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.
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.
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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. Adoption loan programs will look at your:
· 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.
Here are some of the most popular types of adoption loan programs:
· Home Equity Loans: 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.
· SoFi: This popular service offers fixed interest rates, which can prevent a loan from becoming much more expensive than anticipated.
· LightStream: LightStream is a division of Truist Bank that offers low-interest adoption loans. Their rates for adoption financing start at roughly 6%.
· Abba Fund: This faith-based organization offers interest-free adoption loans to eligible couples. But, the way they structure their agreements can be confusing. Be sure to consult a finance professional before applying.
· Credit cards: 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. 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.
If you’d like to learn more about how families afford the cost of adoption, then contact us online to get more free information now.
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