Yes. However, the land must be owned and prepared to build prior to the VA construction loan. Because the VA does not insure loans for vacant land, this makes a construction loan difficult. A VA loan can be used for new construction provided the land owner (such as a builder) pays to provide the land and initiate construction. This is common in many new subdivisions.  In the event that a borrower would like to rehab a property, they can add certain improvements to the loan amount.