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Christy Bieber is a full-time personal finance and legal writer with more than a decade of experience. She has a JD from UCLA as well as a degree in English, Media and Communications with a Certificate in Business Management from the University of Rochester. In addition to writing for The Ascent and The Motley Fool, her work has also been featured regularly on MSN Money, CNBC, and USA Today. She also ghost writes textbooks, serves as a subject matter expert for online course design, and is a former college instructor.
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Ally Mortgagemight be for you if: You want fast approvals and an easy time comparing loan options. Ally Mortgage hyper-focuses on conventional loans, which means you have few loan types but a solid basic experience.
First-time buyers may enjoy the modern mortgage experience -- much of it online -- and down payments as low as 3%. We review the pros and cons of this online lender in our Ally Mortgage review.
Best for: Borrowers who want a streamlined application
Ally Mortgage
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
Ally Mortgage is a strong fit for borrowers looking for a fixed-rate, adjustable-rate (ARM), or jumbo loan. The caveat is you probably need good or excellent credit, and you should be comfortable filing out the application online.
Min. Credit Score
N/A
Min. Down Payment
3% - 20%
Key Features
Fast pre-approval
Easy loan option comparison
Fully online application
Loan Types
Conventional
Jumbo
Fixed Rate Terms
15y, 20y, 30y
Adjustable Rate Terms
5/6, 7/6, 10/6
Top Mortgage Lender
It's important to consider multiple mortgage lenders to find a good fit for you. We've listed one of our favorite lenders below so you can compare your options:
Lender
Min. Down Payment
Credit Score
Next Steps
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
At The Motley Fool Ascent, mortgages are rated on a scale of one to five stars, with five stars meaning "best." We primarily focus on rates and fees, customer service, and loan versatility. This includes factors like application process, customer service channels available, and a variety of loan products.
Ally Mortgage is backed by Ally Bank (NMLS ID 181005), which partners with Better Mortgage to take you completely through the process of buying or refinancing a home. Ally offers a fast mortgage process that closes loans up to 10 days faster than typical. It leans heavily into its modern brokerage roots by eliminating lender fees (application, origination, processing, or underwriting) that big banks charge. Check it out to streamline the home-buying process.
Pros
Fast pre-approval
Easy loan option comparison
Fully online application
Loans for first-time buyers
Cons
In-person closing required
20% down payment for jumbo loans
12-month reserve requirement for first-time home buyers securing jumbo loans
No FHA, VA, USDA, or other government-guaranteed loans
About Ally Mortgage
Ally Financial launched Home, a home mortgage product in 2016. The focus was on being digital first, with a winning combination of digital experience and fast applications. In 2019, Ally partnered with Better Mortgage to offer a streamlined home-buying platform. It's since expanded to 46 states and the District of Columbia.
How to apply for a mortgage with Ally Mortgage
1. Apply online or call Ally Mortgage at 1-855-256-2559
It's easy to apply for a loan through the Allywebsite. You start by filling out a question-and-answer-style form that can be completed in as little as 15 minutes.
2. Get pre-approved in minutes
You can get pre-approved for a loan in as little as three minutes. It's fast. Once you find a home and your offer is accepted, you can easily upload your contract and apply online for the full mortgage. Or, you can contact Ally for more hands-on guidance. You don't need to pay fees or provide documents to get pre-approved.
3. Once you find a home, apply online for the full mortgage
It typically takes two to three weeks forAllyto approve your rate. It takes a few weeks to a few months for Ally to take you from application to closing.
You may qualify for One Day Mortgage. If you're eligible for One Day Mortgage, Ally will get you your commitment letter within 24 hours of locking your rate. You'll know whether you qualify once you get your pre-approval letter.
What you need to apply for anAlly mortgage loan:
Most recent pay stubs
Employment records
Bank statements
Tax returns
You may need the following:
Letter of explanation for gaps in employment greater than 30 days
Proof of other income or assets
Divorce decree/separation agreement
Proof of all judgments/liens have been paid in full
Landlord information to verify rent payments
Proof of education loan payment
To qualify, you'll need to pay at least 3% down. Unlike some lenders, Ally doesn't offer many options for borrowers with poor credit. Although Ally does not disclose a specific minimum score on its website, it indicates lenders generally require a credit score of 640 credit score for most loans and 700 for jumbo loans.
Ally Mortgage rates
Ally Mortgage's mortgage rates trend close to the national average. Ally's mortgage rates on its website are somewhat competitive, with posted rates coming in a bit higher than the national average. Ally offers both fixed- and variable-rate options, and its rates are the lowest on loans with shorter payoff timelines.
Ally Mortgage refinance rates
Ally Mortgage's refinance rates trend about the same as the national average. Ally's refinancing rates on its website are somewhat competitive, with posted rates coming in a bit higher than the national average. Ally offers both fixed- and variable-rate options, and its rates are the lowest on loans with shorter payoff timelines.
Ally Mortgage fees
Here are fees you can expect to pay:
Closing costs: Approximately 2% to 5% of the purchase price
Appraisal fee: Varies depending on your state, property type and loan type
Ally's fees cost about average compared to the rest of the industry.However,Allycharges fewer fees than competitors. You don't pay any lender fees at all (origination, application, underwriting) so it's easier to calculate costs, and you'll save money.
Ways to save money with an Ally Mortgage
$500 off closing costs
Get $500 off closing costs if you're an eligible Ally customer. Ally is known for giving customers who use multiple products discounts. If you use Ally Auto or Ally Invest, you might be able to save money with Ally Mortgage. Contact Ally for specific details.
$5,000 grant that can go toward your down payment and/or closing costs
Get a $5,000 Ally Home Grant that you can put towards your down payment and/or closing costs. You may qualify if the following is true:
Your annual household income is less than or equal to 120% area median income.
Your home is your primary residence.
Your home is within a majority minority census tract in the Charlotte, Detroit, Chicago, Houston or Philadelphia metro areas, or select counties in the state of Utah.
To see if you qualify, start your application or reach out to a loan officer if you have any further questions at 855-283-2559.
Ally Mortgage customer service
Reviews online indicate that people who use Ally Mortgagehave mixed thoughts. On one hand, the online experience is simple and straightforward. But opinions on service are mixed.
Some customers say they found it easy to contact Ally. Others said it was difficult to contact loan officers, and some reviewers complained about last-minute cancellations.
Ally Mortgage's sample rates on its website are somewhat competitive, a little higher than the national average. Ally also makes it easy to get a quote, so you can quickly discover if the lender offers a rate that fits your budget.
The lender offers an all-digital application process, and its rates are very competitive. You can quickly obtain a personalized rate quote and will have a choice of multiple loan options.
However, you do have to close on your loan in person, so Ally isn't the best option if you want an all-digital buying experience.
Ally Mortgage may be a good choice for refinancing your home loan. You can complete the application process entirely online. The lender's rates are somewhat competitive with the national average.
Ally also promises to close on your loan quickly -- 10 days faster than the national average.
You complete an online application to qualify with Ally Mortgage. FYI, the lender does not offer government-backed loans.
You'll typically need a credit score of around 620 for conventional loans and 700 for jumbo loans; and your debt-to-income ratio should be below 43%. You'll also need a down payment. This can be as low as 3%, depending on your situation.
Ally offers conventional and jumbo loans only, as well as refinance loans. You can choose from fixed- or variable-rate loan options. You can't government-backed loans, such as VA loans, from Ally Mortgage.
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Ally is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in any of the stocks mentioned. Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axos Financial and Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.
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Ashley Maready
