As a Realtor in Wildwood Crest I have to say you are in a very good position. Alex and Corey are correct but going conventional most mortgage co's are looking for 10% in this market. Off the top of my head I can think of at least 30 properties less than 300k that would be 3 bedroom with garage and some are 2 blocks to the beach. If you have not contacted a mortgage rep. that would be my first suggestion for you.
Good luck with your search and have a great weekend!
P.S Hi Deb
I would stick with the advise David gave you as far as down payment. The rules are not the same in all of NJ as far as mortgages and while 3% down may work in North Jersey, Cape May County is still considered a declining market (although the numbers do not support this). Being in a market that is considered declining, the banks are looking for larger down payments to secure their investment. You would have to contact a mortgage rep as david suggested. In the meantime check my link below to a great program that will allow you to shop at home and get all of your mortgage questions answered until you are ready to pull the trigger.
You can buy with only 3% down, with only $500 of your own funds. An FHA mortgage consultant can better explain that to you for the asking.
From time to time HUD has some houses for sale on the area, most likely they would need some work, but you can, usually, get a good deal.
If you want to know more about HUD, Gov't properties, please visit my site below, on the left panel you see a link for HUD GOV'T HOMES. Good Luck!