Both Better Mortgage and Ally Home provide digital mortgage application processes and a range of loan options. Better Mortgage offers FHA and VA loans, while Ally Home provides Jumbo loans and HomeReady programs. However, both have drawbacks in customer service and loan servicing experience. Ally Home's future in mortgage lending is uncertain, as they will no longer offer mortgage loans as of 2025.
| Attribute | Better Mortgage | Ally Home |
|---|---|---|
| Interest Rates | Better Mortgage's APRs closely track with national averages. VA loan rates were .244% lower on average than FHA in 2024. | Ally Bank typically offered competitive mortgage rates, with APRs often below market average. Rates are based on current market conditions, your credit score, property location and type, loan amount and type, repayment term, and loan-to-value ratio. |
| APR (Annual Percentage Rate) | Better Mortgage displays mortgage rates on its website and updates them several times a day. | Ally Bank's APRs were often below the market average. |
| Loan Options (Fixed-Rate, ARM, etc.) | Better Mortgage offers conventional, FHA, and VA loans, including fixed-rate and adjustable-rate options. They also offer refinance options, including cash-out refinancing. | Conventional loans (fixed-rate and adjustable-rate mortgages). Fixed-rate mortgages were offered in 15-, 20-, and 30-year terms. Adjustable-rate mortgages (ARMs) allowed you to lock in an initial interest rate for 5, 7, or 10 years, after which the rate adjusts every six months. Jumbo loans (fixed-rate and adjustable-rate). Refinancing options (rate-and-term, and cash-out). Fannie Mae's HomeReady Mortgage program for first-time homebuyers. |
| Down Payment Requirements | Conventional loans: minimum 3%. FHA loans: minimum 3.5% (580 minimum credit score). If there is a non-occupying co-applicant/co-borrower, the minimum down payment is 25%. VA loans: no down payment required. | Conventional loans: As low as 3%. Jumbo loans: Minimum 10.01%. HomeReady program: Down payments start as low as 3%. |
| Closing Costs | Closing costs typically range from 2% to 5% of the loan amount. The majority of Better Mortgage's loans from the past year had closing costs between $1,500 and $5,500. | Typically range from 2% to 5% of the home's purchase price. Ally does not charge lender fees like origination or underwriting fees. |
| Loan Servicing Experience | Some complaints have been filed with the CFPB regarding communication and loan servicing. | Loans may be serviced by Ally, and borrowers can manage them through the online portal. |
| Online Application Process | Better Mortgage provides a completely digital process, with the exception of some portions of the closing. Borrowers can compare live rates, apply for preapproval, upload documents, and track their loans entirely online. | Fully online process from start to finish. The pre-approval process reportedly takes as little as 3 minutes. |
| Customer Service Quality | You can reach Better's customer service team at 415-523-8837, Monday through Friday from 8 a.m. to 8 p.m. ET. | Ally Bank has poor customer reviews on sites like Trustpilot and the Better Business Bureau (BBB). However, they offer 24/7 customer support. Existing home loan customers can reach Ally at 866-401-4742 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. |
| Pre-Approval Speed | If you qualify, you could get preapproved online in as few as three minutes. Eligible borrowers can receive a loan commitment within 24 hours through the One Day Mortgage program. | The online pre-approval process reportedly takes as little as 3 minutes. |
| Refinancing Options | Better Mortgage offers various refinance options, including 30- and 15-year refinances, cash-out refinancing, ARM refinancing, and FHA and VA streamline refinancing. | Ally Bank offered both rate-and-term and cash-out refinancing options for conventional and jumbo loans. |
| Minimum Credit Score Requirement | Conventional loans: 620. FHA loans: 580. VA loans: 620. Jumbo loans: 700. | 620 for conventional loans. A credit score of 680 was required for jumbo mortgage loans. |
| Debt-to-Income Ratio (DTI) Limit | The maximum DTI ratio allowed for an FHA loan varies by lender and is typically between 43% to 50%. At Better Mortgage, there are circumstances where up to 57% is allowed. For conventional loans, Better Mortgage can provide mortgages to borrowers with DTIs up to 50%. | For most loans, the DTI should be 43% or less. |