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 September 30, 1996

                         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


                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

           BALANCE SHEETS -- SEPTEMBER 30, 1996 AND DECEMBER 31, 1995


                                                  September 30     December 31
                                                      1996             1995
                                                      ----             ----

                                        ASSETS
Cash and cash equivalents (Note 2)               $  3,999,344      $  5,056,358
Certificates of Deposit                             1,000,000           850,000
Loans secured by trust deeds (Notes 2 and 3)      157,357,944       151,350,591
less:  Allowance for loan losses (Note 2)          (3,250,000)       (3,250,000)
Real estate held for sale (Note 5)                 12,703,025         9,012,359
Unsecured Loan to General Partner (Note 4)          1,263,006         1,023,232
Interest receivable                                 1,337,041         1,359,228
Other assets                                           59,074                 0
                                                  -----------       -----------
Total Assets                                     $174,469,434      $165,401,768
                                                  ===========       ===========


                        LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accrued distributions payable                    $    512,792      $    489,157
Payable to General Partner                             52,116           152,000
Deferred income                                        96,640                 0
Other liabilities                                      24,458            16,168
                                                  -----------       -----------
Total Liabilities                                     686,006           657,325
                                                  -----------       -----------

PARTNERS' CAPITAL:
General partners (Note 6)                           1,697,887         1,623,526
Limited partners (Note 6)                         172,085,541       163,120,917
                                                  -----------       -----------
Total Partners' Capital                           173,783,428       164,744,443
                                                  -----------       -----------
Total Liabilities and Partners' Capital          $174,469,434      $165,401,768
                                                  ===========       ===========

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


<PAGE>
<TABLE>
<CAPTION>



                         OWENS MORTGAGE INVESTMENT FUND

                       (A California Limited Partnership)

                              STATEMENTS OF INCOME

     FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995

                                                              FOR THE THREE MONTHS ENDED               FOR THE NINE MONTHS ENDED
                                                              --------------------------               -------------------------
                                                             September 30      September 30           September 30    September 30
                                                                 1996              1995                    1996           1995
                                                                 ----              ----                    ----           ----
REVENUES:
<S>                                                          <C>               <C>                     <C>             <C>        
     Interest income on loans secured by trust deeds         $ 4,168,380       $ 3,965,022             $12,316,667     $11,748,234
     Other interest income                                        60,491           117,711                 156,924         197,224
                                                              ----------        ----------              ----------      ----------
     Total revenues                                          $ 4,228,871       $ 4,082,733             $12,473,591     $11,945,458
                                                              ----------        ----------              ----------      ----------

OPERATING EXPENSES:
     Management Fees paid to General Partner (Note 8)        $   121,945       $   361,832             $   338,982     $   846,600
     Servicing Fees paid to General Partner (Note 8)             107,115           102,256                 275,394         301,224
     Promotional interest (Note 8)                                20,414            12,553                  44,580          48,853
     Administrative                                               14,129            14,129                  42,387          42,387
     Legal and accounting                                          4,671            18,430                  82,568          54,690
     Net Real Estate Owned operations                            120,949            (7,178)                428,042          53,060
     Other                                                             0            10,996                  10,869          10,996
                                                              ----------        ----------              ----------      ----------
     Total operating expenses                                $   389,223       $   513,018             $ 1,222,822     $ 1,357,810
                                                              ----------        ----------              ----------      ----------
     Net income                                              $ 3,839,648       $ 3,569,715             $11,250,769     $10,587,648
                                                              ==========        ==========              ==========      ==========

     Net income allocated to general partner                 $    37,880       $    35,275             $   110,948     $   104,158
                                                              ==========        ==========              ==========      ==========

Net income allocated to limited partners                     $ 3,801,768       $ 3,534,440             $11,139,821     $10,483,490
                                                              ==========        ==========              ==========      ==========

      Net income per limited partnership
  unit (Note 8)                                              $.022             $.022                   $.065           $.067
                                                              ====              ====                    ====            ====

                          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 Nine Months Ended September 30, 1996 and 1995

                                                                            September 30             September 30
                                                                                1996                     1995
                                                                                ----                     ----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                          <C>                     <C>        
  Net Income                                                                 $11,250,769             $10,587,648

