Second Home or Investment Property Loan?

[Lucas Hammer]

So I'm considering buying a second home back in my hometown where my family lives. With my dogs and the costs of boarding/renting, it makes financial sense to just own a cheap home in a C or D-class area of another town. It's about 700 miles away and if I was there 2-3 weeks of the year, I'd pay less to own than board and rent. 

What I'm wondering is how the qualifications differ between second-home and investment-property mortgages. It sounds like second-home has lower down payments and better interest rates, but if I realize that I decide in the future I want to AirBNB it or do seasonal rentals while I'm not there, does that immediately disqualify me from having the second-home? It's a house I'd be fine with owning even if it didn't make me a profit so I could see my family more often, but I guess I'm wondering the differences between loan type and what I am and I'm not allowed to do with the property.