FORM 10-Q/A

                                  AMENDMENT NO. 1

                        SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, D.C. 20549
  
  (Mark One)

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

                   For the Quarterly Period Ended June 30, 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 0-20829

                            DIAMOND HOME SERVICES, INC.
              (Exact name of registrant as specified in its charter)

           DELAWARE                                   36-3886872
  (State or other jurisdiction of                  (I.R.S. Employer 
  incorporation or organization)                  Identification No.)

                   222 Church Street, Woodstock, Illinois 60098
           (Address of principal executive offices, including zip code)

                                  (815) 334-1414
               (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 (  )

  The number of shares of the registrant's common stock outstanding as of
  July 31, 1997, the latest practicable date, was 8,952,375 shares.


                          PART I.  FINANCIAL INFORMATION

  ITEM 1.  FINANCIAL STATEMENTS
  <TABLE>
                   DIAMOND HOME SERVICES, INC. AND SUBSIDIARIES

                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                    (Unaudited)

   <CAPTION>                               Three Months           Six Months
                                              Ended                  Ended
                                             June 30                June 30
                                         1997        1996        1997      1996
                                       (In thousands, except per share data)
  <S>                                  <C>          <C>         <C>       <C>
   Net sales . . . . . . . . . . . .   $43,787      $41,389     $73,962   $68,482

   Cost of sales. . . . . . . . .  .    24,065       22,841      40,877   38,134 
   Gross profit. . . . . . . . . . .    19,722       18,548      33,085   30,348 
   Operating expenses:
     Selling, general, and              18,688       14,974      31,874   25,906 
     administrative expense . .  . .
     Operating interest expense. . .         0          212           0      234 
     Amortization expense . . .  . .       153          129         296      261 
   Operating income  . .  . . .  . .       881        3,233         915    3,947 
   Interest income (expense), net. .       186          (30)        406      (96)
   Income before income taxes  . . .     1,067        3,203       1,321    3,851 
   Income tax provision  . . . . . .       416        1,284         515    1,583 
   Net income  . . . . . . . . . . .      $651       $1,919        $806   $2,268 

   Net income Per Share  . . . . . .      $.07         $.30        $.09     $.36 

   Weighted average number of
      common shares and equivalent   
      outstanding . . . . . . . .  .     9,037        6,408       9,119     6,330

  See accompanying notes.

  </TABLE>

  <TABLE>
                   DIAMOND HOME SERVICES, INC. AND SUBSIDIARIES

                       CONDENSED CONSOLIDATED BALANCE SHEETS
  <CAPTION>
                                                    JUNE 30,       DECEMBER 31,
                                                      1997             1996
                                                  (Unaudited)

                       ASSETS
   <S>                                             <C>               <C>
   Current assets:
    Cash and cash equivalents  . . . . . . . . .   $12,954           $18,982
    Accounts receivable  . . . . . . . . . . . .     9,984             8,621
    Finance company accounts receivable  . . . .     7,537             5,312
    Refundable income taxes  . . . . . . . . . .     1,174             1,725
     Deferred income taxes . . . . . . . . . . .       609               794
    Prepaids and other current assets  . . . . .     1,112             1,377
   Total current assets  . . . . . . . . . . . .    33,370            36,811
   Net property and equipment  . . . . . . . . .     3,102             1,607
   Intangible assets, net  . . . . . . . . . . .    16,812            16,961
   Deferred income taxes . . . . . . . . . . . .     1,463             1,313
   Other . . . . . . . . . . . . . . . . . . . .     2,913             2,101
   Total assets  . . . . . . . . . . . . . . . .   $57,660           $58,793


    LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

   Current liabilities:
     Accounts payable and accrued liabilities. .  $11,701           $13,767     
     Due to stockholders . . . . . . . . . . . .      554               554
   Total current liabilities . . . . . . . . . .   12,255            14,321
   Long-term liabilities:
     Warranty and retention. . . . . . . . . . .    8,040             7,128
     Due to stockholders . . . . . . . . . . . .      848             1,108
   Total long-term liabilities . . . . . . . . .    8,888             8,236
   Common stockholders' equity . . . . . . . . .   36,517            36,236
   Total liabilities and common                 
     stockholders' equity  . . . . . . . . . . .  $57,660           $58,793

  See accompanying notes.