  Adjustments to reconcile net Income
      to net cash provided by operating activities
         (Increase) decrease in interest receivable                               22,187                (240,972)
         Increase (decrease) in accrued distribution payable                      23,635                  37,238
         Increase (decrease) in accounts payable/
           payable to General Partner                                            (99,884)                (90,897)
         (Increase) decrease in other assets                                     (59,074)                      0
         Increase (decrease) in deferred income                                   96,640                       0
         Increase (decrease) in other liabilities                                  8,290                       0
         Depreciation                                                             21,735                       0
                                                                              ----------              ----------
         Total adjustment                                                         13,529                (294,631)
                                                                              ----------              ----------
           Net cash provided by operating activities                          11,264,298              10,293,017
                                                                              ----------              ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
         Purchases of loans secured by  trust deeds                          (40,933,970)            (42,683,144)
         Principal collected                                                   3,855,124               1,066,547
         Loan payoffs                                                         30,831,719              39,841,821
         Investments in real estate                                           (3,690,666)             (2,405,258)
         Investments in Certificates of Deposit (net)                           (150,000)                      0
                                                                              -----------             ----------
           Net cash provided by (used in)
             investing activities                                            (10,087,793)             (4,180,034)
                                                                              ----------              ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
         Proceeds from sale of partnership Units                              12,923,304              11,213,731
         Cash distributions                                                   (4,552,492)             (4,295,801)
         Capital withdrawals                                                 (10,599,501)             (7,551,372)
                                                                              ----------              ----------
           Net cash provided by (used in)
             financing activities                                             (2,228,689)               (634,442)
                                                                              -----------             ----------

INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                                                 (1,057,014)              5,478,541
CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                                          5,056,358               2,153,706
                                                                              ----------              ----------
CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                                                              $ 2,717,332             $ 7,632,247
                                                                              ==========              ==========

                          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
                               SEPTEMBER 30, 1996


(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  175,128,877  at September 30, 1996. As of
September 30, 1996,  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.

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 $3,250,000 as of
September 30, 1996.  Management of the Partnership  believes that this allowance
is  adequate  based on a variety of factors  including:  historical  experience,
review  of  the  loans  and  their  respective  collateral,   the  current  loan
delinquency  rate and OFG's  practices  of  advancing  certain  amounts to or on
behalf of the  Partnership  and  purchasing  certain  delinquent  loans from the
Partnership.  Evaluation of loans for purposes of determining  the allowance for
loans losses does not contemplate possible interest payments on loans that might
be made by the Corporate General Partner to the Partnership.
    

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 OFG or when the payment of
principal or interest is ninety days past due,  unless OFG  continues to advance
interest payments to the Partnership.  As of September 30, 1996 and December 31,
1995,  the  Partnership  had  loans  totaling   approximately   $12,781,000  and
$12,037,000,  respectively,  that were more than ninety days delinquent of which
approximately  $11,470,000  and  $8,309,000,  respectively,  were  classified as
non-accrual  loans.  The  Partnership's  investment  in loans  for which OFG has
provided   advances  for   delinquent   interest   payments  over  90  days  was
approximately  $1,311,000  and $3,728,000 at September 30, 1996 and December 31,
1995, respectively.

Although OFG currently  advances  interest payments to the Partnership on only a
small percentage of the delinquent  loans held by the Partnership,  it continues
to make advances of other  payments such as property  taxes,  mortgage  interest
pursuant to senior  indebtedness,  insurance and development costs made to or on
behalf of the Partnership.  OFG has made advances of approximately  $452,000 and
$1,218,000 during the nine months ended September 30, 1996 and the twelve months
ended  December 31, 1995,  respectively,  which had not been  reimbursed  by the
borrower as of the same date. The  Partnership  has no obligation to repay these
advances to OFG.

In  addition,  OFG  purchased a note from the  Partnership  at its face value of
$870,000 and foreclosed on and obtained  title to the underlying  real estate in
the first quarter of 1996. During 1995, OFG assumed the  Partnership's  interest
in a loan at the face amount of $591,000 and was  foreclosed out of such loan by
the senior lienholder.  Furthermore,  during 1995, OFG assumed the obligation to
the Partnership for a shortfall of $525,000 on the payoff of a Partnership  loan
(see Note 4).

