Company Name |
Est. APR |
Min. Credit Score |
Loan Amount |
Loan Term |
BestEgg |
5.99% to 35.99% |
640 |
$2,000 to $50,000 |
36 or 60 months |
Credible |
6.99% to 19.99% |
Varies by Lender |
$600 to $100,000 |
12 to 48 months |
LightStream |
5.73% to 20.49% |
660 |
$5,000 to $100,000 |
24 to 144 months |
Rocket Loans |
5.970% to 29.99% |
640 |
$2,000 to $45,000 |
36 or 60 months |
Upstart |
5.39% to 35.99% |
580 |
$1,000 to $50,000 |
36 to 60 months |
Discover Personal Loans |
5.99% to 24.99% |
660 |
$2,500 to $35,000 |
36 to 84 months |
Avant |
9.95% to 35.99% |
580 |
$2,000 to $35,000 |
24 to 60 months |
The Average Cost of Adoption in the U.S
Adoptions can be pricey, and adoption loan programs can help offset some of that cost. But the price tag can vary between adopting through an agency or adopting independently. Here’s a breakdown of the estimated costs.
*Some agencies charge a fee that’s a sliding scale, based on your income. This can vary dramatically by agency, but Adoptions Together reports a fee from $16,000-$33,000.
Mandatory fees |
ADOPTION AGENCY COST |
INDEPENDENT COST |
Application fee |
$200-$500 |
|
Home study fee: |
$1,500 |
|
Placement fee: |
$16,000 $30,000 or more* |
|
Legal fees |
$1,500 to $4,000 |
$1,500 to $4,000 |
Court fees |
$500 to $2,000 |
$500 to $2,000 |
Total mandatory: |
$19,700 to $38,000 |
$2,000 to $6,000 |
Optional fees: |
|
|
Birth mother’s medical expenses |
$1,000 to $5,000 |
$5,000 to $11,000 |
Marketing fees |
$2,000 to $10,000 |
$2,000 to $10,000 |
Total with optional costs: |
$21,700 to $76,000 |
$9,000 to $27,000 |
When to Use an Adoption Loan
Adoption loans shouldn’t be your first choice since you’ll have to repay the amount plus interest. But it could be your only choice. Consider an adoption loan after you’ve exhausted other means of getting the funding necessary.
If you happen to have the funds available, obviously this will be the best option, but you may have concerns about depleting your savings. There will be costs once you have a new child in your life, so you might want to keep some of that money on hand. Other options like grants, fundraiser campaigns, and interest-free adoption loans can help you reduce the high cost of an adoption loan.
Low Interest Adoption Loans
While you can shop lenders and compare rates to get the lowest APR available, there are some programs designed to help you get the money you need to expand your family. These no-interest adoption loans tend to be religion based, and in most cases, you’ll need to have completed a home study before you qualify.
- Abba Fund: Christian families can qualify to have up to one-third of their adoption costs through this ministry. To apply, you’ll need to complete a statement of faith, and the application process takes about six to eight weeks.
- The International Association of Jewish Free Loans: With chapters around the world, the IAJFL issues interest-free loans of up to $15,000 to qualifying Jewish families. You can find your local agency here.
- Lifesong for Orphans: Two-parent Christian families can qualify for interest-free adoption loans of up to $12,000, depending on availability of funds and your own financial need.
- A Child Waits: This organization issues interest-free loans for international loans. If you qualify, you’ll get $10,000 or up to 50% of the loan amount, whichever is lowest.
Grants for Adoption
Even better than an interest-free loan is money you don’t have to pay back at all. To ensure more children find loving homes, some organizations issue financial assistance in the form of grants. These vary in amounts and have their own requirements, including, in some cases, income that falls below a certain threshold.
- A Child Waits: In addition to its international adoption loan program, this organization also issues grants of up to $10,000 for both domestic and international adoptions. To qualify, you’ll need a gross income of less than $150,000.
- Gift of Adoption Fund: apply for grants of up to $15,000 for domestic or international adoptions. This grant can also help fund the adoption of a family member.
- National Adoption Foundation: Once you have a home study in progress, you can apply for a grant from this organization, which has no income requirements.
- Help Us Adopt: Four times a year, this organization awards grants to those going through domestic and international adoptions, as well as those through foster care. The money is only payable to a U.S. adoption agency or lawyer.
Alternative Ways to Finance Adoption
There are other alternatives to adoption loans, some of which will even save you a little money. Before you pursue a loan, consider the following alternatives.
- Adoption benefits plan. Before you start looking at options, check to make sure your employer doesn’t cover some of the costs related to adoption. Some employers will at least offer time off for adoption as a form of maternity or paternity leave.
- Crowdfunding: Chances are, you have friends and family who want to help you with your adoption journey. You can set up a campaign through Adopt Together or GoFundMe and invite those you know to chip in.
- Home equity line of credit: If you have equity in your home, you may be able to set up a line of credit that takes care of the costs, letting you pay it back later.
- Federal income tax credit: You can get a tax credit for the amount you pay for your adoption, as well as an exclusion from income taxes on any money you received to pay for the adoption.
- Agency pricing discounts. Saving money could start with the adoption agency you choose. Some base pricing on your income, offering sliding scale prices that can keep costs low.
How to Get a Personal Loan for Adoption
Getting a loan for an adoption is similar to getting other types of personal loans. Here are some steps to take if you’re ready to borrow money for adoption.
- Check your credit. Most lenders will use your credit score to qualify you for a loan. Check your score beforehand and take steps to improve it, including disputing any errors on your credit report.
- Estimate your costs. Before you can borrow money, you’ll need a good idea of how much the adoption will cost. Research your options and learn as much as possible about the overall expense.
- Shop multiple lenders. Before applying for an adoption, you may want to make sure you can get the financing you need. Get prequalified for the amount you’ll need.
- Start the adoption process. It can take six months to a year to go through the process, and some lenders require you take the funds out within 30 days.
- Complete an application. Once you’re ready for the loan, complete the application and provide all the supporting documentation required.
- Move the funds. Each lender has a different timeline for funding loans. This can be anywhere from a few hours to a couple of weeks. Make sure this timeline lines up with when funds will be needed.
Conclusion
Adopting can be a rewarding, but costly, experience. An adoption loan can help you take care of the large up-front expenses related to adopting a child, while giving you the convenience of paying it back gradually, over time. Interest can add up over the years, though, so it’s important to first look at other options and possibly even sit down with a financial advisor before making a final decision.