Gr♔owing a family by adopting a child is a major life event that, while fulfilling, can also be quite expensive.
Whether you’re considering an adoption from abroad or within the U.S., the associated costs can quickly add up to between $5,000 and $40,000 per child, according to AdoptUSKids. If you choose to adopt through the foster care system, the process can be entirely free or cost as much as $2,600, according to FamilyEquality.
A personal loan can help you pay for all or🔥 part of the expenses associated with adopting a child, such as legal fees or travel co🅷sts. Many online lenders offer adoption loans so you can spread out the costs over time.
- What is an adoption loan?
- Is it possible to get a loan for this purpose?
- 12 lenders to consider for adoption loans
- Adoption loans with zero interest
- Consider adoption grants
- How much does it cost to adopt a child?
- What are some alternatives to financing adoption?
What is an adoption loan?
An adoption loan is a personal loan that you can use specifically 🌸for adoption expenses. You receive the money as a lump sum, which can then be used to cover some or all of the associated costs, from agency fees to travel costs.
To qualify for an adoption loan, you’ll have to meet the lender’s eligibility requirements, including minimum income and credit score criteria. Depending on the lender, you may also need to provide some details about the adoption itself.
Personal loans make it easy to budget because both the interest rate and monthly payments are fixed, meaning they never chജange over the life of the loan. The payments are spread out over a set loan term, typically between one and seven years. That helps you know exactly what to expect and how long it will tak💃e you to repay the loan in full.
Is it possible to get a loan to finance an adoption?
Yes, you can use a personal loan to cover the expenses associated with adoption. Some lenders offer loans specifiꦫcally for adoption, but you can also use a personal loan to pay for your adoption cꦏosts.
It’s a good idea to compare multiple lenders to make sure you get the best personal loan for your unique fi𓄧nancial situation. This way, you𓃲 can find a loan with an APR and repayment term that fits into your budget.
⛄If you’re ready to get an adoption loan, folloওw these five steps:
Decide how much you need to borrow: Before you apply for a personal loan for adoption, make sure to add up all of the expenses, such as travel, 🤪healthcare, or agency fees. Be sure to borrow only what you need — and can realistically afford to repay — to avoid straining your monthly budget. You can use a personal loan calculator to estimate monthly dues for APRs and terms you may be quoted in st𝐆ep two, below.
- Compare rates and terms with multiple lenders: When shopping for a personal loan, it’s wise to compare multiple lenders via prequalification. Receiving rate quotes via a soft credit check can ensure that you find the best loan for your needs. It will also inform you whether your application could use a cosigner or co-borrower who could help you qualify or snag a lower interest rate. Be sure to consider not only loan amounts, APRs, and repayment terms, but also any additional fees the lender charges, such as origination or late payment fees.
- Submit an online loan application: Once you’ve decided on a lender, you’ll submit a loan application. Be prepared to provide basic information, such as your name and address, as well as financial documents like recent pay stubs and tax returns.
- Review and sign the loan agreement: If your loan application is approved, the lender will send you a loan agreement. This explains the conditions of your loan, and includes the amount you’re borrowing, how you can use your loan, your repayment term, APR, and your repayment schedule. If you agree to the terms of your loan, you’ll sign and return the agreement so you can get your loan funds.
- Receive your funds: After you sign your loan agreement, the lender will release your money, usually via direct deposit. The time to fund for personal loans can range from as soon as the same or next business day after approval to up to a week.
12 lenders to consider for adoption loans
Because of their flexible loan use and low APRs compared to other financing options like credit cards, personal loans are a commonly used resource for families to cover adoption expenses, whether you need a small amount of financing or a $40,000 personal loan, for example.
