LoanDepot is the better option due to its wide array of loan products, continued operation in the mortgage market, and refinancing options. Ally Home, while offering some advantages, is no longer originating mortgages.
| Attribute | Ally Home | LoanDepot |
|---|---|---|
| Interest Rates | Based on market conditions, credit score, property location and type, loan amount and type, repayment term, and loan-to-value ratio. Rates were transparent and published on their website with daily changes. | Not publicly displayed; requires contacting a loan officer. Generic quotes assume a credit score of 740 and a DTI of 35% or lower. |
| Loan Options | Conventional loans (fixed-rate and adjustable-rate), Jumbo loans (fixed-rate and adjustable-rate), Fannie Mae's HomeReady Mortgage program for first-time homebuyers. | Fixed-rate and adjustable-rate mortgages (ARMs), Conventional, jumbo, FHA, VA, and USDA loans, Refinancing options (rate-and-term, cash-out), Home equity loans and HELOCs, FHA 203(k) loans for renovation. |
| Down Payment Requirements | Conventional loans: Minimum 3%, Jumbo loans: Minimum 10.01%, HomeReady Mortgage: As low as 3%. | Conventional mortgages: Typically 5% minimum (20% to avoid PMI), FHA loans: 3.5% down payment with a minimum FICO score of 580 (10% down payment if FICO is between 500 and 579), VA loans: Often require no down payment. |
| Closing Costs | Typically amount to 2% to 5% of the home's purchase price. | Average origination fee of $4,909 in 2023. Total average loan cost was $9,896, or 3.44% of the loan amount. GEICO customers may be eligible for up to $1,000 off closing costs. |
| Customer Service Reputation | Easily navigable website and almost 24/7 customer service availability over the phone. | Combines online platform convenience with human support at branch locations. Contact options include in-person, phone, email, online form, or text message. |
| Online Application Process | Digital pre-approval, application, and loan tracking are available. The preapproval process reportedly takes around three minutes and won't impact your credit score. | Offers an online platform with digital tools. Preapproval can be started online, over the phone, or in person. The 'mello smartloan' platform aims to streamline the process. |
| Pre-Approval Speed | Reportedly takes as little as 3 minutes. | Typically expect a pre-approval decision within 48 hours, though immediate pre-approvals can occur at branch locations. |
| Refinancing Options | Fixed- and adjustable-rate mortgage refinancing options were available. | Rate-and-term and cash-out refinancing options. Lifetime Guarantee program waives lender fees and reimburses appraisal fees on future refinances for the same property. |
| Minimum Credit Score Requirements | 620 for conventional loans. | Conventional loans: 620, Jumbo loans: 700, FHA loans: 580 (for 3.5% down payment), as low as 500 (with 10% down payment), VA loans: Estimated minimum of 500. |
| Debt-to-Income Ratio Requirements | Information not found in the provided search results. | Typically no higher than 43%, but can sometimes go up to 50% depending on financial circumstances. For jumbo loans, it can be as high as 55%. |
| Geographic Availability | Licensed to make home loans in all 50 states and Washington D.C.. | Available in all 50 states online and at in-person locations in certain cities. |
| Loan Servicing Post-Closing | Ally Bank underwrites and services its loans. | Borrowers can set up payments, send secure messages, and opt for paperless notifications through their servicing portal. |