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 June 30, 1999

                         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)


           (925) 935-3840
   (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_________


<PAGE>


                                        3

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements
<TABLE>
<CAPTION>

                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

                                 BALANCE SHEETS
                       June 30, 1999 and December 31, 1998

                                                                              June 30             December 31
                                                                               1999                  1998
                                                                            (Unaudited)
                                                             ASSETS

<S>                                                                      <C>                    <C>
Cash and cash equivalents                                                $    5,302,096         $    8,260,599
Certificates of deposit                                                         250,000                434,006
Commercial paper                                                                      -              3,084,044

Loans secured by trust deeds                                                194,071,542            182,721,465
Less:  Allowance for loan losses                                             (3,500,000)            (3,500,000)
                                                                           -------------          -------------
                                                                            190,571,542            179,221,465
Real estate held for sale, net of allowance
  for losses                                                                 10,279,982              9,971,202
Interest receivable                                                           1,423,611              1,380,530
Other receivables                                                                     -                 59,074
                                                                    -------------------        ---------------
     Total Assets                                                         $ 207,827,231          $ 202,410,920
                                                                            ===========            ===========

                                                LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
Accrued distributions payable                                           $       537,799        $       522,827
Due to General Partner                                                          511,775                391,098
Accounts payable and accrued liabilities                                         27,525                156,193
                                                                         --------------         --------------

     Total Liabilities                                                        1,077,099              1,070,118
                                                                           ------------          -------------

PARTNERS' CAPITAL:
General Partner                                                               2,027,779              1,967,069
Limited partners (Units Subject to Redemption)                              204,722,353            199,373,733
                                                                            -----------            -----------
     Total Partners' Capital                                                206,750,132            201,340,802
                                                                            -----------            -----------
     Total Liabilities and Partners' Capital                              $ 207,827,231          $ 202,410,920
                                                                            ===========            ===========

              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 and Six Months Ended June 30, 1999 and 1998 (Unaudited)

                                                          For the Three Months Ended                  For the Six Months Ended
                                                            June 30          June 30                  June 30           June 30
                                                             1999             1998                      1999              1998
                                                             ----             ----                      ----              ----
<S>                                                    <C>              <C>                       <C>               <C>
  REVENUES:
     Interest income on loans secured by trust deeds   $   4,768,312    $   4,541,925             $   9,457,032     $   9,237,100
     Gain on sale of real estate                              18,324           83,705                    18,324         1,254,018
     Other income                                             95,255          210,578                   250,197           345,856
                                                         -----------      -----------               -----------      ------------
     Total revenues                                        4,881,891        4,836,208                 9,725,553        10,836,974
                                                         -----------      -----------               -----------      ------------

OPERATING EXPENSES:
     Management fees to General Partner                      523,157          188,189                   923,328           772,839
     Servicing fees to General Partner                       119,093          105,326                   232,120           248,733
     Promotional interest to General Partner                   6,053            6,738                    30,370            38,460
     Administrative                                            5,000           13,752                    12,500            32,591
     Legal and accounting                                     23,684              531                   110,157            56,317
     Real estate operations, net                             (38,995)         (21,694)                  (67,876)           19,526
     Other                                                     2,309            9,662                    62,760            13,097
                                                         -----------      -----------               -----------       -----------
     Total operating expenses                                640,301          302,504                 1,303,359         1,181,563
                                                         -----------      -----------               -----------       -----------
     Net income                                        $   4,241,590    $   4,533,704             $   8,422,194     $   9,655,411
                                                         ===========      ===========               ===========       ===========

     Net income allocated to General Partner           $      41,177    $      44,888             $      83,166     $      95,598
                                                         ===========      ============              ===========       ===========

Net income allocated to limited partners               $   4,200,413    $   4,488,816             $   8,339,028     $   9,559,813
                                                         ===========      ===========               ===========       ===========

