REDWOOD MORTGAGE INVETORS VI
                 (a California Limited Partnership)
                         Index to Form 10-K

                         December 31, 1995
                               Part I
                                                                  Page No.
Item 1 - Business                                                   3
Item 2 - Properties                                                 4-5
Item 3 - Legal Proceedings                                          6
Item 4 - Submission of Matters to a vote of Security Holders
         (partners)                                                 6

                               Part II

Item 5 - Market for the Registrants Partners Capital and 
         related matters.                                           6
Item 6 - Selected Financial Data                                    7-8
Item 7 - Managements Discussion and Analysis of Financial Condition
         and Results of Operations                                  9
Item 8 - Financial Statements and Supplementary Data                10-27
Item 9 - Changes in and Disagreements with Accountants on 
         Accounting and Financial Disclosure                        27

                               Part III

Item 10 - Directors and Executive Officers of the Registrant        27
Item 11- Executive Compensation                                     28
Item 12 - Security Ownership of certain Beneficial Owners and
          Management                                                29
Item 13 - Certain Relationships and Related Transactions            29

                               Part IV

Item 14 - Exhibits, Financial Statement Schedules, and Reports 
          of Form 8-K                                               29-30

Signatures                                                          31

<PAGE>

              SECURITIES AND EXCHANGE COMMISSION
                     Washington, DC 20549
                         Form 10-K

 Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange 
                         Act of 1934

For the year ended December 31, 1995 Commission File number 33-12519
--------------------------------------------------------------------

                REDWOOD MORTGAGE INVESTORS VI
--------------------------------------------------------------------
      (Exact name of registrant as specified in its charter)

        California                                   94-3031211
----------------------------------- --------------------------------
(State or other jurisdiction of     (I.R.S. Employer Identification)
 incorporation or organization)

650 El Camino Real #G, Redwood City, CA                 94063
---------------------------------------- ---------------------------
(address of principal executive offices)             (zip code)

Registrants telephone No. Including area code      (415) 365-5341
--------------------------------------------- ----------------------

Securities registered pursuant to Section 12 (b) of the Act:        None

Title of each class                 Name of each exchange on which registered
-----------------------------------------------------------------------------
Limited Partnership Units                               N/A
-----------------------------------------------------------------------------

Securities registered pursuant to Section 12 (g) of the Act:

                        Limited Partnership Units

    Indicate by check mark whether the  registrant (1) has filed all reports to
be filed by Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934 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                             XX                                  NO
                         ------------------                 ------------------

    At the close of the sale of units in 1989,  the limited  partnership  units
purchased by non-affiliates  was 97,715.94 units computed at $100.00 a unit for
$9,771,594, excluding General Partners Contribution of $9,772.

Documents incorporated by reference:

    Portions of the Prospectus for Redwood  Mortgage  Investors VI, included as
part of the form S-11  Registration  Statement,  SEC File  No.  33-12519  dated
September 3, 1987 and Supplement No.6 dated May 16, 1989, incorporated in Parts
II, III, and IV.
<PAGE>

                               Part I

Item 1 - Business

    Redwood  Mortgage  Investors VI is a California  limited  partnership  (the
Partnership),  of which D.  Russell  Burwell,  Michael  R.  Burwell  and Gymno
Corporation, a California corporation, are the General Partners. The address of
the General Partners is 650 El Camino Real,  Suite G, Redwood City,  California
94063.  The Partnerships  primary  purpose is to invest  its  capital in loans
secured by Northern California  properties.  Partnership loans are arranged and
serviced by Redwood Home Loan Co, an  affiliate  of the General  Partners.  The
Partnerships objectives are to make investments,  as referred to above,  which
will:(i) provide the maximum  possible cash returns which Limited  Partners may
elect to (a) receive as monthly, quarterly or annual cash  distributions or (b)
have  earnings  credited  to their  capital  accounts  and  used to  invest  in
Partnership activities; and (ii) preserve and protect the Partnerships capital.
The  Partnerships  general  business is more fully  described under the section
entitled Investment Objectives and Criteria,  pages 23-26 of the Prospectus, a
part of the above-referenced  Registration Statement,  which is incorporated by
reference.  The Partnership was formed in September, 1987 and immediately began
issuing units. It began investing in mortgages in October,1987. At December 31,
1995, the Partnership had a balance in its mortgage loans totalling $10,402,491
with interest rates thereon ranging from 4.00% to 14.50%. Currently First Trust
Deeds comprise  42.77% of the loan portfolio with Junior loans making up 49.87%
of 2nd, 5.11%  of 3rd and  2.25% of 4th  Trust  Deeds..  Owner-occupied  homes,
combined with non-owner  loans, total 28.21% of the loans.  Loans to apartments
make up 10.86% of the total loans. Commercial loan  origination  increased from
last year, now comprising  60.93% of the  portfolio, an increase of 9.94%.  The
past year brought us many outstanding low loan to value lending opportunities in
the commercial segment of the market.  Major concentration of loans, comprising
of 85.81% of the total loans,  are in eight counties of the Bay Area. County of
Stanislaus  makes up 7.36% of the loans and the balance, as stated on page five
of this report, are in the neighboring counties of the Bay Area.Loan investment
size  increased  this  past  year,  and  is  now  averaging $144,479  per  loan
investment.  Some of the  larger loans are  fractionalized  between  affiliated
partnerships  with  objectives similar to those of the  Partnership  to further
reduce risk. Average equity per loan transaction  stood at 35.60%. A 40% equity
average  on loan  origination  is  generally   considered  very   conservative.
Generally,  the  more  equity,   the  more  protection  for  the  lender.   The
Partnerships  loan  portfolio  is in  good  condition  with  no  properties  in
foreclosure as of the end of December, 1995. 
<PAGE>


Item 2 - Properties

     As of December 31, 1995, a summary of the Partnership's  loan portfolio is
set forth below.

Loans as a Percentage of Total Loans

First Trust Deeds                                    $  4,449,229.46
Appraised Value of Properties                           7,068,342.00
Total Investment as a % of Appraisal                           62.95%
Second Trust Deed Loans                                 5,187,807.35
Third Trust Deed Loans                                    531,526.66
Fourth Trust Deed Loans*                                  233,928.01
First Trust Deeds due other Lenders                    20,008,192.00
Second Trust Deeds due other Lenders                    1,250,575.00
Third Trust Deeds due other Lenders                       178,571.00

Total Debt                                           $ 31,839,829.48

Appraised Property Value                             $ 49,439,750.00
Total Investments as a % of Appraisal                          64.40%
   
Number of Loans Outstanding                                       72

Average Investment                                        144,479.05
Average Investment as a % of Net Asset                          1.27%
Largest Investment Outstanding                          1,279,200.00
Largest Investment as a % of Net Asset                         11.21%

Loans as a Percentage of Total Loans

First Trust Deeds                                              42.77%
Second Trust Deeds                                             49.87%
Third Trust Deeds                                               5.11%
Fourth Trust Deeds                                              2.25%
                                                              ---------

Total                                                         100.00%

Loans by Type of Property            Amount                   Percent

Owner Occupied Homes               $ 2,323,009.15              22.33%
Non-Owner Occupied Homes               612,008.35               5.88%
Apartments                           1,129,877.51              10.86%
Commercial                           6,337,596.47              60.93%
                                  ------------------         ----------
Total                               10,402,491.48             100.00%

<PAGE>




The following is a distribution of loans outstanding as of December 31, 1995 
by Counties.

