SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM l0-Q

                   Quarterly Report Under Section 13 or 15(d)
                     of The Securities Exchange Act of 1934

                        For Quarter Ended March 31, 1997

                         Commission file number O-17248


                         OWENS MORTGAGE INVESTMENT FUND,
                        a California Limited Partnership
             (Exact Name of Registrant as specified In Its charter)


             California                                   68-0023931
    (State or other jurisdiction                        I.R.S. Employer
  of incorporation or organization                      Identification No.)


       2221 Olympic Boulevard
      Walnut Creek, California                               94595
(Address of principal executive office)                    (Zip Code)

   Registrant's Telephone number,
         including area code                             (510) 935-3840



        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_________


<PAGE>



PART I. FINANCIAL INFORMATION


Item 1. Financial Statements

<TABLE>
<CAPTION>

                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

             BALANCE SHEETS -- MARCH 31, 1997 AND DECEMBER 31, 1996


                                                                             March 31             December 31
                                                                               1997                  1996

                                                          ASSETS
<S>                                                                       <C>                    <C>          
Cash and cash equivalents (Note 2)                                        $  12,359,853          $  11,386,661
Certificates of Deposit                                                       1,000,000                850,000
Loans secured by trust deeds (Notes 2 and 3)                                160,312,270            154,148,933
less:  Allowance for loan losses (Note 2)                                    (3,500,000)            (3,500,000)
Real estate held for sale (Note 6)                                            6,781,411              7,743,295
Investment in Limited Partnership (Note 2 and 5)                              3,431,596              4,877,798
Unsecured Loan to General Partner (Note 4)                                      415,416                488,764
Interest receivable                                                           1,489,602              1,321,493
Other assets                                                                     59,074                 59,074
                                                                         --------------         --------------
Total Assets                                                               $182,349,222           $177,376,018
                                                                            ===========            ===========


                                            LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accrued distributions payable                                           $       503,408         $      511,456
Accounts payable and accrued liabilities                                        152,808                 24,458
Deferred income                                                                 162,820                      0
Other liabilities                                                                25,268                      0
                                                                        ---------------     ------------------

Total Liabilities                                                               844,304                535,914
                                                                         --------------          -------------

PARTNERS' CAPITAL:
General partners (Note 7)                                                     1,779,368              1,732,726
Limited partners (Note 7)                                                   179,725,550            175,107,378
                                                                            -----------            -----------
Total Partners' Capital                                                     181,504,918            176,840,104
                                                                            -----------            -----------
Total Liabilities and Partners' Capital                                    $182,349,222           $177,376,018
                                                                            ===========            ===========

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

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

                              STATEMENTS OF INCOME

               FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996

                                                                           FOR THE THREE MONTHS ENDED
                                                                         March 31              March 31
                                                                           1997                  1996
                                                                           ----                  ----
  REVENUES:
<S>                                                                      <C>                   <C>        
     Interest income on loans secured by trust deeds                     $ 4,342,168           $ 4,045,603
     Gain from limited partnership (Note 5)                                  878,471                     0
     Rental income                                                            68,897                97,155
     Interest income from limited partnership (Note 5)                       142,116                     0
     Other interest income                                                   151,185                34,266
     Other income                                                             75,766                     0
                                                                         -----------       ---------------
     Total revenues                                                      $ 5,658,603           $ 4,177,024
                                                                           ---------             ---------

OPERATING EXPENSES:
     Management Fees paid to General Partner (Note 9)                    $ 1,299,458          $    204,348
     Servicing Fees paid to General Partner (Note 9)                         120,238                91,174
     Promotional interest (Note 9)                                            22,974                16,398
     Administrative                                                           14,129                14,129
     Legal and accounting                                                     40,412                49,148
     Real Estate Owned expenses                                               92,253               137,648
     Other                                                                       230                   497
                                                                       -------------        --------------
     Total operating expenses                                            $ 1,589,694          $    513,342
                                                                           ---------           -----------
     Net income                                                          $ 4,068,909           $ 3,663,682
                                                                          ==========            ==========

     Net income allocated to general partner                           $      40,286         $      35,909
                                                                        ============          ============

Net income allocated to limited partners                                 $ 4,028,623           $ 3,627,773
                                                                          ==========            ==========

Net income per limited partnership unit (Note 8)                               $.022                 $.022
                                                                                ====                  ====

              The accompanying notes are an integral part of these
                             financial statements.
</TABLE>

<PAGE>



<TABLE>
<CAPTION>
                                                          
                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnersbip)

                            STATEMENTS OF CASH FLOWS

               For the Three Months Ended March 31, 1997 and 1996

                                                                              March 31                March 31
                                                                                1997                    1996
<S>                                                                        <C>                        <C>  
CASH FLOWS FROM OPERATING ACTIVITIES:
         Net Income                                                        $   4,068,909              $3,663,682

