Everything you need to know about adoption loans

Deciding to expand your family through adoption is exciting, but it can also be expensive. Adoption expenses vary widely depending on whether you are adopting a foster child, going through a private agency, or adopting from abroad.

Adopting a foster child involves very little expense, as federal and state adoption assistance programs help offset the costs. Corn a private adoption can cost between $ 20,000 and $ 45,000, and an international adoption costs an average of between $ 20,000 and $ 50,000, according to the Child Welfare Information Gateway.

Fortunately, adoption loans can help you fund these costs. Here is what you need to know about adoption loans.

Discover Credible to compare personal loan rates and find the right one for you.

Can I get a loan to finance an adoption?

In short, yes. Many potential parents turn to adoption loans to help pay for the cost of adoption. In fact, adoption loans come in many different forms. Some lenders offer loans specifically for adoption. But you can also use a personal loan to finance your adoption costs.

Lenders who offer adoption loans

The following 13 credible partner lenders offer personal loans that can be used for adoption expenses.

Before

• Loan amounts: $ 2,000 to $ 35,000
• Loan conditions : 2-5 years
• Best for: Borrowers who do not have good credit

Axos

• Loan amounts: $ 5,000 to $ 35,000
• Loan conditions : 1 to 5 years
• Best for: Borrowers with good to excellent credit

Best egg

• Loan amounts: $ 2,000 to $ 50,000
• Loan conditions : 2-5 years
• Best for: Low-income borrowers and fair credit

Discover

• Loan amounts: $ 2,500 to $ 35,000
• Loan conditions : 3 to 7 years
• Best for: Borrowers who want quick financing

FreedomMore

• Loan amounts: $ 10,000 to $ 35,000
• Loan conditions : 2-5 years
• Best for: Borrowers who want to choose their own payment date

Loan Club

• Loan amounts: $ 1,000 to $ 40,000
• Loan conditions : 3 or 5 years
• Best for: Borrowers with a good credit score and a low debt-to-income ratio

Loan point

• Loan amounts: $ 2,000 to $ 36,500
• Loan conditions : 2-4 years
• Best for: Borrowers with fair credit

LightStream

• Loan amounts: $ 5,000 to $ 100,000
• Loan conditions : 2-7 years
• Best for: Borrowers who want longer repayment terms

Marcus

• Loan amounts: $ 3,500 to $ 40,000
• Loan conditions : 3 to 6 years
• Best for: Borrowers who want adapted monthly payments

Prosper

• Loan amounts: $ 2,000 to $ 40,000
• Loan conditions : 3 or 5 years
• Best for: Borrowers who wish to repay their loan early

SoFi

• Loan amounts: $ 5,000 to $ 100,000
• Loan conditions : 2-7 years
• Best for: Borrowers with excellent credit

To improve

• Loan amounts: $ 1,000 to $ 50,000
• Loan conditions : 2-7 years
• Best for: Borrowers Who Build Credit

Reached

• Loan amounts: $ 1,000 to $ 50,000
• Loan conditions : 3 to 5 years
• Best for: Borrowers who do not have strong credit but have an excellent education or work history

Interest-free adoption loans

Some nonprofit and religious organizations offer interest-free adoption loans to adoptive families who meet their criteria. Here are some options to consider:

• ABBA funds – The ABBA fund offers loans designed to cover up to one-third of the overall cost of an adoption, typically between $ 6,000 and $ 8,000. The approval of the zero rate adoption loan application takes six to eight weeks.
• Free loan in Hebrew – Hebrew Free Loan is a non-profit organization that offers interest-free loans of up to $ 20,000 to help Jewish individuals and couples in Northern California meet adoption costs. To be eligible, you must be a Northern California Jewish resident or work for a Northern California Jewish organization.
• Song of life for orphans – Lifesong for Orphans offers interest-free loans only to traditional two-parent Christian families who are US citizens. The application review process takes four to six weeks.
• Paths for little feet – Pathways for Little Feet offers interest-free loans of up to $ 8,000. Priority is given to families with the greatest financial needs. Applicants must work with a licensed adoption agency.

If you are not eligible for any of these adoption loans, you can compare personal loan rate for adoption expenses using Credible.

What is the difference between adoption loans and grants?

Adoption loans and grants both offer funds to help adoptive parents meet the cost of adoptions, but there is one crucial difference: Adoption loans must be repaid, while adoption grants are costs. gifts that do not have to be reimbursed.

Because they don’t have to be repaid, there can be a lot of competition for adoption grant resources. It’s a good idea to apply for a variety of adoption grants to improve your chances of getting financial help.

Here are some adoption grants to consider:

• Adoption Gift Fund – The Adoption Gift Fund offers grants of up to $ 15,000 to help people complete a parent adoption, at home or abroad. Grants are awarded regardless of race, religion, age, marital status or sexual orientation. Applicants must submit two letters of reference and an application fee of $ 50 with their completed application.
• HelpUsAdopt.org – HelpUsAdopt.org offers adoption grants between $ 500 and $ 15,000 to couples and individuals regardless of race, religion, gender, ethnicity, marital status or sexual orientation. At least one applicant must be a U.S. citizen and applicants must use a licensed adoption agency in the United States. The organization gives priority to applicants without children or whose adoption placements have failed or been interrupted.

What are the alternatives to the adoption loan?

Adoption loans and grants aren’t the only options for financing your adoption costs. Here are some alternatives to consider:

• Cash flow refinancing – With cash-out refinancing, you refinance your existing mortgage with a larger loan and get the difference between the two loans in cash. In general, you need a credit score of at least 620 and a maximum combined loan-to-value ratio of 80% to be eligible for a cash refinance. This means that after your withdrawal refinance, you still have at least 20% of the equity in your home.
• Personal line of credit – A personal line of credit is like a credit card – it’s a revolving credit that you can use on an ongoing basis up to your borrowing limit. As you pay off your balance, your available credit is replenished. Interest rate on personal lines of credit may be lower than credit card interest rates, but are generally higher than home equity loan options because personal lines of credit are generally unsecured.
• Home equity loan – A home equity loan is also known as a second mortgage. You keep your current mortgage, but you borrow against the equity in your home during a one-time event. Home equity loans usually have fixed interest rates, so if interest rates rise, your monthly payment will not be affected.
• Borrow money from friends or family – Friends and family may be willing and able to help fund the cost of adoption. If you go this route, make sure you have a written loan agreement in place and pay what the IRS considers an “adequate” interest rate. Otherwise, you and your friend or family member could face tax consequences. As long as your family member bills at least the applicable federal rate in place at the time of signing the loan agreement, you don’t have to worry about tricky tax rules.
• Crowdfunding – Crowdfunding allows you to raise money for your adoption trip from friends, family, and even strangers. You simply create a profile on a crowdfunding platform, share your story and a link to contribute via email and social media, and people can donate to help cover your adoption costs. Some popular crowdfunding sites include GoFundMe and AdoptTogether.org.

If a personal adoption loan loan is right for you, visit Credible for compare personal loan rates in a few minutes.