    (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)    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.

    (f)    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 September 30, 1996 and December 31, 1995 were
as follows:

                                         September 30              December 31
                                            1996                     1995
                                            ----                     ----

   Income-producing properties          $149,348,359             $142,597,751
   Single-family residences                3,185,683                2,249,616
   Unimproved land                         4,823,902                6,503,224
                                         -----------              -----------
                                        $157,357,944             $151,350,591
                                         ===========              ===========

   First mortgages                      $143,425,966             $136,110,802
   Second mortgages                       13,355,706               14,660,759
   Third mortgages or all-inclusive
      deeds of trust                         576,272                  579,030
                                         -----------              -----------
                                        $157,357,944             $151,350,591
                                         ===========              ===========

Loan maturities range from 1996 to 2011, with approximately 38% ($60,194,000) of
the loan principal  outstanding at September 30, 1996 maturing in 1996 and 1997.
These  maturities  include  approximately  $16,578,000  in loans  which are past
maturity as of September 30, 1996, of which approximately  $7,141,000 represents
loans for which interest  payments are delinquent  over 90 days. The Partnership
refinanced loans totaling  approximately  $3,511,000 and $16,350,000  during the
nine months  ended  September  30, 1996 and the year ended  December  31,  1995,
respectively, thereby extending the maturity dates of such loans.

The  Partnership's  total  investment  in loans  delinquent  over ninety days is
approximately $12,781,000 and $12,037,000 at September 30, 1996 and December 31,
1995,  respectively.  As of September  30, 1996 and  December  31, 1995,  OFG is
providing   non-recourse  advances  for  the  delinquent  interest  payments  on
approximately $1,311,000 and $3,728,000, respectively, of such loans.

As of September 30, 1996 and December 31, 1995, the Partnership's  loans secured
by deeds of trust on real  property  collateral  located in Northern  California
totaled approximately 67% ($106,127,000) and 79% ($120,744,000), respectively of
the loan portfolio.  The Northern  California  region 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 basis in the loan balance and to
record a deed of trust on the underlying property.


(4)     UNSECURED LOANS DUE FROM GENERAL PARTNER

During  1993,  OFG  sold  various  properties  that  it had  acquired  from  the
Partnership through foreclosure proceedings on Partnership loans assumed in 1992
and 1993.  The  sales  proceeds  were  insufficient  to repay the  Partnership's
investment in the related mortgage notes. Accordingly, OFG executed an unsecured
note payable to the Partnership in the aggregate amount of $1,411,112 to satisfy
OFG's obligation pursuant to an expired Limited Indemnification Agreement.

During 1994, OFG sold one property acquired through foreclosure proceedings on a
Partnership  loan assumed in 1993 and was foreclosed out of the second  position
by the holder of the first deed of trust on a Partnership  loan assumed in 1994.
The  proceeds  from  these   transactions   were   insufficient   to  repay  the
Partnership's  investment  in  the  related  mortgage  notes.  Though  under  no
obligation to do so, OFG assumed the losses of $960,512 and added this amount to
the outstanding balance of the unsecured note payable.

During 1995,  OFG assumed the obligation to the  Partnership  for a shortfall on
the  discounted  payoff  of a  mortgage  and was  foreclosed  out of the  second
position  of a loan by the  holder of the first  deed of trust on a  Partnership
loan  assumed in 1995.  Though  under no  obligation  to do so, OFG  assumed the
losses  on  these  transactions  of  $902,357  and  added  this  amount  to  the
outstanding balance of the unsecured note payable.

During the first quarter of 1996, OFG assumed the obligation to the  Partnership
on a loan in the amount of $870,000 and foreclosed on the property securing such
loan.  This amount was added to the  outstanding  balance of the unsecured  note
payable.

As of  September  30,  1996,  OFG has repaid  $2,880,975  in  principal  on this
unsecured loan leaving a balance due of $1,263,006. The note carries an interest
rate of 8% and is current.  If OFG had not purchased these properties and loans,
the yield to the Partnership would have been decreased.


