Ally Bank Mortgage Review 2020
By Bankrate Staff
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Please note: In response to the coronavirus pandemic, lenders are changing their requirements continuously. Although we strive for accuracy at the time of publication, please be sure to check with the lender for updated details on down payments, credit scores, etc.
Ally Home, the mortgage-lending division of Ally Financial, is an online lender with roots dating back to 1919. It started offering direct-to-consumer home loans in 2016. Ally provides several mortgage options for homebuyers:- Conventional fixed-rate mortgages in 15- and 30-year terms
- Fannie Mae’s HomeReady program
- Adjustable-rate mortgages (ARMs) in 5-, 7- and 10-year terms
- Jumbo mortgages with down payments as little as 10 percent without private mortgage insurance (PMI)
Nationwide availability
Available in 39 states and the District of Columbia. Ally is in the process of adding New York, New Hampshire, Nevada, Maine, Minnesota, Virginia, Vermont, Hawaii, Maryland, Wyoming and Arkansas to the list of states where they lend.
Minimum credit score
For conventional loans, key requirements include good credit (typically a FICO score of 620 or higher). Jumbo loans require a minimum credit score of 700. Debt-to-income ratio, down payment amount and employment history also factor into the lender's decision when approving a home loan.
Loan types
Conventional, ARM and jumbo loans; refinancing options include rate-and-term refinancing and cash-out refinancing
Pros
- Pre-approval in as little as 3 minutes
- Pays $500 towards closing costs for those with an Ally account
- Loan options include fixed-rate, adjustable-rate (ARM) and jumbo mortgages
- Mortgage refinancing options, including rate-and-term refinancing and cash-out refinancing
- As little as 10 percent down payment on jumbo loans
- Transparent interest rates and loan costs
Cons
- No FHA, VA or USDA loans
- Home equity loans and home equity lines of credit (HELOCs) are unavailable
- No brick-and-mortar locations
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Ally Bank overview
Loan types
- Conventional fixed mortgages
- Fannie Mae’s HomeReady program
- Adjustable-rate mortgages (ARMs)
- Jumbo mortgages
- Refinancing options include rate-and-term and cash-out refinancing
Lender fees
Ally Home fees vary by loan type, but they are typically 1 percent to 2 percent of the purchase price.
Minimum borrower requirements
For conventional loans, key requirements include good credit (typically a FICO score of 620 or higher). Jumbo loans require a minimum credit score of 700 and come with down payments as little as 10 percent without private mortgage insurance. Debt-to-income ratio, down payment amount and employment history also factor into the lender’s decision when approving a home loan.
Ally Home adheres to the conforming loan requirements for mortgages approved by government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.
Get started with Ally Bank
Borrowers can apply online.Hours
Ally Bank consumer rating and reviews
94% recommended
Ally is a leading digital financial services company where our commitment to customers has been our focus for 100 years. We are a relentless ally for your financial well-being.
- Expert guidance through closing
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