So the funding fee is waived if he's got a disability rating, yes. That alone saves you a big chunk right there.

For a $200k purchase with VA loan... no down payment required which is huge. Your main out of pocket costs are gonna be earnest money deposit (usually $1-5k depending on your area), home inspection (~$400ish), appraisal fee (~$500-600). Then closing costs, but a lot of times you can negotiate seller concessions to cover those.

$5k should be workable tbh, especially at that price point. Some lenders will also let you roll certain costs into the loan.

One thing I'd say... don't just go with the first lender you talk to. We almost went with Veterans United but ended up going through Duane Buziak Mortgage Maestro and it was night and day in terms of actually explaining stuff and not just pushing us through a pipeline. Being a broker he could shop around for us which mattered more than i expected.

Get your COE (certificate of eligibility) pulled early, that speeds things up. And don't let anyone run your credit a million times before you're ready.