================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                             ----------------------

                                    FORM 10-Q


(MARK ONE)

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

                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1997

                                       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 NUMBER 0-13800


                       INTERNATIONAL AMERICAN HOMES, INC.
             (Exact name of registrant as specified in its charter)


           DELAWARE                                            22-2472608
(State or other jurisdiction of                             (I.R.S. Employer 
 incorporation or organization)                          Identification Number)

               9950 Princess Palm Ave., Suite 112, Tampa, FL 33619
              (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (813) 664-1100


                                 NOT APPLICABLE
 (Former name, former address and former fiscal year, if changed since 
                                  last report)

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 [ ]


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and 
reports required to be filed by Section 12, 13, or 15(d) of the Securities 
Exchange Act of 1934 subsequent to the distribution of securities under a plan 
confirmed by a court. Yes [X] No [ ]

As of January 31, 1998, the number of shares outstanding of the registrant's
common stock, par value $.01, was 2,785,895.

================================================================================

                            Total number of pages: 20

<PAGE>

                       INTERNATIONAL AMERICAN HOMES, INC.
                       ----------------------------------
                                AND SUBSIDIARIES
                                ----------------
                                      Index
                                      -----

<TABLE>
<CAPTION>

Part I.                    Financial Information:                                                                               Page
-------                    ----------------------                                                                               ----
         <S>        <C>
         Item 1.    Financial Statements                                                                                         <C>

                    Consolidated Balance Sheets (Unaudited) as of December 31, 1997 and March 31, 1997..........................  3

                    Consolidated Statements of (Loss) Income and Retained Earnings (Unaudited) for the three months ended
                    December 31, 1997 and 1996..................................................................................  5 
 
                    Consolidated Statements of (Loss) Income and Retained Earnings (Unaudited) for the nine months ended 
                    December 31, 1997 and 1996..................................................................................  6

                    Consolidated Statements of Cash Flows (Unaudited) for the nine months ended December 31, 1997 and 
                    1996........................................................................................................  7

                    Notes to Consolidated Financial Statements (Unaudited)......................................................  8

         Item 2.    Management's Discussion and Analysis of Financial Condition and
                    Results of Operations ...................................................................................... 12

         Item 3.    Quantitative and Qualitative Disclosures About Market Risk.................................................. 19


Part II.                   Other Information:


         Item 6.           Exhibits and Reports on Form 8-K..................................................................... 19

Signatures ..................................................................................................................... 20

</TABLE>



                                     Page 2
<PAGE>

Part I. Financial Information

                                     ITEM 1
                                     ------

                              FINANCIAL STATEMENTS


                       INTERNATIONAL AMERICAN HOMES, INC.
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                             (Dollars in thousands)
                                   (Unaudited)

                                     ASSETS

                                          December 31, 1997       March 31, 1997
                                          -----------------       --------------

CASH AND  CASH EQUIVALENTS                     $2,837                 $2,187
($310 and $574 restricted)

RECEIVABLES                                       288                    949

REAL ESTATE INVENTORY                          20,802                 22,654

COLLATERAL FOR BONDS PAYABLE                    4,410                  4,972

PROPERTY AND EQUIPMENT - less 
accumulated depreciation of $497 
and $348                                           58                    149

OTHER ASSETS                                      580                    846
                                          -----------------       --------------

         TOTAL ASSETS                         $28,975                $31,757
                                          =================       ==============


The accompanying notes to consolidated financial statements are an integral part
of these statements.

                                     Page 3

<PAGE>

                       INTERNATIONAL AMERICAN HOMES, INC.
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                             (Dollars in thousands)
                                   (Unaudited)


                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                          December 31, 1997       March 31, 1997
                                          -----------------       --------------

LIABILITIES

ACQUISITION AND CONSTRUCTION 
LOANS PAYABLE                                  $12,291               $ 13,967

BONDS PAYABLE                                    4,244                  4,800

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES         5,683                  5,530

CUSTOMER DEPOSITS                                  191                    326
                                          -----------------       --------------

   Total Liabilities                            22,409                 24,623
                                          -----------------       --------------


STOCKHOLDERS'  EQUITY

PREFERRED STOCK - $.01 par value, 
4,000,000 shares authorized, 
none issued or outstanding                          --                     --