Santa Clara                        $ 2,505,509.85              24.08%
San Mateo                            2,065,543.38              19.86%
Alameda                              2,000,908.66              19.23%
Contra Costa                         1,070,704.34              10.29%
Stanislaus                             765,623.92               7.36%
San Francisco                          722,697.44               6.95%
Sonoma                                 336,638.05               3.24%
Sacramento                             272,207.48               2.62%
El Dorado                              216,586.51               2.08%
Marin                                  198,611.00               1.91%
Shasta                                  83,007.41               0.80%
Monterey                                72,380.95               0.69%
Santa Cruz                              66,268.80               0.64%
Solano                                  25,803.69               0.25%
                                  ------------------         ----------

Total                             $ 10,402,491.48             100.00%


     * Redwood Mortgage Investors VI, together with other Redwood  Partnerships
hold a second and a fourth trust deed against the secured property.In addition,
the principals behind the borrower corporation have given personal guarantees as
collateral. The overall loan to value ratio on this loan is 76.52%. Besides the
borrower paying an interest rate of 12.25%,  the  partnership and other lenders
will also participate in profits.  We have had previous loan activity with this
borrower which had been concluded successfully,  with extra earnings earned for
the other partnerships involved.

Statement of Condition of Loans:

Number of Loans in Foreclosure                                    0

<PAGE>

Item 3 - Legal Proceedings

    The  Partnership  is not a defendant in any legal actions.  However,  legal
actions against borrowers and other involved parties have been initiated by the
Partnership to collect unsecured accounts receivable  totalling an aggregate of
$322,913.  Management  anticipates  that the ultimate  outcome  of these  legal
matters  will  not have a  material  adverse effect  on the net  assets  of the
Partnership, in the light of the Partnerships allowance for doubtful accounts.

Item 4 - Submission of matters to vote of Security Holders (Partners).

         No matters have been submitted to a vote of the Partnership.

                              Part II

Item 5 - Market for the Registrants Partners Capital and Related Matters.

    120,000  units  at $100  each  (minimum  20  units)  were  offered  through
broker-dealer member firms of the National Association of Securities Dealers on
a best efforts basis (as indicated in Part I item 1). All units have been sold
only in California.There is no established public trading market for the units.

Investors  are in two  categories.  Some have opted to withdraw  earnings on a
monthly, quarterly  or annual  basis while the others are reinvesting and 
compounding the earnings.

 A  description  of the  Partnership's units,  transfer  restrictions,  and
withdrawal  provisions  is more  fully described  under  the  section  entitled
Description of Units and Summary of the Limited Partnership Agreement, pages
38-42 of the Prospectus, a part of the above-referenced Registration statement,
which is  incorporated  by  reference. 

As of December 31, 1995,  there were 772 holders of record of the Partnerships 
units. A decrease of 112 from 1994.

<PAGE>
<TABLE>

Item 6 - Selected Financial Data

     Redwood  Mortgage  Investors  VI began  operations  in  October  1987.  Its financial  condition  and results of  operation 
 for three years to December 31, 1995 were:
<CAPTION>
                                 Balance Sheets
                                     Assets

                                                                                                           December 31,
                                                                                          -----------------------------------------
                                                                                                   1995          1994          1993
<S>                                                                                         <C>            <C>           <C>
                                                                                          ------------   -----------   ------------
Cash .....................................................................................  $   283,976   $   447,804   $   422,305
Accounts Receivable:
  Mortgage loans, secured by Deeds of Trust ..............................................   10,402,491    10,993,996    12,294,197
  Accrued Interest & other fees ..........................................................      445,816       322,173       433,654
  Advances on Real Estate Loans ..........................................................      131,936        30,273        76,755
  Other ..................................................................................      322,913       297,426       156,673
                                                                                            -----------   -----------   -----------
                                                                                            $11,303,156   $11,643,868   $12,961,279

Less Allowance for doubtful accounts .....................................................      283,284       209,073       270,540
                                                                                            -----------   -----------   -----------
                                                                                            $11,019,872   $11,434,795   $12,690,739

Real Estate Owned acquired through foreclosure
  at estimated net realizable value ......................................................    1,501,712     2,231,592       953,607
Formation loan due from RHL Co. ..........................................................      184,177       246,505       285,771
Partnership Interest .....................................................................      456,821           -0-           -0-
Due from Related Companies ...............................................................          935           -0-           -0-
Prepaid expenses & other costs ...........................................................          -0-           -0-         1,524
                                                                                            ===========   ===========   ===========
                                                                                            $13,447,493   $14,360,696   $14,353,946
                                                                                            ===========   ===========   ===========


                                                   Liabilities and Partners Capital

Liabilities:
  Notes Payable - Bank Line of Credit ....................................................  $ 2,041,011   $ 2,376,511   $ 1,964,216
  Accounts payable & accrued expenses ....................................................          -0-           -0-        29,328
  Deferred interest on mortgage loans ....................................................          -0-           -0-         8,456
                                                                                            -----------   -----------   -----------
                                                                                              2,041,011     2,376,511     2,002,000
Partners Capital ........................................................................    11,406,482    11,984,185    12,351,946
                                                                                            -----------   -----------   -----------

                                                                                            $13,447,493   $14,360,696   $14,353,946
                                                                                            ===========   ===========   ===========

<FN>
</FN>
</TABLE>
<PAGE>


<TABLE>


                                                         Statements of Income
<CAPTION>

                                                                                      1995                1994                1993
                                                                             --------------      --------------      --------------
<S>                                                                              <C>                 <C>                 <C>

Gross Revenue .......................................................          $1,235,726           $1,391,088           $1,619,072
Expenses ............................................................             617,378              726,386              721,284
                                                                               ==========           ==========           ==========
Net Income ..........................................................             618,348              664,702              897,788
                                                                               ==========           ==========           ==========


Net Income: to General Partners (1%) ................................          $    6,183           $    6,647           $    8,978
                     to Limited Partners (99%) ......................             612,165              658,055              888,810
                                                                               ----------           ----------           ----------

                                                                               $  618,348           $  664,702           $  897,788
                                                                               ==========           ==========           ==========


Net Income per $1,000 invested by Limited
 Partners for entire period:
  - where income is reinvested and compounded .......................                  53                   55                   72
                                                                               ==========           ==========           ==========

  -where partner receives income in monthly
     distributions ..................................................                  52                   54                   70
                                                                               ==========           ==========           ==========

</TABLE>
<PAGE>




Item 7 - Managements Discussion and Analysis of Financial Condition and 
         Results of Operations

   On December 31, 1995, the Partnerships net capital totalled $11,406,482.

     The Partnership began funding mortgage  investments in October 1987, and as
of  December  31,  1995  had  distributed   income  at  an  average   annualized
(compounded)  yield of 8.27%.  Current  earnings are  somewhat  lower than those
prevalent at the outset, primarily because interest rates generally have dropped
dramatically  since  1992 and  reserves  for  losses  have been  increased.  The
Partnership  does not anticipate a significant  increase or decrease in mortgage
rates in the  foreseeable  future and expects the  prevailing  interest rates to
fluctuate in a narrow range in the near  future.  Management  expects the yield,
net of provision for losses on loans, to increase slightly in 1996.
        
     Currently,  mortgage  interest  rate are lower than those  prevalent at the
inception  of the  Partnership.  New loans are being  originated  at these lower
interest  rates.  The result is a  reduction  of the average  return  across the
entire portfolio held by the Partnership.  In the future,  interest rates likely
will change from their current levels.  The General Partners cannot at this time
predict  at what  levels  interest  rates  will be in the  future.  The  General
Partners  believe the rates charged by the Partnership to its borrowers will not
change  significantly in the immediate  future.  Based upon the rates payable in
connection with the existing loans,  the current and anticipated  interest rates
to be charged by the Partnerships, and current reserve requirements, the General
Partners anticipate that the annualized yield next year will range only slightly
from its current rate.  

     Each year,  the  Partnership  negotiates a line of credit with a commercial
bank which is secured by its  mortgage  loan  portfolio.  Currently,  it has the
capacity  to  borrow  up to  $2,500,000  at  Prime  plus  1%,  (9.50%).  Current
borrowings of $2,041,011  have the effect of leveraging the portfolio about 20%.
The Partnership relies upon the line of credit,  amortization of notes,  pay-off
of  notes,  and  the  re-investment  of  earnings,   after  paying   Partnership
distributions  and operating costs, for the creation of new capital for mortgage
(loan) investments.
         
