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, 1997

                         Commission file number O-17248


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


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


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

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



        Indicate by check mark whether the  registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No_________


<PAGE>



PART I. FINANCIAL INFORMATION


Item 1. Financial Statements
<TABLE>
<CAPTION>


                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

           BALANCE SHEETS -- SEPTEMBER 30, 1997 AND DECEMBER 31, 1996


                                                                           September 30           December 31
                                                                               1997                  1996
                                                                               ----                  ----

                                                          ASSETS
<S>                                                                      <C>                      <C>        
Cash and cash equivalents (Note 2)                                       $    3,018,971          $  11,386,661
Certificates of Deposit                                                       1,000,000                850,000
Loans secured by trust deeds (Notes 2 and 3)                                174,427,447            154,148,933
less:  Allowance for loan losses (Note 2)                                    (3,500,000)            (3,500,000)
Real estate held for sale (Note 6)                                           10,122,006              7,743,295
Investment in Limited Partnership (Note 2 and 5)                              3,189,256              4,877,798
Unsecured Loan to General Partner (Note 4)                                            0                488,764
Interest receivable                                                           1,388,381              1,321,493
Other assets                                                                     59,074                 59,074
                                                                         --------------         --------------
Total Assets                                                               $189,705,135           $177,376,018
                                                                            ===========            ===========


                                            LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accrued distributions payable                                            $      529,138         $      511,456
Accounts payable and accrued liabilities                                         24,632                 24,458
Deferred income                                                                 132,742                      0
                                                                          -------------     ------------------

Total Liabilities                                                               686,512                535,914
                                                                          -------------          -------------

PARTNERS' CAPITAL:
General partners (Note 7)                                                     1,849,034              1,732,726
Limited partners (Note 7)                                                   187,169,589            175,107,378
                                                                            -----------            -----------
Total Partners' Capital                                                     189,018,623            176,840,104
                                                                            -----------            -----------
Total Liabilities and Partners' Capital                                    $189,705,135           $177,376,018
                                                                            ===========            ===========
</TABLE>

                     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 AND NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

                                                        FOR THE THREE MONTHS ENDED           FOR THE NINE MONTHS ENDED
                                                        --------------------------           -------------------------
                                                        September 30      September 30      September 30    September 30
                                                           1997              1996               1997            1996
                                                           ----              ----               ----            ----
  REVENUES:
     <S>                                               <C>                  <C>            <C>              <C>         
     Interest income on loans secured by trust deeds    $ 4,572,435        $ 4,168,380     $ 13,251,545     $ 12,316,667
     Gain from limited partnership (Note 5)                 381,173                  0        1,974,586                0
     Rental income                                           76,644             94,368          240,160          282,705
     Interest income from limited partnership (Note 5)       67,842                  0          274,556                0
     Other interest income                                   83,044             60,491          367,053          156,924
     Other income                                           107,848                  0          158,077                0
                                                        -----------        -----------      -----------      -----------
     Total revenues                                     $ 5,288,986        $ 4,323,239     $ 16,265,977     $ 12,756,296
                                                        -----------        -----------      -----------      -----------

OPERATING EXPENSES:
     Management Fees paid to General Partner (Note 9)   $   895,820        $   121,945     $  3,121,387     $    338,982
     Servicing Fees paid to General Partner (Note 9)         99,006            107,115          337,664          275,394
     Promotional interest (Note 9)                           19,203             20,414           59,856           44,580
     Administrative                                          14,299             14,129           42,557           42,387
     Legal and accounting                                        60              4,671           77,914           82,568
     Real Estate Owned expenses                              87,530            215,317          323,322          710,747
     Other                                                        0                  0            8,843           10,869
                                                        -----------        -----------      -----------      -----------
     Total operating expenses                           $ 1,115,918        $   483,591     $  3,971,543      $ 1,505,527
                                                        -----------        -----------      -----------      -----------
     Net income                                         $ 4,173,068        $ 3,839,648     $ 12,294,434      $11,250,769
                                                        ===========        ===========      ===========      ===========

     Net income allocated to general partner            $    40,715        $    37,880     $    119,496      $   110,948
                                                        ===========        ===========      ===========      ===========

