New Bill Would Give Rural Veterans Direct VA Home Loans for New Builds

New legislation in Congress calls for the Department of Veterans Affairs (VA) to provide rural veterans with direct loans so they can build their own homes.

U.S. House Reps. Marie Gluesenkamp Perez (D-Wash.) and Bruce Westerman (R-Ark.) introduced the Veterans Owner-Buider’s Rights Act on Monday to expand VA home loans and give veterans a new path to homeownership as part of a five-year pilot program.

“Building our own home was one of the hardest and most rewarding things I’ve ever done. While many vets have the relevant skills, they functionally can’t use their VA home loans and leverage their skills to build a home. In fact, only 30% of vets use their VA home loans at all,” Gluesenkamp Perez said in a statement.

The VA, when reached for comment, told Military.com that it does not comment on pending legislation.

Nearly 4.5 million military veterans live in rural America, making up about one-fourth of the nation’s total veteran population. Veterans are disproportionately represented in rural counties compared to the general civilian population.

Nearly 46% live in the South, the largest share, while states with high concentrations of veterans include Maine and Vermont.

Some rural veterans have issues with securing housing because of surging prices and housing shortages, with demand outstripping supply.

What Would the Legislation Do?

The legislation would provide blueprints with American wood sourcing and manufacturing requirements to stimulate domestic timber economies.

It would also streamline the permitting application process and provide veterans with technical assistance through either the VA or a contracted third party to provide them with the skills needed to construct their homes.

There are requirements that would be tied to said loans, including veterans having to live in the home for at least two years. Or, they must accelerate the repayment of their loan to safeguard against home-flippers.

“Stable, reliable housing directly contributes to the health and well-being of our veterans. Unfortunately, high construction costs and interest rates keep many from investing in their future as homeowners,” Westerman said in a statement.

“By working directly with the VA to expand construction loan access and investing in the domestic building materials we have in our own backyard, this bill initiates an innovative pilot program that lowers housing costs and provides more access for our veterans in addition to supporting rural America and bolstering our domestic wood supply chain,” he added.

This newly introduced legislation comes as the VA awarded $1.1 billion in grants to 680 organizations earlier this month to fight veteran homelessness. The VA also placed a record-breaking 51,936 homeless veterans into permanent housing in the Fiscal Year 2025.

Currently referred to committee, the bill must pass both the House and Senate before reaching the president’s desk to be signed into law.