	(125,311)	(39,803)	(137,162)
Net income (loss)	(13,617)	(125,311)	(39,803)	(137,162)
Preferred Dividends	0	0	0	0
Excess of fair value over book value of preferred shares redeemed				0
Net income to common shareholders	$ (13,617)	$ (125,311)	$ (39,803)	$ (137,162)

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Income Taxes Income Tax (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Valuation Allowance [Line Items]
(Benefit) provision for income taxes	$ 8,586,000	$ (111,559,000)	$ 10,188,000	$ (111,129,000)
Deferred Tax Assets, Net of Valuation Allowance		111,600,000		111,600,000
Deferred tax asset valuation allowances			$ (9,291,000)	$ (120,836,000)
Effective Income Tax Rate Reconciliation, Percent	38.70%		20.40%

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Inventory

9 Months Ended

Sep. 30, 2014

Inventory [Abstract]

Inventory Disclosure [Text Block]

Inventory

A summary of the Company's inventory as of September 30, 2014 and December 31, 2013 is as follows:

(In thousands)	September 30, 2014		December 31, 2013
Single-family lots, land and land development costs	$	402,352	$	323,673
Land held for sale	2,898		8,059
Homes under construction	419,931		305,499
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2014 - $6,732;    December 31, 2013 - $5,173)	42,356		34,433
Community development district infrastructure	3,056		3,130
Land purchase deposits	21,638		14,365
Consolidated inventory not owned	1,733		1,775
Total inventory	$	893,964	$	690,934

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, 2014 and December 31, 2013, we had 999 homes (with a carrying value of $159.9 million) and 798 homes (with a carrying value of $123.3 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.

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Debt MIF Warehousing Agreement (Details) (USD $)				9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 MIF Amended and Restated [Member]	Sep. 30, 2014 Warehousing Agreement - First Amendment to Amended and Restated [Member]	Sep. 30, 2014 Repurchase Agreement [Member]	Sep. 30, 2014 Minimum [Member] Repurchase Agreement [Member]	Sep. 30, 2014 Maximum [Member] Repurchase Agreement [Member]
Debt Instrument [Line Items]
Maximum Borrowing Capacity under MIF Warehousing Line				$ 110,000,000	$ 15,000,000
Optional increase in borrowing availability				20,000,000
Aggreate Maximum Principal Amount Permitted to be Outstanding Under All Warehousing Credit Lines				150,000,000
Minimum Net Worth Required for Compliance			10,000,000	11,000,000
Minimum required liquidity for compliance			5,000,000	5,500,000
LIBOR basis points				275		275	300
Debt Instrument, Basis Spread on Variable Rate				3.00%
Maximum Borrowing Availability under all Credit Lines	125,000,000	115,000,000
Notes Payable - Financial Services	$ 73,778,000	$ 80,029,000

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Fair Value Measurements Balance Sheet Location of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	$ 485	$ 1,224
Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	41	319
Forward Sales or Mortgage Backed Securities [Member] | Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	0	745
Forward Sales or Mortgage Backed Securities [Member] | Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	41	0
Interest Rate Lock Commitments [Member] | Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	434	0
Interest Rate Lock Commitments [Member] | Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	0	319
Best Efforts Contracts [Member] | Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	51	479
Best Efforts Contracts [Member] | Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	$ 0	$ 0

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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, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	$ (541)	$ (413)	$ 2,095	$ 323
Mortgage Loans Held for Sale [Member]
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	(959)	3,365	2,556	1,782
Forward Sales or Mortgage Backed Securities [Member]
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	398	(5,262)	(786)	(2,224)
Interest Rate Lock Commitments [Member]
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	(144)	1,677	753	941
Best Efforts Contracts [Member]
Financial Instrument [Line Items]
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis	$ 164	$ (193)	$ (428)	$ (176)

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Debt Senior Notes (Details) (USD $) Share data in Millions, except Per Share data, unless otherwise specified	9 Months Ended	12 Months Ended		24 Months Ended			3 Months Ended
	Sep. 30, 2014	Nov. 14, 2016	Nov. 14, 2015	Nov. 15, 2018	Dec. 31, 2013	Sep. 30, 2014 2018 Senior Notes [Member]	Sep. 30, 2014 2017 Convertible Senior Notes [Member]	Sep. 30, 2014 2018 Convertible Senior Notes [Member]	Sep. 30, 2014 Face Value [Member]	May 08, 2012 Face Value [Member]	Nov. 12, 2010 Face Value [Member]	Sep. 30, 2014 Base of restricted payments basket income calculation [Member]	Sep. 30, 2014 Percentage of our aggregate consolidated net income added to base amount of calculation [Member]	Sep. 30, 2014 Percentage of our aggregate consolidated net income subtracted from base amount of calculation [Member]	Sep. 30, 2014 Percentage of net cash proceeds from sale of qualified equity interests added to base and income/loss amount in calculation [Member]
Debt Instrument [Line Items]
Senior notes	$ 228,369,000				$ 228,070,000				$ 230,000,000	$ 30,000,000	$ 200,000,000
Convertible senior subordinated notes due 2018	86,250,000				86,250,000
Convertible senior subordinated notes due 2017	57,500,000				57,500,000
Debt Instrument, Interest Rate, Stated Percentage						8.625%	3.25%	3.00%
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed		102.156%	104.313%	100.00%
Preferred Stock, Dividend Rate, Percentage	9.75%
Other Restrictions on Payment of Dividends												40,000,000
Percent restrictions on payment of dividends													50.00%	100.00%	100.00%
Restricted Payments Basket	145,700,000
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							2.4	2.7

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Fair Value Measurements Cash Flow Model Critical Assumptions (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Increase in Investments in Unconsolidated JVs and other joint agreements	$ 5,500,000
Limited Partners' Contributed Capital	40,800,000
Notes Receivable, Related Parties	2,500,000
Capitalized Interest and Other Costs Included in Investment in Unconsolidated JVs and other joint agreements	$ 750,000	$ 806,000
Minimum [Member]
Equity Method Investment, Ownership Percentage	25.00%
Discount Rate Used in Determining Fair Value of Investments in Unconsolidated JVs 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 JVs and other joint agreements	16.00%
Current Year [Member]
Weighted Average Sales Price Increase	0.00%
Weighted Average Increase of Assumed Costs	0.00%
Current Year plus 1 and 2 [Member] | Minimum [Member]
Weighted Average Sales Price Increase	2.00%
Weighted Average Increase of Assumed Costs	2.00%
Current Year plus 1 and 2 [Member] | Maximum [Member]
Weighted Average Sales Price Increase	4.00%
Weighted Average Increase of Assumed Costs	4.00%
Current Year plus 3 And Beyond [Member]
Weighted Average Sales Price Increase	2.00%
Weighted Average Increase of Assumed Costs	2.00%

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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, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Fair Value, Inputs, Level 3 [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Adjusted basis of inventory	$ 76	$ 1,975	$ 1,605	$ 3,876
Total losses	622	2,136	1,426	4,237
Initial basis of inventory	$ 698	$ 4,111	$ 3,031	$ 8,113

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Fair Value Measurements

9 Months Ended

Sep. 30, 2014

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. Fair value measurement results in a better presentation of the changes in fair values of the loans and the derivative instruments used to economically hedge them.

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, 2014 and December 31, 2013:

Description of Financial Instrument (in thousands)	September 30, 2014		December 31, 2013
Best efforts contracts and related committed IRLCs	$	4,616	$	2,494
Uncommitted IRLCs	56,470		49,710
FMBSs related to uncommitted IRLCs	57,000		48,000
Best efforts contracts and related mortgage loans held for sale	41,058		63,386
FMBSs related to mortgage loans held for sale	34,000		20,000
Mortgage loans held for sale covered by FMBSs	33,736		19,884

The table below shows the level and measurement of assets and liabilities measured on a recurring basis at September 30, 2014 and December 31, 2013:

Description of Financial Instrument (in thousands)	Fair Value Measurements September 30, 2014			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	$	76,983		$	—	$	76,983		$	—
Forward sales of mortgage-backed securities	(41		)	—		(41		)	—
Interest rate lock commitments	434			—		434			—
Best-efforts contracts	51			—		51			—
Total	$	77,427		$	—	$	77,427		$	—

Description of Financial Instrument (in thousands)	Fair Value Measurements December 31, 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	$	81,810		$	—	$	81,810		$	—
Forward sales of mortgage-backed securities	745			—		745			—
Interest rate lock commitments	(319		)	—		(319		)	—
Best-efforts contracts	479			—		479			—
Total	$	82,715		$	—	$	82,715		$	—

The following table sets forth the amount of gain (loss) 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, 2014 and 2013:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2014			2013			2014			2013
Mortgage loans held for sale	$	(959	)	$	3,365		$	2,556		$	1,782
Forward sales of mortgage-backed securities	398			(5,262		)	(786		)	(2,224		)
Interest rate lock commitments	(144		)	1,677			753			941
Best-efforts contracts	164			(193		)	(428		)	(176		)
Total (loss) gain recognized	$	(541	)	$	(413	)	$	2,095		$	323

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, 2014			September 30, 2014
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	$	41
Interest rate lock commitments	Other assets	434		Other liabilities	—
Best-efforts contracts	Other assets	51		Other liabilities	—
Total fair value measurements		$	485		$	41

	Asset Derivatives			Liability Derivatives
	December 31, 2013			December 31, 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	$	745	Other liabilities	$	—
Interest rate lock commitments	Other assets	—		Other liabilities	319
Best-efforts contracts	Other assets	479		Other liabilities	—
Total fair value measurements		$	1,224		$	319

Assets Measured on a Non-Recurring Basis

The Company assesses inventory for recoverability on a quarterly basis based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. Determining the fair value of a community’s inventory involves a number of variables, estimates and projections, which are Level 3 measurement inputs. See Note 1, “Summary of Significant Accounting Policies - Inventory” in the Company's 2013 Form 10-K for additional information regarding the Company’s methodology for determining fair value.

