Master Repurchase Agreements Waiver

                                                                   

Exhibit 10.1




                                                           March
27, 2008

NovaStar Mortgage, Inc.
NovaStar Certificates Financing LLC
NovaStar Certificates Financing Corporation
NFI Repurchase Corporation
NMI Repurchase Corporation
NMI Property Financing, Inc.
HomeView Lending, Inc.
NovaStar Financial, Inc.
NFI Holding Corporation
8140 Ward Parkway,
Suite 300
Kansas City, Missouri 64114


         Re:  
Master Repurchase Agreements Waiver


     Reference is made to those certain Master  Repurchase 
Agreements listed on
Schedule I attached hereto (the  "
Agreements
").  Capitalized  terms used in this
letter agreement  without  definition have the meanings  ascribed
to them in the
Agreements.

     Effective  as of the date  hereof  and until  April 30,  2008
(the  "Waiver
Period") and subject to the limitations set forth herein, each
Buyer hereby:

         A.    1.   Agrees  not  to  enforce  the   requirements  
for  NovaStar
                    Financial,  Inc.  ("NFI") to  maintain  a
required  Adjusted
                    Tangible Net Worth under the Agreements;

               2.   Waives  any breach  and/or  any event of
default  that would
                    otherwise  arise under the Agreements  solely
as a result of
                    the failure of NFI to have the  required 
Adjusted  Tangible
                    Net Worth specified in the Agreements; or

               3.   Agrees that in the Monthly  Certificates 
delivered  by NFI,
                    NFI may carve-out the  certification  solely
relating to the
                    Adjusted  Tangible Net Worth for the previous
month and each
                    Buyer hereby  waives any breach and/or event of
default that
                    would  otherwise  arise under the  Agreements
as a result of
                    such carve-out from the Monthly Certifications.

         B.    1.   Agrees,  during  the  Waiver  Period,  not  to 
enforce  the
                    requirement that NovaStar  Financial,  Inc.
("NFI") maintain
                    Liquidity  in  an  amount  not  less  than  
$30,000,000  as
                    specified under the

                    Agreements;  provided that NFI agrees to
maintain  Liquidity
                    (taking  into  account  required  haircuts) in
an amount not
                    less than $9,500,000;

               2.   Waives  any breach  and/or  any event of
default  that would
                    otherwise  arise under the Agreements  solely
as a result of
                    the  failure of NFI to maintain  Liquidity  in
an amount not
                    less than  $30,000,000  during the Waiver 
Period;  provided
                    that NFI  maintains  Liquidity  in an  amount 
not less than
                    $9,500,000 during the Waiver Period;

               3.   Agrees that in the  Monthly  Certificates 
delivered  by NFI
                    during  the  Waiver  Period,  NFI  may 
carve-out  from  the
                    certification  the  requirement to maintain 
Liquidity in an
                    amount not less than  $30,000,000  for the 
previous  month;
                    provided that NFI shall maintain  Liquidity in
an amount not
                    less than  $9,500,000  for such month and shall
certify that
                    it has maintained such amount in the Monthly
Certification.

Notwithstanding  anything  to the  contrary  herein,  all parties 
bound  herein
acknowledge  and agree that the Buyers,  shall retain all rights
and remedies in
order to  enforce  any Event of  Default  or other  breach 
contemplated  by the
Agreements.

     Notwithstanding the occurrence and continuance of NFI's
failure to maintain
the required  Adjusted  Tangible Net Worth or maintenance of
Liquidity under the
Agreements  described  above,  each  Buyer is  willing  to waive 
certain of its
rights;  
provided
 that each Buyer reserves the right to  unilaterally  terminate
this  letter  agreement  on or prior to April 30,  2008,  without 
notice to any
party,  based upon the  occurrence of any Event of Default or
breach that occurs
under the Agreements on or after the date hereof other than the
Event of Default
expressly  waived by the Buyers herein.  Either Buyer's exercise of
the right to