It depends. See the IRS FAQ below addressing whether the interest can be deducted as mortgage interest as your first or second home.
‘Question - I have a mortgage for land that I intend to build a home on. Can I take the home mortgage interest deduction?
Answer - No, you can't deduct interest on land that you keep and intend to build a home on. However, some interest may be deductible once construction begins. You can treat a home under construction as a qualified home for a period of up to 24 months, but only if it becomes your qualified home at the time it's ready for occupancy. The 24-month period can start any time on or after the day construction begins. As a qualified home, the interest paid may qualify as deductible mortgage interest, with certain limitations.’
If the lot is being held for investment purposes, you can deduct the interest only to the extent that you have investment income. See here.
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