Exhibit 31.2

CERTIFICATION

I, Rodney E. Schwatken, certify that:

|1. |  | I have reviewed this quarterly report on Form 10-Q of Novastar
      Financial, Inc.;                                                                                                                                                                                                                                                                       
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|2. |  | Based on my knowledge, this report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this report;                          
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|3. |  | Based on my knowledge, the financial statements, and other
      financial information included in this report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the registrant as of, and for, the periods presented in this
      report;                                             
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|4. |  | The registrants other certifying officer and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control
      over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
      15d- 15(f)) for the registrant and have:
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|5. |  | The registrants other certifying officer and I have disclosed,
      based on our most recent evaluation of internal control over financial
      reporting, to the registrants auditors and the audit committee of
      registrants board of directors (or persons performing the equivalent
      function):                                          
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|Date: November 12,
      2009 | /s/ Rodney E.
      Schwatken
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|                              | Rodney E. Schwatken          
|                              | Chief Financial Officer      

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