That is a conventional lending rule (not an overlay) but you MIGHT be able to find a portfolio loan product that does differently.  

There is carpet there but a ton of other building products.

@Joe Splitrock   off to a new state they go  :)when I was running my HML shop I used an accurant product that was a fraud detection worked like a charm put in info they fill in on app.. if public records and utl bills don't jive you get a red flag back took about 60 seconds to compute. 

The DP3 product should cover this type of loss unless the policy specifically excludes it. 

I suspect in your hardwood territory you don't replantunless your in Pine   production forests like you see all over LA MS GA FLA

I want to partner up, or find a team that is productive, organized, and professional.

I'm not sure I like their every 5 year reset product.

HD doesn't give the 10% off the top, it's based on the product purchased.For example I purchased about 400 8' 2X4s and got NOTHING for flashing the trusty ID.

You want to have the best product for the best price philosophy.  

I would guess that you went to a fairly large bank to apply for this product.