Net income allocated to limited partners                $ 4,132,353        $ 3,801,768     $ 12,174,938      $11,139,821
                                                        ===========        ===========      ===========      ===========

Net income per limited partnership unit (Note 8)              $.022              $.022            $.065            $.065
                                                               ====               ====             ====             ====
</TABLE>

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


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

                            STATEMENTS OF CASH FLOWS

              For the Nine Months Ended September 30, 1997 and 1996

                                                                            September 30            September 30
                                                                                1997                    1996
                                                                                ----                    ----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                        <C>                     <C>          
     Net Income                                                            $  12,294,434           $  11,250,769

Adjustments to reconcile net Income
      to net cash provided by operating activities
     (Increase) decrease in interest receivable                                  (66,888)                 22,187
     Increase (decrease) in accrued distribution payable                          17,682                  23,635
     Increase (decrease) in accounts payable/accrued liability                       174                 (99,884)
     (Increase) decrease in other assets                                               0                 (59,074)
     Increase (decrease) in deferred income                                      132,742                  96,640
     Increase (decrease) in other liabilities                                          0                   8,290
     Depreciation                                                                      0                  21,735
                                                                            ------------            ------------
     Total adjustment                                                             83,710                  13,529
                                                                            ------------            ------------
       Net cash provided by operating activities                              12,378,144              11,264,298
                                                                            ------------            ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of loans secured by  trust deeds                              (63,406,952)            (41,173,774)
     Principal collected                                                       1,495,912               3,855,124
     Loan payoffs                                                             41,632,527              30,831,719
     Investments in real estate                                               (2,378,711)             (3,690,666)
     Investment in limited partnership                                         1,688,542                       0
     Unsecured loan to General Partner                                           488,764                 239,774
     Investments in Certificates of Deposit (net)                               (150,000)               (150,000)
                                                                            -------------           -------------
       Net cash provided by (used in)
         investing activities                                                (20,629,918)            (10,087,793)
                                                                            ------------            -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from sale of partnership Units                                  13,176,560              12,923,304
     Cash distributions                                                       (4,587,638)             (4,552,492)
     Capital withdrawals                                                      (8,704,838)            (10,599,501)
                                                                            -------------           ------------
       Net cash provided by (used in)
         financing activities                                                   (115,916)             (2,228,689)
                                                                            -------------           -------------

INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                                                 (8,367,690)             (1,057,014)
CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                                         11,386,661               5,056,358
                                                                            ------------            ------------
CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                                                            $   3,018,971           $   2,717,332
                                                                            =============           ============
</TABLE>

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


<PAGE>


                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1997


(1)    ORGANIZATION AND OPERATIONS

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

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

The general partners are authorized to offer and sell and have outstanding up to
an aggregate of 250,000,000  units  outstanding at $1.00 per unit,  representing
$250,000,000  of  limited  partnership  interests  in the  Partnership.  Limited
Partnership  Units  outstanding  were  187,365,609  at September 30, 1997. As of
September 30, 1997,  the  Partnership  had  registered  $321,570,324  of limited
partnership interests with the Securities and Exchange Commission.


(2)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

     (a) General

     The  unaudited   interim   financial   statements   furnished  reflect  all
adjustments  which are normal and  recurring  in nature  and,  in the opinion of
management, necessary to a fair statement of the results for the interim periods
presented.
     
     (b) Loans Secured by Trust Deeds

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

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

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

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

    (c)  Allowance for Loan Losses

The Partnership maintains an allowance for loan losses equal to $3,500,000 as of
September  30,  1997.  Management  of the  Partnership  believes  that  based on
historical experience and a review of the loans and their respective collateral,
the allowance for loans losses is adequate in amount.

Through  October 31, 1994,  OFG  purchased  the  Partnership's  receivables  for
delinquent  interest  on  loans  originated  prior  to  May  1,  1993  from  the
Partnership on a non-recourse  basis.  However,  effective November 1, 1994, OFG
discontinued its practice of purchasing  interest  receivable for certain loans.
The  outstanding  balance of all loans  delinquent  greater than ninety days was
$7,952,000  and  $11,348,000  as of  September  30, 1997 and  December 31, 1996,
respectively.  The  Partnership  discontinues  the  accrual of interest on loans
when,  in the  opinion of  management,  there is a  significant  doubt as to the
collectibility  of interest or  principal  from either the  borrower or when the
payment of principal or interest is ninety days past due,  unless OFG  purchases
the interest  receivable  from the  Partnership.  As of  September  30, 1997 and
December 31, 1996, of the aforementioned  loans,  those totaling  $6,465,000 and
$10,012,000, respectively, were classified as non-accrual loans.

