If a borrower is purchasing a rental property and we are securing the loan with additional collateral that is the borrowers primary residence does ROR apply?


Thanks!

yes, on the primary residence

yes, if he has an ownership interest of the primary res.

If the bank has determined that the loan (investment property purchase) is business purpose and is documenting it as such, rescission does not apply.

'cept in Texas. Here we have a state rescission requirement even if the loan is for business purpose.

Correct, it would be affected by a few state laws.