The short answer: No. The long answer is more complicated.

VA-backed loansĀ are designed solely to help a veteran purchase a primary residence, so if thereā€™s no residence, thereā€™s no loan. But anĀ eligible veteranĀ can apply for what VA calls a ā€œconstruction/permanent home loanā€ that includes money to purchase the land in addition to funding the new homeā€™s construction.

VA outlines the process in itsĀ Lenders Handbook, but here are the highlights:

  • Payments on these loans begin only after construction is finished. Per the handbook, builders have up to a year to complete the home.
  • As with other VA-backed loans, the new construction must be the veteranā€™s permanent residence.
  • Builders must pay construction-related fees, including but not limited to inspection and title update costs.
  • If the construction is not completed, VA will back only a portion of the loan. Calculating that value involves multiple factors, including money already paid out to the builder and the value of the construction already completed.

Source:Ā VA loans and new construction: When, and how, it can work | Military Times