  </TABLE>

  <TABLE>
                            DIAMOND HOME SERVICES, INC. AND SUBSIDIARIES

                                              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                (Unaudited)
    <CAPTION>
                                                                                                             Six Months Ended 
                                                                                                                 June 30
                                                                                                              (In thousands)
                                                                                                              1997       1996
   <S>                                                                                                        <C>       <C>
   Operating activities:
   Net income  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        $806      $2,268
     Adjustments to reconcile net income to net cash provided by (used in)
       operating activities:
        Depreciation and amortization  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         463         350
        Deferred income taxes  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          35        (491)
          Changes in operating assets and liabilities:
            Accounts receivable and other assets   . . . . . . . . . . . . . . . . . . . . . . . . . .        (996)     (3,974)
            Accounts payable and accrued expenses  . . . . . . . . . . . . . . . . . . . . . . . . . .      (2,066)      3,679
            Warranty and retention   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         912         961
     Net cash provided by (used in) operating activities   . . . . . . . . . . . . . . . . . . . . . .        (846)      2,793
   Investing activities:
     Consumer finance loans originated, net of collections   . . . . . . . . . . . . . . . . . . . . .      (2,225)    (15,840)
     Advances to "captive" insurance company and other   . . . . . . . . . . . . . . . . . . . . . . .        (512)          -  
     Capital expenditures  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (1,660)       (219)
     Net cash used in investing activities   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (4,397)    (16,059)
   Financing activities: 
     Issuance of Common Stock, net of offering expenses  . . . . . . . . . . . . . . . . . . . . . . .           -      33,484
     Common Stock special dividend   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           -      (8,600)
     Preferred Stock redemption  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           -      (1,400)
     Payments on notes receivable from officers for                                                               
        treasury stock and other   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         270           -
     Purchases of treasury stock   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        (795)          -
     Payments due to stockholders  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        (260)     (4,387)
     Net cash provided by (used in) financing activities   . . . . . . . . . . . . . . . . . . . . . .        (785)     19,097
     Net increase (decrease) in cash and cash equivalents  . . . . . . . . . . . . . . . . . . . . . .      (6,028)      5,831
     Cash and cash equivalents at beginning of period  . . . . . . . . . . . . . . . . . . . . . . . .      18,982       4,715
     Cash and cash equivalents at end of period  . . . . . . . . . . . . . . . . . . . . . . . . . . .     $12,954     $10,546

     Supplemental cash flow disclosure:
        Interest paid  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          $0        $738
        Income taxes paid  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         $90      $1,883


   See accompanying notes.

  </TABLE>

                   DIAMOND HOME SERVICES, INC. AND SUBSIDIARIES

               NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                    (UNAUDITED)
                        (TABULAR AMOUNTS ARE IN THOUSANDS)

  1.    BASIS OF PRESENTATION

       The accompanying unaudited condensed consolidated financial statements
  have been prepared in accordance with generally accepted accounting
  principles for interim financial information and Article 10 of
  Regulation S-X.  Accordingly, they do not include all of the information and
  footnotes required by generally accepted accounting principles for complete
  financial statements.  In the opinion of management, all adjustments
  (consisting of normal recurring accruals) considered necessary for a fair
  presentation have been included.  Operating results for the three-month and
  six-month period ended June 30, 1997 are not necessarily indicative of the
  results that may be expected for the year ending December 31, 1997.  For
  further information, refer to the consolidated financial statements included
  in the Company's 1996 Annual Report on Form 10-K.

       The preparation of financial statements in conformity with generally
  accepted accounting principles requires management to make estimates and
  assumptions that affect the amounts reported in the financial statements and
  accompanying  notes.  Actual results could differ from those estimates.