Adjustments to reconcile net Income
      to net cash provided by operating activities
         (Increase) decrease in interest receivable                             (168,109)                 62,861
         Increase (decrease) in accrued distribution payable                      (8,048)                 10,643
         Increase (decrease) in accounts payable/
           accrued liability                                                     128,350                 (74,304)
         (Increase) decrease in other assets                                           0                 (59,074)
         Increase (decrease) in deferred income                                  162,820                  60,496
         Increase (decrease) in other liabilities                                 25,268                       0
                                                                           -------------       -----------------
         Total adjustment                                                        140,281                     622
                                                                            ------------         ---------------
           Net cash provided by operating activities                           4,209,190               3,664,304
                                                                             -----------               ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
         Purchases of loans secured by  trust deeds                          (16,697,126)            (13,009,440)
         Principal collected                                                     534,850                 165,153
         Loan payoffs                                                         10,072,287               7,889,792
         Investments in real estate                                              933,268                (506,188)
         Investment in limited partnership                                     1,446,202                       0
         Investments in Certificates of Deposit (net)                           (150,000)               (150,000)
                                                                            -------------           -------------
           Net cash provided by (used in)
             investing activities                                             (3,860,519)             (5,610,683)
                                                                             -----------             ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
         Proceeds from sale of partnership Units                               5,023,868               3,793,018
         Cash distributions                                                   (1,526,796)             (1,470,289)
         Capital withdrawals                                                  (2,872,551)             (2,663,459)
                                                                              ----------              ----------
           Net cash provided by (used in)
             financing activities                                                624,521                (340,730)
                                                                            ------------            -------------

INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                                                    973,192              (2,287,109)
CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                                         11,386,661               5,056,358
                                                                              ----------             -----------
CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                                                              $12,359,853            $  2,769,249
                                                                              ==========             ===========

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

</TABLE>

<PAGE>



                         OWENS MORTGAGE INVESTMENT FUND

                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 1997


(1)    ORGANIZATION AND OPERATIONS

Owens  Mortgage   Investment  Fund  (the  Partnership),   a  California  limited
partnership,  was formed on June 14,  1984 to invest in loans  secured by first,
second and third trust deeds and  wraparound  mortgage  loans.  The  Partnership
commenced  operations on the date of formation and will continue  until December
31, 2034 unless  dissolved prior thereto under the provisions of the partnership
agreement.

The general  partners  include Owens Financial  Group,  Inc. (OFG), a California
Corporation,  and certain individuals who are OFG's shareholders/officers and/or
employees.  The  individual  partners have assigned to OFG their interest in any
present  or  future  promotional  allowance  from  the  Partnership.  OFG  is  a
California  corporation engaged in the origination of real estate mortgage loans
and the  subsequent  servicing of these  mortgages for the  Partnership  and for
other third-party investors.

The general partners are authorized to offer and sell and have outstanding up to
an aggregate of 250,000,000  units  outstanding at $1.00 per unit,  representing
$250,000,000  of  limited  partnership  interests  in the  Partnership.  Limited
Partnership  Units  outstanding  were 179,921,570 at March 31, 1997. As of March
31, 1997, the  Partnership had registered  $321,570,324  of limited  partnership
interests with the Securities and Exchange Commission.


(2)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The  following  items  comprise the  significant  accounting  policies  that the
Partnership follows in preparing and presenting its financial statements.

    (a)  Loans Secured by Trust Deeds

Loans  secured by trust deeds are  acquired  from OFG and are  recorded at cost.
Interest income on loans is accrued by the simple interest method.

Effective  January 1, 1995,  the  Partnership  adopted the Financial  Accounting
Standards Board issued Statement No. 114, Accounting by Creditors for Impairment
of a Loan, and No. 118,  Accounting by Creditors for Impairment of a Loan-Income
Recognition and  Disclosures.  Under Statement No. 114, a loan is impaired when,
based on current  information or events,  it is probable that a creditor will be
unable to collect the  contractual  interest  and  principal  payments of a loan
according to the  contractual  terms of the loan  agreement.  Statement  No. 114
requires that impaired loans be measured on the present value of expected future
cash flows discounted at the loan's  effective  interest rate or, as a practical
expedient,  at the  loan's  observable  market  price or the  fair  value of the
collateral  if the loan is  collateral  dependent.  Statement  No. 118 clarifies
interest income  recogntion and disclosure  provisions of Statement No. 114. The
adoption  of these  statements  do not have a material  effect on the  financial
statements of the Partnership.

In June 1996, the Financial Accounting Standards Board issued Statement No. 125,
Accounting for Transfers and Servicing of Financial Assets and Extinguishment of
Liabilities.  Statement No. 125 provides  accounting and reporting standards for
transfers and servicing of financial  assets and  extinguishment  of liabilities
and provides  consistent  standards  for  distinguishing  transfers of financial
assets  that  are  sales  from  transfers  that  are  secured  borrowings.   The
Partnership was required to implement  Statement 125 effective  January 1, 1997.
Management  believes  that the  implementation  of Statement 125 does not have a
material impact on the financial statements.

The  Partnership   recognizes  interest  income  on  impaired  loans  using  the
cash-basis method of accounting. Cash receipts are allocated to interest income,
except when such payments are specifically  designated as principal reduction or
when  management  does not believe the  Partnership's  investment in the loan is
fully recoverable.

    (b)  Allowance for Loan Losses

The Partnership maintains an allowance for loan losses equal to $3,500,000 as of
March 31, 1997.  Management of the Partnership believes that based on historical
experience  and a review  of the  loans and  their  respective  collateral,  the
allowance for loans losses is adequate in amount.

