Answer:
If the person living in the home is taking out a loan to pay off a "rent to buy agreement" then the person (borrower) is entitled to the ROR. See the Reg Z Commentary to 226.2(a)(24)(5).
If the person is borrowing money for some other reason and the owner of the rental home is agreeing to pledge the home as security then there is no rescission. The non-owner borrower is not a consumer for the purposes of the ROR and the home is not the owner's primary dwelling.
First published on BankersOnline.com 9/27/10