FAQ/ Definitions
Can I make changes to any floor plan?
Yes. Groza Builders is a custom builder. We have an in house draftsmen to help you customize your home. You can add a bathroom, make your home bigger or smaller, move walls etc. The changes are endless.
Can I bring my own plan?
Yes you can!
In what areas do you build?
We build in the following areas Okeechobee, Indian River (Sebastian, Vero) Martin County (Stuart, Palm City, Jensen Beach) St. Lucie County (Fort Pierce) and City of Port St Lucie.
What are your standards? Or what is included in your price?
Ask a Groza Sales Representative to go over the features with you.
What does lot prep cost?
Lot prep starts around $20,000 upwards. It depends on how low the lot is, how much fill it needs, and how much growth is on the property. Lot prep is not just clearing the trees. This is a standard price for a 1/4 acre lot.
Do you have land inventory?
We do not have any inventory lots at this time. Our lot specialists can help you find a lot that is perfect for you.
What are inventory homes?
Inventory homes are homes that we build on our lots and are available for purchase as an entire package (home, lot, lot prep, design features). These homes are perfect for buyers in a time crunch.
What are the benefits of the injected foam?
Insulates and blocks sound transference & keeps energy consumption down, reducing the emissions associated with heating and cooling a building. This foam also prevents insects from entering your home. All of our homes come with injected foam.
What energy efficient features do you offer?
Injected foam in block walls, R-30 insulation in ceilings, energy efficient water heater, energy efficient heating and air conditioner, low E energy efficient impact windows, energy calc specific to each home.
Do you have preferred lenders?
We do have a list of lenders that do construction loans, whom we work closely with. Ask for our list. To apply see the preferred lenders tab and click apply with which ever agent you prefer using.
What are the benefits of a Construction Loan?
The biggest benefit is that it's your home from day 1. You close upfront and your interest rate is locked for the life of the Loan. Since you own the home there is peace of mind for you that if anything changes in your life situation that you are covered.
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Amortization
Amortization is the periodic payment of principal and interest on a liability (including a mortgage), Or the write-off of a non-depreciable asset over a scheduled term.
Assessment
An assessment is a levy against property and can be an extraordinary payment called for by the board of directors of a cooperative or condominium for the purpose of making a capital improvement or to provide some other essential service for which funds in the reserve account are inadequate.
Assignment
Assignment is the process by which a right or contract is transferred from one party to another. Examples of typical assigned contracts are mortgages, leases, and deeds of trusts.
Ballon Mortgage
A balloon Mortgage is a short-term mortgage with fixed installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due is in a lump sum at the end of the term.
Bridge Loan
A bridge loan is a loan for a short duration of time and can be used when one is purchasing one property but is dependent on the equity from another property that has not yet been sold. Once the property is sold then the bridge loan is repaid.
Building Restrictions
Building restrictions are the requirements in the building codes that affect the size and appearance of the building.
Buy Down
Buy Down is the voluntary paying of discount points by a borrower to reduce mortgage interest rate at the time the loan is made.
Caveat
Caveat is a warning or caution that may be an amendment to a contract of sale.
Certificate of Occupancy (C of O)
The Certificate of Occupancy is a certificate issued by a local governmental entity responsible for the use of land in the community where the property is located stating that the structure on the property or any improvements made to these structures comply with the codes, ordinances, and regulations of that governmental entity and that they may be occupied.
Civil Rights Act of 1964
The Civil Rights Act of 1964 is a federal law that prohibits discrimination in many instances, but in Title VI it prohibits discrimination on the grounds of race, color, or national origin under any program or activity receiving federal financial assistance.
Closing
The Closing is when the transfer of ownership of a property from the seller to the buyer occurs according to the sales contract.
Closing Costs
Closing Cost are the expenses incurred in the purchase and sale of real property paid at the time of settlement or closing. Some examples of closing costs are title insurance, attorney fees, appraisal fees, recording fees and taxes.
Co-Broke
Co-Broke in an arrangement between two brokerage firms to share a commission. Normally used when one broker is the seller’s exclusive listing agent and the other broker represents the buyer.
Commitment Letter
A letter issued by the lender to the applicant that states funds will be provided subject to written terms and conditions.