Net income allocated to limited partners
    per weighted average limited partnership unit      $.021            $.023                     $.041             $.049
                                                        ====             ====                       ====              ====

Weighted average limited partnership units             203,848,000      196,095,000               203,080,000       194,387,000
                                                       ===========      ===========               ===========       ===========

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

<PAGE>

<TABLE>
<CAPTION>

                                                                                       4
                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)
                            STATEMENTS OF CASH FLOWS
           For the Six Months Ended June 30, 1999 and 1998 (Unaudited)

                                                                               June 30                 June 30
                                                                                1999                    1998
<S>                                                                          <C>                   <C>
Cash flows from operating activities:
     Net Income                                                              $ 8,422,194           $   9,655,411
Adjustments to reconcile net income
      to net cash provided by operating activities:
     Gain on sale of real estate by limited partnership                                -              (1,229,145)
     Gain on sale of real estate properties                                      (18,324)                (24,873)
     Changes in operating assets and liabilities:
       Interest receivable                                                       (43,081)               (474,360)
       Other receivables                                                          59,074                  53,509
       Accrued distributions payable                                              14,972                 (13,322)
       Due to General Partner                                                    120,677                  77,138
       Accounts payable and accrued liabilities                                 (128,668)                      -
                                                                             ------------    -------------------
          Net cash provided by operating activities                            8,426,844               8,044,358
                                                                             -----------           -------------

Cash flows from investing activities:
     Purchases of loans secured by trust deeds                               (49,097,872)            (34,539,107)
     Principal collected                                                         839,383                 936,019
     Loan payoffs                                                             31,838,247              35,127,850
     Sales of loans to third parties at face value                             4,529,000                       -
     Investment in real estate properties                                        (75,763)                (39,172)
     Net proceeds from sales of real estate properties                           327,398                  90,035
     Investment in limited partnership                                                 -                (926,487)
     Distributions received from limited partnership                                   -               5,457,464
     Investment in corporate joint venture                                       (57,067)                (72,778)
     Repayment received from corporate joint venture                              56,141                       -
     Maturity of commercial paper                                              3,084,044                       -
     Maturity of certificate of deposit                                          184,006                       -
                                                                            ------------     -------------------
         Net cash (used in) provided by investing activities                  (8,372,483)              6,033,824
                                                                             ------------          -------------

Cash flows from financing activities:
     Proceeds from sale of partnership Units                                   9,709,152               8,015,888
     Partners' cash distributions                                             (3,202,651)             (3,162,264)
     Partners' capital withdrawals                                            (9,519,365)             (7,535,893)
                                                                            ------------            ------------
         Net cash used in financing activities                                (3,012,864)             (2,682,269)
                                                                            -------------           -------------

(Decrease) increase in cash and cash equivalents                              (2,958,503)             11,395,913

Cash and cash equivalents at beginning of period                               8,260,599               3,073,115
                                                                             -----------             -----------

Cash and cash equivalents at end of period                                   $ 5,302,096            $ 14,469,028
                                                                               =========              ==========

See note 3 for supplemental disclosure of non-cash investing activities.

                          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
                                  JUNE 30, 1999



    (1)  Summary of Significant Accounting Policies

         In the opinion of the management of the  Partnership,  the accompanying
         unaudited financial  statements contain all adjustments,  consisting of
         normal,   recurring  adjustments,   necessary  to  present  fairly  the
         financial  information  included  therein.  These financial  statements
         should be read in  conjunction  with the audited  financial  statements
         included  in the  Partnership's  Form 10-K for the  fiscal  year  ended
         December 31, 1998 filed with the  Securities  and Exchange  Commission.
         The results of operations  for the  three-month  and six-month  periods
         ended June 30, 1999 are not  necessarily  indicative  of the  operating
         results to be expected for the full year.

