In pre-pandemic times you could find non-qm fixed rate loans with no seasoning whatsoever, or as little as 3 months and if you were going to use them anyway it would have been a shame to wait for the 6 month mark just because you didn't know your options.

If so does it have teeth?

Many millionaires in this forum that did it exactly like that.it makes no sense whatsoever to not take advantage of sub-4% interest that get you double that in return.

We have never owned any real estate whatsoever. 

Not saying you don't either but short sales are not anything you want to cut your teeth on when dealing with a borrower's financial life in your hands if you don't know what you are doing.

Yes I agree with you, with current trends this should not be an issue whatsoever....I posed this question as I was thinking about what future markets looked like in Idaho as compared to California...being that it is forbidden for lenders to go after homeowners with a deficiency judgement it would make sense that the California market is more volatile in regards to foreclosures (being that owners can simply walk away).....but if that was not the case or not typical in Idaho, owners would be more inclined to do everything they can to weather the storm and hold on until the market stabilizes. 

They said that when they support other SBA loans there are usually fairly sharp teeth similar to these terms (but not as bad for sure) but that USUALLY there is only an issue if you miss payment/s -- that is usually when the SBA starts asking questions and/or digging into their ability to exercise these options.

Is it worth starting a relationship with another lender with more favorable terms now, or should I cut my teeth with the financing that I have?

Here in Columbus Ohio I doubt we will see any noticeable effect whatsoever.  

Comparing to California is not apples to apples whatsoever, as the property costs are too high to begin with.