The Company uses significant assumptions to evaluate the recoverability of its inventory. As of September 30, 2014, the Company's projections generally assume a gradual improvement in market conditions over time. The Company assumed no increase in weighted average sales price or assumed weighted average costs to build and deliver homes in 2014, an increase ranging from 2% to 4% in 2015 and 2016, and a 2% increase in in 2017 and beyond. If communities are not recoverable based on the 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 Company estimates the fair value of each impaired community by determining the present value of the estimated future cash flows and discounting those cash flow projections using an appropriate risk-adjusted interest rate. As of September 30, 2014, we utilized discount rates ranging from 13% to 16% in our valuations.

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. Changes in our key assumptions, including estimated average selling price, construction and development costs, absorption pace (reflecting any product mix change strategies implemented or to be implemented), selling strategies, alternative land uses (including disposition of all or a portion of the land owned), or discount rates, could materially impact future cash flow and fair value estimates.

The table below shows the level and measurement of the Company's assets measured on a non-recurring basis as of and for the three and nine months ended September 30, 2014 and 2013:

		Three Months Ended September 30,				Nine Months Ended September 30,
Description (in thousands)	Hierarchy	2014		2013 (2)		2014		2013 (2)
Adjusted basis of inventory (1)	Level 3	$	76	$	1,975	$	1,605	$	3,876
Total losses		622		2,136		1,426		4,237
Initial basis of inventory		$	698	$	4,111	$	3,031	$	8,113

(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.

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, 2014, we increased our total investment in such joint venture arrangements from December 31, 2013 by $5.5 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 interest in these LLCs as of September 30, 2014 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.

As of September 30, 2014, 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 the VIE as we do not have the ability to control the activities that most significantly impact its economic performance. As a result, we are not considered the primary beneficiary of the VIE and are not required to consolidate the VIE or any of the LLCs in which we have an interest into our financial statements. We instead recorded the VIE and the LLCs 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 in Note 1, “Summary of Significant Accounting Policies - Inventory” in the Company's 2013 Form 10-K. Determining the fair value of investments in unconsolidated joint ventures involves a number of variables, many of which are interrelated and require management to make certain assumptions. As of September 30, 2014, the Company used a discount rate of 16% in determining the fair value of its 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. 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, changes in market conditions, and/or changes in management's intentions with respect to the investment, a change in assumptions could result and impairment could occur. During the three and nine months ended September 30, 2014 and 2013, the Company did not record any impairment charges on its investments in unconsolidated joint ventures.

We believe that the Company's maximum exposure related to its investment in these unconsolidated joint ventures as of September 30, 2014 is the amount invested of $40.8 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), 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 both September 30, 2014 and December 31, 2013 were $0.8 million of capitalized interest and other costs.

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, 2014 and December 31, 2013. 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, 2014				December 31, 2013
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash, cash equivalents and restricted cash	$	26,066	$	26,066	$	142,627	$	142,627
Mortgage loans held for sale	76,983		76,983		81,810		81,810
Split dollar life insurance policies	189		189		171		171
Notes receivable	4,406		3,778		3,151		2,784
Commitments to extend real estate loans	434		434		—		—
Best-efforts contracts for committed IRLCs and mortgage loans held for sale	51		51		479		479
Forward sales of mortgage-backed securities	—		—		745		745
Liabilities:
Notes payable - banks	88,178		88,178		80,029		80,029
Notes payable - other	8,530		8,012		7,790		7,452
Convertible senior subordinated notes due 2017	57,500		63,322		57,500		74,391
Convertible senior subordinated notes due 2018	86,250		86,142		86,250		95,845
Senior notes due 2018	228,369		240,350		228,070		248,975
Commitments to extend real estate loans	—		—		319		319
Forward sales of mortgage-backed securities	41		41		—		—
Off-Balance Sheet Financial Instruments:
Letters of credit	—		595		—		413

The following methods and assumptions were used by the Company in estimating its fair value disclosures of financial instruments at September 30, 2014 and December 31, 2013:

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, 2014 and December 31, 2013. 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.

Notes Payable - Banks. The Company is a party to three primary credit agreements: (1) a $200 million unsecured revolving credit facility dated July 18, 2013, with M/I Homes, Inc. as borrower and guaranteed by the Company's wholly owned homebuilding subsidiaries (the “Credit Facility”); (2) a $110 million secured mortgage warehousing agreement, with M/I Financial as borrower, amended on March 28, 2014 (the “MIF Mortgage Warehousing Agreement”); and (3) a $15 million mortgage repurchase agreement, with M/I Financial as borrower, amended on November 6, 2013 (the “MIF Mortgage Repurchase Facility”). For each of these credit facilities, the interest rate is based on a variable rate index, and thus their carrying value is a reasonable estimate of fair value. The interest rate available to the Company during the third quarter of 2014 fluctuated with the Alternate Base Rate or the Eurodollar Rate (for the Credit Facility) or LIBOR (for the MIF Mortgage Warehousing Agreement and the MIF Mortgage Repurchase Facility). Refer to Note 12 for additional information regarding the Credit Facility.

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 $28.2 million and $25.8 million represent potential commitments at September 30, 2014 and December 31, 2013, 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.

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Fair Value Measurements Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Carrying (Reported) Amount, Fair Value Disclosure [Member]
ASSETS:
Cash, cash equivalents and restricted cash	$ 26,066	$ 142,627
Mortgage loans held for sale	76,983	81,810
Split dollar life insurance policies	189	171
Notes receivable	4,406	3,151
Commitments to extend real estate loans (assets)	434	0
Best efforts contracts for committed IRLCs and mortgage loans held for sale - fair value disclosures (assets)	51	479
Forward sales of mortgage-backed securities	0	745
LIABILITIES:
Note payable - banks	88,178	80,029
Notes payable - other	8,530	7,790
Convertible senior subordinated notes due 2017 - Fair Value Disclosure	57,500	57,500
Convertible senior subordinated notes due 2018 - Fair Value Disclosure	86,250	86,250
Senior notes	228,369	228,070
Commitments to extend real estate loans (Liabilities)	0	319
Forward sales of mortgage-backed securities	41	0
Off-Balance Sheet Letters of Credit	0	0
Estimate of Fair Value, Fair Value Disclosure [Member]
ASSETS:
Cash, cash equivalents and restricted cash	26,066	142,627
Mortgage loans held for sale	76,983	81,810
Split dollar life insurance policies	189	171
Notes receivable	3,778	2,784
Commitments to extend real estate loans (assets)	434	0
Best efforts contracts for committed IRLCs and mortgage loans held for sale - fair value disclosures (assets)	51	479
Forward sales of mortgage-backed securities	0	745
LIABILITIES:
Note payable - banks	88,178	80,029
Notes payable - other	8,012	7,452
Convertible senior subordinated notes due 2017 - Fair Value Disclosure	63,322	74,391
Convertible senior subordinated notes due 2018 - Fair Value Disclosure	86,142	95,845
Senior notes	240,350	248,975
Commitments to extend real estate loans (Liabilities)	0	319
Forward sales of mortgage-backed securities	41	0
Off-Balance Sheet Letters of Credit	$ 595	$ 413

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Commitments and Contingencies Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014
Commitments and Contingencies [Abstract]
Letters of credit and completion bonds	$ 123.6
Performance bonds outstanding	80.4
Performance letters of credit outstanding	14.0
Financial letters of credit	14.2
Financial letters of credit representing deposits on land and lot purchase agreements	7.7
Financial Bonds	15.0
Unrecorded conditional purchase obligation	$ 475.6