COMMON STOCK - $.01 par value, 
10,000,000 shares authorized, 
2,954,343 shares issued,
2,784,395 shares outstanding                        29                     29

ADDITIONAL PAID-IN CAPITAL                       2,378                  2,378

RETAINED EARNINGS                                4,161                  4,729

TREASURY STOCK - 169,948 shares                    (2)                    (2)
                                          -----------------       --------------

   Total Stockholders' Equity                    6,566                  7,134
                                          -----------------       --------------


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $28,975                $31,757
                                          =================       ==============


The accompanying notes to consolidated financial statements are an integral part
of these statements.

                                     Page 4

<PAGE>

<TABLE>
<CAPTION>
                            INTERNATIONAL AMERICAN HOMES, INC.
                                     AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND RETAINED EARNINGS
                     (Dollars in thousands, except per share amounts)
                                        (Unaudited)

                                                                Three Months Ended December 31,
                                                      ----------------------------------------------------
                                                              1997                          1996
                                                      ---------------------        -----------------------
<S>                                                             <C>                            <C>
REVENUES
    Home sales                                                   $ 10,396                       $ 18,944

    Interest and other income                                         109                            163
                                                      ---------------------        -----------------------
                                                                   10,505                         19,107
                                                      ---------------------        -----------------------
COSTS AND EXPENSES
    Cost of home sales                                              8,795                         16,394

    Selling, general and administrative                             1,231                          2,049

    Interest                                                          111                            147

    Depreciation                                                       30                             27

    Restructuring charge                                            1,500                              0
                                                      ---------------------        -----------------------
                                                                   11,667                         18,617
                                                      ---------------------        -----------------------
(LOSS) INCOME BEFORE INCOME TAXES                                 (1,162)                            490

(BENEFIT) PROVISION  FOR INCOME TAXES                               (384)                            186
                                                      ---------------------        -----------------------
NET (LOSS) INCOME                                                   (778)                            304

RETAINED EARNINGS, BEGINNING OF PERIOD                              4,939                          4,524
                                                      ---------------------        -----------------------

RETAINED EARNINGS, END OF PERIOD                                  $ 4,161                        $ 4,828
                                                      =====================        =======================

PER SHARE DATA (Primary and Fully Diluted)
    Net (loss) income                                             $ (.28)                         $  .11
                                                      =====================        =======================

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
    Primary and fully diluted                                   2,784,395                      2,784,395
                                                      =====================        =======================

</TABLE>

          The accompanying notes to consolidated financial statements are an
integral part of these statements.

                                     Page 5

<PAGE>

                            INTERNATIONAL AMERICAN HOMES, INC.
                                     AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND RETAINED EARNINGS
                     (Dollars in thousands, except per share amounts)
                                        (Unaudited)

<TABLE>

                                                                Three Months Ended December 31,
                                                      ----------------------------------------------------
                                                              1997                          1996
                                                      ---------------------        -----------------------
<S>                                                             <C>                            <C>
REVENUES
    Home sales                                                   $ 45,013                       $ 50,721

    Interest and other income                                         412                            492
                                                      ---------------------        -----------------------
                                                                   45,425                         51,213
                                                      ---------------------        -----------------------
COSTS AND EXPENSES
    Cost of home sales                                             39,319                         43,837

    Selling, general and administrative                             4,905                          5,648

    Interest                                                          390                            444

    Depreciation                                                      106                             73

    Restructuring charge                                            1,500                              0
                                                      ---------------------        -----------------------
                                                                   46,220                         50,002
                                                      ---------------------        -----------------------
(LOSS) INCOME BEFORE INCOME TAXES                                   (795)                          1,211 

(BENEFIT) PROVISION  FOR INCOME TAXES                               (227)                            462
                                                      ---------------------        -----------------------
NET (LOSS) INCOME                                                   (568)                            749

RETAINED EARNINGS, BEGINNING OF PERIOD                              4,729                          4,079
                                                      ---------------------        -----------------------

RETAINED EARNINGS, END OF PERIOD                                  $ 4,161                        $ 4,828
                                                      =====================        =======================

PER SHARE DATA (Primary and Fully Diluted)
    Net (loss) income                                             $ (.20)                         $  .27
                                                      =====================        =======================

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
    Primary and fully diluted                                   2,784,395                      2,758,213
                                                      =====================        =======================

</TABLE>

The accompanying notes to consolidated financial statements are an integral 
part of these statements.