(5)     REAL ESTATE HELD FOR SALE AND MORTGAGE PAYABLE

Real  estate held for sale at  September  30,  1996  consists  of the  following
properties acquired through foreclosure in 1993, 1994, 1995 and 1996:

     Warehouse, Merced, California, net of valuation
       allowance of $350,000 as of September 30, 1996                $   650,000
     Residential lots and residential units currently under
       construction, Carmel, California                                4,438,032
     Light industrial, Emeryville, California                            920,919
     70% interest in undeveloped land, Vallejo, California               568,569
     Commercial lot, Sacramento, California, net of valuation
       allowance of $250,000 as of September 30, 1996                    299,828
     Office building, Monterey, California                             2,103,942
     Undeveloped land, Los Gatos, California                             571,853
     Retail lot, Milpitas, California and Residence,
       Campbell, California                                              661,532
     Commercial building, Sacramento, California                         550,000
     Residential lots, Sonora, California                              1,708,350
     Undeveloped land, Reno, Nevada                                      230,000
                                                                      ----------
              Total                                                  $12,703,025

Real estate held for sale has  increased  in recent  years due to the  Corporate
General Partner's policy to not acquire such properties through foreclosure.  In
addition,   the  Partnership  has  invested   substantial   amounts  of  capital
($3,338,032) in excess of the mortgage  balance in the residential  lots located
in Carmel Valley, California during the development process.


(6)     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,  1996 and October, 1996
on their  capital  balances  at  December  31,  1995  and  September  30,  1996,
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  $6,698,287  and
$6,296,933 for the nine months ended September 30, 1996 and 1995, 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  September  30,  1996,  the general  partners had made cash
capital contributions of $870,951 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 $20,414 and
$12,553 for the three months ended  September  30, 1996 and 1995,  respectively,
and $44,580 and $48,853 for the nine months ended  September  30, 1996 and 1995,
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 $870,951 at September 30, 1996), 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 September 30, 1996 and December 31, 1995
were  approximately  $3,503,000  and  $3,324,000,  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 $1,339,458 and $1,359,228 at September
30, 1996 and December 31, 1995, 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 $107,000 and $102,000 for the three months ended September 30, 1996
and 1995,  respectively  and  $275,000  and  $301,000  for the nine months ended
September 30, 1996 and 1995, respectively..  Management fee income to OFG earned
on loans  invested in by the Fund  approximated  $122,000  and  $362,000 for the
three months ended September 30, 1996 and 1995,  respectively and  approximately
$339,000 and $847,000  for the nine months  ended  September  30, 1996 and 1995,
respectively.

OFG is the obligor on two notes  payable to the  Partnership  totaling  $492,322
which are secured by  properties  owned by OFG as of September  30, 1996.  These
notes are interest  only,  due on demand and are current.  Although the terms of
the loans between the Partnership and OFG may or may not be at market rate, they
are considered adequate and reasonable.

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  $424,000  and
$500,000 for the three months ended  September  30, 1996 and 1995,  respectively
and approximately  $1,340,000 and $1,397,000 for the nine months ended September
30, 1996 and 1995, 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.

Due to General  Partner at September  30, 1996 and December 31, 1995 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  and nine  month
periods.  These amounts were  $173,549,000 and $163,073,000 for the three months
ended  September  30,  1996  and  1995,   respectively   and   $169,302,059  and
$157,356,000   for  the  nine  months  ended   September   30,  1996  and  1995,
respectively.


<PAGE>



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

Results of Operations

The net income increases of approximately  $270,000 (7.56%) for the three months
ended  September  30, 1996 as compared to the three months ended  September  30,
1995 and of  approximately  $663,000 (6.26%) for the nine months ended September
30, 1996 as compared to the nine months ended  September 30, 1995 were primarily
attributable  to the  increases in the average  mortgage  investments  and other
notes  receivable held by the  Partnership  from  approximately  $145,176,000 to
$155,699,000   for  the  three  months  ended   September  30,  1995  and  1996,
respectively  and from  approximately  $146,747,000 to $156,519,000 for the nine
months ended September 30, 1996 and 1995, respectively.

