Can you use a HELOC to purchase investment property?

Answer 1

Bank of America whom I have my current mortgage with, just gave me a $30k heloc, and even suggested I could use it as a downpayment on another home which I am interested in.  I'm not sure if I shoud proceed on their advice or not.

Answer 2

Yes, you can use your HELOC as a down payment on a new house as long as you keep your actual house.  If not, the balance that you use on your HELOC will have to be paid back when you'll sold your house, so there will be no money for the down payment.