REVISION: Ally Bank Mortgage Review 2025
Ratings and reviews are from real consumers who have used the lending partner’s services.
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 exited the mortgage loan business in early 2025. With that in mind, here’s some important information that you need to know:
- For those applying for a new Ally mortgage: If you applied for a mortgage with Ally on or before Jan. 31, 2025, you have until May 27, 2025, to close on your loan. Your loan officer can help you with any questions you have along the way.
- For those with an existing Ally mortgage: A representative from Ally says to just keep paying your mortgage as you normally would. The company will reach out to you if there are any changes made to your loan or if you need to take any action.
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 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
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 types of mortgage loans does Ally Bank offer?
Ally Bank offered two main types of home loans before it exited the mortgage business:
Conventional loans
Ally Bank’s conventional loan offerings include 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-, seven- or 10-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 | Conventional: 43% |
| Down payment minimum | Conventional: 3%Jumbo: 10.1% |
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 for loan approval. We have found that based on nationwide data, 64% of approved applicants across all loan types had less than a 40% debt-to-income (DTI) ratio. 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 89% approval rate is slightly higher than many lenders we’ve reviewed, including major banks like TD Bank and Wells Fargo.
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.Ally Bank’s customer service experience
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: 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.
What are some alternatives to Ally Bank mortgage loans?
Since Ally Bank is no longer in the mortgage origination business, here are some viable alternatives if you’re in the market for a mortgage lender.
 |  |  |
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|---|---|---|---|
| LendingTree’s rating |  Read our Ally vs. Flagstar Bank comparison. |  Read our Ally vs. PenFed comparison. |
|
| Minimum credit score | 620 | 580 to 620 | 620 to 650 |
| Minimum down payment | 3% | 0% to 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. | 0.00% | 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
While Ally only offers conventional and jumbo loans, Flagstar offers government-backed loans and home equity lines of credit. 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. PenFed doesn’t offer the same transparency you’ll find with Ally, however — you can 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 1.2 stars out of five across more than 800 reviews, and on another, it received 1.4 stars across more than 200 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.