     Considering  Northern  Californias  recent economic slump (5 of the last 6
years)   where-in   business   activity   slumped   principally   in  aerospace,
communications,  banking, retail trade and the federal government sector causing
employment  losses  which was and still is  reflective  in property  prices to a
greater or lesser  degree  depending on location.  The  Partnership's  operating
results and  delinquencies  are within the normal range of the General  Partners
expectations,  based upon their experience in managing similar partnerships over
the last  eighteen  years.  Foreclosures  are a  normal  aspect  of  partnership
operations  and the  General  Partners  anticipate  that  they  will  not have a
material effect on liquidity.  As of December 31, 1995, there were no properties
in foreclosure. Cash is continually being generated from interest earnings, late
charges,  prepayment  penalties,  amortization  of notes and  pay-off  of notes.
Currently,   this  amount  exceeds  Partnership  expenses  and  earnings  payout
requirements.  As loan opportunities become available, excess cash and available
funds are invested in new loans.
         
     The General  Partners are  continuously  reviewing the loan portfolio,  the
status of delinquencies,  the underlying  collateral  securing these properties,
REO expenses,  sales activities,  and borrowers  payment records and other data
relating to the loan portfolio. Data on the local real estate market, and on the
national and local economy are studied.  Bases upon this  information  and more,
loan loss  reserves  and  allowance  for  doubtful  accounts  are  increased  or
decreased.  Because  of the  number of  variables  involved,  the  magnitude  of
possible swings and our inability to control these many factors,  actual results
could  and  do  sometimes  differ   significantly  from  the  General  Partners
estimates.
<PAGE>

       Item 8 - Financial Statements and Supplementary Data

  Redwood  Mortgage  Investors VI, a California  Limited  Partnerships  list
 of Financial  Statements  and Financial  Statement schedules:

A- Financial Statements

The following financial statements of Redwood Mortgage Investors VI are 
included in Item 8:

          Independent Auditors Report
          Balance Sheets - December 31, 1995 & 1994
          Statements of Income for the three years ended December 31, 1995
          Statements of Changes in Partners Capital for the three years ended 
          December 31, 1995
          Statements of Cash Flows for the three years ended December 31, 1995
          Notes to Financial Statements - December 31, 1995

B. - Financial Statement Schedules

The following financial statement schedules of Redwood Mortgage Investors VI are
 included in Item 8.

         Schedule II - Amounts receivable from related parties and
         underwriters, promoters and employees other than related parties.

         Schedule VIII - Valuation and Qualifying Accounts

         Schedule IX - Short Term Borrowings

         Schedule XII - Mortgage loans on real estate

         All other  schedules for which  provision is made in the  applicable 
 accounting  regulations  of the  Securities and Exchange Commission are not 
required under the related instructions or are inapplicable, and therefore have
been omitted.

<PAGE>


















                     REDWOOD MORTGAGE INVESTORS VI
                  (A California Limited Partnership)
                         FINANCIAL STATEMENTS
                          DECEMBER 31, 1995
                    (with Auditors Report Thereon)





<PAGE>





















                       PARODI & CROPPER
                  CERTIFIED PUBLIC ACCOUNTANTS
               3658 Mount Diablo Blvd., Suite #205
                   Lafayette California 94549
                        (510) 284-3590




                INDEPENDENT AUDITORS REPORT


THE PARTNERS
REDWOOD MORTGAGE INVESTORS VI

     We have audited the financial  statements and related  schedules of REDWOOD
MORTGAGE  INVESTORS VI (A California  Limited  Partnership)  listed in Item 8 on
form 10-K  including  balance  sheets as of  December  31, 1995 and 1994 and the
statements of income,  changes in partners capital and cash flows for the three
years ended December 31, 1995. These financial statements are the responsibility
of the Partnerships management.  Our responsibility is to express an opinion on
these  financial  statements  based on our audits.  

     We conducted  our audits in accordance  with  generally  accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  As audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits  provide a reasonable  basis for our opinion. 

     In our opinion,  the financial statements referred to above present fairly,
in all material  respects,  the financial position of REDWOOD MORTGAGE INVESTORS
VI as of December 31, 1995 and 1994,  and the results of its operations and cash
flows for the three years ended  December 31, 1995 in conformity  with generally
accepted  accounting  principles.  Further, it is our opinion that the schedules
referred to above present fairly the information set forth therein in compliance
with the  applicable  accounting  regulations  of the  Securities  and  Exchange
Commission. 

                                PARODI & CROPPER








Lafayette, California
February 28, 1996
<PAGE>
<TABLE>

                          REDWOOD MORTGAGE INVESTORS VI
                       (A California Limited Partnership)
                                 BALANCE SHEETS
                           DECEMBER 31, 1995 AND 1994

<CAPTION>
                                     ASSETS

                                                             1995          1994
                                                      -----------   -----------
<S>                                                   <C>           <C>

Cash ..............................................   $   283,976   $   447,804
                                                      -----------   -----------

Accounts receivable:
Mortgage loans, secured by deeds of trust .........    10,402,491    10,993,996
Accrued Interest on mortgage loans ................       445,816       322,173
Advances on mortgage loans ........................       131,936        30,273
Accounts receivables, unsecured ...................       322,913       297,426
                                                      -----------    ----------
                                                       11,303,156    11,643,868
                                                      -----------    ----------
Less allowance for doubtful accounts ..............       283,284       209,073
                                                      -----------   -----------
                                                       11,019,872    11,434,795
                                                      -----------   -----------

Real estate owned, acquired through fore-
  closure, at estimated net realizable value ......     1,501,712     2,231,592
Investment in Partnership .........................       456,821           -0-
Formation loan due from Redwood Home Loan Co. .....       184,177       246,505
Prepaid expenses and other assets .................           935           -0-
                                                      -----------   -----------

                                                      $13,447,493   $14,360,696
                                                      ===========   ===========

                        LIABILITIES AND PARTNERS CAPITAL


Liabilities:
Notes payable - bank line of credit ...............   $ 2,041,011   $ 2,376,511
                                                      -----------   -----------
Total Liabilities .................................   $ 2,041,011   $ 2,376,511

Partners Capital ..................................    11,406,482    11,984,185
                                                      -----------   -----------

                                                      $13,447,493   $14,360,696
                                                      ===========   ===========






<FN>
See accompanying notes to financial statements
</FN>
</TABLE>
<PAGE>


<TABLE>


                                                     REDWOOD MORTGAGE INVESTORS VI
                                                  (A California Limited Partnership)
                                                         STATEMENTS OF INCOME
                                              FOR THE THREE YEARS ENDED DECEMBER 31, 1995
<CAPTION>


                                                            YEARS ENDED DECEMBER 31,
                                                  ------------------------------------
                                                       1995          1994         1993
<S>                                               <C>          <C>          <C>
                                                  ----------   ----------   ----------
Revenues:
Interest on mortgage loans ....................   $1,214,443   $1,363,898   $1,576,376
Interest on bank deposits .....................        5,206       10,798       10,976
Late charges, prepayment penalties, and fees ..       16,077       16,392       31,720
                                                  ----------   ----------   ----------
                                                   1,235,726    1,391,088    1,619,072
                                                  ----------   ----------   ----------

Expenses:
General partners asset management fees .......           -0-        8,942       15,523
Clerical costs through Redwood Home Loan Co. ..       23,341          -0-       31,642
Interest and line of credit costs .............      212,915      185,131      161,705
Provision for doubtful accounts and losses
on real estate acquired through foreclosure          344,807      472,967      420,583
Professional services .........................       19,452       45,256       73,432
Other .........................................       16,863       14,090       18,399
                                                  ----------   ----------   ----------
                                                     617,378      726,386      721,284
                                                  ----------   ----------   ----------

Net Income ....................................   $  618,348   $  664,702   $  897,788
                                                  ==========   ==========   ==========

Net income:  To General Partners(1%) ..........   $    6,183   $    6,647   $    8,978
             To Limited Partners (99%).........   $  612,165   $  658,055   $  888,810
                                                  ==========   ==========   ==========
                                                  $  618,348   $  664,702   $  897,788
                                                  ==========   ==========   ==========