Through  October 31, 1994,  OFG  purchased  the  Partnership's  receivables  for
delinquent  interest  on  loans  originated  prior  to  May  1,  1993  from  the
Partnership on a non-recourse  basis.  However,  effective November 1, 1994, OFG
discontinued its practice of purchasing  interest  receivable for certain loans.
The  outstanding  balance of all loans  delinquent  greater than ninety days was
$9,703,000  and  $11,348,000  as of  March  31,  1997  and  December  31,  1996,
respectively.  The  Partnership  discontinues  the  accrual of interest on loans
when,  in the  opinion of  management,  there is a  significant  doubt as to the
collectibility  of interest or  principal  from either the  borrower or when the
payment of principal or interest is ninety days past due,  unless OFG  purchases
the interest receivable from the Partnership.  As of March 31, 1997 and December
31,  1996,  the  aforementioned   loans  totaling  $9,703,000  and  $11,348,000,
respectively, were classified as non-accrual loans.

OFG advances certain payments to the Partnership on behalf of borrowers, such as
property  taxes,   mortgage  interest  pursuant  to  senior  indebtedness,   and
development costs.  Purchases of interest  receivable and payments made on loans
by OFG for the first  quarter of 1997,  but not  collected as of March 31, 1997,
totaled  approximately  $105,000 During the first quarter of 1997, OFG purchased
the Partnership's interest in two loans in the amount of $434,400.

    (c)  Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents  include
interest-bearing   or  non   interest-bearing   bank  deposits  and   short-term
certificates of deposit with original maturities of three months or less.

    (d)    Certificates of Deposit

Certificates  of  Deposit  are held with  various  financial  institutions  with
original maturities of up to one year.

    (e)    Investment in Limited Partnership

The Partnership accounts for its investment in limited partnership as investment
in real estate. The investment in limited partnership is carried at the lower of
cost or estimated  fair value,  less estimated  costs to sell.  The  Partnership
increases its investment by advances made to the limited partnership. Any profit
generated  from the  investment in limited  partnership is recorded as a gain of
sale of real estate.

    (f)    Real Estate Held for Sale

Real estate held for sale includes real estate acquired through  foreclosure and
is  carried  at the  lower  of the  recorded  investment  in the  loan  plus any
additional  capitalized  costs,  inclusive  of any senior  indebtedness,  or the
property's estimated fair market value, less estimated cost to sell.

Effective  January  1, 1996,  the  Partnership  adopted  the  provisions  of the
Financial   Accounting  Standards  Board's  Statement  of  Financial  Accounting
Standards No. 121 (FAS 121),  Accounting for the Impairment of Long-Lived Assets
and for  Long-Lived  Assets to be Disposed  Of. The  adoption of FAS 121 did not
result in a material impact on the Partnership's financial position.

    (g)    Income Taxes

No  provision is made for income  taxes since the  Partnership  is not a taxable
entity.  Accordingly,  any income or loss is  included in the tax returns of the
partners.


(3)     LOANS SECURED BY TRUST DEEDS

Loans  secured by trust deeds as of March 31, 1997 and December 31, 1996 were as
follows:
<TABLE>
<CAPTION>

                                                                      March 31                December 31
                                                                        1997                     1996

<S>                                                                  <C>                      <C>         
         Income-producing properties                                 $153,934,462             $145,999,756
         Single-family residences                                       3,030,978                3,935,546
         Unimproved land                                                3,346,830                4,213,631
                                                                     ------------             ------------
                                                                     $160,312,270             $154,148,933
                                                                      ===========              ===========

         First mortgages                                             $144,545,362             $139,542,698
         Second mortgages                                              15,025,121               14,006,235
         Third mortgages or all-inclusive deeds of trust                  741,787                  600,000
                                                                    -------------            -------------
                                                                     $160,312,270             $154,148,933
                                                                      ===========              ===========
</TABLE>

Loan maturities range from 1997 to 2012, with approximately 33% ($52,934,000) of
the loan  principal  outstanding  at March  31,  1997  maturing  in 1997.  These
maturities include approximately $21,818,000 in loans which are past maturity as
of March 31, 1997, of which approximately  $7,476,000 represents loans for which
interest payments are delinquent over 90 days. The Partnership  refinanced loans
totaling  approximately  $2,741,000 and $5,400,000 during the three months ended
March 31,  1997 and the year ended  December  31,  1996,  respectively,  thereby
extending the maturity dates of such loans.

The  Partnership's  total  investment  in loans  delinquent  over ninety days is
approximately  $9,430,000  and  $11,348,000  at March 31, 1997 and  December 31,
1996, respectively. As of March 31, 1997 and December 31, 1996, OFG is providing
non-recourse  advances for the  delinquent  interest  payments on  approximately
$1,175,000 and $1,237,000, respectively, of such loans.