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Supplemental Guarantor Information Supplemental Guarantor Information - Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
ASSETS:
Cash and cash equivalents	$ 17,168	$ 128,725	$ 142,475	$ 145,498
Restricted cash	8,898	13,902
Mortgage loans held for sale	76,983	81,810
Inventory	893,964	690,934
Property and equipment - net	11,430	10,536
Investments in unconsolidated joint ventures	40,769	35,266
Deferred Tax Assets, Net of Valuation Allowance	102,882	110,911
Investment in subsidiaries	0	0
Intercompany	0	0
Other assets	41,060	38,092
TOTAL ASSETS	1,193,154	1,110,176
LIABILITIES:
Accounts payable	97,873	70,226
Customer deposits	14,202	11,262
Intercompany liabilities	0	0
Other liabilities	74,203	71,341
Community development district (“CDD”) obligations	3,056	3,130
Obligation for consolidated inventory not owned	1,700	1,775
Long-term Line of Credit	14,400	0
Warehouse Agreement Borrowings	73,778	80,029
Notes payable - other	8,530	7,790
2017 Convertible Subordianted Debt	57,500	57,500
2018 Convertible Subordinated Debt	86,250	86,250
Senior notes	228,369	228,070
TOTAL LIABILITIES	659,861	617,373
TOTAL SHAREHOLDERS' EQUITY	533,293	492,803
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,193,154	1,110,176
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
Deferred Tax Assets, Net of Valuation Allowance	0	0
Investment in subsidiaries	567,407	535,879
Intercompany	330,075	318,852
Other assets	7,930	9,892
TOTAL ASSETS	905,412	864,623
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
Long-term Line of Credit	0
Warehouse Agreement Borrowings	0	0
Notes payable - other	0	0
2017 Convertible Subordianted Debt	57,500	57,500
2018 Convertible Subordinated Debt	86,250	86,250
Senior notes	228,369	228,070
TOTAL LIABILITIES	372,119	371,820
TOTAL SHAREHOLDERS' EQUITY	533,293	492,803
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	905,412	864,623
Guarantor Subsidiaries [Member]
ASSETS:
Cash and cash equivalents	3,811	113,407	126,254	126,334
Restricted cash	8,898	13,902
Mortgage loans held for sale	0	0
Inventory	893,964	690,934
Property and equipment - net	11,119	10,267
Investments in unconsolidated joint ventures	22,286	13,525
Deferred Tax Assets, Net of Valuation Allowance	101,849	109,763
Investment in subsidiaries	0	0
Intercompany	0	0
Other assets	23,576	17,180
TOTAL ASSETS	1,065,503	968,978
LIABILITIES:
Accounts payable	97,302	69,887
Customer deposits	14,202	11,262
Intercompany liabilities	309,906	296,229
Other liabilities	68,711	64,413
Community development district (“CDD”) obligations	3,056	3,130
Obligation for consolidated inventory not owned	1,700	1,775
Long-term Line of Credit	14,400
Warehouse Agreement Borrowings	0	0
Notes payable - other	8,530	7,790
2017 Convertible Subordianted Debt	0	0
2018 Convertible Subordinated Debt	0	0
Senior notes	0	0
TOTAL LIABILITIES	517,807	454,486
TOTAL SHAREHOLDERS' EQUITY	547,696	514,492
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,065,503	968,978
Non-Guarantor Subsidiaries [Member]
ASSETS:
Cash and cash equivalents	13,357	15,318	16,221	19,164
Restricted cash	0	0
Mortgage loans held for sale	76,983	81,810
Inventory	0	0
Property and equipment - net	311	269
Investments in unconsolidated joint ventures	18,483	21,741
Deferred Tax Assets, Net of Valuation Allowance	1,033	1,148
Investment in subsidiaries	0	0
Intercompany	0	0
Other assets	9,554	11,020
TOTAL ASSETS	119,721	131,306
LIABILITIES:
Accounts payable	571	339
Customer deposits	0	0
Intercompany liabilities	20,169	22,623
Other liabilities	5,492	6,928
Community development district (“CDD”) obligations	0	0
Obligation for consolidated inventory not owned	0	0
Long-term Line of Credit	0
Warehouse Agreement Borrowings	73,778	80,029
Notes payable - other	0	0
2017 Convertible Subordianted Debt	0	0
2018 Convertible Subordinated Debt	0	0
Senior notes	0	0
TOTAL LIABILITIES	100,010	109,919
TOTAL SHAREHOLDERS' EQUITY	19,711	21,387
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	119,721	131,306
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
Deferred Tax Assets, Net of Valuation Allowance	0	0
Investment in subsidiaries	(567,407)	(535,879)
Intercompany	(330,075)	(318,852)
Other assets	0	0
TOTAL ASSETS	(897,482)	(854,731)
LIABILITIES:
Accounts payable	0	0
Customer deposits	0	0
Intercompany liabilities	(330,075)	(318,852)
Other liabilities	0	0
Community development district (“CDD”) obligations	0	0
Obligation for consolidated inventory not owned	0	0
Long-term Line of Credit	0
Warehouse Agreement Borrowings	0	0
Notes payable - other	0	0
2017 Convertible Subordianted Debt	0	0
2018 Convertible Subordinated Debt	0	0
Senior notes	0	0
TOTAL LIABILITIES	(330,075)	(318,852)
TOTAL SHAREHOLDERS' EQUITY	(567,407)	(535,879)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ (897,482)	$ (854,731)

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
ASSETS:
Cash and cash equivalents	$ 17,168	$ 128,725
Restricted cash	8,898	13,902
Mortgage loans held for sale	76,983	81,810
Inventory	893,964	690,934
Property and equipment - net	11,430	10,536
Investments in unconsolidated joint ventures	40,769	35,266
Deferred income taxes, net of valuation allowance of $9.3 million at December 31, 2013	102,882	110,911
Other assets	41,060	38,092
Total assets	1,193,154	1,110,176
LIABILITIES:
Accounts payable	97,873	70,226
Customer deposits	14,202	11,262
Other liabilities	74,203	71,341
Community development district (“CDD”) obligations	3,056	3,130
Obligation for consolidated inventory not owned	1,700	1,775
Long-term Line of Credit	14,400	0
Notes Payable - Financial Services	73,778	80,029
Notes payable - other	8,530	7,790
Convertible senior subordinated notes due 2017	57,500	57,500
Convertible senior subordinated notes due 2018	86,250	86,250
Senior notes	228,369	228,070
TOTAL LIABILITIES	659,861	617,373
Commitments and contingencies	0	0
SHAREHOLDERS' EQUITY:
Preferred shares - $.01 par value; authorized 2,000,000 shares; 2,000 shares issued and outstanding at both September 30, 2014 and December 31, 2013	48,163	48,163
Common shares - $.01 par value; authorized 58,000,000 and 38,000,000 shares at September 30, 2014 and December 31, 2013, respectively; issued 27,092,723 shares at both September 30, 2014 and December 31, 2013	271	271
Additional paid-in capital	238,095	236,060
Retained earnings	298,772	262,625
Treasury shares - at cost - 2,618,584 and 2,734,780 shares at September 30, 2014 and December 31, 2013, respectively	(52,008)	(54,316)
TOTAL SHAREHOLDERS' EQUITY	533,293	492,803
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,193,154	$ 1,110,176

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Debt Notes Payable Other (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Notes payable - other	$ 8,530,000	$ 7,790,000
Secured Debt	$ 4,500,000	$ 4,800,000
Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.10%

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
OPERATING ACTIVITIES:
Net income (loss)	$ 39,803	$ 137,162
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Inventory valuation adjustments and abandoned land transaction write-offs	1,426	4,237
Equity in loss (income) of unconsolidated joint ventures	(62)	(278)
Mortgage loan originations	(470,345)	(426,636)
Proceeds from the sale of mortgage loans	477,728	439,151
Fair value adjustment of mortgage loans held for sale	(2,556)	(1,782)
Capitalization of originated Mortgage Servicing Rights	(3,046)	0
Amortization of Mortgage Servicing Rights (MSRs)	548	0
Depreciation	3,733	3,777
Amortization of intangibles, debt discount and debt issue costs	2,329	2,555
Loss on early extinguishment of debt	0	1,726
Stock-based compensation expense	2,504	1,835
Deferred Income Tax Expense	17,320	9,190
Deferred tax asset valuation allowances	(9,291)	(120,836)
Change in assets and liabilities:
Cash held in escrow	92	148
Inventory	(196,139)	(142,642)
Other assets	(4,582)	(2,443)
Accounts payable	27,647	38,114
Customer deposits	2,940	4,679
Accrued compensation	(3,247)	1,767
Other liabilities	6,487	9,840
Net cash (used in) provided by operating activities	(106,711)	(40,436)
INVESTING ACTIVITIES:
Change in restricted cash	4,912	(7,274)
Purchase of property and equipment	(2,347)	(1,654)
Return of investment from Unconsolidated LLCs	619	1,522
Investment in unconsolidated joint ventures	(16,818)	(25,496)
Net Proceeds from Sale of Mortgage Servicing Rights	2,135	0
Net cash used in investing activities	(11,499)	(32,902)
FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior subordinated notes	0	86,250
Proceeds from (repayments of) bank borrowings - net	8,149	(12,343)
Principal repayments of notes payable-other and CDD bond obligations	740	(2,979)
Dividends paid on preferred shares	(3,656)	(2,438)
Net proceeds from issuance of common shares	0	54,617
Payments for Repurchase of Redeemable Preferred Stock	0	(50,352)
Debt issue costs	(40)	(5,463)
Proceeds from exercise of stock options	1,460	2,640
Excess tax deficiency from stock-based payment arrangements	0	383
Net cash (used in) provided by financing activities	6,653	70,315
Net increase (decrease) in cash and cash equivalents	(111,557)	(3,023)
Cash and cash equivalents balance at beginning of period	128,725	145,498
Cash and cash equivalents balance at end of period	17,168	142,475
SUPPLEMENTAL DISCLOSURE OF CASH PAID DURING THE YEAR:
Interest — net of amount capitalized	3,074	4,977
Income taxes	551	679
NON-CASH TRANSACTIONS DURING THE PERIOD
Community development district infrastructure	(74)	(1,215)
Consolidated inventory not owned	(75)	(17,529)
Distribution of single-family lots from unconsolidated joint ventures	$ 10,758	$ 1,912

