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What You Need to Know About Adoption Loans

How Loans Can Help You Afford Adoption

Loans for adoption come in all different packages. They are given out by a wide array of financial institutions and include varying terms and conditions.

Deciding whether or not to seek out an adoption loans program depends on your unique situation.

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With this comprehensive guide, we’ll help you determine if an adoption loan is right for you. This article shouldn’t be taken as financial advice, but it can be a helpful resource for your research on adoption loans.

Why Choose American Adoptions?

  • Short wait times
  • We protect your budget
  • A licensed, regulated agency

Learn more about the advantages of choosing American Adoptions, here.

Can I Get a Loan for Adoption?

Although it’s not ideal, some hopeful adoptive families find that taking out an adoption loan is necessary to cover the costs of adoption. The type of adoption loan you can receive will depend on your financial situation. 

  • Credit
  • Assets
  • Liabilities
  • Savings
  • And more

These will determine what you qualify for. The terms on the loan — like the amount loaned, interest rate and the length of the loan — will also depend on these factors.

In some cases, hopeful adoptive families can quickly pay back an adoption loan once they receive a tax credit or payment from an employer or the military.

In other instances, it can take several years to pay off a loan for adoption.

Adoption Loan Programs

It’s fairly common to take out a home equity loan to help cover the costs of the adoption process. Interest rates for home equity loans are often reasonable, and the interest is tax-deductible. But, they can carry a high risk.

This popular service offers fixed interest rates, which can prevent a loan from becoming much more expensive than anticipated.

LightStream is a division of Truist Bank that offers low-interest adoption loans. Their rates for adoption financing start at roughly 6%.

This company provides unsecured loans with potential options to secure the loan. When you contact Prosper, remember to use our provider number (003296). 

USAA offers personal loans with funds available the day after approval. You can apply for a loan online.

Most financial planners advise not using a credit card as a loan device. But, it is included here because some families do put adoption expenses on a credit card and pay those them off later. Credit cards can have higher interest rates than standard personal loans, and those rates can lead to debt. If possible, then finding another adoption loan is preferred.

The Difference between Adoption Grants and Loans

When you are researching adoption loans, you will likely also come across adoption grants. These two things serve the same function. There is, however, a key distinction between adoption grants and loans.

Adoption loans, like those listed above, have to be paid back, whereas adoption grants do not. This is why many hopeful adoptive families apply to many organizations that offer adoption grants.

They provide the same financial support as adoption loans without incurring the financial risk of a loan.

Speak with a Financial Planner

Adoption loans can be incredibly helpful. Many families have needed them to cover the cost of adoption. Many have also had good experiences with the adoption loan program they worked with.

Still, this is a financial decision that should not be taken lightly. Taking out an adoption loan is a significant choice.

Many financial planners recommend not turning to these sources unless it’s absolutely necessary.

Before taking out an adoption loan, be sure to speak with a reputable financial professional who can evaluate the terms of the deal and ensure that it’s beneficial for your circumstances.

The financial investment you’re making on your way to building or growing your family through adoption is a big decision.

Your Next Steps

You deserve to work with an adoption agency that gives you honest and transparent information on your adoption costs and fee structure.

We want to help you prepare for the journey ahead, and that means helping you plan for the financial side of adoption. It’s crucial that you know what to expect when applying for adoption loans.

Disclaimer
Information available through these links is the sole property of the companies and organizations listed therein. American Adoptions provides this information as a courtesy and is in no way responsible for its content or accuracy.

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Frequently Asked Questions

Do we need to retain our own attorney?

No, American Adoptions has established relationships with some of the best adoption attorneys in the nation. Because adoption laws vary from state to state and between counties, it is important to utilize the services of an adoption attorney who specializes in the state where the adoption will finalize, which is unknown until you match with an expectant mother. You have the right to retain your own attorney, but doing so may be an additional, unnecessary expense.

Can we choose the gender of our baby?

American Adoptions does not allow gender specificity in adoption. Any family who wishes to be gender-specific in their adoption should contact us at 1-800-ADOPTION and ask about the possibility of an exception waiver before taking any other steps toward adoption with our agency. Any families who do receive an exception to be gender-specific may also incur an additional fee, which helps cover the additional advertising costs of such a request.

Please note that gender specificity will likely increase your wait time significantly.

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