As of March 31, 1997 and December 31, 1996, the  Partnership's  loans secured by
deeds  of trust on real  property  collateral  located  in  Northern  California
totaled approximately 63% ($103,955,000) and 73% ($113,204,000), respectively of
the loan portfolio. The Northern California region (which includes the following
counties and all counties north: Monterey,  Fresno, Kings, Tulare and Inyo) is a
large geographic area which has a diversified  economic base. The ability of the
borrowers  to repay loans is  influenced  by the  strength of the region and the
impact of prevailing forces on the value of real estate.  Such loans are secured
by deeds of trust on real estate  properties  and are expected to be repaid from
the cash flow of the  properties or proceeds from the sale or refinancing of the
properties. The policy of the Partnership is to require real property collateral
with a value,  net of senior  indebtedness,  that exceeds the carrying amount of
the loan balance and to record a deed of trust on the underlying property.


(4)     UNSECURED LOANS DUE FROM GENERAL PARTNER

OFG has historically  purchased certain  delinquent loans subject to foreclosure
and Real  Estate  Owned of the  Partnership  using the  Unsecured  Loan due from
General Partner to finance the purchases.

During 1996,  the  Partnership  sold a property to OFG which had beeen  acquired
through  foreclosure  proceedings by the Partnership on a Partnership  loan. The
purchase of the property in the amount of $870,000 was added to the  outstanding
balance  of the  unsecured  loan  due  from the  general  partner.  OFG sold the
property  during  1996 for  $21,700 in cash and a trust deed  receivable  in the
amount of  $629,000.  The  trust  deed  receivable  was  assigned  by OFG to the
Partnership in exchange for a reduction in the unsecured loan balance.

OFG is under no obligation to enter into such transactions with the Partnership.

The balance of the unsecured  loan due from OFG has been reduced by payments and
totals  $415,416  and  $488,764  as of March 31,  1997 and  December  31,  1996,
respectively. The note bears interest at 8% and is due on demand.

(5)     INVESTMENT IN LIMITED PARTNERSHIP

In 1993, the Partnership  foreclosed on a loan in the amount of $600,000 secured
by a junior lien on 30 residential  lots located in Carmel  Valley,  California,
and,  in  1994,  paid  off  the  senior  loan in the  amount  of  $500,000.  The
Partnership  incurred  additional  costs of $502,768 to protect its  investment,
increasing the carrying value of the lots to $1,602,798.  The Partnership  began
to develop the lots and incurred an additional $671,229 in costs during 1995.

During 1996, the Partnership  contributed the lots into WV-OMIF  Partners,  L.P.
(WV-OMIF  Partners),  a limited  partnership  formed between the Partnership and
Wood Valley  Development,  Inc.  (Woodvalley).  The  Partnership  also  provides
advances to WV-OMIF Partners to develop and construct single family homes on the
30 lots  contributed  and had made net  additional  advances  of  $1,157,569  to
WV-OMIF  Partners for the continued  development and  construction of homes from
January 1, 1996 thorough March 31, 1997. The  Partnership is entitled to receive
interest at a rate of prime plus 2% on the advances to WV-OMIF Partners. WV-OMIF
Partners  sold one  home in 1996  and  distributed  $478,679  to OMIF,  $187,298
representing  income and the balance return of capital.  During the three months
ended March 31, 1997, WV-OMIF Partners sold seven and distributed  $3,152,153 to
OMIF, $1,020,587 representing income and the balance return of capital.


(6)     REAL ESTATE HELD FOR SALE AND MORTGAGE PAYABLE

Real estate held for sale at March 31, 1997 consists of the following properties
acquired through foreclosure in 1993, 1994, 1995 and 1996:
<TABLE>

         <S>                                                                        <C>   
         Warehouse, Merced, California, net of valuation
              allowance of $350,000 as of March 31, 1997                            $     650,000
         70% interest in undeveloped land, Vallejo, California                            568,569
         Commercial lot, Sacramento, California, net of valuation
              allowance of $250,000 as of March 31, 1997                                  299,828
         Office building, Monterey, California                                          2,097,811
         Undeveloped land, Los Gatos, California                                          571,853
         Commercial building, Sacramento, California                                      550,000
         Residential lots, Sonora, California                                           1,813,350
         Undeveloped land, Reno, Nevada                                                   230,000
                                                                                      -----------
              Total                                                                  $  6,781,411
                                                                                      ===========
</TABLE>

Real  estate held for sale has  generall  increased  in recent  years due to the
Corporate  General  Partner's  policy to not  acquire  such  properties  through
foreclosure.  However,  the Partnership  disposed of two properties in the three
months ended March 31, 1997 at a slight profit.


(7)     PARTNER'S CAPITAL

    (a)    Contributions

The limited partners  contribute  $1.00 for each unit  subscribed.  Registration
costs incurred by the Fund have been offset against  contributed  capital.  Such
costs, which were incurred in 1989, amounted to approximately $198,000.

Prior to September 1, 1986, the general  partners  contributed cash in an amount
equal to 1% of the aggregate capital contribtions of the limited partners. After
such date, the general partners are required to make cash capital  contributions
in  the  amount  of  1/2  of 1%  of  the  limited  partners'  aggregate  capital
contributions.

    (b)    Allocations, Distributions and Withdrawals

In accordance with the partnership  agreement,  the Partnership's profits, gains
and losses are  allocated  to each  limited  partner and the  corporate  general
partner in proportion to their respective capital contributions.

