Proposed Legislation Expanded VA Loan Access

A new pilot program would allow veterans in rural areas to use direct VA loans to build their own homes.

Updated on Sept. 28, 2026 in Residential

Proposed Legislation Expanded VA Loan Access

Live Poll

Should the federal government allow veterans to use VA loans to build their own homes?

Representatives Marie Gluesenkamp Perez and Bruce Westerman have introduced the Veterans Owner-Builders' Rights Act to Congress. The bill aims to increase housing options for veterans by providing direct VA loans for rural home construction.

Why it matters

The proposal addresses a significant shortage of starter homes and rising housing demand in rural communities that currently outpaces new construction. This program could provide an alternative path to homeownership for those serving in the military.

While 30% of veterans currently use VA home loans, this five-year pilot program seeks to open new paths to residential construction in rural areas. The exact volume of potential loans remains unknown as the bill progresses.

The players

Marie Gluesenkamp Perez

U.S. Representative who co-introduced legislation to expand homeownership access for veterans.

Bruce Westerman

U.S. Representative who co-introduced legislation to expand homeownership access for veterans.

Department of Veterans Affairs

Federal agency that provides home loan guarantees and, under this proposal, would oversee the direct loan pilot program.

The details

The Veterans Owner-Builders' Rights Act would establish a five-year pilot program under the Department of Veterans Affairs. This program is designed to provide direct housing loans specifically to veterans residing in rural communities for the purpose of building new homes. By enabling owner-builder construction, the act targets areas where traditional housing inventory is limited.

September 2026: Legislation introduced to Congress

Money Landscape

This proposal marks a departure from the traditional VA home loan program by focusing on direct financing for new rural construction. It sits against a broader backdrop of limited starter home inventory across the United States.

Veterans living in rural areas should monitor the status of this pilot program if they are planning home construction in the next five years. Households should consult with a qualified financial professional to determine if their future building plans align with potential VA loan eligibility changes.

The takeaway

The bill aims to alleviate rural housing shortages by offering a new financing path for veterans who wish to build their own homes. Interested parties should watch for future congressional committee hearings that will clarify the specific application process for this potential five-year pilot.