OFG advances certain payments to the Partnership on behalf of borrowers, such as
property  taxes,   mortgage  interest  pursuant  to  senior  indebtedness,   and
development costs.  Purchases of interest  receivable and payments made on loans
by OFG for the nine months ended  September  30, 1997,  but not  collected as of
September 30, 1997, totaled approximately $252,000. During the nine months ended
September 30, 1997 OFG purchased the Partnership's  interest in two loans in the
amount of approximately $340,000.

    (d)  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.

    (e)    Certificates of Deposit

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

    (f)    Investment in Limited Partnership

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

    (g)    Real Estate Held for Sale

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

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

    (h)    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, 1997 and December 31, 1996 were
as follows:

                                                September 30        December 31
                                                    1997                 1996
                                                    ----                 ----

    Income-producing properties                $167,244,189        $145,999,756
    Single-family residences                      2,089,320           3,935,546
    Unimproved land                               5,093,938           4,213,631
                                                -----------         -----------
                                               $174,427,447        $154,148,933
                                                ===========         ===========

    First mortgages                            $160,945,819        $139,542,698
    Second mortgages                             12,778,066          14,006,235
    Third mortgages or all-inclusive
      deeds of trust                                703,562             600,000
                                                -----------         -----------
                                               $174,427,447        $154,148,933
                                                ===========         ===========

Loan maturities range from 1997 to 2015, with approximately 42% ($73,289,000) of
the loan  principal  outstanding  at September 30, 1997 maturing by December 31,
1998. These maturities include approximately $22,934,000 in loans which are past
maturity as of September 30, 1997, of which approximately  $3,710,000 represents
loans for which interest  payments are delinquent over 90 days. In addition,  of
the  $22,934,000 in loans which were past maturity as of September 30, 1997, the
Corporate  General  Partner has entered into  forebearance  agreements  with the
borrowers on approximately $3,200,000 of such loans thereby informally extending
the maturity dates.  The  Partnership  refinanced  loans totaling  approximately
$15,759,000  and $5,400,000  during the nine months ended September 30, 1997 and
the year ended December 31, 1996,  respectively,  thereby extending the maturity
dates of such loans.

The  Partnership's  total  investment  in loans  delinquent  over ninety days is
approximately  $7,952,000 and $11,348,000 at September 30, 1997 and December 31,
1996,  respectively.  As of September  30, 1997 and  December 31, 1996,  OFG was
purchasing the delinquent  interest  receivable on loans totaling  approximately
$1,487,000 and $1,336,000, respectively.

As of September 30, 1997 and December 31, 1996, the Partnership's  loans secured
by deeds of trust on real  property  collateral  located in Northern  California
totaled approximately 63% ($110,619,000) and 73% ($113,204,000), respectively of
the loan portfolio. The Northern California region (which includes the following
counties and all counties north: Monterey,  Fresno, Kings, Tulare and Inyo) is a
large geographic area which has a diversified economic base. The amount of loans
secured by deeds of trust on real property  collateral in Northern California in
relation  to the total  amount  of deeds of trust  held by the  Partnership  has
decreased in recent  periods due to the Corporate  General  Partner's  increased
loan activity in other areas,  most notably Southern  California and the Pacific
Northwest.  The ability of the  borrowers  to repay loans is  influenced  by the
strength of the region and the impact of prevailing  forces on the value of real
estate.  Such loans are secured by deeds of trust on real estate  properties and
are expected to be repaid from the cash flow of the  properties or proceeds from
the sale or refinancing of the  properties.  The policy of the Partnership is to
require real property collateral with a value, net of senior indebtedness,  that
exceeds the carrying amount of the loan balance and to record a deed of trust on
the underlying property.


