Surrogacy Loans: Bridging the Gap to LGBTQ+ Parenthood

In the journey towards parenthood, every individual deserves an equal opportunity to experience the joys and challenges of raising a child. For LGBTQ+ families, the path to parenthood often involves unique hurdles. One significant challenge they face is the financial aspect of having a family through means such as surrogacy. However, there is a powerful tool that has emerged, bridging the gap and making parenthood dreams a reality for many within the LGBTQ+ community: surrogacy loans. Surrogacy loans offer a lifeline, providing financial support and accessibility to an inclusive family-building process. 

Can you get a loan for surrogacy?

• Surrogacy loans provide funds to LGBTQ+ individuals and families seeking to build their families through surrogacy.
• LGBTQ+-friendly financial institutions, credit unions, and online lending platforms may offer surrogacy loans for family planning needs.
• Surrogacy loans can cover a range of expenses, including the surrogate's compensation, fertility treatments, legal fees, agency fees, and other necessary costs.
• Research and compare surrogacy loan options and seek professional advice to navigate the application process and increase your chances of approval.

Understanding Surrogacy Loans

Like most mothers with sons in their 30s, my mother frequently likes to bug my husband and me about having children. It’s all in a very sitcom mom kind of way. She happens to tell me so and so’s grandkid spent the weekend, quickly followed by “Wouldn’t that be nice”. And like many 30-year-old sons, I roll my eyes and laugh. But unlike all those sitcom sons, I always remark, “Well, just gift me $75,000 and I can afford to have a kid.”

Yes, having a child is expensive for everyone. There’s no denying that. But my husband and I (and many other LGBTQ+ families) also need to find an alternative way to introduce children into our lives which comes with an added cost. And $75,000 is actually on the low end. The average cost for surrogacy ranges from $80,000 to $200,000, according to Circle Surrogacy & Egg Donation. Adoption is just slightly more affordable with costs ranging between $1,000 to $60,000+, according to the Human Rights Campaign.

Thankfully, our financial systems have caught up with the times and there are adoption loans and surrogacy financial assistance available to help LGBTQ+ couples (as well as any other families looking into surrogacy options) create the family they’ve always wanted. 

What are Surrogacy Loans?

Loans for surrogacy are a transformative financial solution designed, in part, to support LGBTQ+ individuals, couples, and families on their journey to parenthood through surrogacy. These are specialized loans that provide access to the necessary funds required at various stages of the surrogacy process, including:

• Compensating the surrogate 
• Covering medical expenses
• Fertility treatments
• Agency costs (if you work with an agency)
• Legal fees 

How Does Surrogacy Financing Work?

Surrogacy loans are designed to provide financial support to LGBTQ+ individuals and couples pursuing surrogacy as a means of building their families. They have many similarities to other loans but with an express purpose and different requirements. Here are a few key features of surrogacy loans:

• Surrogacy loans typically cover a range of expenses associated with the surrogacy process, including surrogate compensation, fertility treatments, medical procedures, agency fees, legal expenses, and other related costs. The loan amount is determined based on the specific needs of the surrogacy journey and the borrower's financial situation.
• Surrogacy loans come with varying interest rates and repayment terms. Your surrogacy loan rates may be fixed or variable and depend on factors such as your creditworthiness, the lender you work with, and the loan amount you need. Repayment terms can range from several months to several years, allowing borrowers to make affordable monthly payments that fit into their budget.
• Surrogacy loans offer some flexibility in terms of fund allocation. Borrowers have the freedom to allocate the funds as needed throughout the surrogacy process. This allows for covering different expenses at different stages.
• Once the loan is approved, the funds are typically disbursed directly to the borrower. This allows individuals or couples to have control over their finances and send payments to the different service providers involved in the process.
• Lenders assess the creditworthiness of applicants during the loan approval process. A good credit history and stable income can increase the chances of loan approval, like with any loan you’d apply for. Some lenders also consider alternative factors or offer surrogacy loans for bad credit (as that should never be a reason you can’t have a child).
• Many surrogacy loan providers offer guidance and support throughout the application and funding process. Since these loans have such a specific purpose, many lenders understand the unique needs of LGBTQ+ families, ensuring sensitivity and expertise in helping you navigate the financial aspects of surrogacy.