Distributions  are made monthly to the partners in proportion to the  respective
units owned during the preceding calendar month. Accrued  distributions  payable
represent amounts to be paid to the partners in January, 1997 and April, 1997 on
their capital balances at December 31, 1996 and March 31, 1997, respectively.

The Partnership makes cash  distributions to those limited partners who elect to
receive such distributions. Those limited partners who elect not to receive cash
distributions  have  their   distributions   reinvested  in  additional  limited
partnership  units.  Such  reinvested   distributions   totaled  $2,459,861  and
$2,175,804 for the three months ended March 31, 1997 and 1996, respectively.

The limited  partners may  withdraw,  or partially  withdraw,  from the Fund and
obtain the return of their  outstanding  capital  accounts  within 91 days after
written notices are delivered to the corporate  general partner,  subject to the
following limitations:

         Any such payments are required to be made only from cash  available for
         distribution,  net  proceeds  and capital  contributions  (as  defined)
         during said 91-day period.

         A maximum of $75,000 may be withdrawn  during any calendar  quarter (or
         $100,000 in the case of an estate of a deceased limited partner).

         The general  partners  are not required to establish a reserve fund for
the purpose of funding such payments.

         No more than 10% of the outstanding limited  partnership  interests may
         be withdrawn  during any calendar year except upon  dissolution  of the
         Fund.

    (c)    Promotional Interest of General Partners

The general partners contributed cash to the Partnership's capital in the amount
of 0.5% of the limited partners  aggregate capital  contributions  and, together
with their promotional interest,  the general partners have an interest equal to
1% of the  limited  partners  contributions.  This  promotional  interest of the
general  partners of up to 1/2 of 1% is expensed  monthly to the Partnership and
credited as a contribution to the general partners capital account as additional
compensation.  As of March 31, 1997, the general  partners had made cash capital
contributions of $909,392 to the  Partnership.  The general partners have agreed
not to withdraw any portion of this capital from the Partnership, even though it
exceeds the 1/2 of 1% requirement, but they are not required to make any further
cash capital  contributions to the Partnership  until the amount falls below the
1/2 of 1% requirement.

The  promotional  interest  expense  charged to the  Partnership was $22,974 and
$16,398 for the three months ended March 31, 1997 and 1996, respectively.


(7)     CONTINGENCY RESERVES

In accordance  with the partnership  agreement and to satisfy the  Partnership's
liquidity  requirements,  the  Partnership  is required to maintain  contingency
reserves  (as  defined)  in an  aggregate  amount of at least  1.5% of the gross
proceeds of the sale of limited partnership units. The cash capital contribution
of the general  partners  (amounting  to $909,392  at March 31,  1997),  up to a
maximum of .5% of the limited partners' capital contributions, will be available
as additional contingency reserve, if necessary.

The contingency  reserves  required at March 31, 1997 and December 31, 1996 were
approximately $3,688,000 and $3,400,000, respectively. Cash and cash equivalents
as of the same dates were restricted accordingly.


(8)     TRANSACTIONS WITH AFFILIATES

OFG is entitled to receive from the  Partnership a management fee of up to 2.75%
per annum of the average unpaid balance of the  Partnership's  mortgage loans at
the end of each of the preceding twelve months for services  rendered as manager
of the Partnership.  The maximum management fee is reduced to 1.75% per annum if
OFG has not  provided  during the  preceeding  calendar  year any of the certain
services defined in the limited partnership agreement.

All of the  Partnership's  loans are serviced by OFG, in consideration for which
OFG receives  fees up to .25% per annum of the unpaid  principal  balance of the
loans.  Servicing fees are paid from the interest  income of the loans collected
from the borrowers.

Interest  income on loans secured by trust deeds is collected by OFG and,  along
with  advances on certain  delinquent  loans,  is  remitted to the  Partnership.
Interest  receivable from OFG amounted to $1,489,602 and $1,321,493 at March 31,
1997 and December 31, 1996, respectively.

OFG may, at its sole discretion and on a monthly basis, adjust the servicing and
management  fees as long as such fees do not exceed the allowable .25% and 2.75%
annual limits,  respectively.  In determining the servicing and management fees,
and hence the yield to the  Partnership,  OFG may  consider a number of factors,
including  the  then-current   market  yields.   Service  fee  payments  to  OFG
approximated  $120,000 and $91,000 for the three months ended March 31, 1997 and
1996, respectively.  Management fee income to OFG earned on loans invested in by
the Fund  approximated  $1,299,000 and $204,000 for the three months ended March
31, 1997 and 1996, respectively.

OFG receives late payment charges from borrowers who make  delinquent  payments.
Such  charges are in addition to the normal  monthly  loan  payments and totaled
approximately  $55,000 and $78,000 for the three months ended September 30, 1996
and 1995,  respectively  and  approximately  $147,000  and $147,000 for the nine
months ended September 30, 1996 and 1995, respectively.

OFG  originates  all  loans the  Partnership  is  invested  in and  receives  an
investment  evaluation fee payable by borrowers or the  Partnership.  Such fees,
payable by  borrowers,  earned by OFG  amounted to  approximately  $485,000  and
$547,000 for the three months ended March 31, 1997 and 1996, respectively.