    (2)  Loans Secured by Trust Deeds

         The  Partnership's  investment in loans delinquent  greater than ninety
         days is $10,123,000 and $8,710,000 as of June 30, 1999 and December 31,
         1998,  respectively.  As of June 30, 1999, $8,078,000 of the delinquent
         loans has a  specific  related  allowance  for credit  losses  totaling
         $2,215,000.  There is a  non-specific  allowance  for credit  losses of
         $1,285,000 for the remaining  delinquent  balance and for other current
         loans.  The Partnership has discontinued the accrual of interest on all
         loans  that are  delinquent  greater  than  ninety  days.  There was no
         additional  allowance for credit losses during the three and six months
         ended June 30, 1999.

         As of June 30, 1999 and December 31, 1998,  loans past maturity totaled
         approximately  $25,535,000 and $23,418,000,  respectively.  Of the past
         maturity loans at June 30, 1999,  $7,432,000  represent loans for which
         interest payments are delinquent more than ninety days.

         During the quarter ended June 30, 1999, the  Partnership  sold full and
         partial  interests  in  eight  loans to third  parties  and to  related
         parties in the amounts of $3,804,000  and $725,000,  respectively.  The
         sale of all the loans  resulted in no gain or loss in the  accompanying
         financial statements.

   (3)    Real Estate Held for Sale

         During the three  months  ended  June 30,  1999,  a 6-unit  residential
         building located in Oakland, California, of which the Partnership owned
         a 22%  interest,  was sold  resulting in a gain to the  Partnership  of
         $18,324.  During the six months  ended June 30, 1999,  the  Partnership
         acquired  through  foreclosure a 91% interest in 92 residential lots in
         Lake Don Pedro, California,  on which it had a trust deed investment of
         $541,165.






                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 1999



    (4)  Transactions with Affiliates

         The General Partner of the  Partnership,  Owens Financial  Group,  Inc.
         (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.

         All of the  Partnership's  loans are serviced by OFG, in  consideration
for which OFG receives up to .25% per annum of the unpaid  principal  balance of
the loans.

         OFG,  at its sole  discretion  may,  on a  monthly  basis,  adjust  the
         management  and  servicing  fees as long  as  they  do not  exceed  the
         allowable  limits  calculated on an annual basis.  In  determining  the
         management and servicing  fees and hence the yield to the  Partnership,
         OFG may consider a number of factors, including the then-current market
         yields.  Even though the fees for a month may exceed one-twelfth of the
         maximum  limits,  at the end of the  calendar  year the sum of the fees
         collected  for each of the  twelve  months is equal to or less than the
         stated limits.  Management fees amounted to approximately  $523,000 and
         $188,000   for  the  three   months  ended  June  30,  1999  and  1998,
         respectively,  and  $923,000 and $773,000 for the six months ended June
         30,  1999  and  1998,   respectively.   Service  fee  payments  to  OFG
         approximated  $119,000 and $105,000 for the three months ended June 30,
         1999 and 1998,  respectively,  and  $232,000  and  $249,000 for the six
         months ended June 30, 1999 and 1998, respectively.



         .




<PAGE>



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

Results of Operations

Three Months Ended June 30, 1999 Compared to 1998

         The net income decrease of approximately  $292,000 (6.4%) for the three
months ended June 30, 1999 as compared to 1998 was  primarily due to an increase
in the management fees to the General  Partner of $335,000.  Management fees are
paid pursuant to the Partnership Agreement.

         Interest income on loans secured by trust deeds increased approximately
$226,000  (5.0%) for the three months  ended June 30,  1999,  as compared to the
same period in 1998.  This  increase  was a result of an increase in the average
loan portfolio of  approximately  8.5% during the quarter ended June 30, 1999 as
compared to the quarter  ended June 30, 1998,  even though the weighted  average
yield of the loan portfolio decreased from 11.03% to 10.81% for the three months
ended June 30, 1998 and 1999, respectively.