The Legal Aspects of Surrogacy Loans

Surrogacy is a complex legal process that involves multiple parties and agreements. When it comes to surrogacy loans, there are certain legal considerations and ramifications that anyone looking to take out this type of loan needs to be aware of.

• Contractual agreements: Surrogacy involves the creation of a legal agreement between the intended parents and the surrogate. This agreement outlines the rights, obligations, and expectations of all parties involved. When surrogacy loans are utilized, it’s important to ensure that the loan terms and repayment obligations are clearly addressed in the surrogacy agreement. If you’re working with a surrogacy agency (which I’d recommended), they’ll draw up these agreements for you. 
• Legal consultation: You should always seek legal counsel when pursuing surrogacy, specifically a lawyer that specializes in reproductive law. A qualified attorney can guide you through the process, ensuring compliance with your local laws.
• Legal requirements: Different jurisdictions have varying legal requirements surrounding surrogacy, including the legality and enforceability of surrogacy agreements, parental rights, and the recognition of the intended parents as legal parents of the child born through surrogacy. Being a member of the LGBTQ+ community, unfortunately, adds another legal layer since we live in a constantly fluctuating political climate. It’s crucial to understand the legal framework and requirements of the state you live in and the specific jurisdiction where the surrogacy is taking place.
• Compliance with ethical guidelines: Surrogacy should always be approached with ethical considerations in mind. Work with reputable surrogacy agencies, clinics, and legal professionals who adhere to ethical guidelines and best practices to ensure the well-being and fair treatment of all individuals involved in surrogacy.

The Value of Surrogacy Loans for the LGBTQ+ Community

Surrogacy loans offer a financing option for anyone who can’t afford the upfront costs of surrogacy, but they provide a unique opportunity to LGBTQ+ families who have often had to deal with additional barriers regarding having children. Here are just a few reasons why surrogacy loans are such a valuable tool in the LGBTQ+ community. 

Overcoming Financial Barriers to Parenthood

As we mentioned above, surrogacy comes with a price tag of $80,000, on the low end. That’s because there are many parties involved in the whole process. For many LGBTQ+ individuals and couples, these expenses can create a financial hurdle that may seem insurmountable, leaving them to wonder if they should even have a child.

Surrogacy loans step in as a vital resource, breaking down these financial barriers and enabling LGBTQ+ families to pursue their dreams of parenthood. With other political factors already in the way for many LGBTQ+ families, these loans go a long way in providing some relief. 

Increasing Accessibility to Assisted Reproductive Technologies

Assisted reproductive technologies, such as surrogacy and IVF have revolutionized the possibilities of parenthood for LGBTQ+ individuals and couples. However, the high costs involved in these processes can create inequalities in access, meaning only a very specific type of LGBTQ+ family (often white, middle to upper class) can have children. Surrogacy loans level the playing field, making assisted reproductive technologies more accessible to everyone in the LGBTQ+ community. 

Empowering LGBTQ+ Families in Their Family-Building Journey

The journey to parenthood can be both emotionally and financially challenging, particularly for LGBTQ+ individuals and couples who may face additional societal and legal obstacles. By providing a means to secure the necessary funds, surrogacy loans offer a sense of control and agency over the process.

Qualifying for a Surrogacy Loan

Like all loans, there are some basic requirements that any lender will ask of you. They’re lending you a lot of money, after all, they need to know they’ll get paid back. Understanding the eligibility requirements, factors that lenders assess, and the necessary documents and information can help LGBTQ+ individuals and couples navigate the qualification process effectively.

Eligibility Criteria for Surrogacy Loans

The exact requirements you’ll need to meet depend on the type of financing you choose (more on that in a minute). A traditional bank will likely have stricter requirements than the surrogacy agency offering financing, for example. Generally, common criteria include:

• Having a stable source of income
• Having a satisfactory credit history (don’t worry, having a lower score doesn’t immediately disqualify you)
• Having a satisfactory debt-to-income ratio

You’ll want to research and understand the specific eligibility requirements of different lenders to find the best match for your financial situation.

