Which type of loan does NOT typically have a right of rescission?

The correct answer highlights that bridge loans secured by a second home do not typically carry a right of rescission. The right of rescission is a consumer protection feature in Truth in Lending (Regulation Z) that allows borrowers to cancel certain types of loans or credit transactions within a specified period, usually three days, provided the transaction is secured by their primary residence.

In the context of other options, mortgage loans for purchasing a primary residence, home equity loans, and loans on vacant land generally do not fall under the same exemption as bridge loans. Mortgage loans for primary residences and home equity loans involve the borrower's primary home and thus often have the right of rescission to ensure that borrowers can reevaluate their commitments post-signing. Vacant land loans may also relate to a consumer's potential use but are typically connected to financing for future residences.

Bridge loans specifically are used as temporary financing—often allowing a borrower to purchase a new home while waiting for the sale of their current one. Because they are not intended for long-term residential purposes, the right of rescission is generally not applicable, making this type of loan an exception in the context of consumer protections offered by Regulation Z.