Getting a Primary Residence loan for Rental property

[Maddy Jane]

I plan to buy a rental property in a different state than where I currently live. This would be my first home and I don't own any homes and currently renting out the place I live in.

I am thinking of getting a Primary Residence loan instead of Investment loan due to the obvious low interest rates (2.65% vs 3.1%) but I am not sure of the implications and if it would be Ok to do so.

Would there be any tax related issues or insurance related issues if I take a Primary Residence loan for a place I would probably never live in?