UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C.  20549
                                FORM 10-Q


[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
        SEPTEMBER 30, 2000

                                   OR

        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

        For the transition period from ________________ to ________________


                     Commission File Nos.: 33-73748


                   FUND AMERICA INVESTORS CORPORATION II
          (Exact name of registrant as specified in its charter)


           Delaware                                   84-1218906
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                 identification number)



  6400 S. Fiddler's Green Circle, Suite 1200B, Englewood, Colorado 80111
                  (Address of principal executive offices)

    Registrant's telephone number including area code: (303) 290-6025



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 require-
ments for the past 90 days.     YES [X]       NO [  ]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of November 10, 2000 -- 349,000 shares







</PAGE>
<PAGE>

                  FUND AMERICA INVESTORS CORPORATION II
                            FORM 10-Q FOR THE
                   NINE MONTHS ENDED SEPTEMBER 30, 2000


                                INDEX



PART I.  FINANCIAL INFORMATION                            PAGE NO.

         Item 1. Financial Statements                         3

         Item 2. Management's Discussion and
                 Analysis of Financial Condition
                 and Results of Operations                    7

PART II. OTHER INFORMATION

         Item 1. Legal Proceedings                            9

         Item 2. Changes in Securities                        9

         Item 3. Defaults upon Senior Securities              9

         Item 4. Submission of Matters to a Vote
                 of Security Holders                          9

         Item 5. Other Information                            9

         Item 6. Exhibits and Reports                         9

                 SIGNATURES                                  10



                               Page 2





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                       PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements


<TABLE>

                      FUND AMERICA INVESTORS CORPORATION II
                                BALANCE SHEETS



<CAPTION>
                                     (Unadudited)
                                     September 30,           December 31,
                                         2000                    1999
                                     -------------           ------------


<S>                                 <C>                     <C>
Assets
  Cash and cash equivalents          $       2,739           $     15,513
  Deferred offering costs                  256,361                254,826
  Prepaid expenses                               -                    187
                                     -------------           ------------
          Total assets               $     259,100           $    270,526
                                     =============           ============


Liabilities - accounts payable       $           -           $          -
                                     -------------           ------------

Shareholder's equity
  Common stock, par value $.01 per
    share;10,000 shares authorized;
    349,000 shares issued and
    outstanding                              3,490                 3,490
  Additional paid-in capital               445,510               445,510
  Shareholder distributions             (1,849,798)           (1,779,798)
  Retained earnings                      1,659,898             1,601,324
                                     -------------           -----------

     Total shareholder's equity            259,100               270,526
                                     -------------           -----------

   Total liabilities and
      shareholder's equity           $     259,100           $   270,526
                                     =============           ===========



</TABLE>
See notes to financial statements


                                   Page 3



</PAGE>
<PAGE>
<TABLE>
                  FUND AMERICA INVESTORS CORPORATION II
                          Statement of Operations
                               (Unaudited)



<CAPTION>
                                Three months ended       Nine months ended
                                   September 30,            September 30,
                              ----------------------   ---------------------
                                2000          1999        2000         1999
                             ----------    ----------  ----------   ----------
<S>                         <C>           <C>          <C>         <C>

Revenue
 Issuance fee income         $        -    $        -   $  76,253   $        -
 Call option income                   -       195,006      18,000      195,006
 Interest income                     34         1,536         701        5,853
                             ----------    ----------   ---------   ----------

  Total revenue                      34       196,542      94,954      200,859
                             ----------    ----------   ---------   ----------


Expenses
 Deferred offering costs              -             -       6,358            -
 General and administrative       2,255         1,324      12,023       11,036
 Management fees                  6,000         6,000      18,000       18,000
                             ----------    ----------   ---------   ----------

   Total expenses                (8,255)        7,324      36,381       29,036
                             ----------    ----------   ---------   ----------

 Net income/(loss)           $   (8,221)   $  189,218   $  58,573   $  171,823
                             ==========    ==========   =========   ==========


</TABLE>


See notes to financial statements

                               Page 4


</PAGE>
<PAGE>
<TABLE>

                 FUND AMERICA INVESTORS CORPORATION II
                       Statement of Cash Flows
                            (Unaudited)

<CAPTION>

                                                   Nine months ended
                                                     September 30,
                                                -----------------------
                                                   2000         1999
                                                ----------   ----------
<S>                                            <C>          <C>