                                     Page 6


<TABLE>
<CAPTION>



                                            INTERNATIONAL AMERICAN HOMES, INC.
                                                    AND SUBSIDIARIES
                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                 (Dollars in thousands)
                                                       (Unaudited)

                                                                                                    Nine Months Ended December 31,
                                                                                                    ------------------------------
                                                                                                    
                                                                                                         1997            1996
                                                                                                    --------------   -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
    <S>                                                                                                <C>              <C>
    Net (loss) income                                                                                  $ (568)          $ 749
    
    Adjustments to reconcile  net (loss) income to net cash provided by operating activities:
        Depreciation                                                                                       106             73

    Changes in operating assets and liabilities
        Decrease in restricted cash                                                                        264             38

        Decrease in receivables                                                                            661             15

        Decrease (Increase) in real estate inventory                                                      1852          (915)

        Decrease in collateral for bonds payable                                                           562            575

        Increase in accounts payable and accrued liabilities                                               153          1,292

        (Decrease) Increase in customer deposits                                                         (135)             29

        Decrease (Increase) in other assets                                                                266          (232)
                                                                                                    --------------   -------------

Net cash provided by operating activities                                                                3,161          1,624
                                                                                                    --------------   -------------

CASH FLOWS USED IN INVESTING ACTIVITIES:
    Property and equipment, net                                                                           (15)            (9)
                                                                                                    --------------   -------------
CASH FLOWS USED IN FINANCING ACTIVITIES:
    Proceeds from mortgage notes and loans payable                                                      22,333         28,765

    Payments of mortgage notes and loans payable                                                      (24,009)       (28,995)

    Repayments of bonds payable - finance subsidiaries                                                   (556)          (541)

    Proceeds from stock options exercised                                                                   --             30
                                                                                                    --------------   -------------
Net cash used in financing activities                                                                  (2,232)          (741)
                                                                                                    --------------   -------------
NET INCREASE IN CASH AND CASH EQUIVALENTS                                                                  914            874

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                         1,613          1,214
                                                                                                    --------------   -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                             $ 2,527        $ 2,088
                                                                                                    ==============   =============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
    Cash paid during the period for:

        Interest                                                                                       $ 1,353        $ 1,494
                                                                                                    ==============   =============

        Income taxes                                                                                   $   138        $   230
                                                                                                    ==============   =============

</TABLE>

The accompanying notes to consolidated financial statements are an integral part
of these statements.

                                     Page 7

<PAGE>

                       INTERNATIONAL AMERICAN HOMES, INC.
                                AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED


NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION

International American Homes, Inc. (the "Company") was incorporated under the
laws of the State of Delaware on April 27, 1983. The Company, through its
subsidiaries, designs, builds, and sells single-family homes and townhomes and
develops building lots. The Company currently conducts its building activities
in Metropolitan Washington, D.C. and Florida (See Note - 3).

The interim consolidated financial statements have been prepared without audit
and pursuant to the rules and regulations of the Securities and Exchange
Commission. In the opinion of management, all adjustments for interim periods
presented have been made (which include only normal recurring accruals and
deferrals) for a fair presentation of consolidated financial position, results
of operations, and cash flows. The consolidated financial statements and
condensed notes should be read in conjunction with the Consolidated Financial
Statements and Notes thereto included in the Company's latest Annual Report on
Form 10-K. Results for interim periods are not necessarily indicative of the
results which might be expected for a full year.

The interim Consolidated Financial Statements for the quarter and nine months
ended December 31, 1997 include a restructuring charge of $1,500,000 ($990,000
after benefit for income tax) associated with the termination of home-building
operations in Metropolitan Washington, D.C. (See Note - 3). Accordingly current
period operating results and certain selected statistics are not comparable with
prior periods without adjustment.

On April 16, 1990, the Company and certain of its wholly-owned subsidiaries
filed voluntary petitions for relief under Chapter 11, Title 11 of the United
States Bankruptcy Code in the United States Bankruptcy Court for the District of
New Jersey (the "Bankruptcy Court"). On August 12, 1992, the Bankruptcy Court
entered an order confirming the Company's Plan of Reorganization (the "Plan" or
"Plan of Reorganization").

