diff --git a/src/main/java/com/puppycrawl/tools/checkstyle/checks/modifier/ModifierOrderCheck.java b/src/main/java/com/puppycrawl/tools/checkstyle/checks/modifier/ModifierOrderCheck.java
index 76e03754f..837ad3a29 100644
--- a/src/main/java/com/puppycrawl/tools/checkstyle/checks/modifier/ModifierOrderCheck.java
+++ b/src/main/java/com/puppycrawl/tools/checkstyle/checks/modifier/ModifierOrderCheck.java
@@ -154,8 +154,10 @@ public class ModifierOrderCheck
                     && offendingModifier == null) {
 
                 if (modifier.getType() == TokenTypes.ANNOTATION) {
-                    //Annotation not at start of modifiers, bad
-                    offendingModifier = modifier;
+                    if (!isAnnotationOnType(modifier)) {
+                        //Annotation not at start of modifiers, bad
+                        offendingModifier = modifier;
+                    }
                     break;
                 }
 
@@ -193,4 +195,20 @@ public class ModifierOrderCheck
         while (modifierIterator.hasNext() && modifier.getType() == TokenTypes.ANNOTATION);
         return modifier;
     }
+
+    /**
+     * Checks whether annotation on type takes place.
+     * @param modifier modifier token.
+     * @return true if annotation on type takes place.
+     */
+    private static boolean isAnnotationOnType(DetailAST modifier) {
+        boolean annotationOnType = false;
+        final DetailAST modifiers = modifier.getParent();
+        final int definitionTokenType = modifiers.getParent().getType();
+        if (definitionTokenType == TokenTypes.VARIABLE_DEF
+                || definitionTokenType == TokenTypes.PARAMETER_DEF) {
+            annotationOnType = true;
+        }
+        return annotationOnType;
+    }
 }
diff --git a/src/test/java/com/puppycrawl/tools/checkstyle/checks/modifier/ModifierOrderCheckTest.java b/src/test/java/com/puppycrawl/tools/checkstyle/checks/modifier/ModifierOrderCheckTest.java
index 817d82aa8..185ca1443 100644
--- a/src/test/java/com/puppycrawl/tools/checkstyle/checks/modifier/ModifierOrderCheckTest.java
+++ b/src/test/java/com/puppycrawl/tools/checkstyle/checks/modifier/ModifierOrderCheckTest.java
@@ -110,4 +110,15 @@ public class ModifierOrderCheckTest
         Assert.assertNotSame(unexpectedArray, actual);
         Assert.assertNotNull(actual);
     }
+
+    @Test
+    public void testSkipTypeAnnotations() throws Exception {
+        // Type Annotations are avaliable only in Java 8
+        // We skip type annotations from validation
+        // See https://github.com/checkstyle/checkstyle/issues/903#issuecomment-172228013
+        final DefaultConfiguration checkConfig =
+            createCheckConfig(ModifierOrderCheck.class);
+        final String[] expected = ArrayUtils.EMPTY_STRING_ARRAY;
+        verify(checkConfig, getNonCompilablePath("InputTypeAnnotations.java"), expected);
+    }
 }
diff --git a/src/test/resources-noncompilable/com/puppycrawl/tools/checkstyle/checks/modifier/InputTypeAnnotations.java b/src/test/resources-noncompilable/com/puppycrawl/tools/checkstyle/checks/modifier/InputTypeAnnotations.java
new file mode 100644
index 000000000..a92f940f0
--- /dev/null
+++ b/src/test/resources-noncompilable/com/puppycrawl/tools/checkstyle/checks/modifier/InputTypeAnnotations.java
@@ -0,0 +1,86 @@
+//Compilable with Java8
+package com.puppycrawl.tools.checkstyle.checks.modifier;
+
+import java.io.File;
+import java.io.IOException;
+import java.io.Serializable;
+import java.lang.annotation.ElementType;
+import java.lang.annotation.Target;
+import java.util.Arrays;
+import java.util.Collection;
+import java.util.Comparator;
+import java.util.List;
+import java.util.Map;
+
+public class InputTypeAnnotations {
+
+    // Simple type definitions with type annotations
+    private @TypeAnnotation String hello = "Hello, World!";
+    private @TypeAnnotation final String jdk = "JDK8";
+    @TypeAnnotation private String projectName = "Checkstyle";
+
+    // We can use type Annotations with generic type arguments
+    private Map.@TypeAnnotation Entry entry;
+    // Type annotations can also be applied to nested types
+    private List<@TypeAnnotation String> strings;
+
+    // Constructors with type annotations
+    {
+        new @TypeAnnotation Object();
+    }
+
+    static {
+        new @TypeAnnotation Object();
+    }
+
+    public void foo1() {
+        new @TypeAnnotation Object();
+    }
+
+    // Type annotations work with nested (non static) class constructors too
+    public void foo2() {
+        InputTypeAnnotations myObject = new InputTypeAnnotations();
+        myObject.new @TypeAnnotation Nested();
+    }
+
+    // Type casts
+    public void foo3() {
+        String myString = (@TypeAnnotation String) new Object();
+
+    }
+
+    // Type annotations with method arguments
+    private void foo4(final @TypeAnnotation String parameterName) { }
+
+    // Inheritance
+    class MySerializableClass<T> implements @TypeAnnotation Serializable {  }
+
+    // Nested type annotations
+    Map<@TypeAnnotation String, @TypeAnnotation List<@TypeAnnotation String>> documents;
+
+    // Apply type annotations to intersection types
+    public <E extends @TypeAnnotation Comparator<E> & @TypeAnnotation Comparable> void foo5() {  }
+
+    // Including parameter bounds and wildcard bounds
+    class Folder<F extends @TypeAnnotation File> { }
+    Collection<? super @TypeAnnotation File> c;
+    List<@TypeAnnotation ? extends Comparable<T>> unchangeable;
+
+    // Throwing exceptions
+    void foo6() throws @TypeAnnotation IOException { }
+
+    // Type annotations in instanceof statements
+    public void foo7() {
+        boolean isNonNull = "string" instanceof @TypeAnnotation String;
+
+    }
+
+    class Nested { }
+
+    class T { }
+}
+
+@Target({ElementType.FIELD, ElementType.LOCAL_VARIABLE, ElementType.PARAMETER,
+         ElementType.TYPE_PARAMETER, ElementType.TYPE_USE})
+@interface TypeAnnotation {
+}
\ No newline at end of file
diff --git a/src/xdocs/config_modifier.xml b/src/xdocs/config_modifier.xml
index 374efcd9d..7911772be 100644
--- a/src/xdocs/config_modifier.xml
+++ b/src/xdocs/config_modifier.xml
@@ -66,6 +66,12 @@
             <code>strictfp</code>
           </li>
         </ol>
+
+        <p>
+          ATTENTION: We skip <a href="https://blogs.oracle.com/java-platform-group/entry/java_8_s_new_type">
+          type annotations</a> from validation.
+        </p>
+
       </subsection>
 
       <subsection name="Examples">