Conforming Loan
A conforming loan is a mortgage issued within the framework of FNMA/FHLMC (Fannie Mae/Feddie Mac) guidelines in the terms and amount. In general, any loan which does not meet these guidelines is a non-conforming loan. A loan which does not meet these guidelines specifically because the loan amount exceeds the guideline limits is known as a jumbo loan. The Office of Federal Housing Enterprise Oversight (OFHEO) set the criteria on what constitutes a conforming loan limit that Fannie Mae and Feddie Mac can buy. Criteria included debt-to-income ratio limits and documentation requirements. The maximum loan amount is based on the October-to-October changes in median home price, above which a mortgage is considered a jumbo loan, and typically has higher rates associated with it.
Construction Loan or Mortgage
A construction loan is a short-term loan to obtain funds to construct an improvement.
Constructive Notice
Constructive notice occurs when one of any affected parties are bound by the knowledge of a fact even though they have not been officially notified of such fact.
Contingency
Contingency is a condition in a contract relieving a party liability if a specified event occurs or fails to occur.
Contract
A contract is a legally binding agreement between two parties, and in order to have a valid Contract of Sale in real estate there must be: an offer, an acceptance, competent parties, consideration, legal purpose, written documentation, description of the property, and signatures of the principals.
Conventional Mortgage Loan
A conventional mortgage loan is a loan in which the federal government does not insure or guarantee payee to the lender, but is under the amount of a jumbo mortgage.
Conveyance
Conveyance is the transfer of title to real property.
Credit Score
A credit score is a numerical rating provided on a credit report that establishes creditworthiness based upon a person’s past credit/payment history and their current credit standing.
Debt-to-Equity Ratio
The debt-to-equity ratio, also referred to as the loan-to-value ratio, is a rule used by banks requiring that a borrower invest a minimum amount of equity cash (usually 10% to 25% of the purchase price) as a condition to obtaining a mortgage. The rule is used in conjunction with the carrying-cost rule to determine how much money a bank will lend. A ratio of 1 means 100% leverage of a property, and higher than 1 means negative equity.
Debt Service
Debt Service is the cost of carrying a loan, usually through monthly payments, including the payment of interest and principal.
Deed
A deed is a written instrument transferring an interest in real property when delivered to the grantee.
Deed Restriction
A deed restriction is a limitation on land use appearing in a deed.
Disclosure Statement
The disclosure statement is an accounting of all financial aspects of a mortgage loan required of lenders to borrowers in residential mortgage loan as regulated by the Federal Reserve Board.
Discount Points
Discount points are a one-time payment by the borrower to the lender at closing to obtain a lower interest rate on a mortgage loan. One point equals 1% of the loan amount; therefore, two points on a $100,000 mortgage would cost $2,000. It is also referred to as points.
Down Payment
The down payment is the amount of money a buyer pays upfront in order to purchase a property. It is usually paid at the signing of contract in the form of a certified check. The amount is typically 10% of the sales price.
Due Diligence
Due diligence is the investigation and review of a property to determine any legal liability.
Earnest Money Deposit
Earnest money deposit is the deposit a buyer makes at the time of submitting an offer to demonstrate the true intent to purchase. It is also called a binder or good faith deposit.
Easement
An easement is a non-possessory right of the use of land.
Effective Interest Rate
Effective interest rate is the actual rate of interest paid on a loan.
Egress
Egress is the exit from a building or parcel of land.
Encroachment
Encroachment is the trespassing in the land of another by a structure or other object.
Encumbrance
An encumbrance is a claim, lien, charge, or liability attached to and binding upon real property.
Equity
Equity is the difference between what something is worth and any loan secured by the asset (i.e. the value of a property less the outstanding mortgage). For example, if a home is worth $100,000 and the owner/borrower owes $65,000 on the mortgage loan secured by the borrower’s home, then the borrower’s equity is $35,000 or 35% equity in the home.
Escrow
A state where consideration, benefits, legal rights, documents, or a sum of money is held by one person in a trust for another, for the purpose of assuring performance under an agreement. Normally in a residential real estate sale, the attorney for the seller is the escrow agent for the deposit money securing the deal until closing. The money is held in an escrow account.
Executed Contract
An executed contract is an agreement that has been fully performed.
Fannie Mae
Fannie Mae is the nickname for the Federal National Mortgage Association (FNMA), a privately owned corporation that purchase FHA, Va, and Conventional Mortgages.
Fascia
The fascia is the area facing the outside of a soffit in house construction.