In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard ('SFAS") No. 130, "Reporting Comprehensive
Income," which is effective for fiscal years beginning after December 31, 1997.
The statement established standards for reporting and display of comprehensive
income and its components. The Company plans to adopt SFAS No. 130 in the fiscal
year beginning April 1, 1998 and does not expect that it will have an impact on
its financial statements.

In June 1997, the Financial Accounting Standards Board issued SFAS No. 131,
"Disclosures about Segments of an Enterprise and Related Information," which is
effective for fiscal years beginning after December 15, 1997. The Company plans
to adopt SFAS No. 131 in the fiscal year beginning April 1, 1998 and has not
determined the impact of adoption.

NOTE 2 - CASH AND CASH EQUIVALENTS

For purposes of the statements of cash flows, the Company generally considers
all highly liquid instruments purchased with an original maturity of three
months or less to be cash equivalents.

                                     Page 8

<PAGE>

NOTE 3 - PROVISION FOR RESTRUCTURING

During the past year an adverse housing market in Metropolitan Washington, D.C.,
especially in the areas in which the Company conducted home building operations,
resulted in continued operating losses in the Company's Metropolitan Washington,
D.C. subsidiary. Management changes were made and administrative costs were
reduced in order to minimize the loss. In addition, several communities in which
operations had been poorly performing were abandoned. Notwithstanding those
changes, lower operating margins and higher selling expenses continued to
adversely affect the Company's ability to restore profitability. Accordingly
during the quarter ended December 31, 1997 the Board of Directors of the Company
approved management's plan to discontinue the building and sale of homes and
effect an orderly withdrawal from the Metropolitan Washington, D.C. housing
market. The Company intends to complete all homes for which it has entered into
non-contingent contracts and to sell its model homes and excess lot inventory.
Management estimates that it will take approximately nine months to complete the
withdrawal from the market. A restructuring charge of $1,500,000 ($990,000 after
benefit for income tax) has been taken in the quarter ended December 31, 1997 to
reflect the estimated loss in exiting the market. The Company believes that it
has sufficient cash flow and cash on hand to pay the restructuring charge.


NOTE 4 - REAL ESTATE INVENTORY

Real estate inventory consists of the following (in thousands):

                                    December 31, 1997          March 31, 1997
                                    -----------------          --------------
Accumulated costs of construction 
completed and in progress                      $8,611                 $11,096

Land and land development costs                12,027                  10,822

Land options and deposits                         164                     736
                                    -----------------          --------------
                                              $20,802                 $22,654
                                    =================          ==============

From time to time as part of the normal operations of the business, the
subsidiaries of the Company have bought lots or land which the other subsidiary
of the Company was obligated to buy from a third party seller or which the other
subsidiary of the Company owned. Such transactions were at prices approximating
fair market value and were not material.


                                     Page 9

<PAGE>


NOTE 5 - CONDENSED FINANCIAL STATEMENTS OF CONSOLIDATED FINANCE SUBSIDIARIES

The Company's wholly-owned finance subsidiaries were established to sell
collateralized mortgage obligations through participation in various
multi-builder bond programs. In these sales, which last occurred in 1987, the
Company originated and pooled mortgage loans which were then pledged as
collateral for bonds payable. The interest rates on the mortgage loans that
comprise the collateral for bonds payable roughly equate with the interest rates
on the related bonds payable.

Condensed financial information is as follows (in thousands):

                            Condensed Balance Sheets
                                   (Unaudited)

                                    December 31, 1997          March 31, 1997
                                    -----------------          --------------
Assets:
     Collateral for bonds payable             $ 4,410                 $ 4,972

     Other assets                                   4                      13
                                    -----------------          --------------
                                     
                                              $ 4,414                 $ 4,985
                                    =================          ==============  

Liabilities and Equity:

     Bonds payable                            $ 4,244                 $ 4,800

     Equity and intercompany advances             170                     185
                                    -----------------          --------------

                                              $ 4,414                 $ 4,985
                                    =================          ==============