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Inventory Inventory Parentheticals (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Parantheticals - Inventory [Abstract]
Model Home Accumulated Depreciation	$ 6,732	$ 5,173

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Guarantees and Indemnifications Guarantees and Indemnifications (Tables)

9 Months Ended

Sep. 30, 2014

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, 2014 and 2013 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Warranty reserves, beginning of period	$	11,220		$	10,388		$	12,291		$	10,438
Warranty expense on homes delivered during the period	1,923			1,999			4,962			5,004
Changes in estimates for pre-existing warranties	1,047			321			1,937			422
Settlements made during the period	(3,508		)	(1,952		)	(8,508		)	(5,108		)
Warranty reserves, end of period	$	10,682		$	10,756		$	10,682		$	10,756

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Inventory Other Inventory Items - Homes under construction not subject to a sale contract (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Other Inventory, Gross [Abstract]
Number of Speculative Homes	999	798
Speculative Homes Carrying Value	$ 159.9	$ 123.3

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Business Segments Business Segments (Tables)

9 Months Ended

Sep. 30, 2014

Business Segments [Abstract]

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

The following table shows, by segment: revenue; operating income; interest expense; and income before income taxes for the three and nine months ended September 30, 2014 and 2013:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Revenue:
Midwest homebuilding	$	118,319		$	82,689		$	283,472		$	222,890
Southern homebuilding	118,150			96,275			299,472			216,181
Mid-Atlantic homebuilding	86,718			89,550			242,357			239,061
Financial services (a)	7,580			6,681			21,915			22,343
Total revenue	$	330,767		$	275,195		$	847,216		$	700,475
Operating income:
Midwest homebuilding (b)	$	12,802		$	5,114		$	26,771		$	11,696
Southern homebuilding (b)	10,215			8,271			24,741			15,222
Mid-Atlantic homebuilding (b)	6,511			8,433			18,888			18,961
Financial services (a)	3,804			3,827			12,204			13,451
Less: Corporate selling, general and administrative expense	(8,502		)	(6,996		)	(23,126		)	(19,663		)
Total operating income	$	24,830		$	18,649		$	59,478		$	39,667
Interest expense:
Midwest homebuilding	$	450		$	1,023		$	2,211		$	3,852
Southern homebuilding	968			1,405			3,927			4,510
Mid-Atlantic homebuilding	829			659			2,392			2,809
Financial services (a)	402			362			1,019			1,015
Total interest expense	$	2,649		$	3,449		$	9,549		$	12,186
Equity in income of unconsolidated joint ventures	(22		)	(278		)	(62		)	(278		)
Loss on early extinguishment of debt	—			1,726			—			1,726
Income before income taxes	$	22,203		$	13,752		$	49,991		$	26,033

(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, 2014, operating income was reduced by $0.6 million related to the impairment of future communities in the Midwest region. For the nine months ended September 30, 2014, operating income was reduced by $0.8 million related to the impairment of operating communities in the Midwest region and $0.6 million related to the impairment of future communities in the Midwest region. For the three months ended September 30, 2013, operating income was reduced by $0.5 million related to the impairment of operating communities in the Midwest region and $1.7 million related to the impairment of future communities in the Midwest region. For the nine months ended September 30, 2013, operating income was reduced by $0.5 million related to the impairment of operating communities, $2.5 million related to the impairment of future communities, and $1.3 million related to the impairment of land held for sale in the Midwest region. There were no impairment charges in the Mid-Atlantic or Southern regions for the three and nine months ended September 30, 2014 and 2013.

The following tables show total assets by segment at September 30, 2014 and December 31, 2013:

	September 30, 2014
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	4,671	$	12,332	$	4,635	$	—	$	21,638
Inventory (a)	310,559		315,169		246,598		—		872,326
Investments in unconsolidated joint ventures	2,980		37,789		—		—		40,769
Other assets	10,806		23,995		11,069		212,551		258,421
Total assets	$	329,016	$	389,285	$	262,302	$	212,551	$	1,193,154

	December 31, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,003	$	7,107	$	5,255	$	—	$	14,365
Inventory (a)	248,218		236,505		191,847		—		676,570
Investments in unconsolidated joint ventures	5,331		29,935		—		—		35,266
Other assets	10,571		982		11,050		361,372		383,975
Total assets	$	266,123	$	274,529	$	208,152	$	361,372	$	1,110,176

(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.

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Basis of Presentation

9 Months Ended

Sep. 30, 2014

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 the Company. 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, 2013 (the “2013 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 2013 Form 10-K, as the same may be updated from time to time in our subsequent filings with the SEC.

Impact of New Accounting Standards

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. ASU 2014-15 will be effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the Company’s condensed consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company beginning January 1, 2017 and, at that time, the Company may adopt the new standard under the full retrospective approach or the modified retrospective approach. Early adoption is not permitted.  The Company is currently evaluating the method and impact the adoption of ASU 2014-09 will have on the Company’s unaudited condensed consolidated financial statements and disclosures.

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Condensed Consolidated Balance Sheets (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Parentheticals - Balance Sheet [Abstract]
Deferred Tax Assets, Net of Valuation Allowance, Current	$ 0	$ (9,300)
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	58,000,000	38,000,000
Common Stock, Shares, Issued	27,092,723	27,092,723
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	2,000
Preferred Stock, Shares Outstanding	2,000	2,000
Treasury Stock, Shares	2,618,584	2,734,780

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Supplemental Guarantor Information

9 Months Ended

Sep. 30, 2014

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 M/I Homes, Inc. (the parent company and the issuer of the aforementioned guaranteed notes), 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, 2014, 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, 2014
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	323,187	$	7,580		$	—		$	330,767
Costs and expenses:
Land and housing	—		261,636		—			—			261,636
Impairment of inventory and investment in unconsolidated joint ventures	—		622		—			—			622
General and administrative	—		17,811		3,913			—			21,724
Selling	—		21,955		—			—			21,955
Equity in income of unconsolidated joint ventures	—		—		(22		)	—			(22		)
Interest	—		2,248		401			—			2,649
Total costs and expenses	—		304,272		4,292			—			308,564
Income before income taxes	—		18,915		3,288			—			22,203
Provision for income taxes	—		7,428		1,158			—			8,586
Equity in subsidiaries	13,617		—		—			(13,617		)	—
Net income	13,617		11,487		2,130			(13,617		)	13,617
Preferred dividends	1,218		—		—			—			1,218
Net income to common shareholders	$	12,399	$	11,487	$	2,130		$	(13,617	)	$	12,399

	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	125,311		122,821			2,490			(125,311		)	125,311
Preferred dividends	1,219		—			—			—			1,219
Net income to common shareholders	$	124,092	$	122,821		$	2,490		$	(125,311	)	$	124,092

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Nine Months Ended September 30, 2014
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	825,301	$	21,915		$	—		$	847,216
Costs and expenses:
Land and housing	—		666,817		—			—			666,817
Impairment of inventory and investment in unconsolidated joint ventures	—		1,426		—			—			1,426
General and administrative	—		51,159		10,161			—			61,320
Selling	—		58,175		—			—			58,175
Equity in income of unconsolidated joint ventures	—		—		(62		)	—			(62		)
Interest	—		8,530		1,019			—			9,549
Total costs and expenses	—		786,107		11,118			—			797,225
Income before income taxes	—		39,194		10,797			—			49,991
Provision for income taxes	—		5,991		4,197			—			10,188
Equity in subsidiaries	39,803		—		—			(39,803		)	—
Net income	39,803		33,203		6,600			(39,803		)	39,803
Preferred dividends	3,656		—		—			—			3,656
Net income to common shareholders	$	36,147	$	33,203	$	6,600		$	(39,803	)	$	36,147

	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	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 to common shareholders	$	132,534	$	129,086		$	8,076		$	(137,162	)	$	132,534