(4)     UNSECURED LOANS DUE FROM GENERAL PARTNER

OFG has historically  purchased certain  delinquent loans subject to foreclosure
and Real estate held for sale of the  Partnership  using the Unsecured  Loan due
from General  Partner to finance the  purchases.  OFG is under no  obligation to
enter into such transactions with the Partnership.

     The balance of the unsecured loan due from OFG has been reduced by payments
and totals $0 and  $488,764 as of  September  30, 1997 and  December  31,  1996,
respectively. The note bears interest at 8% and is due on demand.


(5)     INVESTMENT IN LIMITED PARTNERSHIP

In 1993, the Partnership  foreclosed on a loan in the amount of $600,000 secured
by a junior lien on 30 residential  lots located in Carmel  Valley,  California,
and,  in  1994,  paid  off  the  senior  loan in the  amount  of  $500,000.  The
Partnership  incurred  additional  costs of $502,768 to protect its  investment,
increasing the carrying value of the lots to $1,602,798.  The Partnership  began
to develop the lots and incurred an additional $671,118 in costs during 1995.

During 1996, the Partnership  contributed the lots into WV-OMIF  Partners,  L.P.
(WV-OMIF  Partners),  a limited  partnership  formed between the Partnership and
Wood Valley  Development,  Inc.  (Woodvalley).  The  Partnership  also  provides
advances to WV-OMIF Partners to develop and construct single family homes on the
30 lots  contributed  and had  made net  additional  advances  of  approximately
$2,346,000  from January 1, 1996 through  September 30, 1997. The Partnership is
entitled  to  receive  interest  at a rate of prime plus 2% on the  advances  to
WV-OMIF  Partners.  WV-OMIF  Partners  sold  one  home in 1996  and  distributed
approximately  $479,000 to OMIF,  $187,000  representing  income and the balance
return of capital.  During the nine months ended  September  30,  1997,  WV-OMIF
Partners  sold 14  homes  and  distributed  approximately  $6,511,000  to  OMIF,
$2,249,000  representing  income and the balance return of capital. In addition,
the  Partnership  receives  reimbursements  from a  limited  partnership  formed
between the Corporate  General Partner and Woodvalley to purchase 34 lots, which
are contiguous and interspersed with those lots owned by WV-OMIF Partners,  from
an unrelated  entity and construct  single family homes.  During the nine months
ended  September 30, 1997, this limited  partnership  reimbursed the Partnership
approximately  $629,000  for costs  incurred by the  Partership  which  provided
benefit to all lots, not just those owned by WV-OMIF Partners.


(6)     REAL ESTATE HELD FOR SALE

Real  estate held for sale at  September  30,  1997  consists  of the  following
properties  acquired through  foreclosure from January 1, 1993 through September
30, 1997:

    Warehouse, Merced, California, net of valuation
      allowance of $350,000 as of September 30, 1997               $     650,000
    70% interest in undeveloped land, Vallejo, California                579,662
    Commercial lot, Sacramento, California, net of valuation
      allowance of $250,000 as of September 30, 1997                     299,828
    Office building, Monterey, California                              2,102,548
    Undeveloped land, Los Gatos, California                              578,742
    Commercial building, Sacramento, California                          550,000
    Residential lots, Sonora, California                               1,857,968
    Residential lots, Ione, California                                 2,829,193
    Self storage, Oakland, California                                    444,065
    Undeveloped land, Reno, Nevada                                       230,000
                                                                     -----------
              Total                                                  $10,122,006
                                                                     ===========

Real estate held for sale has  generally  increased  in recent  years due to the
Corporate General Partner's policy to not purchase  properties  acquired through
foreclosure or loans in the process of  foreclosure  from the  Partnership.  The
Partnership  disposed of two properties at a slight profit and foreclosed on two
additional loans in the nine months ended September 30, 1997. This activity,  in
addition to other capitalized  items,  increased the balance of Real estate held
for sale as of September  30, 1997 by  approximately  $2,379,000  as compared to
December 31, 1996.


(7)     PARTNER'S CAPITAL

    (a)    Contributions

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

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

    (b)    Allocations, Distributions and Withdrawals

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

Distributions  are made monthly to the partners in proportion to the  respective
units owned during the preceding calendar month. Accrued  distributions  payable
represent amounts to be paid to the partners in January,  1997 and October, 1997
on their  capital  balances  at  December  31,  1996  and  September  30,  1997,
respectively.