Six Months Ended June 30, 1999 Compared to 1998

         The net income decrease of approximately $1,233,000 (12.8%) for the six
months ended June 30, 1999 as compared to 1998 was primarily due to the decrease
in gain on sale of real estate of  approximately  $1,236,000  (98%). The gain on
sale of real  estate  for the six months  ended June 30,  1998 was from sales of
homes in the WV-OMIF Partners development limited  partnership.  The final homes
in this limited  partnership were sold in 1998.  Therefore,  there were no sales
and no gain recognized in 1999.

         Interest income on loans secured by trust deeds increased approximately
$220,000  (2.4%) for the six months ended June 30, 1999, as compared to the same
period in 1998.  This  increase  was a result of an increase in the average loan
portfolio  of  approximately  6.5% during the six months  ended June 30, 1999 as
compared to the six months ended June 30, 1998, even though the weighted average
yield of the loan  portfolio  decreased from 11.05% to 10.76% for the six months
ended June 30, 1998 and 1999, respectively.

Financial Condition

June 30, 1999 and December 31, 1998

Loan Portfolio

         The number of Partnership  mortgage  investments  decreased from 188 to
170 and the  average  loan  balance  increased  from  approximately  $972,000 to
$1,142,000  as of  December  31,  1998 and June 30,  1999,  respectively.  These
average loan  increases  reflect the  Partnership's  ability to invest in larger
mortgage loans meeting the Partnership's objectives.

         Prior  to May 1,  1993,  the  General  Partner  followed  a  policy  of
purchasing  all interest  receivables  of delinquent  loans.  However,  on loans
originated  by the  General  Partner  on or after  May 1,  1993,  and  effective
November 1, 1994, for certain other loans  originated  prior to May 1, 1993, the
General  Partner  adopted  the policy not to  purchase  delinquent  interest  or
principal.  As of June 30, 1999 and December 31, 1998, there were  approximately
$9,321,000 and  $7,904,000,  respectively,  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 General  Partner.  The General  Partner
purchased  approximately $45,000 and $110,000 in delinquent interest receivables
of the Partnership  during the six months ended June 30, 1999 and the year ended
December 31, 1998, respectively.

         Approximately  $10,123,000  (5.2%) and  $8,710,000  (4.8%) of the loans
invested in by the  Partnership  were more than 90 days delinquent in payment as
of June  30,  1999 and  December  31,  1998,  respectively.  Of  these  amounts,
approximately  $3,111,000  (1.6%) and  $3,657,000  (2.0%) were in the process of
foreclosure.  Loans more than 90 days delinquent increased by $1,413,000 (16.2%)
from  December 31, 1998 to June 30, 1999,  primarily due to one large loan which
became  delinquent  during the six month  period.  Management  believes that the
loan, with an outstanding  principal  balance of  approximately  $1,548,000,  is
adequately  secured and that no  additional  loan loss  reserve for this loan is
necessary.

         A loan loss  allowance in the amount of $3,500,000  was recorded on the
books of the Partnership as of June 30, 1999 and December 31, 1998.

         As of June 30, 1999 and December 31, 1998,  approximately  49% and 48%,
respectively,  of the mortgage loans made or invested in by the  Partnership are
secured by real property located in Northern California.

         During the quarter ended June 30, 1999, the  Partnership  sold full and
partial  interests in eight loans to third parties and to related parties in the
amounts of  $3,804,000  and  $725,000,  respectively.  The sale of all the loans
resulted in no gain or loss in the accompanying financial statements.