The average net yield of the  Partnership  increased from 8.77% to 8.79% for the
three months ended September 30, 1995 and 1996,  respectively and decreased from
8.83%  to  8.79%  for the  nine  months  ended  September  30,  1995  and  1996,
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.   These   variations  in  yield  are  minor  and  not  considered
significant.

Although there has recently been only slight  variations in the net yield of the
Partnership, its interest income on loans secured by trust deeds as a percentage
of trust deed  envestments  decreased  from 2.73% to 2.68% for the three  months
ended September 30, 1995 and 1996, respectively, and from 8.00% to 7.87% for the
nine months ended  September 30, 1995 and 1996,  respectively.  The net yield of
the Partnership has not varied  proportionately with the changes in the interest
income on loans  secured by trust deeds because the  management  fees charged by
the Corporate General Partner have decreased.

These relative  decreases in gross income of the Partnership have been partially
due to the fact that,  as of November 1, 1994,  the  Corporate  General  Partner
discontinued  its  previous  practice of making  payments on certain  delinquent
loans  held by the  Partnership  which  were  originated  prior to May 1,  1993.
Non-performing  loans held by the  Partnership  on which the  Corporate  General
Partner was not advancing payments increased from approximately $3,924,000 (2.7%
of the loan portfolio) to approximately $11,470,000 (7.3% of the loan portfolio)
while the amount of loans for more than ninety days increased from approximately
$9,774,000  (6.7% of the loan portfolio) to approximately  $12,781,000  (8.1% of
the portfolio) as of September 30, 1995 and 1996, respectively.

In addition to the increase in non-performing  loans, there has been an increase
in the  Partnership's  real  estate  held for sale which  operates at an overall
loss.  Although  real estate  held for sale is  expected to generate  profits in
subsequent periods, it currently has a negative effect on earnings.  Real estate
held  for  sale  increased  from   approximately   $7,035,000  to  approximately
$12,703,000  as of  September  30,  1995 and 1996,  respectively.  Approximately
$2,798,000  of the  increase  has  been  due  to  additional  capitalized  costs
associated with the development of the Carmel Valley Ranch property.  (See "Real
Estate Owned").

The Corporate General Partner has  significantly  reduced the management fees it
collects to offset the loss of revenues to the Partnership. Management fees paid
to the  Corporate  General  Partner  decreased  from  approximately  $362,000 to
$122,000 for the three months ended  September  30, 1995 and 1996,  respectively
and from approximately  $847,000 to $339,000 for the nine months ended September
30, 1995 and 1996, respectively.


Portfolio Review

The number of Partnership mortgage  investments  decreased from 237 to 232 as of
September 30, 1995 and 1996,  respectively.  The average loan balance  increased
from $618,660 to $678,267 as of September 30, 1995 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 made all periodic interest payments
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 advance  delinquent  interest or  principal.  As of September  30,
1996, there were  approximately  $11,470,000 in loans held by the Partnership on
which payments were more than 90 days  delinquent and on which payments were not
being advanced by the Corporate  General Partner.  The Corporate General Partner
has  advanced  approximately  $71,000 in  delinquent  interest  payments  to the
Partnership  from  January  1,  1996 to  September  30,  1996  that had not been
collected from the borrower by the Corporate General Partner as of September 30,
1996.

Approximately $12,781,000 (8.1%) and $12,037,000 (8.0%) of the loans invested in
by the Fund were more than 90 days  delinquent  in payment as of  September  30,
1996 and  December  31,  1995,  respectively.  Of these  amounts,  approximately
$10,486,000  (6.6%) and $8,484,000  (5.8%) were in the process of foreclosure as
of September 30, 1996 and and December 31, 1995, respectively.

A loan loss reserve in the amount of $3,250,000  was  maintained on the books of
the  Partnership as of September 30, 1996 and December 31, 1995. As of this date
the General Partners have determined that this loan loss reserve is adequate.