The Partnership makes cash  distributions to those limited partners who elect to
receive such distributions. Those limited partners who elect not to receive cash
distributions have their distributions reinvested to purchase additional limited
partnership  units.  Such  reinvested   distributions   totaled  $2,565,758  and
$2,296,343 for the three months ended September 30, 1997 and 1996,  respectively
and $7,550,799  and $6,698,287 for the nine months ended  September 30, 1997 and
1996, respectively.

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

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

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

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

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

    (c)    Promotional Interest of General Partners

OFG contributes cash to the  Partnership's  capital in the amount of 0.5% of the
limited  partners  aggregate  capital   contributions  and,  together  with  its
promotional  interest,  OFG has an interest equal to 1% of the limited  partners
contributions.  This promotional interest of up to 1/2 of 1% is expensed monthly
by the  Partnership  and  credited as a  contribution  to the  general  partners
capital  account as  additional  compensation.  As of September  30,  1997,  the
general  partners  had  made  cash  capital  contributions  of  $944,699  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 $19,203 and
$20,414 for the three months ended September 30, 1997 and 1996, respectively and
$59,856  and  $44,580 for the nine  months  ended  September  30, 1997 and 1996,
respectively.


(7)     CONTINGENCY RESERVES

In accordance  with the partnership  agreement and to satisfy the  Partnership's
liquidity  requirements,  the  Partnership  is required to maintain  contingency
reserves  (as  defined)  in an  aggregate  amount of at least  1.5% of the gross
proceeds of the sale of limited partnership units. The cash capital contribution
of the general  partners  (amounting to $944,698 at September 30, 1997), up to a
maximum of .5% of the limited partners' capital contributions, will be available
as additional contingency reserve, if necessary.

     The  contingency  reserves  required at September 30, 1997 and December 31,
1996 were approximately $3,807,000 and $3,400,000,  respectively.  Cash and cash
equivalents as of the same dates were restricted accordingly.


(8)     TRANSACTIONS WITH AFFILIATES

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

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

Interest  income on loans secured by trust deeds is collected by OFG and,  along
with  advances on certain  delinquent  loans,  is  remitted to the  Partnership.
Interest  receivable from OFG amounted to $1,388,381 and $1,321,493 at September
30, 1997 and December 31, 1996, respectively.

OFG may, at its sole discretion and on a monthly basis, adjust the servicing and
management  fees as long as such fees do not exceed the allowable .25% and 2.75%
annual limits,  respectively.  In determining the servicing and management fees,
and hence the yield to the  Partnership,  OFG may  consider a number of factors,
including  the  then-current   market  yields.   Service  fee  payments  to  OFG
approximated  $99,000 and $107,000 for the three months ended September 30, 1997
and 1996,  respectively,  and  $338,000  and  $275,000 for the nine months ended
September 30, 1997 and 1996,  respectively.  Management fee income to OFG earned
on loans  invested in by the Fund  approximated  $896,000  and  $122,000 for the
three months ended September 30, 1997 and 1996, respectively, and $3,121,000 and
$339,000 for the nine months ended September 30, 1997 and 1996, respectively.

OFG receives late payment charges from borrowers who make  delinquent  payments.
Such  charges are in addition to the normal  monthly  loan  payments and totaled
approximately $145,000 and $55,000 for the three months ended September 31, 1997
and 1996,  respectively  and  approximately  $258,000  and $147,000 for the nine
months ended September 30, 1997 and 1996, respectively.

OFG  originates  or  purchases  all loans the  Partnership  is  invested  in and
receives an investment  evaluation fee payable by borrowers.  Such fees, payable
by borrowers,  earned by OFG amounted to approximately $706,000 and $424,000 for
the  three  months  ended  September  30,  1997  and  1996,  respectively,   and
approximately  $1,983,000 and $1,340,000 for the nine months ended September 30,
1997 and 1996, respectively.