CONDENSED CONSOLIDATING BALANCE SHEET
	September 30, 2014
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	3,811	$	13,357	$	—		$	17,168
Restricted cash	—		8,898		—		—			8,898
Mortgage loans held for sale	—		—		76,983		—			76,983
Inventory	—		893,964		—		—			893,964
Property and equipment - net	—		11,119		311		—			11,430
Investment in unconsolidated joint ventures	—		22,286		18,483		—			40,769
Deferred income taxes, net of valuation allowances	—		101,849		1,033		—			102,882
Investment in subsidiaries	567,407		—		—		(567,407		)	—
Intercompany assets	330,075		—		—		(330,075		)	—
Other assets	7,930		23,576		9,554		—			41,060
TOTAL ASSETS	$	905,412	$	1,065,503	$	119,721	$	(897,482	)	$	1,193,154
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	97,302	$	571	$	—		$	97,873
Customer deposits	—		14,202		—		—			14,202
Intercompany liabilities	—		309,906		20,169		(330,075		)	—
Other liabilities	—		68,711		5,492		—			74,203
Community development district obligations	—		3,056		—		—			3,056
Obligation for consolidated inventory not owned	—		1,700		—		—			1,700
Notes payable banks - homebuilding	—		14,400		—		—			14,400
Notes payable bank - financial services operations	—		—		73,778		—			73,778
Notes payable - other	—		8,530		—		—			8,530
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Convertible senior subordinated notes due 2018	86,250		—		—		—			86,250
Senior notes	228,369		—		—		—			228,369
TOTAL LIABILITIES	372,119		517,807		100,010		(330,075		)	659,861
SHAREHOLDERS’ EQUITY	533,293		547,696		19,711		(567,407		)	533,293
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	905,412	$	1,065,503	$	119,721	$	(897,482	)	$	1,193,154

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash and cash equivalents	$	—	$	113,407	$	15,318	$	—		$	128,725
Restricted cash	—		13,902		—		—			13,902
Mortgage loans held for sale	—		—		81,810		—			81,810
Inventory	—		690,934		—		—			690,934
Property and equipment - net	—		10,267		269		—			10,536
Investment in unconsolidated joint ventures	—		13,525		21,741		—			35,266
Deferred income taxes, net of valuation allowances	—		109,763		1,148		—			110,911
Investment in subsidiaries	535,879		—		—		(535,879		)	—
Intercompany assets	318,852		—		—		(318,852		)	—
Other assets	9,892		17,180		11,020		—			38,092
TOTAL ASSETS	$	864,623	$	968,978	$	131,306	$	(854,731	)	$	1,110,176
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	69,887	$	339	$	—		$	70,226
Customer deposits	—		11,262		—		—			11,262
Intercompany liabilities	—		296,229		22,623		(318,852		)	—
Other liabilities	—		64,413		6,928		—			71,341
Community development district obligations	—		3,130		—		—			3,130
Obligation for consolidated inventory not owned	—		1,775		—		—			1,775
Notes payable bank - financial services operations	—		—		80,029		—			80,029
Notes payable - other	—		7,790		—		—			7,790
Convertible senior subordinated notes due 2017	57,500		—		—		—			57,500
Convertible senior subordinated notes due 2018	86,250		—		—		—			86,250
Senior notes	228,070		—		—		—			228,070
TOTAL LIABILITIES	371,820		454,486		109,919		(318,852		)	617,373
SHAREHOLDERS’ EQUITY	492,803		514,492		21,387		(535,879		)	492,803
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	864,623	$	968,978	$	131,306	$	(854,731	)	$	1,110,176

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30, 2014
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	8,275		$	(124,022	)	$	17,311		$	(8,275	)	$	(106,711	)
INVESTING ACTIVITIES:
Restricted cash	—			4,912			—			—			4,912
Purchase of property and equipment	—			(2,222		)	(125		)	—			(2,347		)
Investments in and advances to unconsolidated joint ventures	—			(12,080		)	(4,738		)	—			(16,818		)
Return of capital from unconsolidated joint ventures	—			—			619			—			619
Net proceeds from the sale of mortgage servicing rights	—			—			2,135			—			2,135
Net cash used in investing activities	—			(9,390		)	(2,109		)	—			(11,499		)
FINANCING ACTIVITIES:
Proceeds from (repayments of) bank borrowings - net	—			14,400			(6,251		)	—			8,149
Principal proceeds from note payable - other and community development district bond obligations	—			740			—			—			740
Proceeds from exercise of stock options	1,460			—			—			—			1,460
Intercompany financing	(6,079		)	8,676			(2,597		)	—			—
Dividends paid	(3,656		)	—			(8,275		)	8,275			(3,656		)
Debt issue costs	—			—			(40		)	—			(40		)
Net cash (used in) provided by financing activities	(8,275		)	23,816			(17,163		)	8,275			6,653
Net decrease in cash and cash equivalents	—			(109,596		)	(1,961		)	—			(111,557		)
Cash and cash equivalents balance at beginning of period	—			113,407			15,318			—			128,725
Cash and cash equivalents balance at end of period	$	—		$	3,811		$	13,357		$	—		$	17,168

	Nine Months Ended September 30, 2013
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	7,100		$	(60,703	)	$	20,267		$	(7,100	)	$	(40,436	)
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		)
FINANCING ACTIVITIES:
Repayments from bank borrowings - net	—			—			(12,343		)	—			(12,343		)
Principal repayments from 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 of preferred shares	(50,352		)	—			—			—			(50,352		)
Proceeds from exercise of stock options	2,640			—			—			—			2,640
Proceeds from issuance of common shares	54,617			—			—			—			54,617
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		)
Excess tax deficiency from stock-based payment arrangements	383			—			—			—			383
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

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DEI Document	9 Months Ended
	Sep. 30, 2014	Oct. 22, 2014
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, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		24,474,139

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Subsequent Events (Notes)

3 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 12. Subsequent Events

On October 20, 2014, the Company entered into a First Amendment to the Credit Facility (the “First Amendment”), which, among other things, (a) extended the maturity date of the Credit Facility to October 20, 2018, (b) reduced the Eurodollar margin initially from 3.25% to 2.50% and reduced the Alternate Base Rate margin initially from 2.25% to 1.50%, in each case subject to adjustment based on the Company's leverage ratio, (c) increased the maximum borrowing availability under the facility from $200 million to $300 million, (d) increased the accordion feature under which the aggregate principal amount can be increased to up to $400 million, subject to obtaining additional commitments, (e) modified the borrowing base to provide for additional availability, (f) increased the sub-facility for letters of credit to $125 million, and (g) increased the required minimum tangible net worth to $353.9 million, plus (i) 50% of cumulative consolidated net income, earned from and after June 30, 2014, and (ii) 50% of the net proceeds of any equity offerings of the Company occurring on or after June 30, 2014, excluding proceeds used to refinance the Series A Preferred Shares.

The Credit Facility, as amended by the First Amendment (the “Amended Credit Facility”), contains various representations, warranties and covenants that the Company considers customary for such facilities. Under the terms of the Amended Credit Facility, we are required, among other things, to maintain compliance with various covenants, including financial covenants relating to a minimum consolidated tangible net worth requirement, a minimum interest coverage ratio or liquidity requirement, and a maximum leverage ratio.

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Operations [Abstract]
Revenue	$ 330,767	$ 275,195	$ 847,216	$ 700,475
Costs and Expenses [Abstract]
Land and housing	261,636	218,150	666,817	556,799
Impairment of inventory and investment in unconsolidated joint ventures	622	2,136	1,426	4,237
General and administrative	21,724	18,261	61,320	52,389
Selling	21,955	17,999	58,175	47,383
Interest	2,649	3,449	9,549	12,186
Equity in loss (income) of unconsolidated joint ventures	(22)	(278)	(62)	(278)
Loss on early extinguishment of debt	0	1,726	0	1,726
Total costs and expenses	308,564	261,443	797,225	674,442
Income (loss) before income taxes	22,203	13,752	49,991	26,033
(Benefit) provision for income taxes	8,586	(111,559)	10,188	(111,129)
Net income (loss)	13,617	125,311	39,803	137,162
Preferred Dividends	1,218	1,219	3,656	2,438
Excess of fair value over book value of preferred shares redeemed	0	0	0	2,190
Net income to common shareholders	$ 12,399	$ 124,092	$ 36,147	$ 132,534
Earnings (loss) per common share:
Basic	$ 0.51	$ 5.09	$ 1.48	$ 5.61
Diluted	$ 0.44	$ 4.22	$ 1.30	$ 4.79
Weighted Average Number of Shares Outstanding [Abstract]
Basic	24,474	24,358	24,454	23,642
Diluted	29,921	29,745	29,900	28,410

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

At September 30, 2014, the Company had outstanding approximately $123.6 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 September 2019. Included in this total are: (1) $80.4 million of performance and maintenance bonds and $14.0 million of performance letters of credit that serve as completion bonds for land development work in progress; (2) $14.2 million of financial letters of credit, of which $7.7 million represent deposits on land and lot purchase agreements; and (3) $15.0 million of financial bonds.