Real Estate Properties Held for Sale

         The Partnership  currently  holds title to eleven  properties that were
foreclosed  on from  January  1, 1993  through  June 30,  1999 in the  amount of
$9,473,000,  net  of  allowance  for  losses  of  $1,184,000.  Since  1993,  the
Partnership's  investment  in real estate held for sale has increased due to the
General  Partner's  decision to stop  acquiring  from the  Partnership  property
subject to foreclosure on which the  Partnership  has a trust deed investment on
property acquired by the Partnership through  foreclosure.  When the Partnership
acquires  property  by  foreclosure,  it  typically  earns less  income on those
properties  than could be earned on  mortgage  loans and may not be able to sell
the  properties in a timely  manner.  During the six months ended June 30, 1999,
the Partnership  acquired  through  foreclosure a 91% interest in 92 residential
lots in Lake Don Pedro,  California,  on which it had a trust deed investment of
$541,000.  During the three months  ended June 30,  1999,  a 6-unit  residential
building located in Oakland,  California,  of which the Partnership  owned a 22%
interest, was sold resulting in a gain to the Partnership of $18,000.

         Seven of the Partnership's  eleven properties do not currently generate
revenue.  Expenses from rental  properties  have  decreased  from  approximately
$159,000 to $122,000  (23%) for the three  months  ended June 30, 1998 and 1999,
respectively,  due to legal,  insurance  and  payroll  expenses  incurred on the
Merced and Oakland  properties in the quarter ended June 30, 1998 which were not
incurred in 1999.  Revenues associated with these properties have decreased from
$181,000 to $161,000  (11%) during the three  months  ended June 30,  1999.  The
decrease in rental  revenues is due to rental  income  received on the  Monterey
property in the quarter  ended June 30, 1998 prior to a former  tenant  vacating
the  property.  This  tenant paid  approximately  $52,000 as compared to $18,000
earned on the property during the same quarter in 1999.

Investment in Corporate Joint Venture

         In 1995,  the  Partnership  foreclosed  on a $572,000 loan and obtained
title to a commercial  lot in Los Gatos,  California  that secured the loan.  In
1997, the Partnership  contributed the lot to a limited  liability  company (the
Company) formed with an unaffiliated  developer to develop and sell a commercial
office building on the lot. The Partnership is providing  construction financing
to the Company at prime plus two percent.

         During the six months  ended June 30,  1999 and 1998,  the  Partnership
advanced an additional $57,000 and $73,000, respectively, to the corporate joint
venture  for  development.  During  the six  months  ended  June 30,  1999,  the
Partnership  received repayment of advances in the amount of $56,000.  The total
investment in the  corporate  joint venture was $806,000 and $806,000 as of June
30, 1999 and December 31, 1998, respectively.

         The Company received all development  approvals in the third quarter of
1998 and began grading of the property in July 1999.






Interest Receivable and Due to General Partner

         Interest  receivable  increased  from  approximately  $1,381,000  as of
December  31,  1998 to  $1,424,000  as of June 30, 1999  ($43,000 or 3.1%),  due
primarily  to an  increase in the loan  portfolio  of  approximately  6% between
December 31, 1998 and June 30, 1999.

         Due to General  Partner  increased  from  approximately  $391,000 as of
December  31,  1998 to  $512,000  as of June 30,  1999  ($121,000  or 30.9%) due
primarily to an increase in the management  fees owed to the General Partner for
the  quarter  ended June 30,  1999.  Management  fees are paid  pursuant  to the
Partnership Agreement.

Cash and Cash Equivalents, Certificates of Deposit and Commercial Paper

         Cash and cash equivalents, certificates of deposit and commercial paper
have  decreased  from  approximately  $11,779,000  as of  December  31,  1998 to
$5,552,000 as June 30, 1999,  respectively  ($6,227,000 or 52.9%). This decrease
is primarily  attributable  to an increase in investment in loans during the six
months ended June 30, 1999 without loan payoffs or sales of the same amount.

Asset Quality

         Some  losses are normal  when  lending  money and the amounts of losses
vary as the loan  portfolio  is  affected by changing  economic  conditions  and
financial  experiences  of borrowers.  There is no precise  method of predicting
specific  losses or amounts  that  ultimately  may be charged off on  particular
segments of the loan portfolio.

