Please ensure Javascript is enabled for purposes of website accessibility

This device is too small

If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.

Skip to main content

Ally Mortgage Review: 100% Online Application

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

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.

Ally Mortgage

Best for: Fast pre-approval

Rating image, 4.0 out of 5 stars.
Info Icon Circle with letter I in it. 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 is limited in loan options compared to competitors, but it's all about efficiency and a speedy online experience.

Min. Credit Score Minium Credit Score 620 Conventional 700 Jumbo

  • 580 - 700

Min. Down Payment

  • 3%

Key Features

  • Fast pre-approval
  • Easy loan option comparison
  • Fully online application
  • Loans for first-time buyers

Loan Types

  • Conventional
  • Jumbo
  • Interest Only

Fixed Rate Terms

  • 15y, 20y, 30y

Adjustable Rate Terms

  • 5/6, 7/6, 10/6

Full Ally Mortgage review

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.

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

Top perks 

Find the right loan fast

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.

Fully digital process

While loan officers are available via text or phone if you need help, you can apply and submit all your financial documentation online. 

Low down payments and first-time buyer programs

You can make a down payment as low as 3% and save on private mortgage insurance with Fannie Mae's HomeReady loan option. 

What could be improved

Must close in person

While the application process is 100% digital, Ally requires in-person closings for all of its loans.

Strict requirements for jumbo 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.

Limited options for low credit

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:

Alternatives to consider

Better Mortgage. Like Ally, Better also offers an all-digital application process and pre-approval within minutes. Also like Ally, Better.com doesn't provide VA or USDA loans, but it does offer fixed-rate, adjustable-rate, and jumbo loans. Because Better and Ally are so similar, it's best to compare rates to see which lender provides the most affordable loan option.

Carrington Mortgage. A mortgage loan from Carrington may be a better bet if you have nontraditional proof of income or low credit -- or if you want to take out a jumbo loan with a small down payment. Unlike Ally, Carrington provides FHA, VA, and USDA loans and offers a Flexible Advantage program that lets borrowers with credit scores as low as 550 borrow up to $1.5 million. 

Lender
Better
Carrington Mortgage Services
Rating
Rating image, 4.5 out of 5 stars.
4.5 stars
Info Icon Circle with letter I in it. 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
Rating image, 4.0 out of 5 stars.
4.0 stars
Info Icon Circle with letter I in it. 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
Min. Down Payment
  • 3%
  • 0% - 3.5%
Minium Down Payment 0% VA loans 3% conventional loans 3.5% FHA loans
Credit Score
  • 620
  • 500 - 620
Minium Credit Score 500 VA and USDA 580 FHA 620 Conventional
Key Features
  • No origination fees
  • Instant loan estimates
  • 100% online application
  • $150 off closing costs for The Ascent readers
  • Better Cash offer
  • Loans for borrowers with low credit
  • Low down payment options
  • Accepts nontraditional proof of income
Next Steps

How to qualify

Ally considers these four primary factors when determining if you'll be approved for a home loan:

  • Your credit score: 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.
  • Debt-to-income ratio (DTI): Ally will compare your gross monthly income to the total amount of your monthly debt payments (including mortgage costs for your new loan). Your debt-to-income ratio (DTI) should be below 43%, but keeping this ratio as low as possible will maximize your chances of getting approved at a competitive rate.
  • Down payment: Ally offers some home loans with a down payment of as low as 3%. However, others -- such as jumbo loans -- require a minimum down payment of 20%.
  • Employment history: You'll need proof of income showing you have a steady job and money coming in that you can use to pay your monthly mortgage bill.

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.

How are Ally Mortgage's refinance rates?

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.

How are Ally Mortgage's rates compared to 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 right for you if:

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.

FAQs

  • 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.

About the Author