Net income per $1,000 invested by Limited
Partners for entire period:
where income is reinvested and
compounded ............................           $       53   $       55   $       72
                                                  ==========   ==========   ==========

where partner receives income in
monthly distributions ................            $       52   $       54   $       70
                                                 ===========   ==========   ==========










<FN>
See accompanying notes to financial statements 
</FN>
</TABLE>
<PAGE>

<TABLE>


                                                     REDWOOD MORTGAGE INVESTORS VI
                                                  (A California Limited Partnership)
                                              STATEMENTS OF CHANGES IN PARTNERS CAPITAL
                                              FOR THE THREE YEARS ENDED DECEMBER 31, 1995
<CAPTION>

                                                                  PARTNERS CAPITAL

                                                                                 UNALLOCATED
                                         GENERAL             LIMITED             SYNDICATION
                                        PARTNERS             PARTNERS               COSTS                 TOTAL
                                      --------------      ---------------      ----------------       ---------------
<S>                                    <C>                 <C>                  <C>                   <C>

Balances at December 31, 1992          $      9,773        12,374,013           (       26,879)       12,356,907
                                                                                 

  Net income                                  8,978           888,810                     -0-            897,788
  Allocation of syndication costs      (        232)       (   22,947)                  23,179               -0-
  Early withdrawal penalties                    -0-        (   10,365)                   3,700         (   6,665) 

                                      --------------      ------------          ---------------       -----------
Balances at December 31, 1993                 9,773        12,342,173                    -0-           12,351,946

  Net income                                  6,647           658,055                    -0-              664,702
  Early withdrawal penalties                    -0-        (   12,790)                   -0-           (   12,790)
  Partners withdrawals                 (      6,654)       (1,013,019)                   -0-           (1,019,673) 
                                      --------------      -----------           ----------------       ----------

Balances at December 31, 1994          $(     9,766)       11,974,419                    -0-           11,984,185  

  Net income                                  6,183           612,165                    -0-              618,348
  Early withdrawal penalties                    -0-        (    4,336)                   -0-           (    4,336)             
  Partners withdrawals                  (     6,183)       (1,185,532)                   -0-           (1,191,715)               
                                      --------------      ---------------       ----------------      ------------
Balances at December 31, 1995          $      9,766        11,396,716                    -0-           11,406,482             
                                      ==============      ===============       ================      ============




<FN>
See accompanying notes to financial statements
</FN>
</TABLE>
<PAGE>

<TABLE>

                          REDWOOD MORTGAGE INVESTORS VI
                       (A California Limited Partnership)
                            STATEMENTS OF CASH FLOWS
                   FOR THE THREE YEARS ENDED DECEMBER 31, 1995

<CAPTION>

                                                        YEARS ENDED DECEMBER 31,
                                                 --------------------------------------
                                                        1995         1994         1993
<S>                                               <C>          <C>          <C>
                                                 -----------   ----------   ----------
Cash flows from operating activities:
  Net income ..................................   $  618,348   $  664,702   $  897,788
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Increase (decrease) in allowance for
     doubtful accounts ........................       74,211   (   61,467)     228,340
    (Increase) decrease in assets:
       Accrued interest & advances ............    ( 225,306)     157,963     ( 36,926)
       Prepaid expenses and other assets ......    (     935)       1,524        2,803                                       
      Increase (decrease) in liabilities:
       Accounts payable and accrued expenses ..         -0-      ( 29,328)      28,601                                       
       Discounts on mortgage loans ............         -0-      (  8,456)    (    264)
                                                   ----------    ---------     -------

      Net cash provided by operating activities      466,318      724,938    1,120,342
                                                  ----------    ---------   ----------

Cash flows from investing activities:
  Net (increase) decrease in real estate
     acquired through foreclosure .............      729,880   (1,277,985)     151,545
  Net (increase) decrease in mortgage loans ...      591,505    1,300,201      262,093
  Decrease in formation loan ..................       62,328       39,266       68,992
  (Increase) in accounts receivable, unsecured      ( 25,487)  (  140,753)         -0-                                     
  Investment in Partnership ...................     (456,821)         -0-          -0-
                                                   ----------   ---------      -------
      Net cash provided by (used in) investing
        activities ............................      901,405   (   79,271)     482,630
                                                   ----------   ---------      -------

Cash flows from financing activities:
 Net increase (decrease) in note payable-bank .    ( 335,500)     412,295     (527,000)
 Partners withdrawals .........................   (1,191,715)  (1,019,673)    (896,084)                                           
 Early withdrawal penalties, net ..............   (    4,336)  (   12,790)    (  6,665)                                            
                                                   ---------    ---------      -------

      Net cash provided by (used in) financing
         activities ...........................   (1,531,551)  (  620,168)   (1,429,749)                                        
                                                  ----------    ---------     ---------

Net increase (decrease) in cash ...............   (  163,828)      25,499       173,223

Cash - beginning of period ....................      447,804      422,305       249,082
                                                  ----------    ---------      --------

Cash - end of period ..........................   $  283,976   $  447,804    $  422,305
                                                  ==========    =========       =======


<FN>
See accompanying notes to financial statements 
</FN>
</TABLE>
<PAGE>


                          REDWOOD MORTGAGE INVESTORS VI
                       (A California Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1995

NOTE 1  ORGANIZATION  AND  GENERAL  Redwood  Mortgage  Investors  VI,  (the
Partnership)  is a  California  Limited  partnership,  of  which  the  General
Partners are D. Russell  Burwell,  Michael R. Burwell and Gymno  Corporation,  a
California  corporation  owned and operated by the individual  General Partners.
The partnership was organized to engage in business as a mortgage lender for the
primary  purpose of making loans  secured by Deeds of Trust on  California  real
estate.  Partnership  loans are being arranged and serviced by Redwood Home Loan
Co. (RHL Co.), dba Redwood Mortgage,  an affiliate of the General Partners.  The
offering was closed with contributed capital totaling $9,781,366.

     Each  months   income  is   distributed   to  partners  based  upon  their
proportionate share of partners capital. Some partners have elected to withdraw
income on a monthly, quarterly or annual basis.

A. Sales Commissions - Formation Loan
     Sales  commissions  ranging from 0% (units sold by General Partners) to 10%
of gross  proceeds  were paid to RHL Co., an affiliate  of the General  Partners
that arranges and services the mortgage loans. To finance the sales commissions,
the Partnership  loaned to RHL Co. $623,255  relating to contributed  capital of
$9,781,366.  The  formation  loan is  unsecured,  and is being  repaid,  without
interest, in ten annual installments of principal, commencing December 31, 1989.

     The following  reflects  transactions in the Formation Loan account through
December 31, 1995:
       
       Amount loaned during 1987,1988 and 1989                      $623,255
       Less:
         Cash repayments                           $402,659
         Allocation of early withdrawal penalties    36,419          439,078
                                                 ===========      -----------
December 31, 1995                                                   $184,177
                                                                  ===========



     B. Other  Organizational and Offering Expenses  Organizational and offering
expenses, other than sales commissions,  (including printing costs, attorney and
accountant  fees, and other costs),  paid by the  Partnership  from the offering
proceeds  totaled  $360,885 or 3.69% of the gross  proceeds  contributed  by the
Partners.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues and expenses are accounted for on the accrual basis of accounting.


     The Partnership  bears its own  organization  and syndication  costs (other
than certain sales  commissions  and fees described  above)  including legal and
accounting expenses,  printing costs, selling expenses, a 1% wholesale brokerage
fee and filing fees.  Organizational  costs of $14,750 were capitalized and were
amortized  over a five year period.  Syndication  costs of $346,135 were charged
against partners capital and were allocated to individual  partners  consistent
with the partnership agreement over a five year period.
<PAGE>

                          REDWOOD MORTGAGE INVESTORS VI
                       (A California Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1995

     Property  acquired  through  foreclosure  will be held for  prompt  sale to
return the funds to the loan portfolio.  Such property is recorded at cost which
includes the principal  balance of the former loan made by the Partnership  plus
accrued  interest,  payments  made to keep the senior  loans  current,  costs of
obtaining  title  and  possession,  less  rental  income  or  at  estimated  net
realizable value, if less. The difference between such costs and estimated net
realizable  value is deducted  from cost in the  Balance  Sheet to arrive at the
carrying value of such property.