Included in loans secured by trust deeds at March 31, 1997 and December 31, 1996
are notes totaling $2,215,332 and $1,942,332, respectively, which are secured by
properties  owned by OFG. The loans bear interest at 8% per annum and are due on
demand.  The Partnership  received interest income of approximately  $62,000 for
the three months ended March 31, 1997 and $72,247 during the year ended December
31, 1996 from OFG under loans secured by trust deeds and the unsecured  loan due
from OFG.

Due to General  Partner at March 31,  1997 and  December  31,  1996  consists of
unreimbursed costs and expenses payable to OFG.


(9)     NET INCOME PER LIMITED PARTNERSHIP UNIT

Net income per limited  partnership  unit is computed using the weighted average
of limited  partnership units outstanding  during the three.  These amounts were
$181,664,000  and  $168,332,000  for the three  months  ended March 31, 1997 and
1996, respectively.


<PAGE>



Item 2. Management's Discussion and Ana1ysis of Financial Condition and
Results of Operations

Results of Operations

The net income increase of approximately  $405,000 (11.06%) for the three months
ended March 31, 1997 as  compared to the three  months  ended March 31, 1996 was
primarily  attributable to the increased income generated from the sale of seven
residential units constructed and owned by the WV-OMIF limited partnership which
generated  $878,000 in net income for the three  months  ended  March 31,  1997.
Other factors that contributed to additional earnings for the three months ended
March  31,  1997 as  compared  to the three  months  ended  March 31,  1996 were
interest income of $142,000 to the Partnership from WV-OMIF as compared to $0 in
the prior year, an increase in average trust deeds and notes  receivable held by
the Partnership  from  $156,426,000  to $158,193,256  for the three months ended
March 31, 1996 and 1997,  respectively  and a decrease in  non-performing  loans
held  by the  Partnership  on  which  the  Corporate  General  Partner  was  not
purchasing  delinquent  interest  from 6.5% to 5.3% of the loan  portfolio as of
March 31, 1996 and 1997, respectively.

The average net yield of the  Partnership  increased from 8.63% to 8.73% for the
three  months  ended  March  31,  1996 and  1997,  respectively.  The net  yield
represents  the net  income  of the  Partnership  after  all  expenses  with the
exception  of the  provision  for  losses on loans or Real  Estate  Owned.  This
variation in yield is minor and not considered significant.

Although there has recently been only slight  variations in the net yield of the
Partnership,  its total revenues have  increased by $1,482,000  (35.47%) for the
three  months  ended March 31, 1997 as compared to the three  months ended March
31, 1996.  This  increase,  as above,  was primarily due to the ongoing sales of
residential units constucted by the WV-OMIF limited partnership, interest income
from  advances to WV-OMIF,  increased  balances of interest  earning  assets and
decreases in non-performing loans.

The increase in total revenues did not translate to comparable  increased in net
yield as the Corporate General  Partner's  payments for management and servicing
fees  increased from $296,000 to $1,420,000 for the three months ended March 31,
1996 and 1997, respectively. The fees collected by the Corporate General Partner
continue to be within the limits dictated by the Partnership agreement.


Portfolio Review

The number of Partnership mortgage  investments  increased from 235 to 236 as of
March 31, 1997 and 1996,  respectively.  The average loan balance increased from
$662,302 to $679,209 as of March 31, 1997 and 1996,  respectively.  This average
loan increase  reflects the  Partnership's  ability to invest in larger mortgage
loans meeting the Partnership's objectives.

The Corporate General Partner had previously  purchased all interest  receivable
to  the  Partnership  on  all  delinquent  loans  made  or  invested  in by  the
Partnership. However, on loans originated by the Corporate General Partner on or
after May 1, 1993,  and  effective  November 1, 1994,  for  certain  other loans
originated  prior to May 1, 1993, the Corporate  General Partner has adopted the
policy to not purchase delinquent  interest or principal.  As of March 31, 1997,
there were  approximately  $8,528,000 in loans held by the  Partnership on which
payments were more than 90 days delinquent and on which such delinquent interest
was not being purchased by the Corporate General Partner.  The Corporate General
Partner purchased  approximately  $18,000 in delinquent interest payments to the
Partnership  from January 1, 1997 to March 31, 1997 that had not been  collected
from the borrower by the Corporate General Partner as of March 31, 1997.

Approximately  $9,703,000 (6.0%) and $11,310,000 (7.7%) of the loans invested in
by the Fund were more than 90 days  delinquent  in payment as of March 31,  1997
and December 31, 1996, respectively. Of these amounts,  approximately $7,135,000
(4.4%) and $5,046,000  (3.3%) were in the process of foreclosure as of March 31,
1997 and December 31, 1996, respectively.

A loan loss reserve in the amount of $3,500,000  was  maintained on the books of
the  Partnership as of March 31, 1997 and December 31, 1996. As of this date the
General Partners have determined that this loan loss reserve is adequate.

