The answer to your question is Yes. You can put money down on a VA loan however, if you are able to put 20% down you will be better off obtaining conventional financing. The main advantage to utilizing a VA loan is the opportunity to finance 100% of the purchase price. There is a funding fee that can be paid at closing or rolled into the loan amount but there is no monthly private mortgage insurance. In addition, the Seller can contribute up to 6% of the loan amount toward the Buyer's closing costs vs. 3% with conventional financing. As far as how to spend your 80k savings, I recommend that you retain 6-12 months of expenses on hand in savings and the remainder can be used toward a down payment or invested in other opportunities. Ultimately, I think your loan choice will depend on the purchase price of the house you want to buy, your income and your debts. Contact a local lender to get pre-qualified. Local lenders will save you money because they don't often charge origination fees and other erroneous junk fees.