     In  preparing  the  financial  statements,  management  is required to make
estimates based on the information available that affect the reported amounts of
assets and  liabilities  as of the balance  sheet date and revenues and expenses
for the related periods.  Such estimates relate principally to the determination
of the allowance for doubtful accounts and the valuation of real estate acquired
through  foreclosure.  Actual  results  could  differ  significantly  from these
estimates.

     Mortgage  loans and the related  accrued  interest,  fees and  advances are
analyzed on a continuous basis for recoverability.  Delinquencies are identified
and  followed as part of the  mortgage  loan  system.  A  provision  is made for
doubtful  accounts to adjust the  allowance  for doubtful  accounts to an amount
considered by management  to be adequate to provide for  unrecoverable  accounts
receivable.

     Amounts  reflected  in the  statements  of income as net  income per $1,000
invested by Limited Partners for the entire period are actual amounts  allocated
to Limited  Partners who have their  investment  throughout  the period and have
elected to either  leave their  earnings to compound or have  elected to receive
monthly distributions of their net income.  Individual limited partner income is
allocated  each  month  based  on  the  limited  partners  pro  rata  share  of
partnership  capital.  Because  the net income  percentage  varies from month to
month,  amounts per $1,000 will vary for those  individuals who make or withdraw
investments during the period, or select other options.  However, the net income
per $1,000 average  invested has  approximated  those  reflected for those whose
investments and options have remained constant.

     No provision  for Federal and State  income taxes is made in the  financial
statements  since  income taxes are the  obligation  of the partners if and when
income taxes apply.

     NOTE 3 - GENERAL PARTNERS AND RELATED PARTIES The following are commissions
and/or fees which are paid to the General Partners and/or related parties.

     A. Loan Brokerage  Commissions  Loan brokerage  commissions for services in
connection with the review, selection, evaluation,  negotiation and extension of
the mortgage  loans were limited up to 12% of the principal  amount of the loans
through the period ending 6 months after the  termination  date of the offering.
Thereafter,  commissions  are limited to an amount not to exceed 4% of the total
Partnership  assets per year. Such commissions are paid by the borrowers,  thus,
not an expense of the Partnership.

     B. Loan Servicing Fees Monthly loan servicing fees are paid to Redwood Home
Loan Co. up to 1/8 of 1% (1.5% annual) of the unpaid  principal,  or such lesser
amount as is reasonable and customary in the geographic  area where the property
securing the loan is located (currently at 1/12 of 1% or 1% annual).  The amount
remitted to the partnership and recorded as interest on mortgage loans is net of
such fees. In 1993, $27,532 of the total loan servicing fee of $121,838, in 1994
$123,758 of the total loan  service  fees of $123,758 and in 1995 $50,741 of the
total loan service fees of $92,797 were waived by the Redwood Home Loan Co.
<PAGE>

                          REDWOOD MORTGAGE INVESTORS VI
                       (A California Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1995

C. Asset Management Fee 
     Pursuant  to the  partnership  agreement,  the  GeneralPartners  receive  a
monthly fee for managing the Partnerships loan portfolio and operations equal to
1/32 of 1% (3/8 of 1% annual)  of the net asset  value.  Such fees were  reduced
from $46,569 to $15,523 in 1993;  $45,974 to $8,942 in 1994, and $44,336 to $-0-
in 1995 with the difference being waived by the General Partners.
  
D. Other Fees 
     The  Partnership  Agreement  provides for other fees such as  reconveyance,
loan assumption and loan extension fees. These fees are paid by the borrowers to
parties related to the General Partners.

E. Income and Losses
     All  income is  credited  or  charged  to  partners  in  relation  to their
respective  partnership  interests.  The  partnership  interest  of the  General
Partners (combined) is a total of 1%.

F. Operating Expenses
     The  General  Partners  or their  affiliate  (Redwood  Home  Loan  Co.) are
reimbursed by the Partnership for all operating  expenses  actually  incurred by
them on behalf of the Partnership,  including without limitation,  out-of-pocket
general and  administration  expenses of the  Partnership,  accounting and audit
fees,  legal fees and expenses,  postage and  preparation  of reports to Limited
Partners.  In 1993,  1994 and 1995 clerical  costs  totaling  $31,642,  $-0- and
$23,341,  respectively,  were  reimbursed to RHL and are included in expenses in
the  Statements  of Income.  The 1994 expenses were absorbed by the Redwood Home
Loan Co.

NOTE 4 OTHER PARTNERSHIP PROVISIONS
A. Term of the Partnership
     The term of the  Partnership  is  approximately  40  years,  unless  sooner
terminated as provided.  The provisions  provided for no capital  withdrawal for
the first five years,  subject to the penalty  provision set forth in (D) below.
Thereafter,  investors  have the right to withdraw over a five-year  period,  or
longer.

B. Election to Receive Monthly, Quarterly or Annual Distributions
     Upon subscriptions,  investors elected either to receive monthly, quarterly
or  annual  distributions  of  earnings  allocations,  or to allow  earnings  to
compound for at least a period of 5 years.

C. Profits and Losses
     Profits  and  losses  are  allocated  monthly  among the  Limited  Partners
according  to their  respective  capital  accounts  after 1% is allocated to the
General Partners.

D. Withdrawal From Partnership
     A Limited  Partner  had no right to  withdraw  from the  Partnership  or to
obtain  the return of his  capital  account  for at least five years  after such
units are  purchased  which in all  instances has occurred by December 31, 1995.
After that  time,  at the  election  of the  Partner,  capital  accounts  can be
returned  over a five year  period in 20 equal  quarterly  installments  or such
longer period as is requested.
<PAGE>

                          REDWOOD MORTGAGE INVESTORS VI
                       (A California Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1995

     Notwithstanding  the  above,  in order  to  provide  a  certain  degree  of
liquidity to the Limited Partners, the General Partners will liquidate a Limited
Partners entire capital account in four quarterly installments beginning on the
last day of the calendar  quarter  following  the quarter in which the notice of
withdrawal is given. Such liquidations shall, however, be subject to a 10% early
withdrawal  penalty applicable to any sums withdrawn prior to the time when such
sums otherwise could have been withdrawn  pursuant to the liquidation  procedure
set forth  above.  The 10% early  withdrawal  penalty  will be  received  by the
Partnership, and a portion of the sums collected as such penalty will be applied
toward the next installment(s) of principal under the Formation Loan owed to the
Partnership  by Redwood Home Loan Co. Such portion  shall be  determined  by the
ratio between the initial amount of Formation Loan and the total amount of other
organization and syndication costs incurred by the Partnership in this offering.
The  balance of any such early  withdrawal  penalties  shall be  retained by the
Partnership for its own account and applied against syndication costs. Since the
syndication  costs have been fully  amortized as of December 31, 1993, the early
withdrawal  penalties  gained in the future will be applied on the same basis as
before with the amount  otherwise being credited to the syndication  costs being
credited to income for the period.

     The Partnership will not establish a reserve from which to fund withdrawals
and,  accordingly,  the  Partnership's  capacity  to return a Limited  Partners
capital  account is restricted to the  availability  of  Partnership  cash flow.
Furthermore,  no more than 20% of the total Limited  Partners  capital accounts
outstanding at the beginning of any year shall be liquidated during any calendar
year.

NOTE 5 - INVESTMENT IN PARTNERSHIP.
     The Partnerships interest in land acquired through foreclosure, located in
East Palo Alto with costs totalling  $456,821 has been invested with that of two
other  Partnerships  (total  cost  $941,050)  in a  partnership  which is in the
process of constructing  approximately 72 single family homes for sale.  Redwood
Mortgage  Investors V, VI, and VII have first  priority on return of  investment
plus interest thereon, in addition to a share of profits realized.

