Unfortunately, hunting and home defense aren't really compatible with each other. For home defense, you will want a 16'', for hunting an 18-24''. If you really want to go this route, then an 18'' SPR style might be for you, but it's going to be hard to build a decent SPR for 1000. This won't be what you want to hear, but go with a good old mil-spec receiver and spend the savings on the parts that matter, like the trigger.
Dual use optics are going to be tricky. For hunting, you will want a variable power scope in the 3-9 range. For home defense, you will want a red dot. About the best you can do in this situation is a 1-4 power dot scope, like they use in 3 gun matches.
There are other things to consider as well. For varmint hunting you will want to use 55gr ammo, which requires a 1:9ish twist. For home defense you will want 70gr hollow points, which requires a 1:7.
Ultimately, I would build the gun for home defense without making any compromises. It won't be ideal for varmint hunting, but home defense is much more important for obvious reasons.