NovaStar Mortgage Funding Trust
NovaStar Home Equity Loan Asset-Backed Certificates
Series 2002-2

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		200,000,000.00		198,518,168.12		299,431.57		1,238,256.10		1,537,687.67		0.00		0.00		197,279,912.02
A-2		80,550,000.00		80,062,355.71		122,095.09		184,336.98		306,432.07		0.00		0.00		79,878,018.73
M-1		8,525,000.00		8,525,000.00		16,268.54		0.00		16,268.54		0.00		0.00		8,525,000.00
M-2		6,975,000.00		6,975,000.00		16,798.13		0.00		16,798.13		0.00		0.00		6,975,000.00
M-3		5,425,000.00		5,425,000.00		15,099.58		0.00		15,099.58		0.00		0.00		5,425,000.00
B		3,100,000.00		3,100,000.00		15,603.33		0.00		15,603.33		0.00		0.00		3,100,000.00
AIO		310,000,000.00		308,030,623.83		1,107,191.72		0.00		1,107,191.72		0.00		0.00		308,030,623.83
O		5,425,000.00		5,425,000.00		0.00		0.00		0.00		0.00		0.00		5,425,000.00
P		100.00		100.00		26,781.88		0.00		26,781.88		0.00		0.00		100.00

TOTALS		310,000,100.00		308,030,623.83		1,619,269.84		1,422,593.08		3,041,862.92		0.00		0.00		306,608,030.75


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	66987XBM6		992.590841		1.497158		6.191281		7.688438		986.399560		1.810000	%		2.083750	%
A-2	66987XBN4		993.946067		1.515768		2.288479		3.804247		991.657588		1.830000	%		2.103750	%
M-1	66987XBP9		1,000.000000		1.908333		0.000000		1.908333		1,000.000000		2.290000	%		2.563750	%
M-2	66987XBQ7		1,000.000000		2.408334		0.000000		2.408334		1,000.000000		2.890000	%		3.163750	%
M-3	66987XBR5		1,000.000000		2.783333		0.000000		2.783333		1,000.000000		3.340000	%		3.613750	%
B	66987WAM9		1,000.000000		5.033332		0.000000		5.033332		1,000.000000		6.040000	%		6.313750	%
AIO	66987XBS3		993.647174		3.571586		0.000000		3.571586		993.647174		4.313305	%		—
P	66987XBT1		1,000.000000		267,818.800000		0.000000		267,818.800000		1,000.000000		—			—


Seller: Servicer: Record Date: Distribution Date:		NovaStar Financial, Inc. NovaStar Mortgage Corporation September 30, 2002 September 25, 2002

Page 1 of 2

NovaStar Mortgage Funding Trust
NovaStar Home Equity Loan Asset-Backed Certificates
Series 2002-2

Statement To Bondholder

Distribution Date: September 25, 2002

Aggregate Collections From the Mortgage Loans


Available Funds			3,340,100.04
Total Servicer Advances			0.00
Total Compensating Interest			0.00


Aggregate Beginning Principal Balance of Mortgage Loans		308,030,623.83
Aggregate Ending Principal Balance of Mortgage Loans		306,608,030.75
Credit Enhancement Percentage		9.60510	%
Cumulative Realized Losses		0.00
Current Realized Losses		0.00
Difference between Swap Notional Amount and Certificates		101,182,930.75
Loan Count		2,280
Prepayment Interest Shortfalls		0.00
Principal Prepayments		1,220,565.52
Subsequent Mortgage Loans added (Number/Balance)	0	0.00
Swap Notional Amount		200,000,000.00
Weighted Average Mortgage Rate		8.89018	%
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		0.00
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 Credit Suisse First Boston1		99,304.16
Swap Payment to Credit Suisse First Boston2		43,951.39
Swap Payment to Credit Suisse First Boston3		26,111.11
Swap Payment to Credit Suisse First Boston4		37,631.94
Swap Payment to Morgan Stanley1		50,811.39
Swap Payment to Morgan Stanley2		38,390.28


DELINQUENCY									REO
INFORMATION	30-59 DAYS		60-89 DAYS		90 + DAYS		FORECLOSURE		PROPERTY

DELINQUENT BALANCE		322,135.46		156,631.81		0.00		88,530.77		79,607.29
NUMBER OF LOANS		2		2		0		2		1

Page 2 of 2

NOVASTAR MORTGAGE FUNDING CORP SERIES 2002-2 8-K