NOTE 6 - NOTES PAYABLE BANK - LINE OF CREDIT
     The  Partnership  has a bank line of credit  secured by its  mortgage  loan
portfolio up to $2,500,000 at 1% over prime.  The balances were  $2,376,511  and
$2,041,011 at December 31, 1994 and 1995, respectively, and the interest rate at
December 31, 1995 was 9.5% (8.5% prime + 1%).

NOTE 7 - LEGAL PROCEEDINGS
     The  Partnership  is not a defendant in any legal actions.  However,  legal
actions against  borrowers and other involved parties have been initiated by the
Partnership  to help  assure  payments  against  unsecured  accounts  receivable
totaling $322,913.

     Management  anticipates that the ultimate outcome of the legal matters will
not have a material  adverse effect on the net assets of the  Partnership,  with
due  consideration  having been given in arriving at the  allowance for doubtful
accounts.
<PAGE>

                          REDWOOD MORTGAGE INVESTORS VI
                       (A California Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1995




NOTE 8 - ASSET CONCENTRATIONS AND CHARACTERISTICS
     The mortgage loans are secured by recorded deeds of trust.  At December 31,
1995, there were 72 loans outstanding with the following characteristics:

 Number of loans outstanding                               72
 Total loans outstanding                          $10,402,491

 Average loan outstanding                         $   144,479
 Average loan as percent of total                        1.39%
 Average loan as percent of Partners Capital             1.27%

 Largest loan outstanding                          $1,279,200
 Largest loan as percent of total                       12.30%
 Largest loan as percent of Partners Capital            11.21%
 
 Number of counties where security is located
 (all California)                                          14
 Largest percentage of loans in one county              24.08%
 Average loan to appraised value of security
  at time loan was consummated                          64.40%
 Number of loans in foreclosure                             0


     The cash  balance at December  31,  1995 of $283,976  was in two banks with
interest  bearing  balances  totalling  $265,269.  The  balances  exceeded  FDIC
insurance limits (up to $100,000 per bank) by $181,650.
<PAGE>
<TABLE>





SCHEDULE II

                                       AMOUNTS RECEIVABLE FROM RELATED PARTIES AND UNDERWRITERS,
                                    PROMOTERS AND EMPLOYEES OTHER THAN RELATED PARTIES. RULE 12-03
<CAPTION>
        Column A                    Column B       Column C       Column D             Column E
     Name of Debtor                 Balance Beg.   Additions           Deductions        Balance at end of period
                                    of period
                                    12/31/94
                                                                      (1)        (2)        (1)              (2)
                                                                    Amounts     Amounts   Current         Not Current
                                                                    collected   written   12/31/95
                                                                                off
<S>                                  <C>          <C>             <C>       <C>             <C>             <C>

Redwood Home Loan Co. .............  $246,505     $       -0-     $ 59,581  $  2,747*       $  -0-          $184,177

<FN>
The above  schedule  represents  the  formation  loan  borrowed by Redwood  Home Loan Co. from the  Partnership  to 
pay for the selling commissions  on units.  It is an  unsecured  loan and bears no  interest.  It is being  repaid 
to the  Partnership  in ten equal annual installments of principal only commencing December 31, 1989.

* The amount  written off is comprised of the  application  of the applicable  portion of early  withdrawal 
 penalties as provided in the prospectus.
</FN>
</TABLE>
<PAGE>
<TABLE>
SCHEDULE VIII

                        VALUATION AND QUALIFYING ACCOUNTS
                          REDWOOD MORTGAGE INVESTORS VI
<CAPTION>
Col. A             Col. B                    Col. C               Col. D                Col. E
Description        Balance                  Additions             Deductions            Balance at
                   Beginning     -------------------------------- Describe             End of Period
                   of Period           (1)             (2)                                           
                                 Charged to       Charged to Other
                                 Costs            Accounts -
                                 & Expenses       Describe
                                                  
Year Ended
12/31/95

Deducted from
Asset Accounts:
<S>                <C>           <C>               <C>             <C>                 <C>
Allowance for
Doubtful Accounts  $209,073      $ 74,719          -0-             $   508 *           $283,284



<FN>
* Deductions represent amount determined to be uncollectable. Hence written off.

** Write-off of real estate acquired through foreclosure was $270,088, for  
total recognized losses of $344,807.
</FN>
</TABLE>
<PAGE>

<TABLE>
SCHEDULE IX

                              SHORT-TERM BORROWINGS
                   REDWOOD MORTGAGE INVESTORS VI - RULE 12-10
<CAPTION>
Col. A             Col. B            Col. C            Col. D            Col. E            Col. F
Category of        Balance at end    Weighted          Maximum Amount    Average Amount    Weighted
Aggregate          of Period         Average           Outstanding       Outstanding       Average
Short-Term                           Interest Rate     During the        During the        Interest Rate
Borrowings                                             Period            Period            During the
                                                                                           Period
------------------ ----------------- ----------------- ----------------- ----------------- -----------------
<S>                <C>               <C>               <C>               <C>               <C>
Year-Ended
12/31/95           $2,041,011        9.99%             $2,256,511        $2,131,230        9.99%

</TABLE>
<PAGE>



<TABLE>
SCHEDULE XII

                         MORTGAGE LOANS ON REAL ESTATE.
                    RULE 12-29 MORTGAGE LOANS ON REAL ESTATE
<CAPTION>
Col. A    Col. B     Col. C     Col. D     Col. E     Col. F       Col. G        Col. H    Col. I    Col. J
Descp.    Interest   Final      Periodic   Prior      Face Amt.    Carrying     Principal  Type of   Geographic
          Rate       Maturity   Payment    Liens      of           amount of    amount     Lien      County
                     Date       Terms                 Mortgages    mortgages    of loans             Location
                                                      (original                 subject
                                                      amount)                   to
                                                                                Delinq.
                                                                                Principal
                                                                                or
                                                                                Interest
<S>         <C>       <C>       <C>        <C>         <C>          <C>            <C>     <C>       <C>