         The conclusion  that a Partnership  loan may become  uncollectible,  in
whole or in part,  is a matter of judgment.  Although  lenders such as banks and
savings  and loans are  subject  to  regulations  that  require  them to perform
ongoing  analyses of portfolio,  loan to value ratios,  reserves,  etc.,  and to
obtain current information  regarding its borrowers and the securing properties,
the  Partnership is not subject to these  regulations  and has not adopted these
practices.  Rather,  management of the General  Partner,  in connection with the
quarterly  closing  of  the  accounting  records  of  the  Partnership  and  the
preparation of the financial  statements,  evaluates the Partnership's  mortgage
loan  portfolio.  Based  upon this  evaluation,  a  determination  is made as to
whether the  allowance for loan losses should be increased or decreased to cover
potential  losses  of  the  Partnership.  The  total  loan  loss  allowance  was
$3,500,000 as of June 30, 1999. As of then, loans secured by trust deeds include
$10,123,000 in loans  delinquent over 90 days, of which  $3,111,000 was invested
in loans  that were in the  process  of  foreclosure.  Due to the  loan-to-value
criteria  established by the General Partner, in its opinion, the mortgage loans
held by the Partnership appear in general to be adequately secured.




         The General  Partner's  judgment of the adequacy of loan loss  reserves
includes consideration of:

      economic conditions;

      borrower's financial condition;

      evaluation of industry trends;

      review and evaluation of loans identified as having loss potential; and

      quarterly review by the Board of Directors.

Liquidity and Capital Resources

         Purchases  of Units and loan  payoffs  provide the capital for mortgage
investments.  A substantial increase in general market interest rates could have
an adverse affect on the Partnership,  because then the Partnership's investment
yield  could  be lower  than  other  debt-related  investments.  In that  event,
purchases of additional  Units could decline,  which, in turn,  would reduce the
liquidity  of the  Partnership  and  its  ability  to make  additional  mortgage
investments.  In contrast,  a significant  increase in the dollar amount of loan
payoffs and/or additional limited partner investments without the origination of
new loans of the same amount would  increase the  liquidity of the  Partnership.
This  increase  in  liquidity  could  result in a decrease  in the yield paid to
limited  partners as the Partnership  would be required to invest the additional
funds in lower  yielding,  short term  investments.  The Partnership has not and
does not intend to borrow money for investment purposes.

         There was little variation in the percentage of capital  withdrawals to
total capital invested by the limited partners between 1994 and 1998,  excluding
regular  distributions  of  net  income  to  limited  partners.  The  annualized
withdrawal  percentage increased during 1999 primarily due to an increase in the
maximum  quarterly  amount  which could be withdrawn  by limited  partners  from
$75,000 to  $100,000  as a result of a change in the  Partnership  Agreement  in
December 1998.  Withdrawal  percentages have been 7.37%, 6.11%, 7.85%, 6.63% and
7.33% for the years ended December 31, 1994, 1995, 1996, 1997 and 1998 and 9.30%
(annualized) for the six months ended June 30, 1999.  These  percentages are the
annual  average of the limited  partners  capital  withdrawals  in each calendar
quarter  divided  by the total  limited  partner  capital  as of the end of each
quarter.

         The limited  partners may  withdraw,  or partially  withdraw,  from the
Partnership and obtain the return of their outstanding capital accounts at $1.00
per Unit (book value) within 61 to 91 days after  written  notices are delivered
to the General Partner, subject to the following limitations, among others:

      No  withdrawal  of Units can be  requested or made until at least one year
     from the date of purchase of those Units,  on or after the date of the most
     recent  Prospectus  dated  2/16/99,  other  than Units  received  under the
     Partnership's Reinvested Distribution Plan.

      Any such  payments  are  required  to be made only from Net  Proceeds  and
Capital Contributions (as defined) during said 91-day period.

      A maximum of $100,000  per partner may be  withdrawn  during any  calendar
quarter.

      The General  Partner is not  required to  establish a reserve fund for the
purpose of funding such payments.