As of  September  30,  1996 and  December  31, 1995  approximately  67% and 79%,
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 September 30, 1996 and
December 31, 1995:

                                                  Principal Amount
                                        September 30             December 31
                                            1996                    1995
                                            ----                    ----
                                           (000)                   (000)

Single-Family Dwellings                   $  3,186                $  2,250
Income-Producing Property                  149,348                 142,598
Unimproved Land                              4,824                   6,503
                                           -------                 -------
                                          $157,358                $151,351
                                           =======                 =======

First Mortgages                           $143,426                $136,111
Second Mortgages                            13,356                  14,661
Third Mortgages or All-inclusive
  Deeds of Trust                               576                     579
                                           -------                  ------
                                          $157,358                $151,351
                                           =======                 =======

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 September 30, 1996:

                                 Delinquent                      Year
       Principal                 Interest                    Foreclosed
       $1,025,581                 $150,295                      1993
           58,000                    4,417                      1994
        2,501,308                  252,810                      1995
          870,000                   58,000                      1996

The  Corporate  General  Partner has  advanced  all  delinquent  interest to the
Partnership  on the loans  foreclosed on in 1993,  1994 and 1995. The delinquent
interest on the loan foreclosed on in 1996 was never advanced to the Partnership
by the Corporate General Partner. Of these foreclosed loans the Partnership held
two mortgages  totaling $492,322 as of September 30, 1996 on which the Corporate
General  Partner was making  payments  which were  current.  The  $870,000  loan
foreclosed on in 1996 was added to the Unsecured Loan to General Partner balance
at the time of foreclosure.


Real Estate Owned
The Partnership  currently holds title to the following eleven  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
-----------                            ------                 -----             ------------            -----
Light Industrial Warehouse
<S>                                     <C>                <C>                  <C>                   <C>      
Merced, CA                              $ 1,000,000 (2)    $         0          $ 175,333             $       0

Residential Lots and Homes
  in Construction
Carmel Valley, CA                       $   600,000        $ 3,838,032 (4)      $ 141,750             $       0

Light Industrial Warehouse0

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 (5)      $  30,077             $       0

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

Retail Lot/Residence
Milpitas, CA/Campbell, CA               $   661,532        $         0          $  17,500             $ 157,769 (6)

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

Residential Lots
Sonora, CA                              $ 1,691,425        $    16,925          $ 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
        $500,000.

(5)     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.

(6)    The senior loan is secured by the residence.
</FN>
</TABLE>

With the  exception of the light  industrial  warehouse  located in  Emeryville,
California,  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,  the
commercial  land located in Sacramento,  California,  and the  residential  lots
located in Sonora,  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  General  Partner  has not yet
determined a loss allowance on the Sonora property.

The  Partnership  has entered into a joint venture  agreement  with an unrelated
developer/builder  for the  development  and  buildout  of 30  residential  lots
located in Carmel  Valley,  California  which lots are to be  contributed by the
Partnership to the joint venture at a future time. The joint venture  agreeement
provides  for the  Partnership  to receive a priority  return of  principal  and
interest on any development  capital contributed to the venture in addition to a
priority return of $70,000 per lot. The Partnership is entitled to an allocation
of 70% of any profits  from the  venture.  The  infrastructure  work,  including
roads,  drainage and utility tie-ins,  has been completed in the development for
which the  Partnership has advanced  approximately  $761,000.  In addition,  the
Partnership has advanced  approximately  $2,577,000 for unit construction costs,
taxes,  fees  and  other  costs.  Construction  of  residential  units  began in
February,  1996 and sales of  residential  units is anticipated to begin in late
1996.

The  Partnership  leased  out the  majority  of the office  building  located in
Monterey,  California to a publicly-traded company at the end of 1995, and lease
payments began in January,  1996. The Corporate  General  Partner  expects to be
able to operate the property profitably,  lease up the remaining space and place
the property on the market for sale.

The  Partnership's  investment in Real Estate Owned has  increased  during 1993,
1994, 1995 and 1996 due to the Corporate General Partner's policy to not acquire
property  subject  to  foreclosure  on which the  Partnership  has a trust  deed
investment. In addition, the Partnership has invested substantial amounts in the
development  of the Carmel  Valley  project on which sales  should begin in late
1996.


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:  November 15, 1996                   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