Comm.       14.500%   09/01/95  $  727.05  $     -0-   $60,000.00  $ 59,126.22     -0-     1st Mtg   Alameda     
Comm.       14.500%   09/01/95   2,241.96    250,000   185,000.00   182,324.87     -0-     2nd Mtg   San Mateo
Res.        14.950%   08/01/95   1,243.81        -0-    98,680.00    98,571.95     -0-     1st Mtg   Alameda
Comm.       14.500%   12/01/95     918.42        -0-     75,00.00    73,779.91     -0-     1st Mtg   Alameda
Res.        14.000%   09/01/06     399.52     32,494    30,000.00    26,485.82     -0-     3rd Mtg   Santa Cruz
Res.        13.750%   10/01/96   1,833.33    369,163   160,000.00   160,000.00     -0-     2nd Mtg   San Mateo
Comm.       13.750%   10/01/96     644.53        -0-    56,250.00    56,250.00     -0-     1st Mtg   Santa Clara
Res.        12.500%   12/01/07     554.63        -0-    45,000.00    39,782.98     -0-     1st Mtg   Santa Cruz
Res.        10.000%   12/24/01     545.86        -0-    67,257.75    62,570.19     -0-     1st Mtg   Alameda
Comm.       13.875%   08/01/96     289.06        -0-    25,000.00    25,000.00     -0-     1st Mtg   Santa Clara
Res.         7.375%   02/01/99     602.96        -0-    87,300.00    83,734.59     -0-     1st Mtg   Alameda
Res.         6.000%   04/01/97     106.81     10,470    21,361.99    21,361.99     -0-     2nd Mtg   Sacramento
Res.         4.000%   04/01/97     113.30        -0-    23,130.95    23,130.86     -0-     1st Mtg   Sacramento
Res.         4.000%   04/01/97     120.00        -0-    24,384.59    24,384.52     -0-     1st Mtg   Sacramento
Res.         4.000%   04/01/96     170.00        -0-    34,702.33    34,702.25     -0-     1st Mtg   Sacramento
Apts.       13.000%   08/01/97   1,106.20    487,566   100,000.00    97,767.39     -0-     3rd Mtg   San Mateo
Comm.        7.000%   08/06/02     551.36     30,802    82,873.25    79,822.84     -0-     2nd Mtg   Alameda
Comm.       12.750%   10/01/97   1,086.69        -0-   100,000.00    98,945.81     -0-     1st Mtg   Santa Clara
Res.        13.000%   03/29/95   2,267.03    308,267   209,500.00   209,500.00     -0-     2nd Mtg   Santa Clara
Res.         5.000%   11/01/97     844.85        -0-   115,140.00   110,424.00     -0-     1st Mtg   San Mateo
Comm.      12..500%   01/01/08   1,343.45     64,620   109,000.00   100,564.37     -0-     2nd Mtg   Santa Clara
Comm.       12.250%   01/01/98   5,104.16    442,592   499,998.81   499,998.81     -0-     2nd Mtg   Contra Costa
Comm.       12.000%   04/01/98     110.00     32,875    11,000.00    11,000.00     -0-     2nd Mtg   San Francisco
Comm.       12.000%   06/01/98     497.08        -0-    58,500.00    47,976.66     -0-     1st Mtg   Sonoma
Apts.       12.500%   08/01/97     476.67     89,904    75,000.00    72,957.30     -0-     2nd Mtg   Sacramento
Res.        12.000%   07/01/98   2,417.24     67,312   235,000.00   216,586.51     -0-     2nd Mtg   El Dorado
Res.        13.500%   09/01/08     280.90     18,085    21,635.32    20,498.45     -0-     2nd Mtg   Contra Costa
Comm.       12.000%   11/01/98   2,057.23     11,864   200,000.00    85,670.56     -0-     2nd Mtg   Sacramento
Res.        10.000%   11/01/94     478.54        -0-    57,425.00    57,425.00     -0-     1st Mtg   San Mateo
Comm.       10.000%   12/01/98   1,755.14        -0-   200,000.00   197,767.18     -0-     1st Mtg   Stanislaus
Comm.       12.250%   01/01/98   2,433.81  1,126,508   249,999.40   233,928.01     -0-     4th Mtg   Contra Costa
Comm.       10.000%   12/01/98   5,046.04        -0-   575,000.00   568,272.68     -0-     1st Mtg   Alameda
Comm.        7.000%   12/01/03   1,151.48    562,500    99,172.75    84,454.39     -0-     2nd Mtg   Alameda
Apts        11.750%   05/01/96   3,162.79  2,369,828   370,000.00   316,279.07     -0-     2nd Mtg   Contra Costa
Comm.       12.000%   02/01/99  11,441.35        -0-  1,279,200.00 1,279,200.00    -0-     1st Mtg   Santa Clara
Res.        12.000%   06/01/04   1,053.22     50,205   100,000.00    98,892.84     -0-     2nd Mtg   Santa Clara
Res.        11.000%   06/01/99   1,904.66        -0-   200,000.00   198,611.00     -0-     1st Mtg   Marin
Comm.       12.000%   07/01/96   1,352.50    679,258   135,250.00   135,250.00     -0-     3rd Mtg   Sonoma
Comm.       11.000%   10/01/96   5,041.67  3,784,000   550,000.00   550,000.00     -0-     2nd Mtg   San Mateo
Comm.        8.500%   11/07/99     515.73        -0-    72,809.59    72,809.59     -0-     1st Mtg   Sonoma
Comm.       11.500%   12/20/96   5,441.96    146,582   567,856.74   567,856.74     -0-     2nd Mtg   Stanislaus
Res.         8.000%   12/01/00     500.00    148,004    52,500.00    50,507.43     -0-     2nd Mtg   Santa Clara
Apts.        7.000%   02/10/95     234.06     80,250    40,125.00    40,125.00     -0-     2nd Mtg   San Francisco

<PAGE>



Col. A    Col. B     Col. C     Col. D     Col. E     Col. F       Col. G        Col. H    Col. I    Col. J
Descp.    Interest   Final      Periodic   Prior      Face Amt.    Carrying     Principal  Type of   Geographic
          Rate       Maturity   Payment    Liens      of           amount of    amount     Lien      County
                     Date       Terms                 Mortgages    mortgages    of loans             Location
                                                      (original                 subject
                                                      amount)                   to
                                                                                Delinq.
                                                                                Principal
                                                                                or
                                                                                Interest
Res.        12.000%   06/24/94     100.00        -0-    10,000.00    10,000.00     -0-     1st Mtg   Sacramento
Res.        12.000%   03/01/98   1,275.15        -0-   280,000.00   130,606.09     -0-     1st Mtg   Alameda
Apts.       11.500%   04/01/05   1,047.31        -0-   150,000.00    93,440.22     -0-     1st Mtg   San Francisco
Apts.       12.500%   04/01/00     219.36    231,000     9,750.00     8,772.57     -0-     2nd Mtg   Alameda
Comm.        9.000%   05/10/02     670.52        -0-    83,333.33    83,007.41     -0-     1st Mtg   Shasta
Comm.       12.000%   12/31/99   4,500.00  2,439,050   450,000.00   450,000.00     -0-     2nd Mtg   Santa Clara
Res.         8.000%   09/27/00     482.54     96,429    72,380.95    72,380.95     -0-     2nd Mtg   Monterey
Comm.       11.500%   04/30/96   2,913.30    137,551   149,400.14   149,400.14     -0-     2nd Mtg   San Francisco
Res.        13.500%   03/01/03     467.39        -0-    36,000.00    25,803.69     -0-     1st Mtg   Solano
Apts.       13.000%   06/01/97   3,042.05  4,125,105   275,000.00   251,251.73     -0-     2nd Mtg   Alameda
Res.        13.500%   08/01/03     292.12     42,238    22,500.00    16,208.14     -0-     2nd Mtg   San Mateo
Res.        10.000%   08/01/03     576.96    262,720    49,000.00    37,229.64     -0-     2nd Mtg   San Mateo
Apts.       13.000%   09/01/98     807.53        -0-    73,000.00    68,006.90     -0-     1st Mtg   Alameda
Apts.       13.000%   11/01/03     759.15    341,094    60,000.00    44,627.93     -0-     2nd Mtg   San Francisco
Comm.       13.750%   11/01/03   2,202.61        -0-   167,500.00   120,342.97     -0-     1st Mtg   Alameda
Apts.       14.000%   03/01/92   1,184.87    960,000   100,000.00    97,567.83     -0-     2nd Mtg   Santa Clara
Res.        13.625%   04/01/92   1,816.67     45,884   160,000.00   139,263.31     -0-     2nd Mtg   San Mateo
Comm.       14.500%   05/01/04   4,233.05    532,392   310,000.00   244,912.91     -0-     2nd Mtg   San Mateo
Res.        11.500%   06/01/97   3,113.39        -0-   314,000.00   311,595.63     -0-     1st Mtg   Alameda
Comm.     Prime + 7   11/20/95   1,052.47    185,351   200,000.00   199,332.60     -0-     3rd Mtg   San Mateo
Apts.       14.000%   06/01/92     473.95    196,000    40,000.00    39,081.57     -0-     3rd Mtg   Santa Clara
Res.        14.250%   07/01/04     984.46     78,672    73,000.00    58,713.83     -0-     2nd Mtg   San Francisco
Res.        14.000%   07/01/99     733.96        -0-    61,943.70    60,548.91     -0-     1st Mtg   San Mateo
Comm.       14.500%   08/01/04   1,365.50        -0-   100,000.00    80,601.80     -0-     1st Mtg   Sonoma
Res.        14.500%   04/01/05     546.20    150,804    40,000.00    33,609.28     -0-     3rd Mtg   San Francisco
Res.        14.500%   07/01/92   2,416.67    340,827   200,000.00   200,000.00     -0-     2nd Mtg   San Francisco
Res.        10.000%   06/29/96     847.39        -0-    96,559.83    91,781.04     -0-     1st Mtg   San Francisco
Res.        10.000%   08/01/00   1,428.14        -0-   160,000.00   161,029.41     -0-     1st Mtg   San Mateo
Res.        14.500%   08/01/92     604.17    109,072    50,000.00    49,077.20     -0-     2nd Mtg   San Mateo

Total                       $ 110,323.93   21,437,338 11,153,421.42 10,402,491.48  -0-
                              


</TABLE>
<PAGE>

Schedule XII

Reconciliation of carrying amount of mortgage at close of period (12/31/95)

Balance at beginning of period 12/31/94                  $10,993,996
Additions during period:
New Mortgage loans                       $2,062,626
Other                                           -0-       $2,062,626
--------------------------------------------------------------------
                                                         $13,056,622


Deduction during period:
Collections of principal                 $2,273,233
Foreclosures                                357,461
Cost of mortgage sold                          -0-
Amortization of Premium                        -0-
Other                                        23,437       $2,654,131
--------------------------------------------------------------------

Balance at close of period (12/31/95)                    $10,402,491
                                                         -----------


      Item 9 - Changes in and Disagreements with Accountants on Accounting
                           and Financial Disclosure.

