Second home or an investment property?

[Alex S.]

I see a big difference in the mortgage rate in my state for Second home (3.25%) vs Investment property (4.25%) loan products. While I own a primary residence, I want to purchase another downtown condo (not that far from my primary residency) and most likely rent it out until the pandemic is over (at least) and use it myself for close-to-office needs + rent when not in use. Will this kind of property qualify for a Second home loan product? Or I should get it as an Investment property loan product and then refinance when applicable. 

Looking for your experience and advice here. Thanks!

[Jeff Shumway]

How far from your primary is it? There is no specific distance requirements from your primary residence but it will have to pass the smell test in underwriting. If you have an arduous commute from your primary to your work, it may make sense to do it as a second home.