Necessary Documents and Information

Getting a surrogacy loan isn’t as simple as say, a personal loan. Since the loan you’re taking out is funding the creation of your future child, lenders take their requirements very seriously. To demonstrate that you meet these requirements, you’ll have to provide a mountain of paperwork, including:

• Identification documents like your license or birth certificate
• Your Social Security Number (SSN)
• Proof of income such as pay stubs or tax returns
• Bank statements
• Employment verification, particularly if you’re self-employed 
• A detailed breakdown of the surrogacy-related expenses

Additionally, lenders may request the surrogacy agreement or contracts related to the surrogacy process so they can ensure you’re being 100% honest. Preparing this paperwork ahead of time can go a long way in expediting the loan application process.

Exploring Surrogacy Loan Options

When seeking financial support for surrogacy, LGBTQ+ families have various options they can consider. These options cater specifically to the unique needs of the surrogacy process, making it easy to manage the loan and the surrogacy journey all at once. 

Fertility Clinics Offering Financing Options

Some fertility clinics collaborate with financial institutions to offer financing options directly to their patients. Going this route means you can manage the entire surrogacy process through one central organization. 

Banks

Traditional banks are a common source of financing for surrogacy. Many banks offer personal loans or lines of credit that can be used to cover anything you’d like, including surrogacy expenses. That said, if you choose this option, consult with a bank representative and briefly explain what you’ll be using the money for, so you can know for certain that this is an acceptable usage of the loan funds. 

Credit Unions

Credit unions are member-owned banks that can offer surrogacy loans with competitive interest rates and favorable terms. Credit unions often prioritize personalized service and may be more flexible in considering loan applications from LGBTQ+ individuals and couples. Credit unions also work with folks of all financial backgrounds, so even those with past financial issues can get loans. 

LGBTQ+-Friendly Financial Institutions

Several financial institutions have expressed their support and desire to specifically serve the LGBTQ+ community. These institutions understand the unique needs and challenges faced by LGBTQ+ individuals and couples and want to help. A few LGBTQ+-friendly banks and credit unions worth considering include Element Federal Credit Union (based out of West Virginia), US Bank, and Daylight. 

Crowdfunding Platforms and Community Support

Crowdfunding platforms have become popular tools for fundraising in various contexts, including surrogacy. LGBTQ+ families can create crowdfunding campaigns to seek financial assistance from friends, family, and their local community. Platforms like GoFunMe allow you to share your story and rally support for your surrogacy journey.

Additionally, LGBTQ+ support networks and community organizations may offer grants or financial aid programs specifically for family-building purposes.

How to Apply for a Surrogacy Loan

Applying for a surrogacy loan isn’t going to be a short process. It involves a careful, document-heavy approach to ensure a smooth process. No matter what financing option you go with, the process will generally look like this:

• Research and compare loan options: Begin by researching various lenders, financial institutions, and programs that offer surrogacy loans. Compare apples to apples by looking at interest rates, repayment terms, eligibility criteria, and any additional features or benefits that may be relevant to your specific needs. 
• Gather the (many) required documents: Before officially starting the application process, gather all the necessary documentation mentioned above. Again, this may include identification documents, proof of income, bank statements, employment verification, surrogacy agreements, and a detailed breakdown of the anticipated expenses. 
• Fill out the loan application: Once you’ve selected a preferred lender, complete its loan application form. Provide accurate and detailed information about your personal and financial background, including your income, assets, and any outstanding debts. Be prepared to answer questions about the purpose of the loan, such as financing surrogacy expenses. One reason clinic financing is so appealing is that the surrogacy clinic you’re working with can help you through this application process. 
• Wait for approval: After completing the application, submit it to the chosen lender along with the required documentation. The lender will review your application, assess your eligibility, and evaluate your creditworthiness. The approval process may take some time, so it's important to be patient. If you’re thinking about funding outside of the organization you’re working with, it may be best to get the loan application process started ahead of time so you’re ready with the cash when you need it.  
• Review the final loan terms: Once the lender has reviewed your application, you’ll receive notification of the loan approval decision. If approved, carefully review the loan terms, including interest rates, repayment schedules, and any associated fees. Take the time to understand the obligations and responsibilities outlined in the loan agreement before accepting the offer, and if you have any questions, never hesitate to reach out to a rep at the bank.