  2.   CONSUMER FINANCING

       The following summarized condensed financial information for Marquise
  Financial, the Company's consumer finance subsidiary, is before elimination
  of intercompany transactions in consolidation:

  <TABLE>
  <CAPTION>
                                                      June 30,   December 31,
                                                        1997          1996
                                                    (Unaudited) 

  <S>                                                  <C>         <C>
  Assets:
  Cash  . . . . . . . . . . . . . . . . . . . . .          $0         $50
  Financing receivables . . . . . . . . . . . . .       7,537       5,312
  Other assets  . . . . . . . . . . . . . . . . .         503         349
                                                       $8,040      $5,711

  Liabilities and stockholder's equity:
  Due to Diamond Exteriors, Inc.  . . . . . . . .      $7,772      $5,623
  Other . . . . . . . . . . . . . . . . . . . . .          15          50
  Total liabilities . . . . . . . . . . . . . . .       7,787       5,673
  Total stockholder's equity  . . . . . . . . . .         253          38
  Total liabilities and stockholder's equity  . .      $8,040      $5,711


  Results of operations for the three months and six months ended June 30, 1997
  and 1996, respectively:

  
</TABLE>
<TABLE>
  <CAPTION>

                                              Three Months        Six Months
                                             Ended June 30      Ended June 30
                                             1997      1996     1997      1996
   <S>                                       <C>       <C>      <C>       <C>
   Financing income  . . . . . . . . . . . . $335      $454     $574      $493
   General and administrative expenses (1) .  643       490      992       667
   Loss before tax benefit . . . . . . . . .  308        36      418       174

   Income tax benefit  . . . . . . . . . . .  120        15      163        70
   Net loss  . . . . . . . . . . . . . . . . $188       $21     $255      $104

  (1) Includes interest expense paid to Diamond and provision for credit
      losses.

  </TABLE>


  Cash flow for the six months ended June 30, 1997 and 1996, respectively:

  <TABLE>
  <CAPTION>
                                                       Six Months Ended June 30
                                                        1997            1996
                                                             (Unaudited)
   <S>                                                <C>           <C>
   Cash at beginning of period . . . . . . . . . .       $50             $0
     Net cash used in operating activities . . . .      (255)          (104)
     Net cash used in investing activities . . . .    (1,944)       (16,444)
     Net cash provided by financing activities . .     2,149         17,152
     Cash at end of period . . . . . . . . . . . .       $ 0           $604

  </TABLE>


       At June 30, 1997, Marquise Financial had approximately $1.1 million in
  approved but not funded loan commitments.

  3.   Earnings per Share

       At June 30, 1997 and 1996, the Company had 9,007,375 and 9,074,900
  common shares, respectively, outstanding.  During the second quarter 1997,
  the Company purchased for treasury stock 72,300 common shares.

       In February 1997, the Financial Accounting Standards Board issued
  Statement No. 128, Earnings per Share, which establishes new standards for
  reporting and presenting earnings per share and which is required to be
  adopted in the fourth quarter 1997; earlier adoption is not permitted.  At
  that time, the Company will be required to change the method currently used
  to compute earnings per share and to restate all prior periods.  Under the
  new requirements for calculating primary earnings per share, the dilutive
  effect of stock options will be excluded.  The impact is not sufficient to
  change the reported primary earnings per share for the second quarter and six
  months ended June 30, 1997 and 1996.  Similarly, the impact of Statement 128
  on the calculation of fully diluted earnings per share will be negligible.


                                     Signatures


         Pursuant to the requirements of the Securities Exchange Act of 1934,
  the registrant has duly caused this Amendment No. 1 to this report to be 
  signed on its behalf by the undersigned thereunto duly authorized.


                              DIAMOND HOME SERVICES, INC.


                              By: /s/  Richard G. Reece
                                  ----------------------------------------
                                       Richard G. Reece
                                       Vice President and
                                       Chief Financial Officer
                                       (For the Registrant and as 
                                       Principal Financial Officer)

  Date:   September 30, 1997