Extra credit

At the time she didn't care about the financial consequences.

Two years later, her New Year's resolution was to buy a house for the first time. To see if it would be possible, she attended a Home Buyers workshop offered by Collier County, a three-hour course that covered everything from house shopping to closing costs.

"I left doubtful," Wood said. "I thought 'there's no way I can clear everything up,' but I knew in my mind that I had to."

The county's workshop is one of several local programs offered to would-be buyers with poor credit. Privately or publicly funded, the help comes as just that -- help -- as the buyers must do the work to pay off their debt and clean up their credit.

Wood, a 45-year-old single mother who has worked in the billing department at Collier County Emergency Medical Services since September 2001, started by making a budget.

She worked extra hours and cut back on spending and within months had paid off $7,000 of bad credit. She wrote letters requesting the bruises be removed from her credit report, and in the meantime started "stalking neighborhoods" for homes for sale.

Her goal was to own in a year; she closed on her Lely condominium on Sept. 26, nine months after making the resolution.

"We say "thank you' every day," Wood said.

Marcy Krumbine teaches the Home Buyers workshop once a month as part of her job as housing coordinator for Collier County University Extension.

"A lot of people aren't willing to clean up their credit, but (if they do) they will get the best deal on a mortgage," she said.

Most people who attend the workshop have low to moderate incomes and about half have credit issues, Krumbine said. She spends a portion of the class talking about credit, explaining options for getting out of debt -- from paying all the debt to having a company accept partial payment as payment in full -- then shows how to clear up a credit report, from providing sample letters that request an item be removed to disputing errors, which Krumbine says are common.

Cormac Giblin of the Collier County Financial Administration and Housing Department helps potential home buyers with down payments and impact fees.

As housing development manager, Giblin controls an annual $3 million pot of state money funded by Florida's initiative for home ownership. Giblin said the program is one of the best in the nation.

Low-income persons or families buying a home for the first time can apply to receive $5,000 toward the down payment, plus up to $20,000 in impact fees. Giblin said the fund usually runs out right at the end of the year.

Government programs aren't the only avenue for help with credit problems when looking to purchase a home.

Fort Myers-based American Dream Builders specializes with first-time home buyers and "people with less-than-perfect credit," said Joseph Costa, director of marketing for the 7-year-old company, which builds approximately 300 homes a year in Collier, Lee, Charlotte and Sarasota counties.

To do this, American Dream Builders offers a credit restoration program through Credit Educators of America (CEA), a local organization.

At the end of the program -- a series of four two-hour workshops -- American Dream Builders gives a $1,000 credit toward closing costs. CEA collects $250 at the beginning of the program, which also is credited toward closing costs.

The company believes in the program because it helps people and it helps the company, Costa said, adding that American Dream Builders has not raised the prices of homes to cover the $1,000.

"When a person goes through the class they have a good understanding of credit and how credit affects their lives," Costa said. In addition, "we want people to come back in four or five years to upgrade their home."

The program teaches people how to balance a checkbook, how to read a credit report and how to dispute items on a credit report. Like the county workshop, Costa said CEA doesn't solve credit problems, but gives people the tools to do it themselves.

"It's not a quick-fix program," he warned. "We do not guarantee once you go through the program you will be ready for a mortgage program."

About 80 percent of CEA participants receive an approval rating for a loan.

Nearly anyone can enter the CEA program, and very few are turned away. Costa said attendees' credit varies from people who have had foreclosures and repossessions to those who have minor credit issues and may not need credit help but want the $1,000.

The CEA workshop is held from 10 a.m. to noon every Saturday in Naples, and from 1 p.m. to 3 p.m. every Sunday in North Port. Both workshops are set up on rotating basis, so participants can begin any time. To enroll, call 352-5517.

The next Home Buyers workshop will be held from 6 p.m. to 9 p.m. on Monday, Nov. 10, at Collier County Extension offices, 14700 Immokalee Road. There is no cost. Register by calling 353-4244.