Online bank Ally launches home grant program

Ally Home, the residential mortgage lending arm of Ally Bank, is offering a $5,000 grant for eligible homebuyers in the select markets of Charlotte, Detroit and Philadelphia, the company announced on Tuesday. The upfront lump sum can be applied toward a down payment, closing costs or other expenses related to the homebuying process. 

Ally is partnering with HouseCanary, a tech-forward appraisal firm, to help consumers identify grant-eligible properties using the Ally ComeHome search portal. Ally created a one-stop shop with all the tools, resources and products a homebuyer might need, its news release stated.

“Buying a home is an unattainable dream for more than half of U.S. residents, which is why we strive to make homeownership more accessible to a wider range of individuals and families,“ Glenn Brunker, president of Ally Home, said in a statement.

“By bridging the affordability gap and easing the burden of the upfront costs of purchasing, our grants will help more people realize their dream of being a homeowner with the ability to enter the market, build equity and create generational wealth.“

The Ally home grant will be available for prospective homebuyers who are purchasing a primary residence. It will target individuals with an income less than or equal to 100% of the area median income (AMI) in the Charlotte, Detroit and Philadelphia areas, with possible expansion to come in the future.

There is a possibility to combine the grant with other offerings from Ally, including the Fannie Mae HomeReady Mortgage program. It enables consumers to purchase a house with a 3% down payment. Ally is considering expanding the program to more markets in the future.

“By incorporating our ComeHome technology into Ally’s website, we’re equipping Ally’s customers with a user-friendly platform that makes finding grant-eligible properties a simple and efficient process,“ Jeremy Sicklick, co-founder and CEO at HouseCanary, said in a statement.

Ally launched its ComeHome platform in collaboration with HouseCanary in late 2023. The platform has  53,000 users and continues to grow.