                       Condensed Statements of Operations
                                   (Unaudited)

                                           Three Months Ended December 31,
                                    -----------------------------------------
                                          1997                      1996
                                    -----------------          --------------

Revenues - Interest and other 
income                                          $ 114                   $ 131
                                    =================          ==============

Income before income taxes                        $ 3                    $  2
                                    =================          ==============

                       Condensed Statements of Operations
                                   (Unaudited)

                                           Nine Months Ended December 31,
                                    -----------------------------------------
                                          1997                      1996
                                    -----------------          --------------
Revenues - Interest and other 
income                                          $ 347                   $ 402
                                    =================          ==============

Income before income taxes                        $ 9                    $ 10
                                    =================          ==============

                                    Page 10

<PAGE>

NOTE 6 - COMMITMENTS AND CONTINGENCIES

The interim Consolidated Financial Statements for the quarter and nine months
ended December 31, 1997 include a restructuring charge of $1,500,000 ($990,000
after benefit for income tax) associated with the termination of home-building
operations in Metropolitan Washington, D.C. (see note - 3). Although the Company
believes that the restructuring charge is sufficient based on current period
estimates, the actual cost of restructuring may be greater or less than the
charge.

At December 31, 1997, the Company had commitments to purchase 232 finished
building lots at a total purchase price of approximately $6,140,000 over a
two-year period. Substantial deposits will be forfeited if the Company is unable
to satisfy these commitments. See Management Discussion and Analysis of
Financial Condition and Results of Operations- Liquidity and Capital Resources.

The Plan of Reorganization provides for distributions to creditors equal to 50
percent of future cash flows (as defined in the Plan), if any, for the periods
ending June 30, 1993 through June 30, 1998. The Company has calculated the cash
flow (as defined in the Plan) for the period ended June 30, 1997 and has
determined that there was no excess cash flow (as defined in the Plan) for that
period, and accordingly no distribution to creditors was required. During the
year ended March 31, 1993, the Company estimated the initial liability for these
potential distributions in the amount of $1,322,000 and such amount is included
in Accounts Payable and Accrued Liabilities on the accompanying unaudited
consolidated balance sheets.

The Company is involved from time to time in litigation arising in the ordinary
course of business, none of which is expected to have a material adverse effect
on the Company's financial position or the results of operations.

                                    Page 11

<PAGE>

                                     ITEM 2

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

International American Homes' Management's Discussion and Analysis of Financial
Condition and Results of Operations contains statements that may be considered
forward looking. These statements contain a number of risks and uncertainties as
discussed herein and in the Company's reports filed with the Securities and
Exchange Commission that could cause actual results to differ materially.

During the past year an adverse housing market in Metropolitan Washington, D.C.,
especially in the areas in which the Company conducted home building operations,
resulted in continued operating losses in the Company's Metropolitan Washington,
D.C. subsidiary. Management changes were made and administrative costs were
reduced in order to minimize the loss. In addition, several communities in which
operations had been poorly performing were abandoned. Notwithstanding those
changes, lower operating margins and higher selling expenses continued to
adversely affect the Company's ability to restore profitability. Accordingly
during the quarter ended December 31, 1997 the Board of Directors of the Company
approved management's plan to discontinue the building and sale of homes and
effect an orderly withdrawal from the Metropolitan Washington, D.C. housing
market.

LIQUIDITY AND CAPITAL RESOURCES

The interim Consolidated Financial Statements for the quarter and nine months
ended December 31, 1997 include a restructuring charge of $1,500,000 ($990,000
after benefit for income tax) associated with the termination of home-building
operations in Metropolitan Washington, D.C. (see note - 3). The Company believes
that it has sufficient cash flow and cash on hand to pay the restructuring
charge.

The Company, through its subsidiaries, obtains financing from commercial banks
for a portion of the cost of acquiring finished building lots and for most of
the costs of the construction of homes. This financing is generally available
for homes that are subject to a contract of sale and also for a limited number
of homes in advance of sale. The Company's loan commitments as well as current
banking regulations limit the portion of each home that can be financed to
approximately 75% of its value. Since the Company uses its own capital resources
to fund those costs that cannot be financed, the Company's future growth will be
limited by the amount of such resources. As a result of the use of these
financing arrangements, the Company is currently, and expects to continue to be,
highly leveraged.

