Ally Home Loans, which is the newly created direct-to-consumer mortgage arm of Ally Bank, only jumped into mortgages at the end of last year, and it’s already broadening its suite of products to better cater to first-time homebuyers.
The mortgage company said broadened its suite of products by adding the HomeReady mortgage loan, Fannie Mae’s affordable lending product, which is designed to serve creditworthy, low- to moderate-income borrowers.
"Homeownership is part of our American culture, and as we continue to ramp up our direct-to-consumer mortgage business we recognize that homebuyers need customized solutions to suit their specific circumstances," said Diane Morais, Ally Bank president of consumer and commercial banking products.
After the housing crisis, Ally Financial fell into hard times, especially its mortgage business.
Eventually, the company announced it would slowly leave the mortgage industry and put the final nail in the coffin when it reported its successful move away from mortgages in November 2012.
However, it didn’t stay away from mortgages for long. Just a few years later, Ally announced it would be re-entering the market slowing during 2016.
This latest Fannie Mae offering should widen the company’s reach for first-time homebuyers.
The HomeReady mortgage was designed to expand access to credit by offering qualified first-time homebuyers a down payment as low as 3%.
Key features of the product include: Low down payment options, flexible sources of funds, affordable and cancellable monthly mortgage insurance and homeownership courses.