As of  March  31,  1997  and  December  31,  1996  approximately  65%  and  73%,
respectively  of the mortgage loans made or invested in by the  Partnership  are
secured by real property  located in Northern  California.  The following  table
sets forth the principal amount of mortgage  investments,  by  classification of
property  securing  each loan,  held by the  Partnership  on March 31,  1997 and
December 31, 1996:

                                                Principal Amount
                                             March 31               December 31
                                               1997                    1996
                                               ----                    ----
                                               (000)                   (000)

Single-Family Dwellings                      $  8,031                $  3,936
Income-Producing Property                     153,934                 146,000
Unimproved Land                                 3,347                   4,213
                                              -------                 -------
                                             $160,312                $154,149
                                              =======                 =======

First Mortgages                              $144,545                $139,543
Second Mortgages                               15,025                  14,006
Third Mortgages or All-inclusive
  Deeds of Trust                                  742                     600
                                              -------                 -------
                                             $160,312                $154,149
                                              =======                 =======

The  following  amount of  delinquent  loans held by the  Partnership  have been
acquired and foreclosed  upon by the Corporate  General  Partner from January 1,
1993 through March 31, 1997:

                                    Delinquent                      Year
           Principal                 Interest                    Foreclosed
           $1,025,581                 $150,295                      1993
               58,000                    4,417                      1994
            2,501,308                  252,810                      1995
            2,320,000                   86,981                      1996
              230,000                   23,023                      1997

The Corporate General Partner has purchased all delinquent  interest  receivable
from the  Partnership  on the loans  foreclosed on in 1993,  1994 and 1995.  The
delinquent  interest  on the  loans  foreclosed  on in 1996 and  1997 was  never
purchased  from the  Partnership  by the  Corporate  General  Partner.  Of these
foreclosed loans, the Partnership held four mortgages totaling  $2,172,322 as of
March 31, 1997 on which the Corporate  General Partner was making payments which
were current.


Real Estate Owned
The Partnership  currently holds title to the following eight  properties  which
were foreclosed on during 1993, 1994, 1995 and 1996:
<TABLE>
<CAPTION>

                                        Fund               Additional
                                        Loan               Capitalized            Delinquent          Senior
Description                            Amount                 Costs              Interest (1)          Loans
-----------                            ------                 -----               ------------         -----
<S>                                      <C>               <C>                   <C>                <C>
Light Industrial Warehouse
Merced, CA                           $1,000,000 (2)       $        0             $ 175,333          $       0

Commercial Lot/Residential
  Development
Vallejo, CA                          $  525,000           $   43,569             $  83,949          $       0

Commerical Lot
Sacramento, CA                       $   500,000 (3)      $   49,828             $  36,500          $       0

Office Building
Monterey, CA                         $   550,000          $1,576,426 (4)         $  30,077          $       0

Undeveloped Land
Los Gatos, CA                        $   571,853          $        0             $ 134,878          $       0

Commercial Building
Sacramento, CA                       $   550,000          $        0             $  30,817          $       0

Residential Lots
Sonora, CA                           $ 1,691,425          $  121,925             $ 363,636          $       0

Undeveloped Land
Reno, NV                             $   230,000          $        0             $       0          $       0
<FN>

(1)    Substantially  all of the delinquent  interest was advanced by OFG to the
       Partnership.  The $83,949 of delinquent  interest  advanced by OFG on the
       Vallejo, California property has been reimbursed by the Partnership.

(2)    The book value of this asset is net of a loss allowance of $350,000.

(3)    The book value of this asset is net of a loss allowance of $250,000.

(4)    Included in this  balance is the payoff of a senior loan in the amount of
       $1,425,000.  This senior loan was  originally  $2,102,646  including late
       charges and fees. The Corporate General Partner arranged for this loan to
       be discounted at payoff.
</FN>
</TABLE>

With the exception of the light industrial  warehouse in Merced,  California and
the office building  located in Monterey,  California,  these  properties do not
currently  generate  revenue and, as such, are operating at a deficit.  With the
possible  exception  of  the  light  industrial  warehouse  located  in  Merced,
California  and the  commercial  land  located in  Sacramento,  California,  the
General  Partners  believe  that  due to the  values  of these  properties,  the
Partnership  should  not  sustain  any  losses of  principal  on their  ultimate
disposition.

The  Partnership's  investment in Real Estate Owned had  increased  during 1993,
1994, 1995 and 1996 due to the Corporate  General  Partner's policy to generally
not acquire property subject to foreclosure on which the Partnership has a trust
deed investment.  However,  due to the disposition of two properties held by the
Partnership  as of December  31, 1996 in the three  months ended March 31, 1997,
the Partnership's investment in Real Estate Owned has recently decreased.


Development Limited Partnership

      In 1993, the Partnership foreclosed on a $600,000 loan secured by a junior
lien on 30 residential lots located in Carmel Valley, California,  and, in 1994,
paid off the $500,000  senior loan.  In 1995,  the  Partnership  became the sole
limited partner in a limited  partnership  ("WV-OMIF  Partners")  formed with an
unrelated developer/builder as the sole general partner, for the development and
buildout of these lots. In exchange for its interest in this development limited
partnership,  the  Partnership  in 1996  contributed  the  lots  to the  WV-OMIF
Partners and agreed to make additional  advances to fund the development  costs.
As of March 31, 1997, the Partnership  had advanced  development  costs,  net of
distributions,  aggregating  $2,315,000,  and the total  amount  invested  in or
advanced by the Partnership  equaled $3,432,000,  net of distributions,  through
such date.

