Yes, and the payoff comes mostly through the VA funding fee, which steps down as your down payment rises. VA charges a one-time funding fee in place of monthly mortgage insurance. On a purchase, the fee is highest with less than 5% down, drops at 5%, and drops again at 10% or more. VA adjusts the exact percentages periodically, so check the current schedule, but the tier structure means even $5,000 down can move you into a lower fee. Two more pieces: - The fee is higher on a subsequent VA loan than on your first use, so a down payment saves the most on a second or later zero-down purchase, where the gap can run to many thousands of dollars. - Veterans receiving service-connected disability compensation are exempt from the funding fee entirely, which makes this whole calculation moot. Confirm your exempt status on your Certificate of Eligibility. Since VA has no monthly mortgage insurance, money down beyond the fee tiers simply lowers your balance and payment. Weigh that against keeping cash liquid for reserves and other uses. If the fee savings is small and you value liquidity, keeping the money can be the better call. Either way, the decision is yours to make with the numbers in front of you.