Investment financing vs. second-home financing

[Mark Costa]

Hello,

I wanted to get some advice on potential financing options. Currently, I have two prequalification letters. One is the standard 25% down on an investment property, the other is what looks to be a second home mortgage with 20% down. Has anyone heard of issues with the second home mortgage not passing underwriting because the investment property is too close to the primary residence? I am trying to conserve cash because 

I have the chance to purchase two properties within the next few months and so I am inclined to go with the 20% down. I just want to make sure that I do not move forward on a deal only to have the financing fall through.

TYIA,

Mark