FYI, I’m pretty sure that the law you are referring to governs investor purchases not purchases for primary residences.

It’s section 1695 of the CA Civil Code and you’re correct, purchasing to buy as your personal residence section 1695.1 excludes you as an equity purchaser.

So basically, as long as you buy it to live in and actually stay long enough, they’ll be muted. I wonder though how it’d work out in court, if 1. you bought and live there, 2. they show you did extensive pre-foreclosure searching 3. you’re doing financially well,

and if you add some investments after the fact, I wonder if that increases your exposure.