A reduced-rate VA loan from the state

A reduced-rate VA loan from the state

The Peach Select VA loan program is the state's VA tier of Georgia Dream. DCA sets a reduced market rate on your VA first mortgage, usually a quarter to a half point below standard. The savings show up over the life of the loan.

On a $250,000 loan, a 0.25 percent cut saves about $13,000 in interest, a 0.5 percent cut about $26,000. You still need a COE, 640 credit, and a participating lender.

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How it works and who qualifies

• Eligible veteran with a current COE
• 640 minimum credit score
• Income under $130,290 for 1-2 people
• Income under $149,833 for 3 or more
• Purchase price under $550,000 in metro
• Zero down with full VA entitlement
• No PMI, VA funding fee still applies
• Must use a Peach Select lender
• 8-hour HUD class before you close

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The stacking rule to know

Here is the catch most veterans miss. Peach Select cannot stack with the Georgia Dream second DPA. You pick: standard VA rate plus a Georgia Dream second, or the Peach Select reduced rate.

Peach Select still pairs with the Clayton County DPA veteran tier, up to $10,000. Stay past 7 years and the reduced rate usually beats the upfront second.

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You choose: the reduced rate, or the Georgia Dream second. You cannot take both on one purchase.