If you have bad credit, but good income can you still qualify for a home loan in todays housing market?

Is there any sort of insurance that one can buy that would provide the lender assurance against one's bad credit?

No. Expect to pay higher interest if you can get a loan at all.

FHA loans are more forgiving when you have bad credit. You need to find a FHA broker and ask him if you can qualify.

The best insurance right now is a big down payment (20% or more)

A healthy down payment with enough for closing costs and a few months expenses are a good start. You should also look into FHA loans.

So you think that you're ready to buy your own home? Hopefully you've done a little research online to make your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your new mortgage. This is now more important than ever