At September 30, 2014, the Company also had options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $475.6 million. Purchase of properties under these agreements is contingent upon satisfaction of certain requirements by the Company and the sellers.

The Company and certain of its subsidiaries have been named as defendants in certain claims, complaints and legal actions that 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 September 30, 2014 and December 31, 2013, we had $0.2 million and $0.3 million reserved for legal expenses, respectively.

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Guarantees and Indemnifications

9 Months Ended

Sep. 30, 2014

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 considered 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, 2014 and 2013 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Warranty reserves, beginning of period	$	11,220		$	10,388		$	12,291		$	10,438
Warranty expense on homes delivered during the period	1,923			1,999			4,962			5,004
Changes in estimates for pre-existing warranties	1,047			321			1,937			422
Settlements made during the period	(3,508		)	(1,952		)	(8,508		)	(5,108		)
Warranty reserves, end of period	$	10,682		$	10,756		$	10,682		$	10,756

Guarantees

In the ordinary course of business, M/I Financial, LLC (“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 the terms of the loan within the first six months after the sale of the loan. Loans totaling approximately $45.1 million and $5.2 million were covered under these guarantees as of September 30, 2014 and December 31, 2013, respectively. The increase in loans covered by these guarantees from December 31, 2013 is a result of a change in the mix of investors and their related purchase terms. A portion of the revenue paid to M/I Financial for providing the guarantees on these loans was deferred at September 30, 2014, 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, 2014. The risk associated with the guarantees above is partially 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 $6.9 million and $8.2 million at September 30, 2014 and December 31, 2013, respectively. The risk associated with the guarantees above is partially 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. Loans totaling approximately $2.0 million and $1.5 million were covered under these guarantees as of September 30, 2014 and December 31, 2013, respectively. 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 these guarantees to third parties totaling $2.4 million and $3.1 million at September 30, 2014 and December 31, 2013, respectively, which is management's best estimate of the Company's liability.

At September 30, 2014, 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 11), 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”).

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Earnings per Share Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2014

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, 2014 and 2013:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share amounts)	2014			2013			2014			2013
NUMERATOR
Net income	$	13,617		$	125,311		$	39,803		$	137,162
Preferred stock dividends	(1,218		)	(1,219		)	(3,656		)	(2,438		)
Excess of fair value over book value of preferred shares redeemed	—			—			—			(2,190		)
Net income to common shareholders	12,399			124,092			36,147			132,534
Interest on 3.25% convertible senior subordinated notes due 2017	368			611			1,110			1,833
Interest on 3.00% convertible senior subordinated notes due 2018	496			824			1,497			1,851
Diluted income available to common shareholders	$	13,263		$	125,527		$	38,754		$	136,218
DENOMINATOR
Basic weighted average shares outstanding	24,474			24,358			24,454			23,642
Effect of dilutive securities:
Stock option awards	214			183			223			246
Deferred compensation awards	148			119			138			111
3.25% convertible senior subordinated notes due 2017	2,416			2,416			2,416			2,416
3.00% convertible senior subordinated notes due 2018	2,669			2,669			2,669			1,995
Diluted weighted average shares outstanding - adjusted for assumed conversions	29,921			29,745			29,900			28,410
Earnings per common share:
Basic	$	0.51		$	5.09		$	1.48		$	5.61
Diluted	$	0.44		$	4.22		$	1.30		$	4.79
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	1,286			998			1,243			951

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Fair Value Measurements Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

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, 2014 and December 31, 2013:

Description of Financial Instrument (in thousands)	September 30, 2014		December 31, 2013
Best efforts contracts and related committed IRLCs	$	4,616	$	2,494
Uncommitted IRLCs	56,470		49,710
FMBSs related to uncommitted IRLCs	57,000		48,000
Best efforts contracts and related mortgage loans held for sale	41,058		63,386
FMBSs related to mortgage loans held for sale	34,000		20,000
Mortgage loans held for sale covered by FMBSs	33,736		19,884

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, 2014 and December 31, 2013:

Description of Financial Instrument (in thousands)	Fair Value Measurements September 30, 2014			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	$	76,983		$	—	$	76,983		$	—
Forward sales of mortgage-backed securities	(41		)	—		(41		)	—
Interest rate lock commitments	434			—		434			—
Best-efforts contracts	51			—		51			—
Total	$	77,427		$	—	$	77,427		$	—

Description of Financial Instrument (in thousands)	Fair Value Measurements December 31, 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	$	81,810		$	—	$	81,810		$	—
Forward sales of mortgage-backed securities	745			—		745			—
Interest rate lock commitments	(319		)	—		(319		)	—
Best-efforts contracts	479			—		479			—
Total	$	82,715		$	—	$	82,715		$	—

Schedule of Derivative Instruments, (Loss) Gain in Statement of Financial Performance [Table Text Block]

The following table sets forth the amount of gain (loss) 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, 2014 and 2013:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2014			2013			2014			2013
Mortgage loans held for sale	$	(959	)	$	3,365		$	2,556		$	1,782
Forward sales of mortgage-backed securities	398			(5,262		)	(786		)	(2,224		)
Interest rate lock commitments	(144		)	1,677			753			941
Best-efforts contracts	164			(193		)	(428		)	(176		)
Total (loss) gain recognized	$	(541	)	$	(413	)	$	2,095		$	323

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, 2014			September 30, 2014
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	$	41
Interest rate lock commitments	Other assets	434		Other liabilities	—
Best-efforts contracts	Other assets	51		Other liabilities	—
Total fair value measurements		$	485		$	41

	Asset Derivatives			Liability Derivatives
	December 31, 2013			December 31, 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	$	745	Other liabilities	$	—
Interest rate lock commitments	Other assets	—		Other liabilities	319
Best-efforts contracts	Other assets	479		Other liabilities	—
Total fair value measurements		$	1,224		$	319

Fair Value, Assets Measured on Nonrecurring Basis [Table Text Block]

The table below shows the level and measurement of the Company's assets measured on a non-recurring basis as of and for the three and nine months ended September 30, 2014 and 2013:

		Three Months Ended September 30,				Nine Months Ended September 30,
Description (in thousands)	Hierarchy	2014		2013 (2)		2014		2013 (2)
Adjusted basis of inventory (1)	Level 3	$	76	$	1,975	$	1,605	$	3,876
Total losses		622		2,136		1,426		4,237
Initial basis of inventory		$	698	$	4,111	$	3,031	$	8,113

(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, 2014 and December 31, 2013. 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, 2014				December 31, 2013
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash, cash equivalents and restricted cash	$	26,066	$	26,066	$	142,627	$	142,627
Mortgage loans held for sale	76,983		76,983		81,810		81,810
Split dollar life insurance policies	189		189		171		171
Notes receivable	4,406		3,778		3,151		2,784
Commitments to extend real estate loans	434		434		—		—
Best-efforts contracts for committed IRLCs and mortgage loans held for sale	51		51		479		479
Forward sales of mortgage-backed securities	—		—		745		745
Liabilities:
Notes payable - banks	88,178		88,178		80,029		80,029
Notes payable - other	8,530		8,012		7,790		7,452
Convertible senior subordinated notes due 2017	57,500		63,322		57,500		74,391
Convertible senior subordinated notes due 2018	86,250		86,142		86,250		95,845
Senior notes due 2018	228,369		240,350		228,070		248,975
Commitments to extend real estate loans	—		—		319		319
Forward sales of mortgage-backed securities	41		41		—		—
Off-Balance Sheet Financial Instruments:
Letters of credit	—		595		—		413

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Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

During the three and nine months ended September 30, 2014, the Company recorded a tax provision of $8.6 million and $10.2 million, respectively. The amounts reflect income tax expense related to the respective periods' pre-tax earnings as well as a $9.3 million benefit for the nine months ended September 30, 2014 from the reversal of our remaining state deferred tax asset valuation allowance. During the three and nine months ended September 30, 2013, the Company recorded a tax benefit of $111.6 million and $111.1 million, respectively. The amounts reflect income tax expense related to the respective periods' pre-tax earnings as well as a $111.6 million benefit for the three and nine months ended September 30, 2013 from the reversal of a majority of our deferred tax asset valuation allowance.The effective tax rate for the three months ended September 30, 2014 was 38.7%. The effective tax rate for the nine months ended September 30, 2014 was 20.4%. The effective tax rate for the nine months ended September 30, 2014 is not reflective of our historical tax rate or our effective tax rate in future periods due to our state deferred tax asset valuation allowance reversals in 2014. The effective tax rate for the same periods in 2013 was not meaningful due to the effects of the deferred tax asset valuation allowance and federal and state tax net operating losses (“NOLs”), and there is no correlation between the effective tax rate and the amount of pre-tax income for those periods.