Included in loans  secured by trust deeds at September 30, 1997 and December 31,
1996 are notes  totaling  $2,121,332  and  $1,942,332,  respectively,  which are
secured  by  properties  owned by OFG.  These  loans  were  originated  when OFG
purchased certain Real estate held for sale or trust deed subject to foreclosure
from the  Partnership.  The loans bear  interest  at 8% per annum and are due on
demand.  The Partnership  received interest income of approximately  $42,000 and
$133,000 for the three and nine months ended  September  30, 1997,  respectively
and approximately $72,000 during the year ended December 31, 1996 from OFG under
loans secured by trust deeds and the unsecured loan due from 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  $188,928,000 and $173,549,000 for the three months
ended  September  30,  1997  and  1996,   respectively   and   $185,346,000  and
$169,302,000 for the nine months ended September 30, 1997, 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  $333,000 (8.7%) for the three months
ended  September  30, 1997 as compared to the three months ended  September  30,
1996 and  $1,044,000  (9.3%) for the nine  months  ended  September  30, 1997 as
compared to the nine months ended September 30, 1996 were primarily attributable
to the increased income generated from the sale of residential units constructed
and owned by the  WV-OMIF  limited  partnership  which  generated  $381,000  and
$1,975,000 in net income for the three and nine months ended September 30, 1997,
respectively  as  compared  to $0 for  both the  three  and  nine  months  ended
September 30, 1996. Other factors that  contributed to additional  earnings were
interest income of approximately $68,000 and $275,000 from WV-OMIF for the three
and nine months ended  September 30, 1997,  respectively,  as compared to $0 for
both the three  and nine  months  ended  September  30,  1996;  income  from the
disposition of certain Real estate held for sale of  approximately  $108,000 and
$157,000 for the three and nine months ended  September 30, 1997,  respectively,
as compared to $0 for the three and nine months ended  September  30,  1996;  an
increase in average  trust deeds and notes  receivable  held by the  Partnership
from  approximately  $155,699,000 and $156,519,000 for the three and nine months
ended  September  30, 1996,  respectively,  to  approximately  $172,722,000  and
$165,799,000   for  the  three  and  nine  months  ended   September  30,  1997,
respectively,  and a decrease in non-performing loans held by the Partnership on
which the Corporate General Partner was not purchasing  delinquent interest from
7.29%  to 3.70%  of the  loan  portfolio  as of  September  30,  1996 and  1997,
respectively.

The average net yield of the Partnership  decreased from 8.79% for the three and
nine months ended September 30, 1996,  respectively,  to 8.69% for the three and
nine months ended September 30, 1997, respectively. The net yield represents the
net income of the  Partnership  after all  expenses  with the  exception  of the
provision for losses on loans or Real estate held for sale.  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 total revenues increased by approximately $966,000 (22.3%) for
the three months ended  September 30, 1997 as compared to the three months ended
September 30, 1996 and by approximately  $3,510,000  (27.5%) for the nine months
ended  September  30, 1997 as compared to the nine months  ended  September  30,
1996.  These  increases,  as above,  were  primarily due to the ongoing sales of
residential units constucted by the WV-OMIF limited partnership, interest income
from  advances to WV-OMIF,  income from the  disposition  of certain Real estate
held for sale,  increased  balances  of  interest  earning  mortgage  assets and
decreases in non-performing loans.

The increase in total revenues did not translate to comparable  increases in net
yield as the Corporate General  Partner's  payments for management and servicing
fees increased from  approximately  $229,000 and $614,000 for the three and nine
months ended September 30, 1996,  respectively,  to  approximately  $995,000 and
$3,459,000 for the three and nine months ended September 30, 1997, respectively.
The fees collected by the Corporate  General  Partner  continue to be within the
limits dictated by the Partnership agreement.


Portfolio Review

The number of Partnership mortgage investments decreased from 232 to 220 and the
average loan balance  increased  from  approximately  $678,000 to $793,000 as of
September 30, 1996 and 1997, respectively.  The average mortgage investment made
by the  Partnership  during the period of October 1, 1996 through  September 30,
1997 was approximately $1,112,000 showing a trend of increasing average mortgage
investments.  These average loan increases reflect the Partnership's  ability to
invest in larger mortgage loans meeting the Partnership's objectives.

