Ally Bank Mortgage Review 2024
Ratings and reviews are from real consumers who have used the lending partner’s services.
620
3%
Conventional, jumbo
- Quick application and closing process
- Grants available toward down payment or closing costs
- Rates available on lender website
- Limited mortgage offerings (no FHA, USDA or VA loans)
- No brick-and-mortar locations
- No home equity loans or HELOCs
Ally Bank mortgage overview
Ally Bank was founded in 1919, initially as part of General Motors. In 2010, the company rebranded to Ally Financial, and it now offers a range of financial products including home loans and wealth management.
- Areas of service: 50 states and Washington, D.C.
- Digital service: Online-only lender
- Headquarters: 500 Woodward Ave., Detroit, MI 48226
- Website: Ally.com
Ally Bank rates, terms and fees
Rates
Ally posts current rates for their home loans online — you can view them by clicking the “Mortgage Rates” button that appears under the “Mortgage” tab at the top of the home page. You’re also able to see how rates may vary based on the loan type and if you were to purchase mortgage points.
Ally Bank’s rates are fairly competitive compared to other national banks, coming in at exactly the same as the average prime offer rate (APOR) in 2023. The APOR is a benchmark rate capturing the lowest APR a bank will most likely offer in the current mortgage market.
The bank saw a 13% decrease in its rate spread from 2022 to 2023.
Fees
Ally mentions on its website that it doesn’t charge lender fees, which can include application fees, underwriting fees and origination fees.
That’s not to say you won’t pay any fees if you take out a home loan from Ally Bank. In 2023, the average total loan cost at Ally across all loan types was $7,193, according to data from the Federal Financial Institutions Examination Council (FFIEC). This doesn’t include origination fees, which averaged $4,400 at Ally in 2023, or any mortgage points you may pay (Ally customers paid an average of $5,460).
What discounts does Ally Bank offer?
Qualifying borrowers who have been Ally customers for at least 30 days before the mortgage closing date may be able to save up to $500 toward loan costs. Homeowners who meet certain income thresholds and other criteria can also qualify for an Ally Home Grant of $5,000 toward closing costs or the down payment.
What types of mortgage loans does Ally Bank offer?
Ally Bank offers a variety of home loans, including:
Conventional loans
Ally Bank offers different conventional loan offerings, including fixed-rate and variable-rate mortgages (called adjustable-rate mortgages, or ARMs); cash-out refinance; and rate-and-term refinance loans.
Conventional loan qualification requirements
- 620 minimum credit score
- 3% minimum down payment
Jumbo loans
Ally offers jumbo loans for most property types through fixed-rate and variable-rate mortgages. Choose from 15-, 20- or 30- year fixed-rate loans or five- or seven-year ARMs.
Jumbo loan qualification requirements
- Loan amounts up to $4 million
- 10.01% minimum down payment
Ally Bank mortgage qualifications
| Credit score minimum | 620 |
| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum |
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| Down payment minimum |
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Don’t know your credit score? Get your free score on LendingTree Spring today.
How to boost your loan approval odds
Ally Bank doesn’t disclose specific borrower minimum requirements you need to meet in order to be approved for a mortgage. We have found that based on nationwide data, 63.8% of approved applicants across all loan types had a DTI of less than 40%. Plus, the average loan-to-value (LTV) ratio of approved applications was 76.6%. Ally rejected 15.1% of its applications.Ally’s approval rates are in line with other lenders’. For purchase loans, Ally’s 88.5% approval rate is slightly higher than many lenders we’ve reviewed, including major banks like TD Bank and Wells Fargo.
How to apply for an Ally Bank mortgage
1. Choose your loan type
Go to Ally.com and click “Mortgage” on the top bar. Then choose the “Home Purchase” link. From there, click on the “Get Pre-Approved” button.
2. Get prequalified
Getting prequalified will help you see what rates and terms you may qualify for. The initial form Ally provides will ask you for information such as where and when you plan on purchasing your home.