Federal Housing Administration (FHA)
The Federal Housing Administration is a federal agency that is part of the Department of Housing and Urban Development (HUD) that sets policy for mortgage underwriting and provides insurance for residential mortgages.
Fee Simple Absolute
Fee simple absolute is the inheritable estate in land providing the greatest interest of any form of title.
FHA Insured Loan
An FHA insured loan is a mortgage insured by the Federal Housing Administration.
Financing Charge
The Finance charge is the amount imposed on the borrower in a mortgage loan, consisting of origination fee, service charges, discount points, interest, credit report fees, and finders’ fees.
Fixed-Rate Mortgage
A loan secured by real estate that has a fixed interest rate and payment amount for the term of the loan (normally 15 or 30 years).
Foreclosure
Foreclosure is an enforcement process in which the lender under a defaulted mortgage take title to the property for the purposes of selling it to recoup moneys owed under the mortgage.
Freddie Mac
Freddie Mac is the nickname for Federal Home Loan Mortgage Corporation (FHLMC), a corporation wholly owned by the Federal Home Loan Bank System that purchases FHA, VA, and conventional Mortgage.
Fully Amortizing Mortgage
A fully amortizing mortgage is a mortgage with scheduled uniform payments that will fully pay-off the loan over the term of the mortgage.
General Lien
A general lien is a lien that attaches to all of the property of a person within the court’s jurisdiction.
General Warranty Deed
A general warranty deed is a deed denoting an unlimited guarantee of title.
Ginnie Mae
Ginnie Mae is the nickname of Government National Mortgage Association (GNMA), a U.S. government agency that purchases FHA and Va Mortgages.
Ingress
An ingress is the right to enter a parcel of land, usually used as “ingress and egress”, or both entering and leaving.
Interest Rates
The interest rate is the cost of borrowing money from a lender. Rates will vary and will change over time.
Interim Financing
Interim financing is a short-term or temporary loan such as a construction or bridge loan.
Joint Tenancy
Joint tenancy is a form of co-ownership that includes the right of survivorship.
Judgment Lien
A judgement lien is a general lien resulting from a court decree.
Jumbo Loan
A mortgage issued in an amount exceeding the threshold stipulated under Fannie Mae (FNMA) regulations for a conforming loan.
Liability
A liability is a debt or claim that is owed.
Lien
A lien is an encumbrance on property which acts as security for the payment of a debt or the performance of an obligation. A mortgage is a lien. A lender will want most, if not all, liens on a property removed before making a mortgage loan.
Liquidated Damages
Liquidated damages are the agreed amount to be paid as compensation for a breach of contract.
Loan Commitment
The loan commitment is the written obligation from a lending institution to provide a mortgage to a borrower.
Loan Origination Fee
The loan origination fee is the financing charge required by a lender.
Loan-to-Value Ratio (LTV)
The loan-to-value ration is the mortgage amount divided by the lower of the purchase price or the appraised value of the property. This ratio is expressed as a percentage. A lender will use this ratio in determining the maximum mortgage loan that it will make on the property.
Lock-In/Rate Lock Agreement
A lock-in in an agreement by the lender guaranteeing the applicant a specified interest rate on the mortgage loan provided the loan closes within a set period of time.
Lot
A lot is a measured section of land.
Mechanic’s Lien
A mechanic’s lien is a statutory lien available to anyone supplying labor or material to the construction of an improvement of land that ahs not been properly compensated.
Metes and Bounds
Metes and bounds is a system of land description with distances and directions.
Mortgage
A mortgage is a pledge of real estate collateral to secure a debt. Also, it is a legal document describing and defining the pledge. The Mortgage may also include the terms of repayment of the debt. It is also referred to as a deed of trust.
Mortgage Broker
A real estate professional who represents an array of banks seeking to issue mortgages. The mortgage broker meets with a customer, assists with the application, and facilitates the mortgage process on behalf of the borrower and the bank. Generally, in the case of residential mortgages, the mortgage broker is paid a fee by the bank for this service.
Mortgage Insurance (or Private Mortgage Insurance/PMI)
Mortgage insurance is insurance that protects the lender in case the home buyer does not make their mortgage payments. Typically, a borrower would be required to pay a fee for mortgage insurance if there is a down payment is less than 20%.
Mortgage Note
A mortgage note is a document signed at closing which states the borrower’s promise to re-pay a sum of money. The note states an interest rate and a fixed period of time (term) for repayment.