The Corporate General Partner had previously  purchased all interest  receivable
of  the  Partnership  on  all  delinquent  loans  made  or  invested  in by  the
Partnership. However, on loans originated by the Corporate General Partner on or
after May 1, 1993,  and  effective  November 1, 1994,  for  certain  other loans
originated  prior to May 1, 1993, the Corporate  General Partner has adopted the
policy to not purchase  delinquent  interest or  principal.  As of September 30,
1997  anbd  1996,   there  were   approximately   $6,465,000  and   $11,470,000,
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 Corporate  General  Partner.  The  Corporate  General  Partner  purchased
approximately  $73,000 and $71,000 in  delinquent  interest  receivables  of the
Partnership in the nine months ended September 30, 1997 and 1996,  respectively.
that had not been collected from the borrower by the Corporate  General  Partner
as of September 30, 1997 or 1996.

Approximately  $7,952,000 (4.6%) and $11,348,000 (7.4%) of the loans invested in
by the Fund were more than 90 days  delinquent  in payment as of  September  30,
1997 and  December  31,  1996,  respectively.  Of these  amounts,  approximately
$6,695,000 (3.8%) and $5,046,000 (3.3%) were in the process of foreclosure as of
September 30, 1997 and December 31, 1996, respectively.  Although the amount and
percentage  of mortgage  investments  on which  payment is delinquent 90 days or
more has been decreasing,  $3,286,000 of loans classified as such as of December
31, 1996 were  foreclosed on by the Partnership and held as Real estate held for
sale as of September 30, 1997.

A loan loss reserve in the amount of $3,500,000  was  maintained on the books of
the  Partnership as of September 30, 1997 and December 31, 1996. As of this date
the General Partners have determined that this loan loss reserve is adequate.

As of  September  30,  1997 and  December  31, 1996  approximately  63% and 73%,
respectively,  of the mortgage loans made or invested in by the  Partnership are
secured by real property  located in Northern  California.  The following  table
sets forth the principal amount of mortgage  investments,  by  classification of
property  securing each loan,  held by the Partnership on September 30, 1997 and
December 31, 1996:

                                                         Principal Amount
                                           September 30             December 31
                                               1997                    1996
                                               ----                    ----
                                              (000)                   (000)

Single-Family Dwellings                    $   2,089               $   3,936
Income-Producing Property                    167,244                 146,000
Unimproved Land                                5,094                   4,213
                                            --------                --------
                                           $ 174,427               $ 154,149
                                            ========                ========

First Mortgages                            $ 160,946               $ 139,543
Second Mortgages                              12,778                  14,006
Third Mortgages or All-inclusive
  Deeds of Trust                                 703                     600
                                            --------                --------
                                           $ 174,427               $ 154,149
                                            ========                ========

The  following  amount of  delinquent  loans held by the  Partnership  have been
acquired and foreclosed  upon by the Corporate  General  Partner from January 1,
1993 through September 30, 1997:

                                   Delinquent                      Year
         Principal                 Interest                    Foreclosed
         $1,025,581                 $150,295                      1993
             58,000                    4,417                      1994
          2,501,308                  252,810                      1995
          2,320,000                   86,981                      1996
            340,400                   26,063                      1997

The Corporate General Partner has purchased all delinquent  interest  receivable
from the  Partnership  on the loans  foreclosed on in 1993,  1994 and 1995.  The
delinquent  interest  on the  loans  foreclosed  on in 1996 and  1997 was  never
purchased  from the  Partnership  by the  Corporate  General  Partner.  Of these
foreclosed loans, the Partnership held four mortgages totaling  $2,121,332 as of
September 30, 1997 on which the Corporate  General  Partner was making  payments
which were current.


Real Estate Owned
The Partnership currently holds title to the following ten properties which were
foreclosed on from January 1, 1993 through September 30, 1997:
<TABLE>
<CAPTION>

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

Commercial Lot/Residential
  Development
Vallejo, CA                             $   525,000            $     54,662            $     83,949

Commerical Lot
Sacramento, CA                          $   500,000 (2)        $     49,828            $     36,500

Office Building
Monterey, CA                            $   550,000            $  1,581,165 (3)        $     30,077

Undeveloped Land
Los Gatos, CA                           $   571,853            $       6,889           $    134,878

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

Residential Lots
Sonora, CA                              $ 1,683,000            $     174,968           $    363,636

