source:
  type: regulation
  id: usda-hb-3555-12.14
  authority: USDA Technical Handbook HB-1-3555 §12.14 — Construction Contractor-Builder Requirements
  description: "USDA HB-1-3555 §12.14 (Construction Contractor-Builder Requirements). Gap-fill (verbatim). \n"
obligations:
- id: usda-hb-3555-12.14-0
  canonical_id: usda-hb-3555-12.14-0
  section: USDA HB-1-3555 12.14 — Construction Contractor-Builder Requirements
  description: '12.14 Construction Contractor-Builder Requirements: NSTRUCTION CONTRACTOR-BUILDER REQUIREMENTS A
    key to the success of the loan feature will be the financial stability and reputation of the builder constructing
    the home. The approved lender and their agent, if any, will be responsible for approving participating builders.
    Each bui…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.14 — Construction Contractor-Builder Requirements
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 'NSTRUCTION CONTRACTOR-BUILDER REQUIREMENTS A key to the success of the loan feature will be
      the financial stability and reputation of the builder constructing the home. The approved lender and their
      agent, if any, will be responsible for approving participating builders. Each builder seeking to participate
      will be subjected to a process that involves license verification, insurance validation, and reference verification.
      Owner-builders are ineligible for this loan feature. Lenders are required to document their determination
      for eligibility of the builder to participate in the Rural Development mortgage transaction as further described
      in Chapter 15. Construction contractors or builders of homes financed with the single close loan must have:
      x Two or more years of experience building and constructing all aspects of single- family dwellings similar
      to the type of project being proposed; x Evidence of a state-issued construction or contractor license, as
      required by state law or local law; and x Evidence of commercial general liability insurance with a minimum
      coverage of $500,000. Contractors or builders who are constructing their own residence are ineligible. The
      lender is representing the builder meets the criteria of this paragraph when requesting a commitment for loan
      note guarantee.'
    drafter_attestation: Verbatim from HB-1-3555 §12.14 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
