Ally offers a 100% digital application process and multiple loan options for well-qualified borrowers, including first-time home buyers and those with low down payments. Unfortunately, there are no FHA or VA loans, so those looking for easy eligibility rules with government-backed loans will need to look elsewhere. Read our full Ally Mortgage review to learn more.
Best for: Fast pre-approval
Ally is limited in loan options compared to competitors, but it's all about efficiency and a speedy online experience.
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.
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 loan types, possible interest rates, and ortgage monthly mpayments 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.
Limited options for low credit: Ally doesn't offer many mortgage loan options for borrowers with low credit scores. Notably, the lender does not provide VA, FHA, or USDA loans that generally come with less restrictive eligibility requirements as they are insured by the government.
Origination fee: Ally Mortgage also charges an origination fee, which is an upfront cost some lenders don't impose. And at $995, it's higher than many competitors' fees. You'll need to account for this when comparing mortgage rates to see who provides the best overall offer.
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.
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. Carrington also provides FHA, VA, and USDA loans, which Ally doesn't. It also offers a Flexible Advantage program that lets borrowers with credit scores as low as 550 borrow up to $1.5 million.
Better.com. This lender doesn't charge an origination fee and, like Ally, it 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.
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.
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