13 Adoption Loans and Grants to Consider

·9 min read
image of baby stroller, money symbol, pacifier, and baby footprints
image of baby stroller, money symbol, pacifier, and baby footprints

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This article first appeared on the Credible blog.

Adoption can be an extremely expensive process — adopting through a private agency can cost $20,000 up to $45,000, according to the Child Welfare Information Gateway.

If these costs are keeping you from adopting a child, adoption loans or grants could help get you the funds you need.

Here’s what you should know about adoption loans and other alternatives for adoption expenses:

13 lenders for adoption loans

One option to pay for adoption is a low interest personal loan. These types of loans typically range from a few hundred dollars up to $100,000 or more, depending on the lender, and can be used for almost any personal expense — including adoption or other associated costs for childcare.

Keep in mind: There are a few types of lenders that offer personal loans, including online lenders, banks, and credit unions.

Credible makes it easy to compare personal loan rates from various lenders, all in one place.

Here are Credible’s partner lenders that offer personal loans that could be used for adoption costs:

Avant

If your credit is less-than-stellar but you need to borrow money for adoption costs, Avant might be a good option. With Avant, you can borrow $2,000 to $35,000** with terms ranging from two to five years*.

Axos Bank

Axos Bank offers personal loans from $5,000 to $35,000 with terms ranging from one to five years.

If you’re approved, you could have your loan funded as soon as the next business day, which could make Axos a good choice if you need money quickly to cover adoption fees or other expenses.

Best Egg

If you have good credit, you could qualify for competitive rates on a personal loan from Best Egg.

You can borrow $2,000 to $50,000 with Best Egg and could have your loan funded in one to three business days after successful verification if you’re approved.

Discover

Discover offers personal loans from $2,500 to $35,000 to borrowers with good to excellent credit. Repayment terms range from three to seven years, which could make Discover a good option if you’re looking for a long-term loan.

FreedomPlus

With FreedomPlus, you can borrow $10,000 to $40,000 for a wide variety of purposes. Plus, if you apply with a cosigner or are able to show proof of retirement savings, you might qualify for a lower interest rate.

LendingClub

LendingClub is one of the few lenders that allow cosigners on personal loans, which might make it a good choice if you don’t qualify for a personal loan to cover adoption costs on your own.

With LendingClub, you can borrow $1,000 to $40,000 with a term of three or five years.

LendingPoint

LendingPoint specializes in working with borrowers with near-prime credit — generally meaning credit scores in the upper 500s or 600s. If you need to borrow between $2,000 and $36,500 and have poor or fair credit, LendingPoint could be a good option.

LightStream

If you need to borrow a large amount (such as to cover travel expenses or furnishing for a child’s room), LightStream could be a good option, as you can borrow $5,000 to $100,000. You could also get your money as soon as the same business day if you’re approved.

Marcus

Marcus offers personal loans with terms ranging from three to six years, which could be ideal for adoptive families looking to borrow over a long term.

Keep in mind that if you make your payments on time for 12 months, Marcus will let you defer your payment for one month interest-free.

Prosper

Prosper personal loans range from $2,000 to $40,000 with two available loan terms — three or five years.

Keep in mind that Prosper operates an online peer-to-peer loan marketplace, which means you’ll need to wait for investors to fund your loan. The process from start to finish generally takes about three to five business days.

SoFi

SoFi might be a good option for adoptive parents who need to borrow a large sum, such as to cover travel costs or to help the birth mother with medical expenses.

With SoFi, you can borrow $5,000 up to $100,000. SoFi borrowers also enjoy perks like unemployment protection and financial advising.

Upgrade

If you have poor or fair credit, Upgrade could be another way to go. Upgrade loans range from $1,000 to $50,000. If you’re approved, you could have your loan funded within a day of clearing necessary verifications.

Upstart

Upstart is willing to work with borrowers with poor credit or even no credit history. If you don’t have a credit score, Upstart will also consider your education and job history to determine your eligibility. You can borrow $1,000 to $50,0005 with Upstart.

Interest-free adoption loans

Some nonprofit and religious organizations offer interest-free adoption loans to families who qualify. Here are a few to consider:

  • ABBA Fund offers adoption assistance for Christian families. The average ABBA Fund loan is $6,000 to $8,000, and the application review typically takes six to eight weeks.

  • Lifesong for Orphans provides interest-free adoption loans to families based on financial need. Application processing can take four to six weeks.

  • The Oxford Adoption Foundation assists adoptive families with loans up to $5,000. There is no interest on the loans for the first three years of repayment.

No matter which type of adoption loan you choose, it’s important to consider the overall cost of the loan so you can plan for any added expenses. You can estimate how much you’ll pay for a loan using Credible’s personal loan calculator.

