Better Mortgage appears to be a more versatile option due to its wider range of loan products and refinancing options. While both offer competitive rates and online convenience, the availability of FHA, VA, and home equity loans, along with potential closing cost credits, gives Better Mortgage an edge. However, Ally Home's lack of lender fees is a notable advantage. Note that Ally Home no longer offers mortgage loans as of 2025.
| Attribute | Ally Home | Better Mortgage |
|---|---|---|
| Interest Rates (APR) | Competitive rates, often below the market average. Rates were displayed daily on their website and customizable using their mortgage rate tool. | APRs closely track with national averages. Prioritizes transparency and publishes estimated rates for all products on their website. In 2023, rates were reportedly competitive, at 0.04 percentage points below the average prime offer rate (APOR). |
| Loan Options | Conventional loans (fixed-rate and adjustable-rate/ARMs), Jumbo loans (fixed-rate and adjustable-rate/ARMs). Did NOT offer construction, FHA, home equity, USDA, or VA loans. | Conventional (fixed- and adjustable-rate), FHA, VA, Jumbo (fixed- and adjustable-rate), Home Equity Loans and HELOCs, Refinancing (rate-and-term, cash-out, ARM, FHA/VA streamline) |
| Down Payment Requirements | Conventional loans: As low as 3%. Jumbo loans: Typically, a minimum of 10.01%. | VA: 0%, FHA: Minimum 3.5% (with a minimum 580 credit score), Conventional: Minimum 3% (as low as 3% conventional loan) to 5%, Jumbo: Minimum 10% |
| Closing Costs | Typically amount to 2% to 5% of the home's purchase price. No lender fees like origination or rate lock fees. | Claims to not charge unnecessary fees like application or processing fees. Third-party fees (appraisal, credit check, title fees) may apply. Closing costs can range from 2%–5% of the loan amount. The average total cost of a Better mortgage was $7,068 in 2023. Offers a $2,000 closing cost credit if you use Better Mortgage and a Better Real Estate referred agent. |
| Application Process | Entirely online. Pre-approval online in as little as 3 minutes. Application, document submission, and loan tracking were all handled digitally. Hybrid closing process: Signing documents online but meeting with a notary in person. | 100% online, with pre-approval in as little as 3 minutes. You can apply online or by phone. |
| Approval Speed | Basic pre-approval within minutes. One-day mortgage approval was possible for qualified applicants. Typical home loan process took 4 to 6 weeks from application to closing. Claimed to close 10 days faster than the industry average. | Pre-approval in as little as 3 minutes. Eligible borrowers can receive a loan commitment within 24 hours through the One Day Mortgage program. Closing times can be as little as three weeks, but typically 30-45 days. |
| Customer Service Quality | Mixed reviews. Some borrowers praised their courteous customer service and smooth application process, while others complained about unfriendly or unknowledgeable service. Customer service could be reached by phone. | Available at 415-523-8837, Monday through Friday from 8 a.m. to 8 p.m. ET. |
| Refinancing Options | Both rate-and-term and cash-out refinancing options available. The refinancing application could be completed online in about 15 minutes. Claimed its typical refinancing borrower could close on a loan up to 10 days faster than the mortgage industry average. | Offers a variety of refinance options, including 30- and 15-year refinances, cash-out refinancing, ARM refinancing, and FHA and VA streamline refinancing. |
| Pre-Approval Process | Online application that takes a few minutes. Required basic information about assets, debt, income, and Social Security number. Involved a soft credit check. Verified pre-approval letters (VPAL) were also available, requiring more documentation and a hard credit check. VPALs were valid for 90 days. | 100% digital and can take as little as 3 minutes. Based on stated income and assets with a soft credit pull (won't impact your credit score). You'll see your maximum estimated loan amount and can edit your pre-approval letter. |
| Geographic Availability | Licensed to make home loans in all 50 states and Washington, D.C. | Available in all 50 states and Washington, D.C. Not available in Puerto Rico. |
| Minimum Credit Score Requirement | Conventional loans: Typically 620 or higher. Jumbo loans: 680 or 700 (depending on the source). | FHA: 580 (or 500 with 10% down), Conventional: 620, VA: May require 620, Jumbo: 700, Home equity loans and HELOCs: 680 |
| Debt-to-Income Ratio (DTI) Limit | Generally, a DTI of 43% or less was required. Possible to get a loan with a higher DTI, but potentially at less favorable rates. | Conventional: 50% or less, FHA: 43% or less, Jumbo: 43% or less |