EXHIBIT 5.2

 
                               PIPER & MARBURY
                                   L.L.P.
                            CHARLES CENTER SOUTH              WASHINGTON
                           36 SOUTH CHARLES STREET             NEW YORK
                       BALTIMORE, MARYLAND 21201-3018        PHILADELPHIA
                               410-539-2530                     EASTON
                            FAX: 410-539-0489          
                                    
                                       

                                January 26, 1998


NovaStar Financial, Inc.
1900 West 47th Place, Suite 205
Westwood, Kansas 66205

                       Registration Statement on Form S-8

Gentlemen:

     We have acted as Maryland counsel to NovaStar Financial, Inc., a Maryland
corporation (the "Company"), in connection with the registration under the
Securities Act of 1933, as amended (the "Act"), of an aggregate of up to ten
percent of the Company's outstanding shares of Common Stock, par value $.01 per
share, of the Company (the "Shares") pursuant to a Registration Statement of the
Company on Form S-8 (the "Registration Statement") filed with the Securities and
Exchange Commission (the "Commission").  The Shares may be issued pursuant to
the Company's 1996 Executive and Non-Employee Director Stock Option Plan, as
amended (the "Plan"), provided, however, that no more than 339,332 Shares will
be cumulatively available for grants as Incentive Stock Options at any given
time.

     In our capacity as Maryland counsel to the Company, we have reviewed the
Charter and By-Laws of the Company as in effect on the date hereof, minutes of
the proceedings of the Company's Board of Directors authorizing the issuance of
the Shares and authorizing the Plan, and such other documents as we have
considered necessary.  We have also examined an Officer's Certificate of the
Company dated the date hereof (the "Certificate").  In such examination, we have
assumed, without independent investigation, the genuineness of all signatures,
the legal capacity of all individuals who have executed any of the aforesaid
documents, the authenticity of all documents submitted to us as originals, the
conformity with originals of all documents submitted to us as copies (and the
authenticity of the originals of such copies), and that all public records
reviewed are accurate and complete. As to factual matters we have relied on the
Certificate and have not independently verified the matters stated therein.

 

 
NovaStar Financial, Inc.
January 26, 1998
Page 2



     Based upon the foregoing and having regard for such legal considerations as
we deem relevant, we are of the opinion and so advise you that upon the issuance
and delivery of the Shares in accordance with the terms set forth in the Plan,
the Shares will have been duly and validly authorized and will be validly
issued, fully paid, and nonassessable.

     We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement.  In giving our consent, we do not thereby admit that we
are in the category of persons whose consent is required under Section 7 of the
Act or the rules and regulations of the Commission thereunder.

                              Very truly yours,

                              /s/ Piper & Marbury L.L.P.