If you’re looking for an adoption loan and don’t qualify for interest-free loans and grants, co⛦ns༺ider the following 12 Credible partner lenders:
1. Achieve
- Loan amounts: $10,000 to $35,000
- Loan terms: Two to five years
- Our favorite for: Borrowers who want to pay off their loan early
2. Avant
- Loan amounts: $2,000 to $35,000
- Loan terms: Two to five years
- Our favorite for: Borrowers with fair credit
3. Axos
- Loan amounts: $10,000 to $50,000
- Loan terms: Three to six years
- Our favorite for: Borrowers with excellent credit
4. Best Egg
- Loan amounts: $2,000 to $50,000
- Loan terms: Two to five years
- Our favorite for: Borrowers with good credit
5. Discover
- Loan amounts: $2,500 to $35,000
- Loan terms: Three to seven years
- Our favorite for: Borrowers who want a longer repayment term
6. LendingClub
- Loan amounts: $1,000 to $40,000
- Loan terms: Three to five years
- Our favorite for: Borrowers who want to apply with a cosigner
7. LendingPoint
- Loan amounts: $2,000 to $36,500
- Loan terms: Two to six years
- Our favorite for: Next-day funding
8. LightStream
- Loan amounts: $5,000 to $100,000
- Loan terms: Two to seven years
- Our favorite for: Large loan amounts
9. Prosper
- Loan amounts: $2,000 to $50,000
- Loan terms: Two to five years
- Our favorite for: Peer-to-peer lending
10. SoFi
- Loan amounts: $5,000 to $100,000
- Loan terms: Two to seven years
- Our favorite for: Borrowers who want access to perks, like free credit monitoring and unemployment protection
11. Upgrade
- Loan amounts: $1,000 to $50,000
- Loan terms: Two to six years
- Our favorite for: Borrowers who want to build credit
12. Upstart
- Loan amounts: $1,000 to $50,000
- Loan terms: Three to five years
- Our favorite for: Borrowers with little to no credit history
Adoption loans with zero interest
Another financing option to consider is an interest-free loan from a not-for-profit or reli🃏gious organization. These loans are specifically designed to help qualifying families afford adoptions.
The application for these interest-free loans may be more intense compared to personal loans — and the funding time may take longer — but you’ll save money in the long run by not having to pay any interest alongside your principal payments.
Here are a few zero-interest adoption l꧃oans to consi🐠der:
- : Borrow up to $20,000 to cover both international and domestic adoptions. Applicants need to pass a home study evaluation before moving forward.
- : Lifesong helps with a wide range of fundraising opportunities for applicants, with interest-free loans among them. You must be a Christian, two-parent family in order to apply. Loan eligibility varies depending on financial need.
- : This organization also provides fundraising for Christian parents looking to adopt. The ABBA Fund adoption loan is intended to cover a third of adoption costs, and generally range from $6,000 to $8,000. Applicants can apply for an interest-free loan and also set up a crowdfunding campaign.
Consider adoption grants
Adoption grants are a great financia🍒l resource because the money does not need to be repaid. Some options for adoption grants include:
- : Quarterly grants are awarded and recipients will receive the money via their adoption attorney’s escrow account to be used as qualified expenses pop up.
- : Apply for a grant of up to $10,000 for either a domestic or international adoption. Grant funds go directly to the recipient family.
- : This organization offers four grant cycles each year, with three programs: domestic adoptions, international adoptions, and adoptions through foster care. Grant amounts range from $500 to $20,000 and cover fees owed to agencies or lawyers.
How much does it cost to adopt a child?
You’ve probably heard that adoption is expensive, but exactly how much should you expect to spend? It largely depends on where the child currently lives.
For domestic adoptions: Fees can add up to between $20,000 a♛nd $45,000 if you want to adopt a baby through an agency or attorney. If you plan to adopt through the foster care system, the cost can go up to $2,600, or it could be completely free. Some states are friendlier and cheaper when it comes to adoption costs, so check with local agencies to get a more specific idea of estimates.
For international adoptions: Expect to spend or borrow $35,000 to $70,000. Each country has its own regulati♐ons ☂on who can adopt and what types of fees are involved beyond your own attorney and travel costs.
What are some alternatives to financing adoption?
If you’re unsure about using a personal loan for an adoption — and you don’t have access to zero-interest loans or grants (above) — consider these alternative financing options:
- Personal lines of credit: Instead of getting a lump sum of money, a line of credit lets you draw cash as you need it. That way, you’re only paying interest as you borrow funds for each expense as it comes up. Keep in mind that a personal line of credit may have a higher APR than a personal loan.
- Cash-out refinance: With this type of loan, you’ll refinance your mortgage for a higher amount than what you owe and receive the remainder as cash, minus closing costs. Your adoption expenses will be bundled into your mortgage, but you’ll also have a higher mortgage payment and could pay more in interest if you extend your loan term.
- Home equity loans: An alternative option to leverage your home equity is with a home equity loan, also known as a second mortgage. Rates are typically competitive compared to other financing options, but (like with a cash-out refinance) you could lose your home if you default on the debt.
- Borrowing from friends and family: If you have close relationships with people who are in a position to lend money, this could be a successful option. Make sure to avoid straining future relationships by clearly outlining the lender’s expected payment terms.
- Crowdfunding: Leverage your community connections by launching a crowdfunding campaign. Friends, neighbors, church members, and others can donate according to their own budgets. Just check for crowdfunding platform fees, which can take away from the amount you actually have to work with.
- Employer adoption assistance: Some employers provide adoption assistance as part of the employee benefits package. This could come in the form of financial assistance or paid leave.