NovaStar Mortgage Funding Trust
NovaStar Home Equity Loan Asset-Backed Certificates
Series 2002-1
Statement To Bondholder



DISTRIBUTIONS IN DOLLARS
			PRIOR												CURRENT
	ORIGINAL		PRINCIPAL								REALIZED		DEFERRED		PRINCIPAL
CLASS	FACE VALUE		BALANCE		INTEREST		PRINCIPAL		TOTAL		LOSSES		INTEREST		BALANCE

A-1		316,900,000.00		316,585,755.58		618,133.69		1,174,097.32		1,792,231.01		0.00		0.00		315,411,658.26
A-2		140,600,000.00		140,146,688.62		276,205.77		593,322.85		869,528.62		0.00		0.00		139,553,365.77
M-1		12,500,000.00		12,500,000.00		30,593.75		0.00		30,593.75		0.00		0.00		12,500,000.00
M-2		10,000,000.00		10,000,000.00		30,891.67		0.00		30,891.67		0.00		0.00		10,000,000.00
M-3		7,500,000.00		7,500,000.00		26,468.75		0.00		26,468.75		0.00		0.00		7,500,000.00
B		3,750,000.00		3,750,000.00		22,687.50		0.00		22,687.50		0.00		0.00		3,750,000.00
AIO		395,124,349.85		499,230,395.97		1,431,636.68		0.00		1,431,636.68		0.00		0.00		499,230,395.97
O		8,750,000.00		8,750,000.00		0.00		0.00		0.00		0.00		0.00		8,750,000.00
P		100.00		100.00		14,379.17		0.00		14,379.17		0.00		0.00		100.00

TOTALS		500,000,100.00		499,232,544.20		2,450,996.98		1,767,420.17		4,218,417.15		0.00		0.00		497,465,124.03



FACTOR INFORMATION PER $1000 OF ORIGINAL FACE
												PASS-THROUGH
		PRIOR								CURRENT		RATES
		PRINCIPAL								PRINCIPAL
CLASS	CUSIP	BALANCE		INTEREST		PRINCIPAL		TOTAL		BALANCE		CURRENT			NEXT

A-1	66987XBC8		999.008380		1.950564		3,704946		5.655510		995.303434		2.130000	%		2.120000	%
A-2	66987XBD6		996.775879		1.964479		4.219935		6.184414		992.555944		2.150000	%		2.140000	%
M-1	66987XBE4		1,000.000000		2.447500		0.000000		2.447500		1,000.000000		2.670000	%		2.660000	%
M-2	66987XBF1		1,000.000000		3.089167		0.000000		3.089167		1,000.000000		3.370000	%		3.360000	%
M-3	66987XBG9		1,000.000000		3.529167		0.000000		3.529167		1,000.000000		3.850000	%		3.840000	%
B	66987XBK0		1,000.000000		6.050000		0.000000		6.050000		1,000.000000		6.600000	%		6.590000	%
AIO	66987XBH7		1,263.476665		3.623256		0.000000		3.623256		1,263.476665		3.128386	%		—
P	66987XBJ3		1,000.000000		143,791.700000		0.000000		143,791.700000		1,000.000000		—			—



Seller:		NovaStar Financial, Inc.
Servicer:		NovaStar Mortgage Corporation
Record Date:		May 31, 2002
Distribution Date:		May 28, 2002

Page 1 of 2

NovaStar Mortgage Funding Trust
NovaStar Home Equity Loan Asset-Backed Certificates
Series 2002-1

Statement To Bondholder


Distribution Date: May 28, 2002

Aggregate Collections From the Mortgage Loans
Available Funds	4,712,024.34
Total Servicer Advances	0.00
Total Compensating Interest	0.00

Aggregate Beginning Principal Balance of Mortgage Loans			499,230,395.97
Aggregate Ending Principal Balance of Mortgage Loans			497,462,975.80
Credit Enhancement Percentage			8.54335	%
Cumulative Realized Losses			0.00
Current Realized Losses			0.00
Difference between Swap Notional Amount and Certificates			188,715,024.03
Loan Count			3,520
Pre-Funding Account			0.00
Prepayment Interest Shortfalls			0.00
Principal Prepayments			1,431,470.53
Subsequent Mortgage Loans added (Number/Balance)		0	0.00
Swap Notional Amount			300,000,000.00
Weighted Average Mortgage Rate			8.77154	%

Available Funds Cap Carryforward Amount A-1			0.00
Available Funds Cap Carryforward Amount A-2			0.00
Available Funds Cap Carryforward Amount M-1			0.00
Available Funds Cap Carryforward Amount M-2			0.00
Available Funds Cap Carryforward Amount M-3			0.00
Available Funds Cap Carryforward Amount B			0.00

Supplemental Interest Payment to Class A-1			0.00
Supplemental Interest Payment to Class A-2			0.00
Supplemental Interest Payment to Class M-1			0.00
Supplemental Interest Payment to Class M-2			0.00
Supplemental Interest Payment to Class M-3			0.00
Supplemental Interest Payment to Class B			4,066.96

Unpaid Interest Shortfall Amount to Class A-1			0.00
Unpaid Interest Shortfall Amount to Class A-2			0.00
Unpaid Interest Shortfall Amount to Class M-1			0.00
Unpaid Interest Shortfall Amount to Class M-2			0.00
Unpaid Interest Shortfall Amount to Class M-3			0.00
Unpaid Interest Shortfall Amount to Class B			0.00
Unpaid Interest Shortfall Amount to Class AIO			0.00

Swap Payment to SW005CSFB			156,692.71
Swap Payment to SW006CSFB			44,916.67
Swap Payment to SW007MS			229,052.08
Swap Payment to SW008MS			60,449.59


DELINQUENCY									REO
INFORMATION	30-59 DAYS		60-89 DAYS		90 + DAYS		FORECLOSURE		PROPERTY
DELINQUENT BALANCE		881,574.66		251,453.57		0.00		0.00		0.00
NUMBER OF LOANS		4		2		0		0		0

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NOVASTAR MORTGAGE FUNDING TRUST SERIES 2002-1 8-K