EXHIBIT  10.1

                           DIAMOND HOME SERVICES, INC.
                       FIRST AMENDMENT TO CREDIT AGREEMENT


Harris Trust and Savings Bank         Bank of America National Trust and Savings
Chicago, Illinois                     Association
                                      Chicago, Illinois
LaSalle National Bank
Chicago, Illinois

Ladies and Gentlemen:

         Reference is hereby made to that certain Credit  Agreement  dated as of
April 20, 1998, as amended by that certain  letter  agreement  dated as of April
23, 1998 (such Credit Agreement as so amended being  hereinafter  referred to as
the "Credit  Agreement"),  and  currently  in effect by and among,  Diamond Home
Services, Inc., a Delaware corporation (the "Company"), and you (the "Lenders").
All  capitalized  terms  used  herein  without  definition  shall  have the same
meanings herein as such terms have in the Credit Agreement.

         The  Company  has  requested  that  the  Lenders  (i)  amend a  certain
definition  contained in the Credit Agreement and (ii) waive a certain financial
covenant contained in the Credit Agreement, and the Lenders are willing to do so
under the terms and conditions set forth in this Amendment.

1.           AMENDMENT.

         Subject to the  satisfaction  of the conditions  precedent set forth in
Section 3 below, the Credit Agreement shall be and hereby is amended as follows:

       1.01. The portion of the first sentence up to the term  "provided" in the
definition  of  "Applicable  Margin"  appearing  in  Section  5.1 of the  Credit
Agreement  is hereby  amended  and as so amended  shall be  restated  to read as
follows:

           "`Applicable   Margin'   means,   with   respect   to   Loans,
           Reimbursement Obligations, and the Revolving Credit Commitment
           fees and  letter of credit  fees  payable  under  Section  2.1
           hereof,  from the date of this  Agreement  through  the  first
           Pricing Date the rate per annum  specified  below:  Applicable
           Margin for Base Rate Loans and Reimbursement Obligations:      0.75%
           Applicable Margin for Eurodollar Loans                         2.50%
           Applicable Margin for Revolving Credit Commitment fee:         0.375%
           Applicable Margin for letter of credit fee:                    2.00%"

2.           WAIVER.

         The Company is currently not in compliance  with Section 8.26(a) of the
Credit  Agreement (which requires the Company maintain a certain minimum EBITDA)
for its fiscal quarter ending on or about June 30, 1998. In accordance  with the
request of the Company,  subject to satisfaction of the conditions precedent set
forth in Section 3 below,  the Lenders hereby waive compliance with such Section
8.26(a).  The foregoing does not waive  compliance  with Section  8.26(b) or any
other terms, conditions and provisions of the Credit Agreement.

3.           CONDITIONS PRECEDENT.

         The effectiveness of this Amendment is subject to its acceptance by the
Lenders and the Material  Subsidiaries  in the spaces  provided for that purpose
below  (the  date  of  such  acceptance  being  hereinafter  referred  to as the
"Effective  Date").  Without  limiting  the  generality  of the  foregoing,  the
modifications  to the  Credit  Agreement  effected  by this  Amendment  shall be
effective as of (but not before) the Effective Date.

4.           REPRESENTATIONS.

         In order to induce the Lenders to execute and deliver  this  Amendment,
the Company hereby represents to the Lenders that as of the date upon which this
Amendment becomes effective,  after giving effect to this Amendment, the Company
is in full  compliance  with  all of the  terms  and  conditions  of the  Credit
Agreement,  as amended  hereby,  and no  Default or Event of Default  shall have
occurred and be continuing under the Credit Agreement.

5.           MISCELLANEOUS.

       5.01. Except as specifically  amended herein or waived hereby, the Credit
Agreement  shall  continue  in full  force  and  effect in  accordance  with its
original  terms.  Reference to this specific  Amendment  need not be made in the
Credit  Agreement,  the Notes, or any other  instrument or document  executed in
connection therewith,  or in any certificate,  letter or communication issued or
made pursuant to or with respect to the Credit  Agreement,  any reference in any
of such items to the Credit  Agreement  being  sufficient to refer to the Credit
Agreement as amended hereby.

       5.02. This Amendment may be executed in any number of  counterparts,  and
by the different parties on different  counterpart signature pages, all of which
taken together shall  constitute one and the same agreement.  Any of the parties
hereto may execute this  Amendment by signing any such  counterpart  and each of
such  counterparts  shall for all  purposes  be deemed to be an  original.  This
Amendment shall be governed by the internal laws of the State of Illinois.

       5.03. The Company agrees to pay all  reasonable  out-of-pocket  costs and
expenses  incurred by the Lenders in connection with the preparation,  execution
and delivery of this Amendment and the documents and  transactions  contemplated
hereby, including the reasonable fees and expenses of counsel for the Agent with
respect to the foregoing.




         Dated as of August __, 1998.

                                       DIAMOND HOME SERVICES, INC.
                                       By  /s/ Diamond Home Services, Inc.
                                       Its

         Accepted  and agreed to in  Chicago,  Illinois  as of the date and year
last above written.

                    HARRIS TRUST AND SAVINGS BANK

                    By /s/ Harris Trust and Savings Bank
                    Its      Vice President


                    LASALLE NATIONAL BANK

                    By  /s/ LaSalle National Bank
                    Its

                    BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION
                       (successor by merger to Bank of America Illinois)

                    By /s/ Bank of America National Trust and
                             and Savings Association
                    Its



                               GUARANTORS' CONSENT

         The  undersigned,  the  Material  Subsidiaries  of  the  Company,  have
heretofore executed and delivered to the Lenders a Guaranty dated April 20, 1998
and hereby  consent to the Amendment to the Credit  Agreement as set forth above
and  confirm  that  their  Guaranty  and  all of the  undersigned's  obligations
thereunder remain in full force and effect.  The undersigned  further agree that
the consent of the undersigned to any further amendments to the Credit Agreement
shall not be required as a result of this consent having been obtained.

                                      DIAMOND ACQUISITION CORP.

                                      By  /s/ Diamond Acquisition Corp.
                                      Name
                                      Title


                                      REEVES SOUTHEASTERN CORPORATION

                                      By  /s/ Reeves Southeastern Corporation
                                      Name
                                      Title

                                      FORELINE SECURITY CORPORATION

                                      By  /s/ Foreline Security Corporation
                                      Name
                                      Title

                                      DIAMOND EXTERIORS, INC.

                                      By  /s/ Diamond Exteriors, Inc.
                                      Name
                                      Title


                                      ARQUISE FINANCIAL SERVICES, INC.

                                      y /s/ Marquise Financial Services, Inc.
                                      Name
                                      Title

                                      REEVES SOUTHEASTERN REALTY, INC.

                                      By  /s/ Reeves Southeastern Realty, Inc.
                                      Name
                                      Title