~~Table~~SECURITIES ofAND ~~Contents~~EXCHANGE COMMISSION

~~SECURITIES~~Washington, ~~AND~~D.C. ~~EXCHANGE COMMISSION~~20549

~~Washington,~~FORM ~~D.C. 20549~~8-K

~~FORM~~CURRENT ~~8-K~~REPORT

~~CURRENT~~Pursuant ~~REPORT~~to Section 13 or 15(d) of the

~~Pursuant~~Securities toExchange ~~Section 13~~Act ~~or 15(d)~~ of ~~the~~1934

~~Securities~~Date ~~Exchange~~of ~~Act~~Report (Date of ~~1934~~earliest event reported) July 25, 2002.

~~Date~~NovaStar ofMortgage ~~Report~~Funding Trust, Series 2002-1 (~~Date~~Issuer in respect of ~~earliest~~the NovaStar Home Equity Loan Asset- ~~event~~Backed ~~reported)~~Bonds ~~May~~Series ~~28,~~ 2002.-1)

~~NovaStar Mortgage Funding Trust, Series 2002-1~~ (~~Issuer~~Exact inname ~~respect~~ of ~~the~~registrant ~~NovaStar Home Equity Loan Asset-~~as ~~Backed~~specified ~~Bonds~~in ~~Series 2002-1~~its charter)

(Exact name of registrant as specified in its charter)


Delaware	333-50290	46-0479702

(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Delaware		333-50290		46-0479702
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

c/o Wachovia Bank, National Association, 401 S. Tryon Street, 9th Floor, Charlotte, NC 28288-1179

c/o Wachovia Bank, National Association, 401 S. Tryon Street, 9th Floor, Charlotte, NC		28288-1179
(Address of principal executive offices)		(Zip Code)

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (704) 383-9568

(Former name or former address, if changed since last report.)

~~TABLE~~Item 5. OFSee ~~CONTENTS~~the monthly statement to Bondholders attached as Exhibit 20.1 hereto reflecting the required information for theJuly 25, 2002 payment to the NovaStar Home Equity Loan Asset-Backed Bonds Series 2002-1

Item ~~5 Item~~ 7. Financial Statements and Exhibits. ~~Signatures Monthly Statement~~

~~Table of Contents~~(c) Exhibits.

Item ~~5. See~~601 ~~the~~(a) of ~~monthly~~Regulation. S-K ~~statement to Bondholders attached as~~ Exhibit 20Number.1 ~~hereto reflecting the required information for the~~ ~~May 28, 2002 payment to the NovaStar Home Equity Loan Asset-Backed Bonds Series 2002-1~~

~~Item 7~~20. ~~Financial~~1 ~~Statements~~Monthly ~~and~~statement ~~Exhibits~~to holders of NovaStar Home Equity Loan Asset-Backed Bonds Series 2002-1 relating to theJuly 25, 2002 Payment Date.

~~(c) Exhibits.~~-2-

~~Item 601 (a) of Regulation.~~Signatures ~~S-K Exhibit Number.~~

~~20.1 Monthly~~ Pursuant ~~statement~~ to ~~holders~~the requirements of ~~NovaStar~~the ~~Home~~Securities ~~Equity~~Exchange ~~Loan~~Act of ~~Asset-Backed~~1934, ~~Bonds~~the ~~Series 2002-1~~Registrant ~~relating~~has duly caused this report to ~~the~~be signed on behalf ~~May~~of NovaStar Mortgage Funding Trust Series ~~28,~~2001-2 ~~2002~~by ~~Payment~~the undersigned ~~Date~~thereunto duly authorized.

-2-


Dated: August 5, 2002	By:	Wachovia Bank, National Association, as Indenture Trustee and on behalf of NovaStar Mortgage Funding Trust Series 2002-1


		BY:	Robert Ashbaugh

			Vice President

~~Table of Contents~~-3-

~~Signatures~~EXHIBIT INDEX

~~Pursuant~~20.1 toMonthly ~~the~~statement ~~requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report~~ to beholders ~~signed on behalf~~ of NovaStar ~~Mortgage~~Home ~~Funding~~Equity ~~Trust~~Loan Asset-Backed Bonds Series 2002-1 byrelating ~~the~~to ~~undersigned thereunto~~theJuly 25, ~~duly~~2002 ~~authorized~~Payment Date.

Dated: June 5, 2002		By:		Wachovia Bank, National Association, as Indenture Trustee and on behalf of NovaStar Mortgage Funding Trust Series 2002-1
				BY:		Robert Ashbaugh Vice President

-4-

-3-

EXHIBIT INDEX

20.1 Monthly statement to holders of NovaStar Home Equity Loan Asset-Backed Bonds Series 2002-1 relating to theMay 28, 2002 Payment Date.

-4-

Filing Compare · NOVASTAR MORTGAGE FUNDING TRUST SERIES 2002-1