Ally Home may be a better choice for borrowers seeking lower interest rates and no lender fees, while LoanDepot is suitable for those needing a wider range of loan options and are comfortable with potentially higher rates and fees. However, potential borrowers should consider the customer service reviews for both lenders before making a decision.
| Attribute | LoanDepot | Ally Home |
|---|---|---|
| Interest Rates | Tend to be higher than average, especially for borrowers with stronger credit profiles, but may be competitive for those with less conventional profiles. In 2021, their rates were very close to the national average. | Lower mortgage rates, APRs often below market average, weekly notifications with updated interest rates. |
| Loan Options | Fixed-rate and adjustable-rate mortgages (ARMs), conventional, jumbo, FHA, VA, and USDA loans. Refinance options and HELOCs. Loan terms include 10, 15, 20, and 30-year options. A 40-year interest-only loan is also available. | Conventional loans (fixed-rate and adjustable-rate mortgages), Jumbo loans (fixed-rate and adjustable-rate) up to $4 million, Refinancing options (rate-and-term and cash-out) for conventional and jumbo loans, HomeReady mortgage program. Did not offer FHA, VA, or USDA loans. |
| Down Payment Requirements | As low as 5% for conventional loans and 3.5% for FHA loans. VA and USDA loans may not require a down payment. For FHA loans, a credit score of at least 580 is needed for a 3.5% down payment; with a score between 500 and 579, a 10% down payment is required. Programs like AccessONE+ and AccessZERO offer down payment assistance. | Conventional loans: as low as 3%, Jumbo loans: minimum 10.01%. |
| Closing Costs | Average origination fee was $4,909 in 2023. Total average loan costs were $9,896, which is 3.44% of the loan amount. Closing costs can range from 2% to 5% of the total loan amount. | Typically ranged from 2% to 5% of the home's purchase price. No lender fees like application, origination, processing, or underwriting fees. |
| Approval Speed | Claims to close on mortgages up to 50% faster than the industry average. Pre-approval decisions can be received within 48 hours, and sometimes immediately at branch locations. Full approval can take a few weeks. | Approval rates were in line with other lenders. For purchase loans, Ally's approval rate was slightly higher than many lenders. |
| Customer Service Quality | A+ rating with the Better Business Bureau and a 'Great' ranking on Trustpilot with customer reviews averaging 4 out of 5 stars. However, they scored below average in J.D. Power's 2024 Mortgage Origination Satisfaction Study. Available through multiple contact methods and offers online account management. | Customer satisfaction history ranked poorly among some of its competitors. Reviews mentioned a lack of communication during the underwriting process and issues making payments once a mortgage was approved. |
| Online Application Experience | Digital application process through its Mello platform. The online experience is generally fast and clean. | All-digital banking environment, allowing online pre-approval and loan application. Customers could track their loan's progress through their online account and mobile app. The online pre-approval process reportedly took around three minutes and didn't impact your credit score. |
| Refinancing Options | Fixed-rate, ARM, FHA, and VA refinance. Cash-out refinancing. A 'Lifetime Guarantee' waives lender fees and reimburses appraisal costs for future refinances if the original mortgage was with LoanDepot. | Rate-and-term and cash-out refinancing options for conventional and jumbo loans. |
| Pre-Approval Process | Can start the pre-approval process online, over the phone, or in person. Pre-qualification is also available. | Basic pre-approval could be requested online and processed within minutes, involving a soft credit check. Verified pre-approval letters (VPAL) required more documentation and a hard credit check. |
| Geographic Availability | Can originate loans in all 50 states. Available online and have physical locations in certain cities. | Licensed to make home loans for purchase or refinance in all 50 states. |
| Minimum Credit Score Requirement | 620 for conventional loans, 580 for FHA loans (though a 10% down payment is required if the score is between 500-579), 620 for VA loans, and 700 for jumbo loans. | Conventional loans: typically 620 or higher, Jumbo loans: 680 or higher. |
| Debt-to-Income Ratio Requirements | A DTI of no higher than 43% is generally required, though it can sometimes go up to 50% depending on financial circumstances. | 64% of approved applicants had a DTI ratio of less than 40%. Ally Bank didn't disclose specific borrower minimum requirements for loan approval. |