3. Submit a loan application
Once you provide all of the information Ally requests, you may be preapproved for a mortgage. Getting a preapproval letter means that the offer is good for 90 days, and you can lock in your mortgage rate.
Documents you’ll need for prequalification or preapproval
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Find out more about how to apply for a home loan.Is it safe to get prequalified with Ally Bank ?
Yes, it’s safe to get prequalified with Ally Bank. It has partnered with Better Mortgage, another digital mortgage provider, to process its mortgage application. You can submit all necessary information online and get your prequalification letter efficiently. This letter can signal to home sellers and real estate agents that you’re serious about buying a home, and that you have the financial means to do so.
When you go through the prequalification process, your credit score won’t be affected, as the lender will conduct a soft credit inquiry. Once you submit a full application, Ally will likely conduct a hard credit pull.
Ally Bank’s customer service experience
New home loan customers can call Ally representatives Monday through Friday from 9 a.m to 9 p.m. ET and Saturday from 10 a.m. to 4 p.m. ET.
- Phone: 1-855-256-2559
Existing home loan customers can reach Ally at the following phone number Monday through Friday from 8:30 a.m. to 8 p.m. ET, and Saturday from 8:30 a.m. to 1 p.m. ET:
- Phone: 1-866-401-4742
Customer support hours are in line with what many competitors offer, although email and live chat aren’t listed as contact options for home loan customers on Ally’s website.
How does Ally Bank compare to other lenders?
 |  |  |
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|---|---|---|---|
| LendingTree's rating | |||
| Minimum credit score | 620 | 580 to 620 | 620 to 650 |
| Minimum down payment | 3.5% | 0% to 3.5% | 0% to 3.5% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 0.50% | 1.11% | 0.53% |
| Loan products and programs |
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| Better for | Borrowers who want an online application experience and who may qualify for lender grants and discounts. | Borrowers who want a more traditional application experience, either online or in person, as well as those who want government-backed options. | Borrowers with fair credit scores who want an in-person loan experience. |
Ally Bank vs. Flagstar Bank
Flagstar offers more home loan options. While Ally only offers conventional and jumbo loans, its competitor offers government-backed loans and home equity loans. Plus, Flagstar has in-person locations, making it the better choice for those who want to work with a more traditional bank.
Both Ally and Flagstar also post their rates online, meaning you can easily see what rate you may qualify for. One potential advantage of applying with Flagstar is that their minimum credit score requirements are slightly lower.
→ Read more in our full Flagstar Bank mortgage review.
Ally Bank vs. PenFed Credit Union
PenFed Credit Union offers more types of home loans compared to Ally and a more traditional application experience. That means you can speak with a representative in person at any of their branches throughout the U.S. instead of going through the application process solely online. However, PenFed doesn’t offer the same transparency you’ll find with Ally — you’ll be able to see minimum rates for each of their loan types, but that’s about it.
Ally’s credit score requirements are slightly lower than PenFed’s. If your score isn’t in the good-to-excellent range, Ally may be the better option.
→ Read more in our full PenFed Credit Union mortgage review.
Ready to compare lender offers on LendingTree? Get Your Rates TodayHow LendingTree rated Ally Bank Mortgage
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Ally Bank’s scorecard:
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application
= 0 points = 0.5 points = 1 point
Frequently asked questions
Ally Bank allows you to see current rates for their mortgage products, get prequalified online and submit all application documentation online. You can also manage your loan by logging into your account online.
Yes, Ally Bank is a legitimate financial institution. It is licensed to do business in all 50 states.
You can view more info about Ally Bank’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
Applying for an Ally Bank home loan may temporarily affect your credit score, as the lender will conduct a hard credit inquiry when you submit your application. Your payment activity can also positively or negatively affect your score.
There are multiple unclaimed profiles associated with Ally Bank on Trustpilot, and it can be difficult to determine which products customers are referring to in their reviews. On one Trustpilot profile, Ally Financial received an average of 1.5 stars out of five across 229 reviews, and on another, it received 1.2 stars across 707 reviews.
Customers who left critical reviews primarily complained about the slow customer service response times, though there are also many positive reviews citing great customer support.