Undeveloped Land
Reno, NV                                $   230,000            $           0           $          0

Residential Lots
Ione, CA                                $ 2,821,675            $           0           $  1,032,637

Self Storage
Oakland, CA                             $   464,000            $           0           $    209,612
<FN>

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

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

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

With the exception of the light industrial warehouse in Merced,  California, the
office  building  in  Monterey,   California,  the  residential  lots  in  Ione,
California and the self storage property in Oakland, Calfornia, these properties
do not currently  generate  revenue and, as such,  contribute to the Real estate
held for sale  operating  at a deficit.  This  deficit has  decreased  in recent
periods as the loss from  operations  of Real estate held for sale has decreased
from  approximately  $121,000  and  $428,000 for the three and nine months ended
September 30, 1996,  respectively,  to approximately $11,000 and $83,000 for the
three and nine months ended September 30, 1997, respectively.  With the possible
exception of the light industrial  warehouse  located in Merced,  California and
the commercial  land located in  Sacramento,  California,  the General  Partners
believe that due to the values of these properties,  the Partnership  should not
sustain any losses of principal on their ultimate disposition.

Since  1993,  the  Partnership's  investment  in Real  estate  held for sale has
increased due to the Corporate General Partner's policy to generally not acquire
property  subject  to  foreclosure  on which the  Partnership  has a trust  deed
investment.  During 1997, the Partnership  disposed of two properties it held as
of December 31, 1996 and  acquired  two  properties  through  foreclosure.  Real
estate held for sale has  increased  by  $2,379,000  from  December  31, 1996 to
September 30, 1997, a 31% increase.


Development Limited Partnership
In 1993, the Partnership  foreclosed on a $600,000 loan secured by a junior lien
on 30 residential lots located in Carmel Valley, California,  and, in 1994, paid
off the $500,000 senior loan. In 1995, the  Partnership  became the sole limited
partner in a limited partnership ("WV-OMIF Partners"),  formed with an unrelated
developer/builder  as the sole general partner, for the development and buildout
of  these  lots.  In  exchange  for its  interest  in this  development  limited
partnership,  the  Partnership  in 1996  contributed  the  lots  to the  WV-OMIF
Partners and agreed to make additional  advances to fund the development  costs.
As of September 30, 1997, the  Partnership  had advanced  development  and other
capitalized costs, net of principal distributions,  aggregating $2,089,000,  and
the total amount invested in or advanced by the Partnership  equaled $3,189,000,
net of distributions, through such date.

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

As of  September  30,  1997,  construction  had been  completed  or commenced on
substantially all lots owned by WV-OMIF Partners. WV-OMIF Partners sold one home
in 1996 and distributed  approximately  $479,000 to OMIF, $187,000  representing
income  and the  balance  return  of  capital.  During  the three  months  ended
September  30,  1997,   WV-OMIF   Partners  sold  five  homes  and   distributed
approximately  $2,389,000 to OMIF, $759,000  representing income and the balance
representing return of capital. During the nine months ended September 30, 1997,
WV-OMIF Partners sold 14 homes and distributed approximately $6,511,000 to OMIF,
$2,233,000  representing income and the balance  representing return of capital.
Deposits have been received on the lots under construction,  but there can be no
assurances the  Partnership  will realize  similar amounts on the sales of these
lots.

The  Corporate  General  Partner has entered into a joint  venture with the same
unrelated  developer/builder  to  purchase  and build out up to 34 lots that are
contiguous to and interspersed  with the lots in Carmel Valley owned by WV-OMIF.
The Partnership  does not have any direct or indirect  interest in these 34 lots
nor do any of these lots provide any security for the original  Partnership loan
which  was  foreclosed  on in  1993.  As  sales  of  these  34 lots  occur,  the
Partnership  will be  reimbursed  on a pro rata  basis,  without  interest,  for
development,  infrastructure  and soft costs  incurred by WV-OMIF in the initial
stages of its development of the lots. As of September 30, 1997, the development
limited partnership owed the Partnership $121,695 in development costs.

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 12, 1997                     OWENS MORTGAGE INVESTMENT FUND
                                              a California Limited Partnership
                                              (Registrant)

                                              By:   Owens Financial Group, Inc.
                                                    a General Partner


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


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