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Ally Financial Mortgage Review 2022
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.
Ally Financial is an online financial institution and lender headquartered in Detroit. The bank was founded in 1919 as a division of General Motors, established to help dealers finance vehicle purchases. Over time, the bank has expanded into banking and other financial services, and rebranded as Ally in 2009.
Mortgage lending is a relatively small but growing portion of the bank’s business, with $53 million in revenue in 2020. Much of the bank’s mortgage activity comes in partnership with Better.com. Ally Home is licensed to lend in all 43 states and the District of Columbia.
7/10 LendingTree’s mortgage lender rating
LendingTree’s mortgage lender rating is based on a 10-point scoring system that factors in several features, including digital application and closing processes, available loan products and online and in-person accessibility. LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. In some cases, additional information was provided by a lender representative.
= 1 pt = 0 pts
- Application online
- Product info online
- Rates listed online
- Helpful articles about mortgages and homebuying
- Standard product offerings
- Special programs
- Info about how to qualify for products offered online
- E-closing availability
- Licensed in at least 35 states
- After-hours and weekend access to loan officers
Ally Financial pros and cons
No lender fees. Ally Home has eliminated lender fees on its mortgages, which the bank says saves customers $995.
Fast, online preapproval. Ally says customers can be prequalified for a mortgage online in as little as 3 minutes.
Quick closing times. Ally claims it can close on a mortgage loan 10 days faster than the industry average, which can be 45 days or more.
No government loan programs. Ally doesn’t offer FHA loans, VA loans or USDA loans.
Branches not available. Ally Home doesn’t operate branches, meaning you won’t get in-person service with your mortgage.
No home equity loans. Ally doesn’t offer home equity loans or home equity lines of credit (HELOCs).
Ally Financial borrowing requirements
|Minimum credit score||620|
|Minimum credit score||620|
|Minimum down payment||3%|
|Available loan terms||15-, 20- and 30-year fixed-rate; 5/6, 7/6 and 10/6 adjustable-rate mortgages|
|Available loan types||Conventional (fixed rate and adjustable-rate), jumbo|
Ally Financial mortgage rates and fees
Ally publishes current mortgage rates online for both its fixed-rate and adjustable-rate loans. Rates quoted also include options for buying points to lower the interest rate, or receiving a lender credit in exchange for a higher rate.
Ally notes that it doesn’t charge lender fees. Borrowers will still face some closing costs, however, including an appraisal fee and inspection fee. Ally estimates that closing costs will equate to between 2% and 5% of the home’s purchase price.
Ally Financial mortgage products
Ally offers conventional loans with both fixed and adjustable rates. Fixed-rate loans are available with terms of 15, 20 and 30 years. Adjustable-rate loans (ARMs) are available as 5/6, 7/6 or 10/6 ARMs, meaning the initial fixed-rate period is for 5, 7 or 10 years, and adjusts every six months after that.
Jumbo loans are also available with a minimum 20% down payment. You’ll also need to have substantial cash reserves on hand to qualify.
Ally’s loans are also available to refinance an existing mortgage to lower your interest rate and monthly payment, shorten your term, or take cash out.
Ally offers Fannie Mae’s HomeReady loan program, which caters to first-time or repeat homebuyers with limited income and down payment funds.
How does Ally Financial compare to other lenders?
|Minimum credit score|| |
|Minimum down payment|| |
|Loan products and types|| |
|Special programs offered|| |