There is no hard requirement to keep a bad credit mortgage for any prescribed period of time. However, you should probably plan to keep this financing for at least one year and possibly two. It will take a while for you to effectively repair your credit, usually six months to one year, if you start immediately. Sometimes circumstances require a longer period of time, depending on your cash flow, debt level, delinquency status, and current/future income situation.

A one- or two-year fixed rate mortgage (that switches to an adjustable rate mortgage thereafter) should give you the necessary time frame to fix your credit situation. The critical issue is your willingness and commitment to solve your credit problems. No action on your part will eventually result in greater disaster, as in the loss of your home. Do not believe that getting a bad credit mortgage is the resolution to your situation. Be prepared to keep your new mortgage for a year or two, during which you take all actions possible to correct your credit problems. This will allow you to refinance at the best available interest rates and terms as soon as your credit report returns to a good status.

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