Mortgage Satisfaction
Mortgage satisfaction refers to the full payment of a mortgage loan.
Mortgagee
The mortgagee is the lender in a mortgage transaction.
Mortgagor
The mortgagor is the borrower in a mortgage transaction.
Net Worth
Net Worth is your assets less your liabilities.
Origination Fee
The Origination fee is a service charge by a lending institution for a mortgage.
PITI
PITI is an acronym for a mortgage payment that includes principal, interest, taxes and insurance.
Plat
A plat is a property map that is part of the public record.
Points
Points refer to the payment made to a lender as consideration for issuing a mortgage, usually based on a percentage of the loan amount. Each Point is equal to 1% of the principal of the mortgage.
Pre-Approval
A pre-approval is a process in which a conditional commitment is issued after a loan profile is underwritten with all standard documentation except a property appraisal and a title search.
Pre-Qualification
A pre-qualification is a process in which a loan officer calculates the housing-to-income ratio and the total debt-to-income ratio to determine an approximate maximum mortgage loan amount.
Principal
The principal in the mortgage is the amount that is borrowed and on which interest is paid or received.
Property Tax
The tax issued by a municipality on the ownership of a property.
Ratios
Ratios are guidelines applied by the lender during underwriting a mortgage loan application to determine how large a loan to grant an applicant. The ratios the lenders use are generally the Loan-to-Value Ratio, and Debt-to-Income ratio.
Recording Fees
Recording fees are the fees charged by the recorder’s office to record a document such as a mortgage, deed of trust, deed and UCC Financing Statement.
Redlining
Redlining is a resistance of lending institutions to make loan for the purchase, construction, or repair of a dwelling due to the socio-economic conditions of the property’s location.
R-Factor or R-Value
The R-Factor is a rating that measures the degree of resistance to heat transfer.
Sale Price
The sale price, also referred to as the purchase price, refers to the amount of money paid by the purchaser to the seller.
Sales Comparison Approach
The sales comparison approach is an appraisal tool for estimating the value of a property with other similar properties that have sold recently.
Satisfaction of Mortgage
The satisfaction of mortgage indicates that a mortgage has been paid in full.
Security Deposit
The security deposit is the payment required by the landlord that guarantees that the tenant will meet their financial obligations under the terms of the lease. Besides guarding against any unpaid rent, it also guards against any potential damage that may be incurred by the tenant.
Seller Contribution
The seller contribution is a payment by the seller of a property of some, or all, of the buyer’s closing costs.
Setback
The setback is the distance from the front or interior property line to the point where the structure is located.
Square Footage
The area measured in square feet of a certain property. Square footage can be measured in different ways and is usually considered approximate. Condominium apartments have specific laws that determine the way in which the apartment is measured and usually more accurately reflect the actual square footage within a property.
Subject to Financing
A clause in the contract of sale for a cooperative apartment stipulating that the agreement is conditioned upon the buyer’s obtaining financing from a financial institution in an agreed-upon amount.
Survey
A survey is a document indicating measurements, boundaries, and the area of a property.
Term, Amortization
The amortization term is the period of time in which the interest and principal payments of a loan must be made.
Title
The title of a property is the evidence or documentation that an owner is in lawful possession of the property, such as a property deed.
Title Insurance
Title insurance is an insurance policy protecting the insured from financial loss caused by a defect or question about the title to real property.
Title Search
Title search is a process that examines local public records, laws, and related court decisions to determine if any other parties have a valid claims against the subject property (such as past due taxes, judgements or mechanics’ liens). It also discloses past and current facts about the subject property’s ownership.
Title Transfer Tax
Title transfer tax is a tax imposed on the conveyance of title to real property by deed.
Underwriting
In mortgage lending, underwriting is the decision-making process used to determine whether the loan risk is acceptable to the lender. Underwriting involves the satisfactory review of the property appraisal and examination of the borrower’s ability and willingness to repay the debt and sufficiency of collateral value of the property.
U.S. Department of Housing and Urban Development (HUD)
A federal agency that administers funding for projects related to housing.
VA Guaranteed Loan
A VA guaranteed loan is a mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.
Zoning
Zoning are the laws regulating land use.
Zoning Ordinance
Zoning ordinance is a statement settling forth the type of use permitted under each zoning classification and specific requirements for compliance.