Thankfully more financial institutions are offering creative financing for adoption funding. Even five years ago an adopting family was only able to use credit cards, home equity, or receive funds from friends and family willing to help. You’ll want to check out your lender thoroughly as each lending institution has different requirements, ranging beyond credit requirements. If you aren’t able to find a loan through a traditional lending institution the following may hold some options for you.  

https://adoption.com/loans

Did you know Adoption.com has loan options? It takes just two minutes to get rates to you.

www.lightstream.com

Lightstream funding is affiliated with Suntrust Bank. Lightstream offers a variety of adoption loans ranging from $5,000 – $100,000. Interest rates vary by amount and repayment terms but can be as low as 5.49% (with automatic payment) up to 17.49%. You can check out their site for a listing of available lending amounts, terms, and interest rates.

www.abbafund.org 

Abba fund is an adoption assistance program for Christian families. They provide interest free loans ranging in amounts from $6,000-8,000.  While they do not provide full amount loans, any amount interest free is a win-win. They have a multi-use application for loans and grants offered through their institution. Check out their site for additional information. 

www.americaschristiancu.com

America’s Christian Credit Union is a credit union geared toward Christian clients. Loans through the credit union cover domestic and international adoptions. Including travel expenses for international adoption. They provide loans up to $50,000, for terms to 84 months. Interest rates start at 5.99%.

www.fundyouradoption.org

The National Adoption Foundation offers loans ranging in the amounts of $5,000-$50,000. They offer loans at personalized interest rates according to your credit and past loan history. You can apply and get a two-minute response for an estimated interest rate in two minutes with no impact to your credit score. An official rate and application will require a hard credit inquiry.

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1. Use your tax refund. The federal tax credit for qualifying adoptions is over $13,000. This is a tax credit, which in essence means you will receive every dollar back. Of course, this can be rolled over for up to five years and you will only receive credit for your actual qualifying adoption expenses. Most states also have an adoption credit, so make sure you check with your CPA on that as well. When you receive your tax refund, use every dollar of it to pay back the adoption loan. You should not be expecting this money and it should not be accounted for in any other place. That way, you can use every dollar you receive to pay back the adoption loan that much faster.

2. Fundraise. If you didn’t fundraise while “waiting” for your adoption, you can do it now that your child is here. This can get a little tricky and to some does not feel “right” asking for donations or money when you have a baby because if you could get pregnant and have a baby the “natural” way you wouldn’t be asking people for money or donations. Which I totally get, but if you are open to the idea, use it. We used fundraising while waiting for our adoption with www.ordinaryhero.com. You could also have a large garage sale, hold a benefit, use online sites such as gofundme.com, etc. Any of the money you earn during put directly on the adoption loan. That way you can pay the loan off as soon as possible. 

3. Create a budget. If you didn’t already create a budget while waiting for your child, now is the time. Children are extremely expensive and so is an adoption. This is a very important tool for every family to use. We keep track of all of our income and expenses in an Excel spreadsheet. You could use the good old paper and pencil method as well! But keep track of what is coming in and what is going out. At the end of every month, any extra money you have left over you should put directly on the adoption loan, again, that way paying off the loan as soon as possible. Just like the tax refund, any other “unexpected” money should be put directly on the adoption loan. You don’t want to have the extra debt hanging over your head forever as a constant reminder, get it paid off!

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In order to apply for an adoption loan, you need to first find a reputable organization. Talking to your agency, or other seasoned adoptive families, can help you narrow down your search while avoiding scams. Each organization will have its own requirements and restrictions (some are only for couples adopting, some are geared toward older child adoptions, some are for those with excellent credit, while others are available to people with average credit, etc.), so make sure to do your research. You’ll have to find the one that fits your needs best, while you fit theirs. Some of these adoption loans are “interest-free,” so adoptive parents can meet financial deadlines without racking up additional debt while they borrow. If you don’t qualify for an interest-free loan, or it doesn’t fit your needs well, you can definitely consider an alternative loan method, like an unsecured personal loan or credit card. Just know there are options. 

You may need to have completed a home study before applying for a loan, and you may need to apply before a child is placed in your home. Apply during your wait time sweet spot, and apply with the knowledge that you will need to repay your loan. Will you be using your adoption tax credit to repay, or can you pay monthly? Do you need a loan for the duration of your adoption wait, or do you just need it for a particular fee/payment? Can you front the cost for the home study, or do you need assistance to make it through that first step? These questions will really help narrow down when you need to apply.

When applying for a loan, you will need to prepare and ready much of your financial information. Once you have done that for one loan, keep that information organized so that it is much easier to apply for the next. Many loan applications ask similar questions, so it’s helpful to keep your answers saved from one to help you eliminate application time on the other. Anything to help curb the time you spend on paperwork is a must-have.

Once you have found the right organization for you, determined when you need to apply, and readied your financial information, download the application and get to work. It’s not a quick process, and you won’t finish in a day. But, if a loan is what stands between you and your child, fill that baby out.

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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.   

America’s Christian Credit Union

ABBA

Pathways for Little Feet

A Child Waits Foundation

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Here are four reasons to consider getting a loan to fund your adoption.

1.     Having financing available in the bank allows for surprise situations. The most typical way to welcome a new child into your home is to match with the birth parents, wait several months for your child to be born, and then bring them home. However, many times a situation arises unexpectedly, like the baby is already born or the potential birth parents are ready to view profiles. In case you are chosen during one of these sudden events, you will be expected to submit payment immediately. Having financing available will allow you to share your profile with those potential birth parents looking to match right away. This also works for when the potential birth parents are looking to choose a family for a child already born.
2.     Be prepared for unexpected medical or travel needs. For non-local adoptions, you will be required to travel. Traveling and lodging can add up, especially if your child’s birth mom experiences a false or long labor, or if your baby needs extra time at the hospital. You can tally up quite a total for all of your days waiting for ICPC clearance for you to return to your home state. Having funds available to you will allow for less stress and more flexibility during your out-of-town stay or during a lengthy stay in the NICU. 
3.     Adoption loans are low to no interest. Adoption loans have a lower interest rate than other typical loans or credit cards. Your total interest payments will actually not be as large as you would think when you select a loan specifically for adoption purposes. There are also non-interest loans that can allow you to slowly pay portions of your adoption without needing to gather all funds up front.
4.     Keep your cash on hand for raising your child. Something common for all adoptive parents to speak about is the fact that you spend so much money on the adoption journey that there is little left to actually raise your child and buy all the things you need. Keep your savings account and cash on hand and consider a low to no interest loan to spread out the cost of adoption over a longer period of time, keeping you from becoming financially drained.

A few places to research for no to low interest loans:

America’s Christian Credit Union

ABBA FundPathways To Little Feet

Lifesong For Orphans

Lightstream

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