Who would not have the right to rescind a loan?

In the context of loans, the right to rescind is generally associated with certain types of loans that fall under the Truth in Lending Act (TILA). This right allows borrowers to cancel certain types of loans within a specified period. Most commonly, borrowers have this right with home equity loans and certain refinancing scenarios when the loan is secured by their primary residence.

A borrower who is making a significant down payment, such as 40%, on a house purchase typically does not have the right to rescind their loan. This is because loans for the purchase of property, especially when the loan amount is reduced by a substantial down payment, are usually not subject to the three-day right of rescission. The right to rescind is more associated with home equity loans and refinancing options, where consumers may be more vulnerable to changes in their financial commitments.

The other options involve scenarios where the right to rescind may apply due to the nature of the loans or the conditions under which they are taken. For example, home equity loans and certain refinancings allow for rescission rights to provide borrowers additional protection.