Dreaming of a quiet creek off the Chesapeake Bay where weekends are for sunrise coffee and sunset cruises? If you are eyeing a Mathews waterfront retreat, the financing rules for second homes work a bit differently than for a primary residence. You will want clarity on loan types, flood insurance, permits, and local costs before you write an offer. This guide walks you through what lenders expect, what Mathews County requires, and a step-by-step plan to close with confidence. Let’s dive in.

Mathews waterfront market at a glance

Mathews is a small, shoreline-rich market, so prices and inventory vary by season and water access. Countywide, typical single-family values often range from the low to mid hundreds of thousands, with various sources showing roughly $320,000 to $430,000 depending on the period used. True deep-water and bayfront properties can command a premium over inland parcels. Because sales counts are low, medians can swing year to year, so rely on recent local comps for any specific property.

What lenders mean by “second home”

Lenders generally follow GSE rules. A second home is a one-unit property you will occupy for part of the year, suitable for year-round use, and for your exclusive use. It cannot be a timeshare or placed in a rental pool, and you typically cannot use projected rental income from the property to qualify. Review the full definition in Fannie Mae’s guidance on occupancy types to avoid surprises when you apply. See Fannie Mae’s occupancy definitions.

Your loan basics

Most second-home loans are conventional. Expect a slightly stronger financial profile than for a primary home.

• Down payment: commonly 10% to 20%. Many buyers bring 20% to secure better pricing.
• Credit: higher scores help your rate and approval odds.
• Pricing: second-home loans often carry modestly higher pricing than primary residences.
• Reserves: automated underwriting commonly requires at least two months of mortgage payment reserves for a second home, and more if you already have several financed properties. Check Fannie Mae’s reserve guidance.
• Multiple mortgages: if you hold several financed properties, underwriting can tighten and reserve requirements can increase.

Conforming vs. jumbo

The 2025 baseline conforming loan limit for a one‑unit home is $806,500. Above that, loans are typically nonconforming (jumbo). Knowing where your target price and loan amount sit helps you compare rates and documentation needs. Review FHFA’s 2025 limits.

FHA/VA/USDA

Most government-backed programs are for primary residences, not vacation homes. That is why most Mathews second‑home buyers use conventional financing or cash.

Coastal underwriting and insurance

Buying on the water adds a few lender requirements and timelines to your checklist.

• Flood insurance: If the home is in a FEMA Special Flood Hazard Area (A, AE, V, or VE), federally regulated lenders must require flood insurance. NFIP policies typically have a 30‑day waiting period to take effect, so start early. See the NFIP standard policy reference.
• Elevation documents: Lenders often request an elevation certificate, or in some cases a Letter of Map Amendment or Revision, to confirm risk and set premiums. An elevation certificate can materially reduce your flood premium if the structure sits above base flood elevation. Learn how elevation certificates are used.
• Policy options: NFIP coverage caps can make premiums feel high for some waterfront homes. Private flood insurance may offer alternatives or broader benefits. Shop early and compare quotes. Explore flood insurance options in Virginia.
• Wind and hurricane: Standard homeowner policies exclude flood but include wind coverage, often with coastal deductibles. Verify wind/hurricane terms and carrier availability during your inspection window.

Local rules and permits to know

Mathews is proactive about coastal design and shoreline management. A quick review early in your process can save time and risk later.

• Flood zones and design standards: County design criteria reference FEMA A, AE, Coastal A, and VE zones. If you plan to renovate or build, confirm elevation and freeboard requirements. View Mathews County Local Design Criteria.
• Short‑term rentals: Stays up to 30 days require a zoning permit, occupancy limits, an on‑call agent who can respond within two hours, and other conditions. If you hope to list on a platform, read the county rules first. Review Mathews short‑term rental regulations.
• Piers and docks: Shoreline work is regulated and often involves local and state approvals. Ask for documentation on any existing dock or ramp and verify what future work is allowed. See code references for piers/docks.
• Property taxes: Mathews’ adopted real estate tax rate is $0.60 per $100 of assessed value. Confirm the current rate during your offer period. Check county real estate information.
• Sea‑level rise and tidal flooding: The area experiences nuisance flooding and storm surge exposure. This can affect insurance, access roads, and future improvements. Explore VIMS resources on tidal flooding.

Step‑by‑step plan to get financed

1. Get a pre‑approval as a second home. Tell your lender the home is a second home and ask about down payment, pricing, and reserve expectations.
2. Verify the flood zone by address. If the structure is in A/AE/V/VE, plan on flood insurance and request an elevation certificate from the seller if available.
3. Price flood and homeowners coverage. Ask whether your lender accepts private flood policies and compare quotes early.
4. Confirm conforming or jumbo. If your target loan amount may exceed the conforming limit, discuss jumbo options and timelines.
5. Review local rules. If you want to rent occasionally, read the county’s short‑term rental rules and keep usage within your lender’s second‑home guidelines.
6. Check shoreline and dock paperwork. Gather permits, approvals, and maintenance records for any waterfront structures.
7. Budget for reserves and closing. Set aside the required reserves and plan for flood policy timelines so closing stays on track.

Cost checklist for waterfront owners

• Mortgage payment and required reserves
• County real estate taxes and assessments
• Flood insurance premium and homeowners policy
• Wind/hurricane deductible planning
• Dock, bulkhead, and shoreline upkeep
• Septic service and well maintenance where applicable
• Utilities, internet, and seasonal services

Final thoughts

Financing a Mathews waterfront second home is absolutely doable when you understand lender rules, flood requirements, and local permits. A little preparation goes a long way toward a smooth closing and years of easy Bay time. If you want calm, expert guidance from offer to keys, connect with The Laura Peery Team for tailored second‑home support in Mathews and across the region.

FAQs

How much down payment is typical for a Mathews second home?

• Many second‑home buyers bring 10% to 20% down, with 20% common for stronger pricing; confirm exact requirements with your lender.

Can I use FHA or VA to buy a Mathews vacation home?

• Generally no; these programs are designed for primary residences, so most second‑home buyers use conventional financing or cash.

Will my lender require flood insurance on Mathews waterfront homes?

• If the home is in a FEMA Special Flood Hazard Area (A/AE/V/VE), federally regulated lenders must require flood insurance, and NFIP policies often have a 30‑day waiting period.

What is the conforming loan limit for 2025?

• The baseline one‑unit conforming loan limit is $806,500; above that, loans are typically considered jumbo with different terms and documentation.

Can renting my second home affect my loan type?

• Yes; extensive or continuous rentals can shift the property from second home to investment for underwriting, which may change pricing and requirements; follow your lender’s occupancy guidelines closely.