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Ally Bank Mortgage Review 2024

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At a glance

Ally Bank
NMLS: 181005
Editor's take

With its lightning-fast preapprovals and lack of lender fees, Ally Bank emphasizes a customer-friendly experience. As a mortgage lender, it’s especially focused on jumbo loans. It doesn’t offer FHA or VA loans.

Bankrate Score
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3.5
Rating: 3.5 stars out of 5
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Bankrate Score

Customer Rating
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4.3
Rating: 4.26 stars out of 5

221 ratings

Mortgage Percent

Loans offered

Conventional, jumbo, refinancing

Credit Good

Min. credit score required

620 for conventional loans, 700 for jumbo loans

Location

Nationwide availability

All U.S. states

Dollar Coin

Min. down payment

3% for conventional loans, 10.01% for jumbo loans

At a glance

Ally Bank

NMLS: 181005

3.5

Rating: 3.5 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, refinancing

Location

Nationwide Availability

All U.S. states

Credit Good

Min. credit score required

620 for conventional loans, 700 for jumbo loans

Ally Bank overview

Ally Bank began offering direct-to-consumer home loans in 2016. The bank and lender provides several mortgage options, including conventional loans, jumbo loans and adjustable-rate loans in five- seven- or 10-year terms. Ally Bank also offers refinancing options, including rate-and-term and cash-out, but doesn't offer FHA loans, VA loans, USDA loans or home equity loan options. You can lock in your rate for up to 45 days. For a home purchase loan, the bank currently averages 35 days to close. However, Ally Bank seems to be pulling back on lending activity – it ranked 330th among all lenders nationally in 2023, down from 159th in 2022, according to federal data. Ally’s average loan size was $1.3 million, reflecting the lender’s focus on jumbo loans.

In March 2024, Ally began offering $5,000 grants to eligible first-time homebuyers in Charlotte, Detroit and Philadelphia.

Pros and cons of Ally Bank

Pros
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    Preapprovals in as few as three minutes

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    Displays mortgage rates on its website

Cons
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    No FHA, VA or USDA loans, or home equity products

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    No branch locations

Our Editor’s Take on Ally Bank

With its lightning-fast preapprovals and lack of lender fees, Ally Bank emphasizes a customer-friendly experience. As a mortgage lender, it’s especially focused on jumbo loans. It doesn’t offer FHA or VA loans.

How Bankrate scored Ally Bank

  • Affordability: Ally Bank’s mortgage rates aren’t as competitive compared to those of some other lenders, but it doesn’t charge loan fees.
  • Availability: Qualified borrowers in all states can get a mortgage through Ally Bank. You won’t be able to get a government-backed loan from this lender, however.
  • Borrower experience: Some customers have shared less-than-stellar feedback about the bank online, but the complaints aren’t typically tied to mortgages, but rather banking services or auto loans.

Affordability: 3.4/10

Ally Bank doesn’t charge lender fees, and it posts detailed rate information on its website, often updated throughout the day. The bank’s mortgage rates are right in line with Bankrate’s averages, so shop around — you might find you get a better deal elsewhere.

Availability: 9/10

Ally Bank only offers conventional loans, both conforming and non-conforming if you’re buying a higher-priced property. It doesn’t offer FHA, VA or USDA loans, which might be  limiting for some borrowers. The bank is licensed to lend mortgages in all states.

Borrower experience: 8.6/10

Ally Bank has an A grade from the Better Business Bureau, but isn’t accredited by the organization, and its Trustpilot rating is “Bad” based on several hundred complaints (at the time of this review). However, its J.D. Power score is near the top of the pack of large loan originators. The bank doesn’t have brick-and-mortar locations, so if you’re looking to get a mortgage, you’ll do so online. It offers tips and educational articles about the mortgage-lending process on its website, and if you have the Ally Bank app, you can access your home loan easily on your phone. Once preapproved, you'll upload, sign and submit documents online. Its preapprovals and rate locks are powered by its partnership with Better, a digital mortgage lender.

How to apply for a mortgage with Ally Bank

You can apply for a mortgage with Ally Bank online or by phone at 855-256-2559. Here are some tips to prepare for the process:

  1. Check your credit report. Ally Bank focuses on jumbo loans, and for that type of loan, a strong credit score is crucial. It’s important to check your credit report before Ally does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for.
  2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
  3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Ally Bank

Ally Bank offers both rate-and-term and cash-out refinancing options.

Special programs from Ally Bank

Ally Home Grant

Ally offers $5,000 grants to eligible first-time homebuyers in Charlotte, Detroit and Philadelphia. To qualify, a borrower must live in the property, earn less than 100 percent of the area median income and purchase a home in a minority census tract. Your Ally rep can help determine whether you’re eligible.

Compare Ally Bank to other lenders

Ally Bank
Rating: 3.5 stars out of 5
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3.5

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Bethpage Federal Credit Union
Rating: 4.9 stars out of 5
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4.9

Bankrate Score
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Read full review
First Mortgage Direct
Rating: 4.8 stars out of 5
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4.8

Bankrate Score
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Read full review

Loans offered

Conventional, jumbo, refinancing

Loans offered

Conventional, jumbo, FHA, refinancing and more

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Min. credit score required

620 for conventional loans, 700 for jumbo loans

Min. credit score required

620 for conventional loans, 500 for FHA loans

Min. credit score required

620 for conventional loans, 580 for FHA loans, 580 for VA loans

Down payment

3% for conventional loans, 10.01% for jumbo loans

Down payment

3% for conventional loans, 3.5% for FHA loans

Down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans

Nationwide availability

All U.S. states

Nationwide availability

Available in all U.S. states except Texas

Nationwide availability

All U.S. states

Ally Bank customer ratings and reviews

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NMLS: 181005

4.3

Rating: 4.26 stars out of 5

221 ratings

Info

This lender has 6 recent reviews.

Knowledge
Rating: 4.4 stars out of 5
Level of service
Rating: 4.3 stars out of 5
Professionalism
Rating: 4.3 stars out of 5
Responsiveness
Rating: 4.3 stars out of 5
5 stars
4 stars
3 stars
2 stars
1 star
76%
5%
1%
3%
14%

82% of customers would recommend this lender.

of 6 reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.

Bankrate cannot guarantee or verify the accuracy of the opinions shared by individual reviewers, and reserves the right to reject or remove any review, at any time, for any reason at Bankrate’s sole discretion, including but not limited to those that Bankrate deems inappropriate, fraudulent, invalid, irrelevant, or otherwise outside the parameters of the Bankrate Review Guidelines, the Privacy Policy, or the Terms of Use.

To help serve you with relevant information, the consumer reviews shown below are limited to only those that this advertiser has received during the past 12 months.

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