Sitting down at the local bank to ask for a loan is a right of passage into adulthood. However, telling the banker you want that loan to adopt a child… The loan officer might look at you a little crazy. Adoption loans aren’t the norm in the financial world and most financial planners would advise against it. Taking out a loan for any reason is serious and can affect your future long term plans and goals. However, if those future long term plans and goals include children then an adoption loan is something to consider, and it’s not that scary!
When considering a loan for adoption do your research, and prepare your finances to support a new loan. Don’t go buy a new car on loan. Scale back on eating out every meal. Skip that beach vacation this year. Paying back an adoption loan is no different than any other loan. There are institutions that will do a loan specifically for adoption like America’s Christian Credit Union, ABBA Fund, or Pathways for Little Feet. These loans are interest free and of course should be the first option when applying for any loan. Low interest loans are also available from places like A Child Waits Foundation. If for whatever reason these loans are not available to you, there are other options. If you have equity in your home, consider a second mortgage that can later be refinanced. This will give you the cash you need when you need it. There are also low interest personal loans or an open line of credit. You could even look into borrowing from your life insurance policy.
Yes, people will think you are crazy for taking a loan out to adopt, but in reality it’s no crazier than taking a loan out to buy a car or home. If you understand the risks involved in making that monthly payment and your finances allow for it loans are a real option for adoption!
If a loan seems like it’s not the right option for you, there are many ways to afford adoption.