Investment Property Loan Approval

[Nick Foundas]

Happy 2015 BP, I plan to use funds from a Home Equity Line of Credit for an investment property.
I was wondering if I opened a Home Equity Line of Credit on my primary residence and it just sits there unused, would it hurt my chances of getting approved for an investment property loan from a local community bank? I assume it shouldnt factor into the loan decision or my debt to income ratio if I havent made any draws on the HELOC but figured I throw this out to the experts for advice!

[Jerry Padilla]

@Nick Foundas 

@Curt Davis  

is correct on the unused balance. When applying for a loan you should make sure that the lender that you choose will take the potential income into consideration (75%) as not all lenders do. Make sure that it is a loan officer that focuses on working with investors so they calculate all of the potential income for the property, and calculate the net income from the taxes properly from purchases that are on previous tax returns.