The Company's subsidiaries currently have financing agreements in the aggregate
amount of $33,400,000 with commercial banks located in the areas in which the
subsidiaries operate. The terms of these financing agreements vary, are each for
one year or more from their date of origination (with expiration dates ranging
from April, 1998 to September, 1999), are generally guaranteed by the Company,
and are all secured by the related real estate inventory. The Company's Chairman
and President has agreed to personally guarantee certain of these obligations up
to an aggregate maximum amount of $13,700,000. At December 31, 1997, the
outstanding principal amount of loans guaranteed by the Company's Chairman and
President was $3,803,000.

                                    Page 12


<PAGE>

The Company generally acquires finished building lots under contracts which
spread the time for acquisition of such lots over a period of time that roughly
coincides with the estimated time required for the sale of the homes on those
lots. At December 31, 1997, the Company had commitments to purchase 232 finished
building lots at a total purchase price of approximately $6,140,000 over a
two-year period. These commitments assure a continuing supply of finished
building lots in the future. In conjunction therewith $164,000 of land options
and deposits have been paid. A substantial portion of those deposits will be
forfeited if the Company is unable to satisfy these commitments.

During the year ended March 31, 1996, the Company purchased a parcel of land in
Greater Tampa, Florida containing approximately 360 developed and undeveloped
lots. At December 31, 1997, the Company had substantially developed 150 of those
undeveloped lots into finished building lots. The Company had delivered homes on
73 of these lots in prior periods up to and including December 31, 1997. The
Company obtained financing from a commercial bank to fund a portion of the cost
of acquiring and developing the land.

The Company's short-term liquidity and its ability to operate over the short
term are reasonably assured by the financing agreements in place, by the
Company's backlog of sales contracts, and by the commitments to acquire finished
building lots. The Company's long-term liquidity is not affected by any material
capital expenditures but would be impacted by the inability to renew certain of
the financing agreements when they mature. The strength of the housing markets
in the areas where the Company operates and the ability of the Company to
maintain a continued supply of finished building lots will also affect the
Company's long-term liquidity. Management believes that the Company currently
has adequate financing and liquidity to meet its financial obligations and will
be able to fund the acquisition and construction of inventory. However, there is
no assurance that such financing will be available to the Company in the future.
In addition, homebuilding is a cyclical industry with economic conditions having
a substantial impact on operating performance.

The Plan does not permit the subsidiaries of the Company to pay any dividends to
the parent company. The Plan further prohibits the Company and its subsidiaries
from acquiring debt securities from or loaning or advancing any money to any
other party except in the ordinary course of business. These restrictions are
effective until August 12, 1998 and by their nature require the Company's
subsidiaries to be self-sufficient. From time to time, a subsidiary of the
Company makes a purchase of land or finished building lots from or on behalf of
another subsidiary and later resells that land or finished building lots to the
latter on terms that will assure that the accommodation purchaser recovers its
costs. While such transactions can affect temporarily the cash flow of each of
the participating subsidiaries, they do not impact the overall cash flow of the
Company. The Plan further provides for the payment of distributions to the
creditors equal to 50 percent of cash flows (as defined in the Plan), if any,
generated by the Company's subsidiaries for the periods ending June 30, 1993
through June 30, 1998. Any such payment of 50 percent of the cash flow would be
funded from the cash flow generated. Despite these requirements and
restrictions, management believes that the Company and each of its subsidiaries
currently have adequate liquidity to meet their financial obligations. However,
there is no assurance that these requirements and restrictions will not have an
impact on the future liquidity of the Company or its subsidiaries.

                                    Page 13


<PAGE>


RESULTS OF OPERATIONS

The following table sets forth certain information with respect to homes
delivered and homes sold during the periods presented, as well as homes sold
under contract but not delivered ("Backlog") at the dates shown (dollars in
thousands). For comparative purposes, 1996 information has been restated to
eliminate the results from restructured operations (i.e. the exiting from the
Washington, D.C. market).


