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.
Paddio offers numerous loan options, including 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, FHA, USDA, VA, Home Refinance|
|Mortgage amount||Up to $2,000,000|
|Repayment terms||15, 20, 25 or 30 years|
|Minimum credit score||620|
Paddio has streamlined the loan application process and is one of the best in class for government-sponsored home loans like USDA loans for rural/suburban borrowers, Home Ready, Home Possible, or FHA loans. If you fall under these categories, Paddio has low down payment options for all borrowers.
Pros & Cons
- Smooth Application Process
- Responsive Customer Support
- Government Backed Home Loans
- Online Home Loan Resources
- No HELOC or home equity line of credit
- No brick and mortar locations
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 discloses its loan rates and repayment terms after you share your phone number and email to see the final quotes on your home loan. The lender may perform a hard credit check but they will not do so without borrower permission. 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 follows a personalized approach to get you the details of your loan terms and requirements. There are several available options; 15-year, 20-year, 25-year or 30-year fixed. You may not get a home equity loan from Paddio.
Paddio classifies borrowers’ credit scores as Excellent (720+), Good (680-719), Fair (642-679), Below Average (620 to 639), and Poor (below 620).
The company has been praised for its low rates and personalized customer experience. Although there are no brick-and-mortar locations, Paddio’s digital forward methods allow for widespread access across the nation.
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 of 3% for Conventional Homes
- FICO Score 620-720+
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, with a cap at $3500. You can also pay to lock in your pre-approval rates for up to 4 weeks. Like most lenders, Paddio requires Private Mortgage Insurance if you put less than a 20% down payment.
Paddio has minimal information on its mortgage repayment terms on its website.
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 for Paddio is information intensive, and you may be required to submit your personal details, bank details, and SSN. Paddio also utilizes 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 lengthen the loan process.
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.
The loan process is highly personalized, and you will get plenty of opportunities to clarify questions 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.
1930 W Bennett St., Suite 100, Springfield, MO 65807