Best Adoption Loans to Consider in 2024

Before you can qualify for an adoption, you’ll need to show that you can pay the fee. Some hopeful parents choose adoption loans to tackle the cost. The average adoption costs between $20,000 and $50,000, depending on the type of adoption. To help you find the right loan, our financial experts reviewed more than 30 different online lenders on various important criteria.

Because personal loans can have a big impact on your finances, it’s important to spend a little time reviewing your options to make sure you’re not overpaying. Also, it’s usually worth comparing your rates across multiple lenders to ensure you’re getting the best deal for your credit history and financial situation.

Our team of financial experts ranked lenders based on our ratings methodology for personal loans and found the best adoption loans on the market. This ratings methodology evaluates lenders based on loan length, APR, repayment terms, user experience, customer service, credit score history, banking and credit union use, and additional features.

Best Adoption Loans in 2024 - Full Overview

How to Choose the Best Adoption Loan

When you’re considering a loan for adoption, keep in mind that you’re agreeing to make monthly payments, with interest, for the entirety of the term. You’ll want a lender with great terms and an easy application process.

• Loan features: Lenders set parameters on their loans. These include usage limits and loan amounts. When looking at lenders, you’ll eliminate those who don’t make loans for adoptions, as well as those that don’t lend the amount you’ll need to borrow.
• Interest rates and fees: Even a small amount of savings on interest can lower your monthly payments, substantially cutting your long-term costs. But also look at any loan origination fees you’ll pay, as well as fees that will be applied to any late payments.
• Application process: Online lenders have made applying for a loan easier than ever. Still, there are some things to look at before choosing. Make sure a lender doesn’t run a full credit check so that your credit score isn’t affected by your search.
• Qualification requirements: Each lender assesses its risk before issuing a loan. Some require higher credit scores than others, but you can sometimes qualify for stricter loans if you can use a co-signer or co-applicant.
• Customer support: As convenient as online lending is, it is missing the human touch. Consider whether you’ll be able to get customer support when you need it, via the methods you like best. If you prefer to speak to someone on the phone, consider that while you’re shopping lenders.
• Online user reviews: Any lender can promise a great experience. It’s always a good idea to take a look at reviews from previous borrowers on sites like Trustpilot.
• Perks and bonuses: There are a few extras you’ll get from some lenders that can make them stand out. Features like the ability to change payment due dates and manage your account using a mobile app can come in handy over the months you’re paying.

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.

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.