      Under the terms of the  agreement  governing  the  WV-OMIF  Partners,  the
Partnership  is entitled  to receive  certain  distributions  of cash before the
developer  receives  any funds.  The cash  received by the  development  limited
partnership from sales of developed lots is distributed as follows: (i) to third
parties (e.g.,  contractors,  taxing authorities,  etc.) for amounts incurred by
the  development  limited  partnership and related to the lots sold; (ii) to the
Partnership,  in an  amount  equal  to  $70,000  per  lot  sold;  (iii)  to  the
Partnership,  in an amount equal to a pro rata portion of the development  costs
advanced, plus interest at prime plus 2%; (iv) to the Partnership,  in an amount
equal to other  out-of-pocket  expenses  incurred by Partnership with respect to
the lots sold, plus interest at prime plus 2%; and (v) the balance,  if any, 70%
to the Partnership, and 30% to the developer.

      As of March 31, 1997,  construction  had been completed or commenced on 20
lots. . WV-OMIF Partners sold one home in 1996 and distributed $478,679 to OMIF,
$187,298 representing income and the balance return of capital. During the three
months  ended  March 31,  1997,  WV-OMIF  Partners  sold  seven and  distributed
$3,152,153 to OMIF, $1,020,587  representing income and the balance representing
return of capital.  Deposits have been  received on the  remaining 12 lots,  but
there can be no assurances the  Partnership  will realize similar amounts on the
sales of these lots.  Construction  is expected to begin on the  majority of the
remaining 10 lots during 1997 and 1998.

      The  Corporate  General  Partner has entered into a joint venture with the
same  unrelated  developer/builder  to purchase and build out up to 34 lots that
are contiguous to and  interspersed  with the lots in Carmel Valley owned by the
partnership  formed  between  the  Partnership  and the  developer/builder.  The
Partnership  does not have any direct or indirect  interest in these 34 lots nor
do any of these lots  provide any security  for the  original  Partnership  loan
which  was  foreclosed  on in  1993.  As  sales  of  these  34 lots  occur,  the
development limited partnership will be reimbursed on a pro rata basis,  without
interest,  for  development,  infrastructure  and  soft  costs  incurred  by the
development  limited partnership in the initial stages of its development of the
lots. Upon receipt of any such funds the development  limited  partnership  will
distribute monies as outlined above.


Liquidity and Capital Resources
The Partnership relies upon purchases of limited partnership  interests and loan
payoffs for the creation of capital for mortgage  investments.  The  Partnership
has not and does not intend to borrow money for investment purposes.


Continency Reserves
The  Partnership  maintains  cash and  certificates  of deposit  as  contingency
reserves in an aggregate amount of at least 2% of the gross proceeds of the sale
of Limited  Partners' Units. To the extent that such funds are not sufficient to
pay expenses in excess of revenues or to meet any obligation of the Partnership,
it may be necessary for the Partnership to sell or otherwise  liquidate  certain
of its investments on terms which may not be favorable to the Partnership.


Current Economic Conditions
The  Partnership has been affected by regional  declines in commercial  property
values  and  general  economic  conditions;  however,  the  Partnership  has not
sustained any principal  losses to date. Due to the  conservative  loan-to-value
criteria  established by the Corporate General Partner,  the mortgage loans held
by the  Partnership  appear in  general  to be, in the  opinion  of the  General
Partners, adequately secured.

The Partnership generally invests in relatively short-term commercial loans (1-7
years).  In addition,  the Corporate  General  Partner is generally able to fund
loans in a shorter  time frame than  institutional  lenders  which  allows it to
collect a higher rate of interest from those  borrowers that consider time to be
an essential  factor.  Due to this,  the net income of the  Partnership  has, in
recent years, remained in the range of 8.5-9.0 percent per year. If there were a
reduction in the demand for loans  originated by the Corporate  General  Partner
and, thus,  fewer loans for the Partnership to invest in, the Partnership  would
have to invest  excess cash in shorter term  investments  or reduce the interest
rate  charged on mortgage  loans which  would yield  considerably  less than the
current investment portfolio.

The Partnership continues to receive substantial additional investments from new
and existing  Limited  Partners  which provide  capital for loans,  purchases of
existing notes and redemption of existing Limited Partnership Units.


<PAGE>


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

The Partnership is not presently involved in any material legal proceedings.


Item 6(b).  Reports on Form 8-K

No reports on Form 8-K have been filed  during the quarter for which this report
is filed.


<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.



Dated:  May 15, 1997                          OWENS MORTGAGE INVESTMENT FUND
                                              a California Limited Partnership
                                                       (Registrant)

                                              By:   Owens Financial Group, Inc.
                                                    a General Partner



                                                   By:  \s\ William C. Owens
                                                        William C. Owens
                                                        President


                                                   By:  \s\ Bryan H. Draper
                                                         Bryan H. Draper
                                                         Chief Financial Officer
                                                         Principal Financial and
                                                           Accounting Officer