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

Contingency Reserves

         The  Partnership   maintains  cash,  cash  equivalents  and  marketable
securities as contingency  reserves in an aggregate  amount of 2% of the limited
partners'  capital  accounts  to cover  expenses  in excess of revenues or other
unforeseen obligations of the Partnership. Although the General Partner believes
that  contingency  reserves  are  adequate,  it could become  necessary  for the
Partnership to sell or otherwise  liquidate  certain of its investments to cover
such contingencies on terms which might not be favorable to the Partnership.

Current Economic Conditions

         Although the current  economic  climate in Northern  California and the
Western  United  States is  generally  strong,  many  areas  outside  of the San
Francisco  Bay Area  and  throughout  the  Western  United  States  continue  to
experience  depressed  values created by the real estate  recession of the early
1990's. Other than the loss incurred in February 1998 on the sale to the General
Partner of the  manufactured-home  development in Sonora,  California,  acquired
through  foreclosure,  the  Partnership has not sustained any material losses to
date.  This has been due  primarily  to the  General  Partner's  pre-May 1, 1993
practice of purchasing  delinquent interest and loans from the Partnership prior
to  foreclosure.  The General  Partner has ceased such  practices,  except as to
loans that pre-exist the change in policy and other very limited exceptions. The
General  Partner  expects  that it will  not  purchase  delinquent  interest  or
principal on delinquent  loans in the future,  and  therefore,  the  Partnership
could  sustain  losses with respect to loans  secured by  properties  located in
areas of declining real estate  values.  This could result in a reduction of the
net income of the Partnership  for a year in which those losses occur.  There is
no way of making a reliable  estimate of these  potential  losses at the present
time.

         Despite  the  Partnership's  ability to  purchase  mortgage  loans with
relatively  strong  yields  during 1997,  1998 and the six months ended June 30,
1999, the interest rate  environment and  competition  from a variety of lenders
has had the effect of reducing mortgage yields over the past two years. Although
mortgage yields have increased over the past three months, increased competition
or changes in the  economy  could  again  have the effect of  reducing  mortgage
yields in the  future.  Current  loans  with  relatively  high  yields  could be
replaced with loans with lower yields,  which in turn could reduce the net yield
paid to the limited partners.  In addition, if there is less demand by borrowers
for loans  and,  thus,  fewer  loans for the  Partnership  to invest in, it will
invest  its  excess  cash  in  shorter-term   alternative  investments  yielding
considerably less than the current investment portfolio.

Year 2000 Readiness

         Many computer systems may experience difficulty processing dates beyond
the year 1999; as a  consequence,  some  computer  hardware and software at most
companies  will need to be modified or replaced  prior to the year 2000 in order
to remain  functional.  The General  Partner depends on the use of computers and
related  systems  to  provide  timely,  accurate  information  essential  to the
management  and  operation  of  the  Partnership.  These  systems  include  both
information technology (IT) and non-information technology (non-IT) systems. For
IT   and   non-IT    systems    developed   by    independent    third   parties
(externally-developed),  the vendors and suppliers have  represented  that these
systems are Year 2000 compliant;  however,  internal testing of these systems is
still  being  completed.  The  internally-developed  computer  programs  used to
account for  mortgage  loan  investments  are  currently in the process of being
replaced with new  externally-developed  mortgage  software  which is fully Year
2000 compliant.  This implementation  should be completed by September 1999. The
internally-developed programs used to account for investments in Units and other
items have been reviewed by independent  consultants to determine  whether these
programs are able to recognize the year 2000 and all required modifications have
been  completed.  The  consultants  are  currently in the process of testing all
modifications  that have been made.  The testing is expected to be  completed by
August of 1999.

