Entity & Vesting

DP-3 Landlord Insurance & Replacement Cost Value (RCV)

Dwelling Policy Form 3 (DP-3) landlord hazard and rent-loss coverage required by wholesale DSCR lenders.

Underwriting Formula / Rule

Coverage = Min(100% Insurable Replacement Cost Value [RCV], Loan Amount) + 6 Months Rent Loss.

Detailed Credit-Committee Impact & Thresholds

Wholesale DSCR closings require an active landlord hazard policy (DP-3 or commercial habitational policy) insuring 100% of the insurable Replacement Cost Value (RCV) or the loan balance, plus 6–12 months of Business Income / Rent Loss coverage.

2026 Wholesale Benchmark: Actual Cash Value (ACV) policies are generally rejected by institutional wholesale servicers.

Related Underwriting Terms

Debt Service Coverage Ratio (DSCR)Form 1007 Single-Family Comparable Rent Schedule Form 1025 Small Residential Income Property Appraisal Report 5-4-3-2-1 Step-Down Prepayment Penalty 3-2-1 Step-Down Prepayment Penalty Yield Maintenance Prepayment Provision