H.R. 10590: Veteran Owner-Builders Rights Act

This bill would create a five-year pilot program at the Department of Veterans Affairs to help certain veterans in rural areas buy land and build a new home with a direct VA housing loan.

What the pilot program would do

Under the program, eligible veterans could get a VA loan to:

• buy land in a rural area, and
• construct a dwelling on that land.

The home would have to be:

• the veteran’s primary residence, and
• occupied by the veteran for at least 24 consecutive months after construction.

Conditions and limits on the loan

The VA could only make a loan if several requirements are met, including that:

• the loan payments are reasonably matched to the veteran’s income and expenses,
• the veteran is considered a satisfactory credit risk under VA standards,
• the property is suitable for a dwelling,
• the loan does not exceed the reasonable value of the construction, and
• the veteran agrees to use VA-provided blueprints.

The loan would carry a 1% interest rate and would also be subject to other VA loan rules the Secretary decides apply.

Blueprints, permits, and assistance

The bill directs Representatives Marie Gluesenkamp Perez and Bruce Westerman, working with the VA Secretary, to establish housing blueprints within 30 days after enactment. The VA would then provide those blueprints to applicants.

It would also require state or local governments to issue a construction permit within 45 days after receiving an application using those blueprints. The VA would pay the permit fee.

In addition, the VA would have to provide technical assistance directly or through a contractor. That assistance could include:

• training in home construction or repair skills, and
• help applying for permits.

Materials requirements

The home would have to be built using domestic lumber for all structural wood framing. To the maximum extent practical, it would also have to use domestically sourced or manufactured wood products for items like cabinets, shelving, interior doors, and trim.

Early sale or transfer of the home

If the veteran sells, transfers, or leases the home, or lets someone other than the veteran or their dependents occupy it as a primary residence, before the 24-month occupancy period is finished, the VA would accelerate the loan. That means the full remaining balance would become immediately due.

The VA could waive this rule in certain cases, such as military deployment, a permanent change of station, a medical hardship, or another unavoidable circumstance the Secretary approves.

Program duration and funding

The authority to make new loans under the pilot would end five years after enactment. The bill authorizes $5 million for fiscal year 2027 to fund the program.

Other change in the bill

The bill also makes a small technical change to a separate VA housing loan fee table by moving one date from June 9, 2034 to June 12, 2034.

Relevant Companies

None found