      The Partnership has neither changed its accountants nor does it have
    any disagreement on any matter of accounting principles or practices and
                        financial statement disclosures.



                                    Part III

          Item 10 - Directors and Executive Officers of the Registrant.

     The Partnership has no officers or directors. Rather, the activities of the
Partnership  are managed by the three General  Partners of which two individuals
are D. Russell  Burwell and Michael R.  Burwell.  The third  General  Partner is
Gymno Corporation,  a California  corporation,  formed in 1986. The Burwells are
the  two  shareholders  of  this  corporation  on  an  equal  (50-50)  basis.  A
description  of the General  Partners is set forth on page 22 of the  Prospectus
under the section Management.
<PAGE>

                        Item 11 - Executive Compensation

       COMPENSATION OF THE GENERAL PARTNERS AND AFFILIATES BY PARTNERSHIP

     As  indicated  above  in  item  10,  the  Partnership  has no  officers  or
directors. The Partnership is managed by the General Partners. There are certain
fees and other items paid to  management  and related  parties. 

     A more  complete  description  of management  compensation  is found in the
Prospectus,  pages 11-12, under the section Compensation of the General Partners
and the Affiliates,  which is incorporated  by reference.  Such  compensation is
summarized below.

     The  following  compensation  has been  paid to the  General  Partners  and
affiliates  for services  rendered  during the year ended December 31, 1995. All
such compensation is in compliance with the guidelines and limitations set forth
in the Prospectus.

Entity Receiving       Description of Compensation                   Amount
Compensation           and Services Rendered
---------------------- --------------------------------------------------------
I.
RHL CO.                Loan Servicing Fee for servicing loans      $   42,056
                       (RHL Co. waived $50,741)

General Partners       Asset Management Fee for managing assets    $      -0-
&/or Affiliates        (General Partners waived $44,336)                        
General Partners       1% interest in profits                      $    6,183
                       Less allowance for syndication costs        $      -0-  
                                                                   -----------
                                                                   $    6,183


II. FEES PAID BY BORROWERS ON MORTGAGE  LOANS PLACED BY COMPANIES  RELATED
    TO THE GENERAL  PARTNERS WITH THE  PARTNERSHIP  (EXPENSES OFBORROWERS NOT
    OF THE PARTNERSHIP):



RHL Co.                Loan Brokerage Commissions for services 
                       in connection  with the review, selection,
                       evaluation, negotiation, and extension of
                       the Partnership Loans paid by the 
                       borrowers and not by the Partnership        $   57,415



RHL Co.                Processing and Escrow Fees for services
                       in connection with notary, document
                       preparation, credit investigation,
                       and escrow fees payable by the borrowers
                       and not by the Partnership                  $      741



III. IN ADDITION,  THE GENERAL  PARTNER  AND/OR RELATED  COMPANIES PAY CERTAIN 
EXPENSES ON BEHALF OF THE  PARTNERSHIP  FOR WHICH IT IS
REIMBURSED AS NOTED IN THE STATEMENT OF INCOME.....................$   23,341
<PAGE>


     Item 12 - Security Ownership of Certain Beneficial Owners and Management

     The  General  Partners  receive  a  combined  total  of  a 1%  interest in
Partnership   income  and  losses  and   distributions  of  cash  available for
distribution.

     Item 13 - Certain Relationships and Related Transactions

     Refer to footnote 3 of the notes to financial statements in Part II item
     8 which describes related party fees and data.

     Also refer to sections of the  Prospectus Compensation  of General 
     Partners and  Affiliates,  page 11, and  Conflicts  of Interest,
     page 13, as part of the above-referenced Registration Statement 
     which is incorporated by reference.


                                     Part IV

 Item 14 - Exhibits, Financial Statements and Schedules, and Reports on Form 8-K

(A)      Documents filed as part of this report:

         1.  The financial statements are listed in Part II Item 8 under
             A-Financial Statements.

         2.  The Financial Statement Schedules are listed in Part II Item 8
             under B-Financial Statement Schedules.

<PAGE>

3. Exhibits.


   Exhibit No.               Description of Exhibits

    3.1              Limited Partnership Agreement
    3.2              Form of Certificate of Limited Partnership Interest
    3.3              Certificate of Limited Partnership
   10.1              Escrow Agreement (1)
   10.2              Servicing Agreement (1)
   10.3              (a) Form of Note secured by Deed of Trust which
                     provides for principal and interest payments (1)
                     (b) Form of Note secured by Deed of Trust which
                     provides principal and interest payments and right
                     of assumption (1)
                     (c) Form of Note secured by Deed of Trust which
                     provides for interest only payments (1)
                     (d) Form of Note (1)
   10.4              (a) Deed of Trust and Assignment of Rents to
                     accompany Exhibits 10.3 (a) and (c) (1)
                     (b) Deed of Trust and Assignment of Rents to
                     accompany Exhibits 10.3 (b) (1)
                     (c) Deed of Trust to accompany Exhibit 10.3 (d) (1)
   10.5              Promissory Note for Formation Loan (1)
   10.6              Agreement to Seek a Lender (1)
   24.1              Consent of Parodi & Cropper (1)
   24.2              Consent of Wilson, Ryan & Campilongo (1)


         All of these  exhibits  were  previously  filed as the  exhibits to 
 Registrants  Statement  on Form S-11  (Registration  No.33-12519) and
 incorporated by reference herein.

(B)      Reports on form 8-K

         No reports on Form 8-K have been filed during the last quarter of
         the period covered by this report.

(C)      See (A) 3 above

(D)      See (A) 2 above.  Additional  reference  is made to  prospectus 
         (S-11)  dated  September  3, 1987 to pages 56  through 59 and
         supplement #6 dated May 16, 1989 pages 16-18, for financial data
         related to Gymno corporation, a General Partner.

<PAGE>

                                                              Signatures


         Pursuant to the  requirements  of Section 13 or 15 (d) of the 
 Securities  Exchange Act of 1934 the registrant has duly caused this report
 to be signed on its behalf by the undersigned, thereto duly authorized on
 the 25th day of March, 1996.

REDWOOD MORTGAGE INVESTORS VI


By:
         ---------------------------------------------
         D. Russell Burwell, General Partner


By:
         ---------------------------------------------
         Michael R. Burwell, General Partner


By:      Gymno Corporation, General Partner


         By:
                 ---------------------------------------------
                 D. Russell Burwell, President


         By:
                 ---------------------------------------------
                 Michael R. Burwell, Secretary/Treasurer


Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,
this report has been signed below by the following  person on behalf of the
registrant and in the capacity indicated on the 25th day of March, 1996.


Signature                                Title                       Date



----------------------------
D. Russell Burwell             General Partner                   March 25, 1996



----------------------------
Michael R. Burwell             General Partner                   March 25, 1996




-----------------------------
D. Russell Burwell             President of Gymno                March 25, 1996
                               Corporation,                  
                               (Principal Executive Officer);
                               Director of Gymno Corporation



-----------------------------
Michael R. Burwell             Secretary/Treasurer of Gymno      March 25, 1996
                               Corporation (Principal Financial
                               and Accounting Officer);
                               Director of Gymno Corporation