Advertiser Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.

Paddio Review

Matthew Levy Matthew Levy Last update:
NMLS#
1907
Min Credit Score
620
Repayment Terms
182-360 months

Overview

Paddio is an affiliate company of Veteran United Home Loans, the largest lender of VA Purchase loans. Paddio claims to be a full-service mortgage lender focusing on non-VA loans. The company started in August 2020 with its headquarters in Springfield, Missouri.

Though the company wishes to expand beyond its core competency, it seems best suited for government program loans like VA (both Purchase and IRRRL Streamline), USDA home loans, and Fannie Mae and Freddie Mac conventional home loans. Paddio offers its services in all US states except NY, NV, NJ, and UT.

In a Nutshell

Mortgage types offered Conventional Mortgage, Home Refinance
Mortgage amount $50,000-$2,000,000
Repayment terms 15 or 30 Year
APR 3.5-5.89%
Minimum credit score 620
Lender type Direct

Best for

Paddio has streamlined the loan application process and is one of the best in class for government-sponsored home loans like VA loans for veterans, USDA loans for rural/suburban borrowers, Home Ready, Home Possible, or FDA loans. If you fall under these categories, Paddio has low down payment options even for borrowers with bad credit.

Pros & Cons

Pros

  • Smooth Application Process
  • Responsive Customer Support
  • Government Backed Home Loans
  • Online Home Loan Resources

Cons

  • Delay in Underwriting Loans
  • High Private Mortgage Insurance Costs

Application Process

The Paddio online loan application process is fast, effortless, and personalized. To get a quote from Paddio, you need to answer a series of questions in the multi-choice format before fixing an appointment with a loan officer. The questionnaire portal feels like a breeze, and you can complete it within minutes. To complete the first stage, answer a series of questions on your income, loan requirements, credit score, and personal information. Here’s a quick rundown on the questions-

  • New home or home refinance?
  • What is the value of your home?
  • What type of property is your home?
  • Have you or your spouse ever served in the US military?
  • How much are you saving for a down payment?
  • What is your current employment status?
  • What is your gross household bracket before annual tax income?
  • Have you declared bankruptcy in the past seven years?
  • What is your current mortgage rate?
  • How much do you currently have on your home mortgage?
  • Would you like to use your home equity to borrow additional cash? How much extra money would you like to borrow?
  • What is your current credit score?
  • When are you planning to make a purchase?
  • Do you currently own a home?
  • New home ZIP Code?

Paddio lacks transparency and does not disclose its loan rates or repayment terms on its website. You need to share your phone number and email ID to see the final quotes on your home loan. The lender also performs a soft credit check. You may use additional onsite resources like Affordability Calculator, FHA loan calculator, and Mortgage Calculator to make a rough guess on your loan payments.

Terms & Requirements

Paddio does not disclose its loan terms and requirements but follows a personalized approach to get you the details. There are only two available options; 15-year or 30-year fixed. You may not get a home equity cash loan from Paddio. The APR range for loans in Paddio mimics its parent company, Veteran United Home Loan, and ranges between 3.5 to 5.9 for VA loans.

Paddio classifies borrowers’ credit scores as Excellent (720+), Good (680-719), Fair (642-679), Below Average (620 to 639), and Poor (below 620). There may be a chance for borrowers with a credit score as low as 620 to get a home loan from Paddio.

Judging through some online reviews, Paddio seems to be casual in its loan underwriting process. The company has been praised for its low rates and personalized customer experience but, a considerable number of reviews reiterated unnecessary delays in getting funds. Paddio does acknowledge these problems as communication gaps between underwriters and loan officers.

Mortgage Purchase Requirements

  • Applicants must be above 18 years
  • Must be a US Resident
  • Employment Status- Employed, Self-Employed/1099 Independent Contractor, Retired, Not Employed
  • Minimum downpayment payment of 3% for Conventional Homes
  • Minimum loan amount US$50,000
  • Minimum income $30,000 annually
  • Debt to Income Ratio- Between 28 to 36%
  • FICO Score 620-720+

Mortgage Terms

Paddio provides zero down payment VA loans for military home buyers and USD loans for rural and suburban buyers. It is also possible to lower your down payment with Home Ready, Home Possible, or FHA long-term loans (15 or 30 years). There are not many online lenders specializing in these government-sponsored loans.

Paddio charges 1% origination fees on all loans. You can also pay to lock in your pre-approval rates for up to 4 weeks. Paddio charges Private Mortgage Insurance if you have a low credit score or put less than 20% down payment. The PMI can reach up to 5% of your monthly loan payments.

Repayment Terms

Paddio has minimal information on its mortgage repayment terms on its website. If you are looking for a transparent lender or someone with guaranteed service timelines, you will get better options In Wells Fargo or Bank of America.

If you have a good credit rating between 680 to 719, you can expect an estimated monthly payment of $2000 on a $300,000 home loan with a 10% down payment and 5.5% APR four 360 months down. Of the $2000, $1500 goes to interest and principal repayment, $300 to taxes, $80 to insurance, and $120 to PMI.

Privacy And Security

The loan process in Paddio is information intensive, and you may be required to submit your personal details, bank details, SSN, and even link your bank account transactions through Plaid. Plaid shares details of your bank account like account balance, last four digits of the account number, and transaction history digitally with the lender. You may opt-out of Plaid linkage, but it can delay the loan process. The company disclaimer indemnifies itself against any information misuse.

Customer Support

Paddio’s unique strength in the home loan industry is its customer support. The company is aggressively hiring to provide one-on-one customer support to each lead. The company has been praised on online review platforms and forums for its timely customer support.

Final Thoughts

Paddio has all the energy of a new company but lacks transparency and execution strength. It offers nothing out of the box for conventional borrowers looking for value. We found many online complaints regarding long delays in the underwriting process, which resulted in some people losing home offers and deposit money. If you have signed a purchase agreement or made a deposit on a new home purchase, you may keep Paddio only as a second alternative. You may be offered a fast pre-appraisal experience, but it does not guarantee you funds within a specific time, unlike other lenders.

The loan process is highly personalized, and you will get plenty of opportunities to clarify doubts with your loan officer. It may be possible for borrowers with low credit scores to get financed through Paddio. The lender can be an excellent choice for simplifying the process through tech if you are specifically looking for a government program home loan.

Address

1930 W Bennett St., Suite 100, Springfield, MO 65807

Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.
Matthew Levy Matthew Levy
Matthew is a freelance financial copywriter with 10+ years in financial services. He holds a Bachelor of Science degree in Economics with business and finance options and is a CFA Charterholder. He is from Vancouver, Canada, but writes from all over the world.
This review is based on the writer's personal opinion.