<TABLE>
<CAPTION>

                           Three Months Ended            Nine Months Ended
                               December 31,                 December 31,
                          ---------------------       ---------------------
                            1997         1996           1997         1996
                          --------     --------       --------     --------
Homes delivered          
    <S>                    <C>          <C>            <C>          <C>
    Units                       79           79            250          243

    Home sales revenue     $10,396      $10,434        $32,714      $31,003

    Average sales price     $131.6       $132.1         $130.9       $127.6

Homes sold
    Units                       66           78            239          228

    Sales value             $8,694      $10,435        $31,502      $29,926

    Average sales price     $131.7       $133.8         $131.8       $131.3


                                                           December 31,
                                                      ---------------------
Backlog                                                 1997         1996
                                                      ---------    --------    
    Units                                                    71          54

    Sales value                                          $9,285      $7,708

    Average sales price                                  $130.8      $142.7

</TABLE>


Home sales revenue for the three months ended December 31, 1997 decreased
slightly when compared to the three months ended December 31, 1996 while units
delivered were the same. The decrease results from a slightly lower average
sales price. For the nine months ended December 31, 1997 home sales revenues and
the number of homes delivered increased over the comparable period in the prior
year. The increases are attributed to a higher average sales price combined with
an increase in the number of homes delivered.

The number of homes sold during the three months ended December 31, 1997 and the
average sales price of the homes sold both decreased when compared to the same
period in the prior year. The decreases are attributed to more competitive
market conditions. For the nine months ended December 31, 1997 homes sold
increased slightly and the average sales price also increased slightly over the
prior comparable period.

The backlog at December 31, 1997 and 1996 does not include contingent contracts.

                                    Page 14

<PAGE>


THREE MONTHS ENDED DECEMBER 31, 1997 COMPARED TO THREE MONTHS ENDED DECEMBER 31,
1996

The following table sets forth, for the periods indicated, certain information
regarding the Company's operations (dollars in thousands).

Operations for the three months ended December 31, 1997 are not comparable to
the three months ended December 31, 1996 because of the restructuring of
operations (i.e. the exiting from the Washington, D.C. market).


                                          Three Months Ended December 31,
                                  ----------------------------------------------
                                          1997                     1996
                                  ----------------------     -------------------
                                  Dollars           %        Dollars        %
                                  -------        -------     -------     -------
Home sales revenues               $10,396          100.0     $18,944       100.0

Cost of home sales                  8,795           84.6      16,394        86.5

Gross profit                        1,601           15.4       2,550        13.5

Selling, general and 
administrative expenses             1,231           11.8       2,049        10.8

Restructuring provision             1,500           14.4           0         0.0

(Loss) income before income taxes  (1,162)         (11.2)        490         2.6


For the three months ended December 31, 1997 a net income tax benefit of
$384,000 was recorded. For the three months ended December 31, 1996 a provision
for income taxes of $186,000 was recorded. For both periods the rates were
calculated at statutory rates.

Interest and other income includes $114,000 and $131,000 and interest expense
includes $111,000 and $129,000 for the three months December 31, 1997 and
December 31, 1996, respectively, from wholly-owned finance subsidiaries
established in prior years to sell collateralized mortgage obligations through
participation in various multi-builder bond programs.

                                    Page 15

<PAGE>

THREE MONTHS ENDED DECEMBER 31, 1997 COMPARED TO THE THREE MONTHS ENDED DECEMBER
31, 1996

The following table sets forth, for the periods indicated, certain information
regarding the Company's remaining Florida operations (dollars in thousands).


                                          Three Months Ended December 31,
                                  ----------------------------------------------
                                          1997                     1996
                                  ----------------------     -------------------
                                  Dollars           %        Dollars        %
                                  -------        -------     -------     -------
Home sales revenues               $10,396          100.0     $10,434       100.0

Cost of home sales                  8,795           84.6       8,741        83.8

Gross profit                        1,601           15.4       1,693        16.2

Selling, general and 
administrative expenses             1,275           12.3       1,233        11.8

Income before income taxes            295            2.8         435         4.2


Gross profit decreased for the three months ended December 31, 1997 compared to
the three months ended December 31, 1996, and gross profit as a percentage of
home sales revenue also decreased. The decrease in gross profit results from a
higher cost of home sales which could not be recovered through higher sales
prices.