         Although  not  anticipated  by  the  General  Partner,   a  failure  to
adequately  address  the Year 2000 issue  could  result in the  misstatement  of
reported information, the inability to accurately track mortgage investments and
payments due or other operational problems. If IT systems are not operational in
the Year 2000, the General Partner has determined that they can operate manually
for several months while  correcting  the system  problems  before  experiencing
material adverse effects on the Partnership's and the General Partner's business
and results of operations.  However,  shifting  portions of daily  operations to
manual  processes  may result in time  delays and  increased  processing  costs.
Additionally,  the  Partnership  and General  Partner may not be able to provide
borrowers  and  investors  with  timely  and  pertinent  information,  which may
negatively affect customer relations and lead to the potential loss of new loans
and limited partner investments.

         The  General  Partner is in the process of  assessing  Year 2000 issues
with third parties,  comprised  primarily of certain financial  institutions and
other vendors,  with whom the Partnership has a material  business  relationship
(Third  Parties).  Currently,  the  Partnership  believes  that if a significant
portion of these  financial  institutions  is  non-compliant  for a  substantial
length of time, the  Partnership's  operations and financial  condition would be
materially  adversely affected.  Non-compliance by other Third Parties including
borrowers is not expected to have a material effect on the Partnership's results
of operations and financial  condition unless a substantial  number of borrowers
experience difficulties. The General Partner has sent letters to these and other
Third Parties  requesting  representations  of their Year 2000  readiness and is
currently awaiting replies from the Third Parties.

         The total  costs to remedy Year 2000 issues will be paid by the General
Partner. None of such costs will be reimbursed by the Partnership.

         The worst case scenario  from the impact of Year 2000 cannot  presently
be predicted.

Forward Looking Statements and Other Year 2000 Risk Factors

         The  foregoing  analysis of Year 2000 issues  includes  forward-looking
statements  and  predictions  about  possible  or  future  events,   results  of
operations  and  financial  condition.  As such,  this  analysis may prove to be
inaccurate  because of the assumptions made by the General Partner or the actual
development  of  future  events.  No  assurance  can be given  that any of these
forward-looking  statements and predictions  will ultimately prove to be correct
or even substantially correct.

         Various other risks and  uncertainties  could also affect the Year 2000
analysis  causing the effect on the Partnership to be more severe than discussed
above. The General Partner's Year 2000 compliance  testing cannot guarantee that
all computer  systems will function  without  error beyond the Year 2000.  Risks
also exist with respect to Year 2000  compliance by Third  Parties,  such as the
risk that an external party,  who may have no relationship to the Partnership or
the General  Partner,  but who also has a significant  relationship  with one or
more  Third  Parties,  may have a system  failure  that  adversely  affects  the
Partnership's  ability  to  conduct  business.  While  the  General  Partner  is
attempting to identify such external parties,  no assurance can be given that it
will be able to do so. Furthermore, Third Parties with direct relationships with
the  Partnership,  whose systems have been  identified as likely to be Year 2000
compliant,  may suffer a breakdown due to unforeseen  circumstances.  It is also
possible that the  information  collected by the General Partner for these Third
Parties  regarding  their  compliance  with Year 2000  issues may be  incorrect.
Finally,  it should be noted that the  foregoing  discussion of Year 2000 issues
assumes that to the extent the General Partner's  systems fail,  whether because
of unforeseen  complications or because of Third Parties' failure,  switching to
manual  operations  will  allow the  Partnership  to  continue  to  conduct  its
business.  While the General Partner  believes this assumption to be reasonable,
if it is incorrect,  the  Partnership's  results of  operations  would likely be
adversely affected.


<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, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
registrant and in the capacities and on the dates indicated.


Dated:  August 13, 1999        OWENS MORTGAGE INVESTMENT FUND,
                               a California Limited Partnership

                               By:  Owens Financial Group, Inc., General Partner


Dated:   _______________       By: _________________________________
                                   William C. Owens, President


Dated:   _______________       By: _________________________________
                                   Bryan H. Draper, Chief Financial Officer


Dated:   _______________       By: _________________________________
                                   Melina A. Platt, Controller