Net cash flow from operating activities:
       Net income                               $   58,573   $  171,823
 Adjustments to reconcile net income to net
   cash flow from operating activities:
       Deferred offering costs                       1,253            -
 Changes in operating assets and liabilities:
       Prepaid expenses                                187       (1,821)
       Accounts payable                                  -         (215)
                                                ----------   ----------

Net cash flow provided by
  operating activities                              60,013      169,787



Net cash flow used in investing activities:
       Increase in deferred offering costs          (2,788)      (1,500)



Net cash flow used in financing activities:
       Shareholder distributions                   (70,000)     (50,000)
                                                ----------    ---------


Net increase in cash                               (12,774)    (187,713)

Cash at beginning of period                         15,513      226,446
                                                ----------    ---------


Cash at end of period                           $    2,739    $  44,733
                                                ==========    =========





</TABLE>


See notes to financial statements





                              Page 5

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                 FUND AMERICA INVESTORS CORPORATION II
                      NOTES TO FINANCIAL STATEMENTS
                              (Unaudited)
             Nine months ended September 30, 2000 and 1999


1.  Basis of Presentation


Organization

Fund America Investors Corporation II(the"Company") was incorporated in
the State of Delaware on December 14, 1992 as a limited purpose finance
corporation. The Company was established to engage in the issuance and
administration of Collateralized Mortgage Obligations (the "Bonds") and
Asset-Backed Certificates (the "Certificates", and together with the
Bonds, the "Securities").  The Securities are issued in one or more series,
from time to time, by the Company in accordance with the provisions in the
prospectus and series-related prospectus supplement of the Company's latest
effective registration statement.

The Securities of each series can be issued directly by the Company, but
typically the Company forms a separate trust to act as the issuer solely for the
purpose of issuing a series of Securities.  A series of Securities that consist
of Bonds will be issued pursuant to an indenture and will represent indebtedness
of the trust or issuer.  A series of Securities that consist of Certificates
will represent beneficial ownership in the related trust or issuer.  The sole
source of payments to Bondholders or Certificateholders within each series of
Securities is produced from the related trust property.  The trust property is
generally comprised of mortgage loans and/or mortgage-related assets as descri-
bed in each of the series' related prospectus supplements.

The Company may not, either directly or indirectly through a beneficially
owned trust, engage in any business or investment activity other than to; (1)
issue and sell Securities; (2) purchase, own, hold, pledge or sell mortgage
loans or other mortgage-related assets; (3) invest and maintain cash balances
on an interim basis in high quality short-term securities; and (4) engage in
other activities which are necessary or convenient to accomplish the foregoing
and are incidental thereto.

On January 1, 2000, the Company had a total of $564 million registered and
unissued Securities on its Registration Statement No. 333-33823.   During the
first quarter ended March 31, 2000, the Company issued one series of Securities
for 3.2 million. This series, Fund America Investors Corporation II, Issuer
Trust 2000-1, was issued pursuant to a separate prospectus supplement filed on
January 21, 2000.  No Securities were issued during the second and third
quarters of 2000.  After the first quarter issuance, the balance of unissued
Securities on Registration Statement No. 333-33823 remains at $561 million as
of September 30, 2000.  From inception to date, the Company has issued
nineteen series of Securities which aggregate $2.7 billion in original issued
principal.  The Company does not have any further obligations in connection
with the issuance of these Securities.  Under generally accepted accounting
principles, these issuances are considered to be a direct sale of the
collateral.

The Company's fifth Registration Statement on Form S-3 was filed on
September 30, 1998 with the Securities and Exchange Commission.  The
purpose of this filing was to register an additional amount of Securities and to
merge the Company's Effective Registration Statement No. 333-33823, thereby
increasing the total amount of Securities that can be issued by the Company.  As
of September 30, 2000, this Registration Statement was not effective and was
subject to completion or amendment.  The Company intends to file one or more
further amendments to complete this Registration Statement and to bring it
effective.


2.  Unaudited Financial Statements

The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
reporting periods and in accordance with the instructions to Form 10-Q.
In complying to the guidelines, the accompanying financial statements do
not include all of the information and footnotes that are required for a
complete annual reporting period.






                                Page 6

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<PAGE>



In the opinion of management, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly the financial
position of the Company at September 30, 2000, and the results of its operations
and cash flows for the periods ended September 30, 2000 and 1999.