Selling, general and administrative expenses for the three months ended December
31, 1997 increased in amount and as a percentage of home sales revenue over the
prior comparable period. The increase in selling expenses resulted from
increased per unit selling and marketing costs. The increase in general and
administrative expenses is attributed to higher employment costs.

The change in income before income taxes for the three months ended December 31,
1997 compared to the three months ended December 31, 1996 reflects the change in
gross profit and selling, general and administrative expenses.

                                    Page 16


<PAGE>

NINE MONTHS ENDED DECEMBER 31, 1997 COMPARED TO NINE MONTHS ENDED DECEMBER 31,
1996

The following table sets forth, for the periods indicated, certain information
regarding the Company's operations (dollars in thousands).

Operations for the nine months ended December 31, 1997 are not comparable to the
nine months ended December 31, 1996 because of the restructuring of operations
(i.e. the exiting from the Washington, D.C. market).


                                          Nine Months Ended December 31,
                                  ----------------------------------------------
                                          1997                     1996
                                  ----------------------     -------------------
                                  Dollars           %        Dollars        %
                                  -------        -------     -------     -------
Home sales revenues               $45,013          100.0     $50,721       100.0

Cost of home sales                 39,319           87.4      43,837        86.4

Gross profit                        5,694           12.6       6,884        13.6

Selling, general and 
administrative expenses             4,905           10.9       5,648        11.1

Restructuring provision             1,500            3.3           0         0.0

Income before income taxes           (795)          (1.8)      1,211         2.4


For the nine months ended December 31, 1997 a net income tax benefit of $227,000
was recorded. For the nine months ended December 31, 1996 a provision for income
taxes of $462,000 was recorded. For both periods the rates were calculated at
statutory rates.

Interest and other income includes $347,000 and $402,000 and interest expense
includes $338,000 and $392,000 for the nine months December 31, 1997 and
December 31, 1996, respectively, from wholly-owned finance subsidiaries
established in prior years to sell collateralized mortgage obligations through
participation in various multi-builder bond programs.


                                    Page 17

<PAGE>



NINE MONTHS ENDED DECEMBER 31, 1997 COMPARED TO NINE MONTHS ENDED DECEMBER 31,
1996

The following table sets forth, for the periods indicated, certain information
regarding the Company's remaining Florida operations (dollars in thousands).


                                          Nine Months Ended December 31,
                                  ----------------------------------------------
                                          1997                     1996
                                  ----------------------     -------------------
                                  Dollars           %        Dollars        %
                                  -------        -------     -------     -------
Home sales revenues               $32,714          100.0     $31,003       100.0

Cost of home sales                 27,719           84.7      26,268        84.7

Gross profit                        4,995           15.3       4,735        15.3

Selling, general and 
administrative expenses             3,745           11.4       3,397        11.0

Income before income taxes          1,146            3.5       1,284         4.1


Gross profit increased for the nine months ended December 31, 1997 compared to
the nine months ended December 31, 1996, and gross profit as a percentage of
home sales revenue remained constant. The increase in gross profit results from
higher home sales revenues.

Selling, general and administrative expenses for the nine months ended December
31, 1997 increased in amount and as a percentage of home sales revenue over the
prior comparable period. The increase in selling expenses resulted from
increased home sales revenues and higher per unit selling and marketing
expenses. The increase in general and administrative expenses is attributed to
higher employment costs.

The change in income before income taxes for the nine months ended December 31,
1997 compared to the nine months ended December 31, 1996 reflects the change in
gross profit and selling, general and administrative expenses.



<PAGE>

                                     ITEM 3

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

           None






                                     ITEM 6

                        EXHIBITS AND REPORTS ON FORM 8-K

        (a)  Exhibits

             None

        (b)  Reports on Form 8-K

             A Report on Form 8-K was filed with the Securities and Exchange
             Commission on December 9, 1997 and is incorporated herein by 
             reference.


<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.




                                       INTERNATIONAL AMERICAN HOMES, INC.




Date:  February 13, 1998               By: /s/ ROBERT J. SUAREZ
                                           --------------------
                                           Robert J. Suarez
                                           President


Date:  February 13, 1998               By: /s/ ROBERT I. ANTLE
                                           --------------------
                                           Robert I. Antle
                                           Executive Vice President, Treasurer, 
                                           and Chief Financial Officer