From the family-friendly beaches and boardwalk of Ocean City to Sea Isle City, Avalon, Stone Harbor, the Wildwoods and historic Cape May, Cape May County includes some of the most desirable summer and vacation-home communities along the New Jersey Shore.
Whether you're purchasing a beach house for your family, a luxury second home, a vacation rental, an investment property or a year-round residence, Capital Funding Mortgage Associates, Inc. can help you understand the mortgage options available to you.
Cape May County—often called The Jersey Cape—sits at the southernmost tip of New Jersey between the Atlantic Ocean and Delaware Bay and has more than 30 miles of beaches. The county's year-round population increases dramatically during the summer as generations of families return to its shore communities.
At Capital Funding Mortgage, we help borrowers throughout Cape May County and New Jersey with financing for:
Buying a property at the Jersey Shore can involve financing considerations that don't always arise with a typical primary residence. We'll help you understand those issues before you make an offer.
For many families, owning a home at the Jersey Shore is about much more than real estate.
It's the place where summers are spent with children and grandchildren, where friends gather for weekends, and where traditions can continue year after year.
Some buyers plan to use their property exclusively for family vacations. Others may eventually retire there. Some want a combination of personal use and rental income, while others are purchasing primarily as an investment.
How you plan to use the property is important because primary residences, legitimate second homes and investment properties can have different mortgage requirements.
Before recommending a loan program, we'll discuss your plans for the property and help determine the financing structure that fits the transaction.
Ocean City is one of Cape May County's best-known summer destinations and attracts generations of families returning to the shore each year.
Buyers can find everything from condominiums and traditional shore homes to newer construction and larger properties close to the beach or bay.
For Ocean City buyers, financing considerations may include:
If you plan to purchase a property that will be rented for part or most of the year, tell us that upfront. The intended use of the property can affect which mortgage programs are appropriate.
Sea Isle City has long been known as a family-oriented Jersey Shore community, with five miles of beaches and a promenade stretching along much of its shoreline.
For many buyers, a Sea Isle property serves as a summer home, family gathering place or vacation rental.
Whether you're considering a condominium, townhouse, newer shore home or investment property, we'll help you determine whether the transaction is best structured as:
Knowing which category applies before making an offer can help prevent financing surprises later.
Avalon occupies the northern portion of Seven Mile Island and is known for its beaches, distinctive homes and summer-resort atmosphere. Cape May County describes Avalon as a peaceful beachfront community with beach cottages, distinctive homes and strong summer activity.
Avalon's higher property values make jumbo mortgage financing particularly important for many buyers.
Depending on the loan amount and borrower, jumbo lenders may have different requirements regarding:
Not every jumbo lender has the same guidelines or pricing.
As a mortgage broker, Capital Funding Mortgage can review programs available from multiple wholesale lenders rather than limiting you to the mortgage products offered by one bank.
That can be especially valuable when purchasing a high-value shore property.
Sharing Seven Mile Island with Avalon, Stone Harbor is another of Cape May County's highly desirable shore communities.
The county describes Stone Harbor as a family resort known for protected beaches, restaurants, shopping, condominiums and single-family homes.
Buyers considering Stone Harbor may be purchasing:
For higher-priced properties, we'll review jumbo financing options along with the overall cash needed to complete the transaction.
With a significant purchase, comparing lenders can matter. Differences in jumbo pricing, reserve requirements and underwriting guidelines can be substantial.
At the southern tip of the county, Cape May offers a Jersey Shore experience unlike most other beach communities.
Cape May is particularly well known for its preserved Victorian architecture and historic character. The county describes the city as the nation's oldest seashore resort and notes that it contains more than 600 restored and preserved Victorian structures.
Buyers may encounter traditional single-family homes, condominiums, vacation properties, investment properties and distinctive older homes.
Properties with unique characteristics can sometimes require additional attention during the appraisal, insurance or underwriting process.
If you're considering a property in Cape May, talk with us early so we can review the proposed financing and identify potential issues before you're committed to the purchase.
Cape May County's Wildwood communities offer another significant summer-home and vacation-rental market.
Wildwood, North Wildwood and Wildwood Crest include a broad range of properties—from condominiums and smaller vacation homes to larger residential and investment properties.
These communities can be especially attractive to buyers who want a combination of personal use and rental potential.
However, it's important to properly identify how you intend to use the property.
A residence purchased primarily for your own vacation use may qualify differently from a property purchased primarily to generate rental income.
We'll help you understand the difference before choosing a loan.
If you're buying a Cape May County property primarily for personal and family use, it may qualify for second-home financing, assuming the property and occupancy meet applicable mortgage requirements.
Second-home financing can be attractive for buyers who:
Owning a property near the beach does not automatically make it a second home for mortgage purposes.
We'll discuss your intended use of the property so the mortgage is structured correctly from the beginning.
Cape May County's strong summer tourism market also creates opportunities for buyers interested in vacation rentals and real estate investment.
If you're purchasing primarily to generate rental income, investment-property financing may be more appropriate than second-home financing.
Depending on your qualifications and the property, options may include:
Traditional conventional mortgages may be available to qualified borrowers purchasing rental properties.
The down payment and reserve requirements can differ from those for primary residences.
A Debt Service Coverage Ratio loan, or DSCR loan, can be particularly useful for qualifying real estate investors.
