Paddio mortgage review: An online lender with limited availability

Woman sitting in coffee shop with laptop, reading about PaddioImage: Woman sitting in coffee shop with laptop, reading about Paddio

Editorial Note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted.
Advertiser Disclosure

We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.

Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.

Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

Updated April 22, 2021

This date may not reflect recent changes in individual terms.

Editorial note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted.

Written by: Andrew Dunn

Paddio mortgage loans at a glance

  • Conventional loans: Yes
  • FHA loans: Yes
  • VA loans: Yes
  • Refinancing: Yes
  • Jumbo loans: Unclear
  • Adjustable rates: Unclear
  • Fixed rates: Unclear

Paddio is a home loan website created by the Mortgage Research Center that markets itself as a platform created to simplify the mortgage process with technology. The company boasts about “transparency” and “authenticity” — and claims, “holy-crap-this-is-amazing homebuying experience.” But trying to make sense of its offerings may leave you scratching your head, frustrated with a barrage of phone calls from loan officers and on the hunt for information that an upfront company should make easy to find. Instead, Paddio makes it very difficult.

Pros

  • Low down payment options
  • Easy, intuitive online interface
  • Ability to apply for preapproval

Cons

  • Website offers few details
  • You need to register to get a quote
  • Few home equity options
  • Not available nationwide

7 things to know about a Paddio mortgage loan

Paddio is both a mortgage marketing firm and a lender. The company specializes in lead generation and connecting potential homebuyers with lenders that partner with Paddio, as well as actually originating and closing the loans itself. Paddio is a subsidiary of Mortgage Research Center, which also owns sites including FHAloans.com, VAloans.com and VeteransUnited.com.

1. Low down payment options

Paddio specializes in government-sponsored loan programs that offer low or no down payment options, including FHA loans, USDA loans and VA loans. FHA loans require as little as a 3.5% down payment, while VA and USDA loans don’t require any down payment if you qualify.

Paddio also offers conventional loan programs with a low down payment through Fannie Mae and Freddie Mac, known as HomeReady and HomePossible.

2. Easy, intuitive online interface

When you begin applying for a loan with Paddio, the website leads you through a series of straightforward questions about the home you’re interested in buying, your income and your current housing situation to determine what type of loan you might qualify for.

3. Ability to apply for preapproval

While Paddio touts fast process and direct preapproval as soon as you answer its online questionnaire, the site doesn’t specify what “fast” actually means. Keep in mind that preapproval doesn’t always mean that you’ll ultimately be approved for a mortgage — or for the same terms and amount shown in the preapproval. Additionally, there may be a lag between the times when you’re preapproved, when you’re actually approved and when you receive the funding in your bank account.

A nice benefit of preapproval with Paddio is the ability to use your Paddio online account to customize the preapproval letter for the specific home you’re making an offer on.

4. Website offers few details

Paddio’s website makes it easy to apply for a loan — but difficult to research your options. The company doesn’t post current mortgage rates online, spell out its process or describe the types of loans it offers.

5. You have to register to get a quote

Before you can get any details on what types of loans you might qualify for, you must register with Paddio using your email and phone number. You’ll most likely start getting phone calls from a Paddio loan officer. Paddio makes it difficult to get a quick quote without any hassle, so if that’s what you’re looking for, consider another lender.

6. Few home equity options

Paddio doesn’t appear to offer home equity loans or home equity lines of credit. But the company does offer cash-out refinancing.

7. Not available nationwide

Paddio isn’t available in all 50 states, according to the company’s real estate licenses. Check the list before applying with Paddio to see if it’s available in your area.

Who is a Paddio loan good for?

Paddio could be a good option if you’re looking for a specialty loan like a USDA loan or VA loan and want a streamlined online experience. Not every online mortgage company specializes in these government programs.

How to apply for a Paddio mortgage

Paddio’s website makes it easy to begin a mortgage application. You start by clicking through a series of questions about your financial situation and the home you wish to buy. You may be able to get a prequalification decision within a few minutes depending on your credit profile. Once you create an account, you can save your application and continue it later. It’s also easy to get in touch with a loan officer by phone or email.

Paddio allows you to upload and sign documents electronically. But the website doesn’t specify what criteria you must meet to qualify for a loan or the steps you’ll need to take to get from application to the closing table. You’ll have to submit an application to find out.

Not sure if Paddio is right for you? Consider these alternatives.

If you’re shopping for a mortgage, you have a window of time where multiple inquiries count as only one for your credit scores. You typically have 14 days to shop around — though it could be longer depending on the scoring model.

  • Better Mortgage: Better is another financial technology company that offers an online mortgage experience, but its website has a lot more information about its rates and the types of loans it offers.
  • Wells Fargo: This big bank is one of the nation’s largest mortgage lenders and offers a variety of loan products, including home equity loans.

About the author: Andrew Dunn is a veteran journalist with more than a decade of experience as a reporter and editor at North Carolina news organizations, including the Charlotte Observer and the StarNews… Read more.