In accordance with ASC 740-10, Income Taxes, we determine our net deferred tax assets by taxing jurisdiction. We evaluate our net deferred tax assets, including the benefit from NOLs, by jurisdiction to determine if a valuation allowance is required. Companies must assess 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 considers, among other matters, the nature, frequency and severity of 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. We recorded a full valuation allowance against all of our deferred tax assets during 2008 due to economic conditions and the weight of negative evidence at that time.

During the year ended December 31, 2013, we reversed the valuation allowance against our federal deferred tax assets and our deferred tax assets in most of our state jurisdictions because the weight of the positive evidence in those jurisdictions exceeded that of the negative evidence. However, at December 31, 2013, we retained a valuation allowance for certain states which have shorter carryforward periods for utilization of NOL carryovers or lower current earnings relative to their NOL carryforward balance. In 2014, we determined that it is more likely than not that our state NOL carryforwards should be able to be realized, and we reversed the remaining state deferred tax valuation allowance of $9.3 million during the nine months ended September 30, 2014.

At September 30, 2014, the Company had federal NOL carryforwards of approximately $53.3 million and federal credit carryforwards of $6.5 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 $13.6 million of state NOL carryforwards at September 30, 2014. State NOLs may be carried forward from 5 to 20 years, depending on the tax jurisdiction, with $7.0 million expiring between 2014 and 2027 and $6.6 million expiring between 2028 and 2032, absent sufficient state taxable income.

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Debt

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Debt

Notes Payable - Homebuilding

The Credit Facility matures on July 18, 2016, and provides revolving credit financing for the Company with a maximum borrowing availability of $200 million and a sub-limit of $100 million for the issuance of letters of credit. 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. 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. At September 30, 2014, the Company was in compliance with all financial covenants of the Credit Facility.

At September 30, 2014, borrowing availability under the Credit Facility in accordance with the borrowing base calculation was $358.6 million, so the full amount of the $200 million facility was available. There were $14.4 million borrowings outstanding and $19.6 million of letters of credit outstanding, leaving net remaining borrowing availability of $166.0 million as of September 30, 2014.

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 (as defined in Note 11), 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 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 Company’s obligations under the Credit Facility 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. Our obligations under the Credit Facility are effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness.

Refer to Note 12 for additional discussion of the Company’s Credit Facility.

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”), with maturities ranging from June 1, 2015 to September 30, 2015. During the three months ended September 30, 2014, the Company extended the maturity dates on two of the Letter of Credit Facilities for an additional year to June 1, 2015 and September 30, 2015, respectively. 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 $2.3 million was uncommitted at September 30, 2014 and could be withdrawn at any time. At September 30, 2014 and December 31, 2013, there was $8.6 million and $13.4 million of outstanding letters of credit in aggregate under the Company's three Letter of Credit Facilities, respectively, which were collateralized with $8.8 million and $13.7 million of the Company's cash, respectively.

Notes Payable — Financial Services

In March 2014, M/I Financial entered into an amendment to the MIF Mortgage Warehousing Agreement, which, among other things, increased the maximum borrowing availability to $110.0 million and included 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 27, 2015, increased the maximum principal amount permitted to be outstanding at any one time in aggregate under all warehouse credit lines to $150.0 million, and, effective with the quarter ending September 30, 2014, increased M/I Financial's minimum required tangible net worth requirement from $10.0 million to $11.0 million and the minimum required liquidity requirement from $5.0 million to $5.5 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) 3.0%.

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, as amended on November 6, 2013, has an expiration date of November 5, 2014 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 275 or 300 basis points depending on the loan type. M/I Financial expects to enter into another amendment to the MIF Mortgage Repurchase Facility prior to its expiration that would extend its term for an additional year, but M/I Financial cannot provide any assurances that it will be able to obtain such an extension.

At September 30, 2014 M/I Financial's total combined maximum borrowing availability under the two credit facilities was $125.0 million, an increase from $115.0 million at December 31, 2013. At September 30, 2014 and December 31, 2013, M/I Financial had $73.8 million and $80.0 million outstanding on a combined basis under its credit facilities, respectively, and was in compliance with all financial covenants of those agreements for both periods.

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. As of both September 30, 2014 and December 31, 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 effectively subordinated to our existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The 2018 Senior Notes contain certain covenants, as more fully described and defined in the indenture, which 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”; make certain investments; and create or incur certain 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, 2014, the Company was in compliance with all terms, conditions, and covenants under the indenture.

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 (as defined in Note 11), 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. As of September 30, 2014, the guarantors for the 2018 Senior Notes are the same subsidiaries that guarantee the Credit Facility, the 2017 Convertible Senior Subordinated Notes, and the 2018 Convertible Senior Subordinated Notes.

The Company may redeem all or any portion of the 2018 Senior Notes on or after November 15, 2014 at a stated redemption price, together with accrued and unpaid interest thereon. The redemption price will initially be 104.313% of the principal amount outstanding, but will decline to 102.156% of the principal amount outstanding if redeemed during the 12-month period beginning on November 15, 2015, and will further decline to 100.000% of the principal amount outstanding if redeemed on or after November 15, 2016, but prior to maturity.

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” 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, 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. The restricted payments basket was $145.7 million at September 30, 2014. 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.

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, 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, 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).

Notes Payable - Other

The Company had other borrowings, which are reported in Notes Payable - Other in our Unaudited Condensed Consolidated Balance Sheets, totaling $8.5 million and $7.8 million as of September 30, 2014 and December 31, 2013, respectively.  The balance consists primarily of a mortgage note payable with a $4.5 million principal balance outstanding at September 30, 2014 (and $4.8 million principal balance outstanding at December 31, 2013), which is secured by an office building, matures in 2017 and carries an interest rate of 8.1%. The remaining balance is made up of other notes payable incurred through the normal course of business.

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Earnings per Share

9 Months Ended

Sep. 30, 2014

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, 2014 and 2013:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share amounts)	2014			2013			2014			2013
NUMERATOR
Net income	$	13,617		$	125,311		$	39,803		$	137,162
Preferred stock dividends	(1,218		)	(1,219		)	(3,656		)	(2,438		)
Excess of fair value over book value of preferred shares redeemed	—			—			—			(2,190		)
Net income to common shareholders	12,399			124,092			36,147			132,534
Interest on 3.25% convertible senior subordinated notes due 2017	368			611			1,110			1,833
Interest on 3.00% convertible senior subordinated notes due 2018	496			824			1,497			1,851
Diluted income available to common shareholders	$	13,263		$	125,527		$	38,754		$	136,218
DENOMINATOR
Basic weighted average shares outstanding	24,474			24,358			24,454			23,642
Effect of dilutive securities:
Stock option awards	214			183			223			246
Deferred compensation awards	148			119			138			111
3.25% convertible senior subordinated notes due 2017	2,416			2,416			2,416			2,416
3.00% convertible senior subordinated notes due 2018	2,669			2,669			2,669			1,995
Diluted weighted average shares outstanding - adjusted for assumed conversions	29,921			29,745			29,900			28,410
Earnings per common share:
Basic	$	0.51		$	5.09		$	1.48		$	5.61
Diluted	$	0.44		$	4.22		$	1.30		$	4.79
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	1,286			998			1,243			951

For the three and nine months ended September 30, 2014 and 2013, the effect of convertible debt was included in the diluted earnings per share calculations.

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Business Segments

9 Months Ended

Sep. 30, 2014

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; interest expense; and income before income taxes for the three and nine months ended September 30, 2014 and 2013:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Revenue:
Midwest homebuilding	$	118,319		$	82,689		$	283,472		$	222,890
Southern homebuilding	118,150			96,275			299,472			216,181
Mid-Atlantic homebuilding	86,718			89,550			242,357			239,061
Financial services (a)	7,580			6,681			21,915			22,343
Total revenue	$	330,767		$	275,195		$	847,216		$	700,475
Operating income:
Midwest homebuilding (b)	$	12,802		$	5,114		$	26,771		$	11,696
Southern homebuilding (b)	10,215			8,271			24,741			15,222
Mid-Atlantic homebuilding (b)	6,511			8,433			18,888			18,961
Financial services (a)	3,804			3,827			12,204			13,451
Less: Corporate selling, general and administrative expense	(8,502		)	(6,996		)	(23,126		)	(19,663		)
Total operating income	$	24,830		$	18,649		$	59,478		$	39,667
Interest expense:
Midwest homebuilding	$	450		$	1,023		$	2,211		$	3,852
Southern homebuilding	968			1,405			3,927			4,510
Mid-Atlantic homebuilding	829			659			2,392			2,809
Financial services (a)	402			362			1,019			1,015
Total interest expense	$	2,649		$	3,449		$	9,549		$	12,186
Equity in income of unconsolidated joint ventures	(22		)	(278		)	(62		)	(278		)
Loss on early extinguishment of debt	—			1,726			—			1,726
Income before income taxes	$	22,203		$	13,752		$	49,991		$	26,033

(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, 2014, operating income was reduced by $0.6 million related to the impairment of future communities in the Midwest region. For the nine months ended September 30, 2014, operating income was reduced by $0.8 million related to the impairment of operating communities in the Midwest region and $0.6 million related to the impairment of future communities in the Midwest region. For the three months ended September 30, 2013, operating income was reduced by $0.5 million related to the impairment of operating communities in the Midwest region and $1.7 million related to the impairment of future communities in the Midwest region. For the nine months ended September 30, 2013, operating income was reduced by $0.5 million related to the impairment of operating communities, $2.5 million related to the impairment of future communities, and $1.3 million related to the impairment of land held for sale in the Midwest region. There were no impairment charges in the Mid-Atlantic or Southern regions for the three and nine months ended September 30, 2014 and 2013.