Visit Credible to compare personal loan rates from multiple lenders in minutes.

Grants for adoption

There are also some organizations that provide grants for families who need help covering adoption-related expenses. Here are a few adoption grants to look into:

  • A Child Waits Foundation’s International Adoption Grant Program is geared toward supporting the placement of international orphans and international foster children in family homes. Grant amounts vary but are typically $7,000 or less.

  • HelpUsAdopt.org awards grants four times a year in February, May, August, and November. These grants range from $500 to $15,000 and can be used for domestic, international, and foster care adoptions.

  • The National Adoption Foundation offers grants from $500 to $2,000, depending on the adoptive family’s needs. The funds can be used for any adoption-related expense.

Adoption loan frequently asked questions

If you’re considering an adoption loan, here are the answers to some common questions:

Can you get a loan for an adoption?

Yes, you can. There are generally two types of loans that can be used for adoption costs:

  1. Personal loans can typically be used for any personal expense, including adoption. Depending on the lender, you might be able to borrow a few hundred dollars up to $100,000 or more. The time to fund for personal loans is usually one week or less — though some lenders will fund your loan as soon as the same or next business day if you’re approved.

  2. Adoption-specific loans and grants are generally provided by nonprofit and religious organizations and might come with low or no interest. Keep in mind that these types of adoption loans tend to come in small amounts, and your application could take weeks to process — if you’re approved at all.

Can you get an adoption loan with bad credit?

Yes, there are personal loan lenders willing to work with borrowers who have bad credit. However, keep in mind that bad credit loans tend to come with higher interest rates compared to good credit loans.

Here are Credible’s partner lenders that offer personal loans for bad credit:

  • Avant

  • Best Egg

  • Discover

  • LendingClub

  • LendingPoint

  • LightStream

  • Marcus

  • Prosper

  • Upgrade

  • Upstart

Tip: If you’re struggling to get approved for a personal loan on your own, consider adding a cosigner to your application. Not all personal loan lenders allow cosigners on personal loans, but some do. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

Can you get an adoption loan with a low income?

You’ll generally need verifiable income to qualify for a personal loan for adoption, though the actual amount required will vary depending on the lender.

Some lenders will accept a lower income as long as you can afford the new loan on top of any existing debt you already have.

For example: Prosper and Upstart — two of Credible’s partner lenders — have less stringent income requirements. Prosper only requires that you have some form of income and a debt-to-income ratio below 50%. And Upstart requires that you have a regular source of income or be able to show that you have a job offer starting within the next six months.

Here are Credible’s other partner lenders that might accept a lower annual income:

  • Avant

  • Best Egg

  • LendingClub

  • LendingPoint

  • Marcus

How else can you finance an adoption?

There are also other ways to finance an adoption besides loans and grants. Here are a few options to consider:

  • Personal line of credit: This is a type of revolving credit that you can continually draw on and pay off, similar to a credit card. This could be helpful for ongoing expenses. Just keep in mind that a personal line of credit might have a higher interest rate than a personal loan.

  • Cash-out refinance: With this type of home refinance, you’ll refinance for a higher amount than you owe on your house and get the remainder as cash minus any closing costs. This would essentially bundle your adoption expenses into your mortgage and would spread out payments over your mortgage term. However, you’ll also be paying mortgage closing costs with a cash-out refinance — closing costs on a home refinance are typically $5,000 on average.

  • Home equity loan: This type of loan lets you tap into the equity you’ve built in your home. Because the loan is secured by your home, you might get a lower interest rate than you would on a personal loan. However, keep in mind that you could lose your home if you default on the loan.

  • Borrowing from friends and family: This could be a much less expensive option compared to borrowing from a lender. However, you could also strain your relationships if you fail to repay the loan, so be sure to borrow wisely.

  • Crowdfunding: There are several crowdfunding platforms, such as GoFundMe, that could help you run a campaign to raise money for adoption. This could be especially effective if you have a compelling adoption story to help your campaign gain traction. However, keep in mind that the crowdfunding platform might charge a transaction fee for each donation, so be sure to factor that into your fundraising goal.

If you decide to take out a personal loan to cover adoption expenses, be sure to shop around and compare as many lenders as possible to find the right loan for your needs. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.

About the author: Taylor Medine is a Credible authority on personal finance. Her work has been featured on Bankrate, Experian, The Balance, Business Insider, Credit Karma, and more. She’s also the author of The 60-Minute Money Plan, a self-published intro to budgeting guide for people who hate budgeting.

The post 13 Adoption Loans and Grants to Consider appeared first on Credible.