Instead of relying exclusively on the borrower's traditional employment income, DSCR programs generally focus heavily on the property's rental income relative to its housing expense.
This can be worth exploring for:
DSCR programs vary by lender, so the details of the property and proposed rental use are important.
For self-employed borrowers, traditional tax returns don't always show the complete financial picture.
Qualifying borrowers may have access to bank statement programs that use personal or business bank deposits as an alternative method of documenting income.
Some borrowers have substantial retirement, brokerage or other eligible assets but limited traditional employment income.
Asset-based qualification programs may provide another option for certain borrowers purchasing a second home or other qualifying property.
Jumbo financing deserves special attention in markets such as Avalon and Stone Harbor, as well as for higher-value properties throughout Cape May County.
A jumbo mortgage is generally a mortgage with a loan amount exceeding applicable conforming loan limits.
Jumbo lenders may differ considerably in:
For a larger mortgage, even a relatively small difference in rate or pricing can become significant.
We'll help you compare the available options rather than assuming your current bank is automatically the best choice.
Cape May County's summer season makes vacation rentals attractive to many buyers.
However, you should be clear about your plans before applying for financing.
If your primary purpose is to operate the property as a rental business or income-producing investment, it generally should not simply be presented as a second home.
There are mortgage programs specifically designed for investment properties, including options for borrowers who want to qualify based in part on the property's rental income.
Tell us exactly what you plan to do with the property. We'll help you explore financing designed for that use.
Buying near the ocean or bay can involve additional considerations beyond the mortgage itself.
Depending on the location and property, you may need to consider:
These issues don't necessarily mean the property can't be financed.
They simply make it wise to address financing and insurance questions early in the transaction.
If you've found a Cape May County property you're seriously considering, contact us before making an offer and we'll discuss the mortgage considerations.
Condominiums and townhomes can be popular choices for buyers who want a Jersey Shore property with less exterior maintenance.
Mortgage approval for a condominium can involve more than approving the individual borrower.
Depending on the loan program, the lender may also need to review information concerning the condominium project, including:
Not every condominium project qualifies for every mortgage program.
Addressing these issues early can help prevent delays once you're under contract.
Although Cape May County is best known as a summer destination, many people live there year-round.
We can also help borrowers purchasing or refinancing primary residences throughout Cape May County, including mainland and coastal communities.
Whether you're relocating permanently, moving closer to the shore, downsizing, buying your first home or purchasing a property for retirement, we'll help you evaluate the available mortgage options.
Some buyers purchase a Cape May County home years before they intend to retire.
You may use it initially as a second home and eventually make it your primary residence.
If that's your plan, it can be worthwhile to think beyond today's mortgage payment.
We can discuss factors such as:
The right strategy depends on your individual circumstances and long-term plans.
If you're considering a property in Ocean City, Sea Isle City, Avalon, Stone Harbor, Cape May or another Cape May County community, getting pre-approved before making an offer can help you understand the financial side of the purchase.
We can help you estimate:
For higher-priced homes, we can also discuss reserve requirements and other jumbo-loan considerations before you're under contract.
If you've already received a quote or Loan Estimate from another lender, you're welcome to send it to us for review.
A mortgage shouldn't be compared based solely on the interest rate.
We'll help you look at:
A lower rate accompanied by substantially higher upfront costs may not always be the better financial choice.
We'll help you understand the numbers so you can make your own informed decision.
We also help homeowners refinance primary residences, second homes and qualifying investment properties throughout Cape May County.
Reasons for refinancing may include:
Before refinancing, we'll compare the expected benefit with the cost of obtaining the new loan.
A beach-house purchase can involve a substantial financial commitment, and not every borrower or property fits neatly into one lender's guidelines.
Capital Funding Mortgage works with multiple wholesale lenders, giving us the ability to evaluate different programs based on the borrower, property and intended use.
This can be especially helpful with:
Our goal is not simply to obtain an approval.
We want you to understand the financing and feel comfortable with the mortgage you're choosing.
If you're considering purchasing or refinancing a property in Ocean City, Sea Isle City, Avalon, Stone Harbor, Wildwood, North Wildwood, Wildwood Crest, Cape May or anywhere in Cape May County, I'd be happy to speak with you personally.
Whether you're looking for a family summer home, a luxury beach property, a future retirement home, a vacation rental or another real estate investment, let's discuss the financing before you make your decision.
I've been helping homebuyers, homeowners and real estate investors with mortgage financing since 1999.
You don't need to complete an application just to ask questions or discuss your options.
Owner | Capital Funding Mortgage Associates, Inc.
Call or Text: 215-601-6724
Email:Johnfmadden@capitalfundingmortgage.com
Capital Funding Mortgage Associates, Inc.
41 University Drive, Suite 400 #475
Newtown, PA 18940
John Madden NMLS #960748
Capital Funding Mortgage Associates, Inc. NMLS #960139
Serving homebuyers, homeowners and real estate investors throughout Cape May County, the Jersey Shore, New Jersey and Pennsylvania.
Whether you're planning for next summer, considering a second home for your family, looking at a luxury property in Avalon or Stone Harbor, or evaluating a shore property as an investment, contact me before you make an offer.
I'll help you understand the available mortgage programs, estimated payments, down payment and cash requirements so you can make an informed decision.