3.  New Accounting Pronouncements

In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities" (SFAS No. 133).  SFAS No. 133
establishes accounting and reporting standards requiring that all derivative
instruments be recorded in the balance sheet as either an asset or liability
measured at fair value.  SFAS No. 133 requires that changes in the derivative's
fair value be recognized currently in earnings unless specific hedge accounting
criteria are met.  The accounting provisions for qualifying fair value and
cash flow hedges (such as interest rate swaps) allow unrealized gains and losses
recognized related to derivatives to be included in comprehensive income, to
the extent they are effective, and requires the Company to formally document,
designate, and assess  the effectiveness of transactions that qualify for hedge
accounting.  During 1999, the implementation of SFAS No. 133 was deferred
until January 1, 2001 by the issuance of SFAS No. 137 "Accounting for
Derivative Instruments and Hedging Activities-Deferral of the Effective Date
of FASB Statement No. 133."    The Company has determined that SFAS No. 133
will not have an impact on its financial statements as the Company does not
transact in derivative financial instruments either explicitly or embedded
within existing contracts such as lease agreements.



Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

Liquidity and Capital Resources

The Company expects to fund ongoing operations from its cash balances,
revenues derived from the issuance of Securities, and if necessary, from loans
or capital contributions from its sole shareholder. The current cash position
will not adequately fund overhead costs over the next twelve months without
additional revenues generated during this period.  Capital funding will be
provided by the sole shareholder to cover anticipated costs on a monthly basis
or until the Company generates sufficient revenue.  The funding source for
additional capital costs relating to the registration of securities will be
determined when the funding is required and will depend on the cash position at
that time.


Results of Operations

The Company operates on relatively fixed general and administrative costs
which have not substantially changed from comparable periods in prior years.
Typically, periodical fluctuations in net income are directly related to acti-
vity from the issuance of Securities.  Under normal circumstances, periods
reporting net income are the direct result of issuance fees earned by the Comp-
any, and in periods reporting a net loss, no issuance fees were earned.

For the three-months ended September 30, 2000, the Company reported a net
loss of $8,221, as compared to net income of $189,218 for the three-months
ended September 30, 1999.  Net income for the three-months ended September
30, 1999 was the result of call option fees received in the amount of $195,006
when the bonds in Fund America Investors corporation II, Series 1993-F were
called by the servicer.  Call option income is an unusual event and the Company
does not expect to receive call option fees during the normal course of busi-
ness.  Other items of net income show a decrease in interest earned and a slight
increase in general and administrative expenses for the three-months ended
September  30, 2000 when compared to the three-months ended September 30, 1999.
The nine-month period ended September 30, 2000 reported net income of
$58,573 as compared to net income of $171,823 from the nine-months ended
September 30, 1999.  The income reported for September 30, 2000 was the
result of net issuance fees earned of $69,894 and call option income of $18,000,
compared to September 30, 1999, where net income was generated by  call
option income of $195,006.  Other items of net income show a decrease of
$5,152 in interest income and a slight increase of $987 in general and
administrative expenses for the nine-months ended September  30, 2000 when
compared to the nine-months ended September 30, 1999.  The decrease in
interest income for 2000 was the result of lower cash balances maintained
during the year.

Forward Looking Statements

The statements contained in this Item 2 that are not historical facts, includ-
ing, but not limited to, statements that can be identified by the use of forward
-looking terminology such as "may," "will," "expect," "anticipate," "estimate"
or "continue" or the negative thereof or other variations thereon or comparable






                               Page 7


</PAGE>
<PAGE>

terminology, are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and involve a number of risks and
uncertainties.  The actual results of the future events described in such
forward-looking statements could differ materially from those stated in such
forward-looking statements.  Among the factors that could cause actual results
to differ materially are: the market for mortgage-backed securities, competi-
tion, government regulation and possible future litigation.













                              Page 8

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<PAGE>




                   PART II. OTHER INFORMATION



Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         None.

Item 3.  Defaults Upon Senior Securities

         None.

Item 4.  Submission of Matters to a Vote of Security Holders

         None.

Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K

        (a) Exhibits

            Exhibit 27. Financial Data Schedule

        (b) Form 8-K  - None





                             Page 9

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<PAGE>

                           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.



                                       FUND AMERICA INVESTORS CORPORATION II
                                       -------------------------------------
                                       (Registrant)


Date:       November 10, 2000          By: /s/ Helen M. Dickens
     ---------------------------          -------------------------------
                                            Helen M. Dickens
                                            Vice President, Secretary/Treasurer


















                            Page 10

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