Thank you so much for the response. After reading over 3 & 4 it appears to me that the transaction would NOT be rescindable. A dwelling as defined by the section (below) is a unit (not just land):
(19) Dwelling means a residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.
Under section four, it states if the equity of the dwelling is used that it is rescindable. We are NOT using the value in the structure for the new request therefore I think not rescindable!
any loan subject to Regulation Z and secured by the equity in the consumer's current principal dwelling (for example, a bridge loan) is subject to the right of rescission regardless of the purpose of that loan.