The following tables show total assets by segment at September 30, 2014 and December 31, 2013:

	September 30, 2014
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	4,671	$	12,332	$	4,635	$	—	$	21,638
Inventory (a)	310,559		315,169		246,598		—		872,326
Investments in unconsolidated joint ventures	2,980		37,789		—		—		40,769
Other assets	10,806		23,995		11,069		212,551		258,421
Total assets	$	329,016	$	389,285	$	262,302	$	212,551	$	1,193,154

	December 31, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,003	$	7,107	$	5,255	$	—	$	14,365
Inventory (a)	248,218		236,505		191,847		—		676,570
Investments in unconsolidated joint ventures	5,331		29,935		—		—		35,266
Other assets	10,571		982		11,050		361,372		383,975
Total assets	$	266,123	$	274,529	$	208,152	$	361,372	$	1,110,176

(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.

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Inventory Inventory (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Inventory [Abstract]
Single-family lots, land and land development costs	$ 402,352	$ 323,673
Land held for sale	2,898	8,059
Homes under construction	419,931	305,499
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2014 - $6,732; December 31, 2013 - $5,173)	42,356	34,433
Community development district infrastructure	3,056	3,130
Land Purchase Deposits	21,638	14,365
Consolidated Inventory Not Owned	1,733	1,775
Total Inventory	$ 893,964	$ 690,934

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Business Segments Business Segments - Assets (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	$ 21,638	$ 14,365
Inventory	872,326	676,570
Investments in unconsolidated joint ventures	40,769	35,266
Other assets	258,421	383,975
Total assets	1,193,154	1,110,176
Midwest Homebuilding [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	4,671	2,003
Inventory	310,559	248,218
Investments in unconsolidated joint ventures	2,980	5,331
Other assets	10,806	10,571
Total assets	329,016	266,123
Southern Homebuilding [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	12,332	7,107
Inventory	315,169	236,505
Investments in unconsolidated joint ventures	37,789	29,935
Other assets	23,995	982
Total assets	389,285	274,529
Mid-Atlantic Homebuilding [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	4,635	5,255
Inventory	246,598	191,847
Investments in unconsolidated joint ventures	0	0
Other assets	11,069	11,050
Total assets	262,302	208,152
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	212,551	361,372
Total assets	$ 212,551	$ 361,372

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Capitalized Interest Capitalized Interest (Tables)

9 Months Ended

Sep. 30, 2014

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, 2014 and 2013 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Capitalized interest, beginning of period	$	14,831		$	14,260		$	13,802		$	15,376
Interest capitalized to inventory	5,161			3,940			13,141			10,045
Capitalized interest charged to land and housing costs and expenses	(4,281		)	(4,074		)	(11,232		)	(11,295		)
Capitalized interest, end of period	$	15,711		$	14,126		$	15,711		$	14,126
Interest incurred	$	7,810		$	7,389		$	22,690		$	22,231

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Fair Value Measurements Notional Amount of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Notional Disclosures [Abstract]
Best efforts contracts and related committed IRLCs	$ 4,616	$ 2,494
Uncommitted IRLCs	56,470	49,710
FMBSs related to uncommitted IRLCs	57,000	48,000
Best efforts contracts and related mortgage loans held for sale	41,058	63,386
FMBSs related to mortgage loans held for sale	34,000	20,000
Mortgage loans held for sale covered by FMBSs	$ 33,736	$ 19,884

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Business Segments Business Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Segment Reporting Information [Line Items]
Revenue	$ 330,767	$ 275,195	$ 847,216	$ 700,475
Operating Income (Loss)	24,830	18,649	59,478	39,667
Interest	2,649	3,449	9,549	12,186
Equity in loss (income) of unconsolidated joint ventures	(22)	(278)	(62)	(278)
Loss on early extinguishment of debt	0	(1,726)	0	(1,726)
Income (loss) before income taxes	22,203	13,752	49,991	26,033
Midwest Homebuilding [Member]
Segment Reporting Information [Line Items]
Homebuilding revenue	118,319	82,689	283,472	222,890
Operating Income (Loss)	12,802	5,114	26,771	11,696
Interest	450	1,023	2,211	3,852
Southern Homebuilding [Member]
Segment Reporting Information [Line Items]
Homebuilding revenue	118,150	96,275	299,472	216,181
Operating Income (Loss)	10,215	8,271	24,741	15,222
Interest	968	1,405	3,927	4,510
Mid-Atlantic Homebuilding [Member]
Segment Reporting Information [Line Items]
Homebuilding revenue	86,718	89,550	242,357	239,061
Operating Income (Loss)	6,511	8,433	18,888	18,961
Interest	829	659	2,392	2,809
Financial Services [Member]
Segment Reporting Information [Line Items]
Financial services revenue	7,580	6,681	21,915	22,343
Operating Income (Loss)	3,804	3,827	12,204	13,451
Interest	402	362	1,019	1,015
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Selling, general and administrative expenses	$ (8,502)	$ (6,996)	$ (23,126)	$ (19,663)

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Commitments and Contingencies Legal Liabilities (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Other Liabilities Disclosure [Abstract]
Amount Reserved for Legal Expenses	$ 0.2	$ 0.3

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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, 2013	$ 492,803	$ 48,163	$ 271	$ 236,060	$ 262,625	$ (54,316)
Shares Outstanding, Beginning Balance at Dec. 31, 2013		2,000	24,357,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	39,803				39,803
Dividends, Preferred Stock	(3,656)				(3,656)
Stock options exercised, shares			108,848
Stock options exercised	1,460			(702)		2,162
Stock-based compensation expense	2,504			2,504
Deferral of executive and director compensation	379			379
Executive and director deferred compensation distributions shares			7,348
Executive and director deferred compensation distributions	0			(146)		146
Stockholders' Equity, Ending Balance at Sep. 30, 2014	$ 533,293	$ 48,163	$ 271	$ 238,095	$ 298,772	$ (52,008)
Shares Outstanding, Ending Balance at Sep. 30, 2014		2,000	24,474,139

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Capitalized Interest

9 Months Ended

Sep. 30, 2014

Capitalized Interest [Abstract]

capitalized interest [Text Block]

Capitalized Interest

The Company capitalizes interest during land development and home construction.  Capitalized interest is charged to land and housing costs and expenses as the related inventory is delivered to a third party.  The summary of capitalized interest for the three and nine months ended September 30, 2014 and 2013 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Capitalized interest, beginning of period	$	14,831		$	14,260		$	13,802		$	15,376
Interest capitalized to inventory	5,161			3,940			13,141			10,045
Capitalized interest charged to land and housing costs and expenses	(4,281		)	(4,074		)	(11,232		)	(11,295		)
Capitalized interest, end of period	$	15,711		$	14,126		$	15,711		$	14,126
Interest incurred	$	7,810		$	7,389		$	22,690		$	22,231

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Fair Value Measurements Assets and Liabilities Measured on a Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Total Fair Value - Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	$ 77,427	$ 82,715
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	77,427	82,715
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	76,983	81,810
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	76,983	81,810
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	(41)	745
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	(41)	745
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	434	(319)
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	434	(319)
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	51	479
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	51	479
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

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Guarantees and Indemnifications Warranty Rollforward (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Warranty Accrual Rollforward [Abstract]
Warranty reserves, beginning of period	$ 11,220	$ 10,388	$ 12,291	$ 10,438
Warranty expense on homes delivered during the period	1,923	1,999	4,962	5,004
Changes in estimates for pre-existing warranties	1,047	321	1,937	422
Settlements made during the period	(3,508)	(1,952)	(8,508)	(5,108)
Warranty reserves, end of period	$ 10,682	$ 10,756	$ 10,682	$ 10,756

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Inventory Inventory (Tables)

9 Months Ended

Sep. 30, 2014

Inventory [Abstract]

Schedule of Inventory, Current [Table Text Block]

A summary of the Company's inventory as of September 30, 2014 and December 31, 2013 is as follows:

(In thousands)	September 30, 2014		December 31, 2013
Single-family lots, land and land development costs	$	402,352	$	323,673
Land held for sale	2,898		8,059
Homes under construction	419,931		305,499
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2014 - $6,732;    December 31, 2013 - $5,173)	42,356		34,433
Community development district infrastructure	3,056		3,130
Land purchase deposits	21,638		14,365
Consolidated inventory not owned	1,733		1,775
Total inventory	$	893,964	$	690,934