Tips for Successfully Navigating Surrogacy Loans

The surrogacy process is a long voyage, often with a few ups and downs along the way. If you’re prepared, the experience is a whole lot easier. To help prepare you, here are a few tips to consider:

• Create a realistic budget and financial plan long before approaching surrogacy agencies: Before taking on a surrogacy loan, create a comprehensive budget that accounts for all anticipated expenses. Factor in costs such as surrogacy agency fees, legal fees, medical expenses, and any emergency you can think of. By establishing a realistic budget, you can determine the actual loan amount you need.
• Seek professional advice and guidance: Surrogacy can be a complex process with legal, financial, and emotional aspects. Working with experienced surrogacy professionals, including surrogacy agencies, reproductive attorneys, and financial advisors, is highly advised and goes a long way to make the process run a lot smoother. 
• Understand the terms and conditions of the loan 100%: Don’t just skim your loan agreement. Carefully review and understand every single page. Pay close attention to interest rates, repayment schedules, fees, and any potential penalties for late payments or early repayment. Clarify any uncertainties with the lender so you have a clear understanding of the financial commitment involved. 
• Maintaining open communication with the lender for the entire process: Throughout the loan repayment period, maintain open communication with your lender. If you encounter any challenges or anticipate difficulties in meeting the repayment obligations, proactively communicate with the lender to explore potential solutions. Many lenders are willing to work with borrowers facing financial hardships to find alternative arrangements or repayment plans, but only if you approach them beforehand and respectfully. 
• Prioritize financial planning for the future, too: A surrogacy loan represents a significant financial commitment. Alongside loan repayment, it is crucial to prioritize financial responsibility and plan for the future. Consider building an emergency fund, exploring insurance options, and developing a long-term financial strategy to provide stability for your growing family. This includes saving for education expenses, healthcare needs, and other related costs that may arise.

Bottom Line

Ultimately, surrogacy loans serve as a beacon of hope, breaking down financial barriers and making the dream of parenthood a reality for LGBTQ+ individuals, couples, and families. With careful planning, thoughtful decision-making, and the support of organizations and communities, LGBTQ+ individuals and couples can embrace their family-building journeys and create loving and nurturing environments for their future children, all without having to worry as much about the financial side of the equation.

Useful Resources for LGBTQ+ Family Planning

• Family Equality Council: Family Equality Council is a nonprofit organization that advocates for and supports LGBTQ+ families. The website offers a wealth of resources, including information on surrogacy, adoption, legal considerations, and parenting support. It also provides a directory of LGBTQ+-friendly service providers and hosts community events.
• Human Rights Campaign: The Human Rights Campaign is one of the largest LGBTQ+ advocacy organizations. Their website features a dedicated section on family planning and adoption, providing information, resources, and guidance for LGBTQ+ individuals and families. 
• National Center for Lesbian Rights: NCLR is a legal organization committed to advancing the rights of LGBTQ+ individuals and families, with a focus on the lesbian community. The site offers a variety of resources related to family planning, including legal information, guides, and advocacy tools. 
• Gay and Lesbian Advocates and Defenders (GLAD): GLAD is a legal organization focused on LGBTQ+ rights and advocacy. Their website offers resources and information on family planning, including surrogacy, adoption, and legal protections. 
• Path2Parenthood: Path2Parenthood is a nonprofit organization that provides support, resources, and educational materials for LGBTQ+ individuals, couples, and families navigating various family-building paths, including surrogacy, adoption, and assisted reproductive technologies.