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Ally offers multiple loan options for qualified borrowers, most with competitive rates. This includes options for first-time borrowers looking for low down payment loans. Ally's application process is 100% digital, and loan approval occurs faster than most competitors. Unfortunately, government-backed loans aren't available. So those looking for easy qualifying requirements may not find as many options. Read our full Ally Mortgage review to learn more.
Best for: Fast pre-approval
Ally Mortgage
Bottom Line
Ally is limited in loan options compared to competitors, but it's all about efficiency and a speedy online experience. Ally states that applicants can get pre-approved in as little as three minutes and loans close up to 10 days faster than the industry average.
Min. Credit Score 620 Conventional 700 Jumbo
Min. Down Payment
Key Features
Loan Types
Fixed Rate Terms
Adjustable Rate Terms
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:
This mortgage lender is a good fit for: Borrowers with a good or excellent credit score who are interested in applying online for a fixed-rate, adjustable-rate (ARM), or jumbo loan.
You'll get a personalized quote after answering a few simple questions -- and a pre-approval letter to include with your home offer after just three minutes. Ally provides a table showing different mortgage types, possible interest rates, and monthly mortgage payments so you can decide at a glance what's right for you.
While loan officers are available via text or phone if you need help, you can apply and submit all your financial documentation online.
You can make a down payment as low as 3% and save on private mortgage insurance with Fannie Mae's HomeReady loan option.
While the application process is 100% digital, Ally requires in-person closings for all of its loans.
Not every mortgage lender offers jumbo loans. So while it's definitely a positive that Ally has this loan type in its lineup, the lender does require a 20% down payment. Since jumbo loan amounts are meant for higher-priced homes and exceed conforming loan limits, you're going to be looking at a rather large out-of-pocket amount to come up with a 20% down payment.
Ally also requires first-time home buyers to show they have cash reserves of at least 12 months before qualifying for a jumbo loan.
Ally doesn't offer many mortgage options for borrowers with low credit scores. That means you won't find the following government-backed loans, which come with less restrictive eligibility requirements:
Ally considers these four primary factors when determining if you'll be approved for a home loan:
You can submit all of the required documentation online. Ally will likely ask for recent pay stubs, employment records, tax returns, and bank statements. Depending on your situation, you may also need to provide other proof of income and assets, verification of on-time rent payments, a letter explaining gaps in employment, and a divorce or separation decree.
Ally's application for a mortgage refinance can also be done completely online. We found the lender's refinance rates to be competitive with the national average. Ally also promises to close on your loan quickly -- 10 days faster than the national average.
Ally's mortgage rates on its website are competitive, with some posted rates coming in a bit below the national averages. Ally offers both fixed- and variable-rate options, and its rates are the lowest on loans with shorter payoff timelines.
Ally Mortgage is a good choice if you are a well-qualified buyer interested in applying for a fixed-rate loan, ARM, or jumbo mortgage online. You'll need a minimum down payment of 20% for a jumbo loan, but you can qualify with as low as 3% down for some loans as a first-time buyer. You'll need to close in person, but will appreciate the convenience of submitting all your documents online and getting pre-approved within minutes.
Interest rates on Ally home loans depend on your loan term, as well as whether you choose a fixed or variable rate. While the individual rate you'll pay will be determined based on your financial credentials, Ally's sample rates on its website are very competitive. In fact, many of the lender's proposed rates are lower than the national average. Ally also makes it easy to get a personalized rate quote so you can find out if the lender is affordable for you.
There are many benefits to working with Ally to secure a home loan. 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 may be a very good choice for refinancing your home loan. You can complete the application process entirely online, and the lender's rates are competitive with the national average. Ally also promises to close on your loan quickly -- 10 days faster than the national average.
However, shopping around and comparing rates and terms is important before you decide which lender you want to work with to refinance. Ally's loan offerings may not be the most competitive for you, given your financial credentials. Always compare several loan options before making your choice.
You can complete your application online to qualify for an Ally mortgage. The lender does not offer government-backed loans, though. So borrowers with imperfect finances may have more trouble getting approved for a loan with this lender.
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, although this could be as low as 3% for some of Ally's loan offerings.
Ally offers conventional and jumbo loans only, as well as refinance loans. You can choose from fixed- or variable-rate loan options. However, you cannot obtain government-backed loans, such as VA loans, from Ally Mortgage.
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