How to Use a Loan to Pay for Your Adoption Expenses

by | Jan 9, 2019 | Adoptive Families Blog


Each year thousands of couples are able to realize the joy of parenthood through adoption. During the adoption process, fees are due for services like obtaining a home study, facilitating a match with a birth mother, and legal representation.

In addition to adoption fees, there are expenses such as the cost to create and print adoption profiles, hospital costs, birth-related expenses, and the costs associated with adoption travel (flights, fuel, lodging, etc.)

Fortunately, there are several financing and funding resources available, providing the route to adoption at a reasonable cost. Obtaining an adoption loan makes adoption feasible for many couples who wouldn’t otherwise be able to afford it. With an adoption loan, you can typically enjoy access to the funds you need right away!

Grants and Interest-Free Loans

Many organizations will award financial grants or interest-free loans for adoption, based on eligibility. Some adoption grants are awarded based on financial eligibility, and others require a religious affiliation. Interest-free loans and grants help to defray adoption costs but typically will only cover some of your total costs. Grants are available for lower amounts, typically between $1,000 and $5,000. Interest-free loans are available up to $8,000. You can find a list of organizations offering grants and loans on Lifetime’s page, Financing Your Adoption

Using a Personal Loan to Finance Your Adoption

loan for adoptionHopeful adoptive parents can cover some of their adoption expenses through savings and other sources, but most people need some financing. For couples with good to excellent credit, loans for adoption are one of the best options. Personal loans are unsecured, meaning that you don’t need to put up any collateral. To qualify, lenders will rely on your credit score, credit history, and employment history. Loan terms range from two to seven years, so you’re able to structure repayment to fit your budget.

Top lenders like LightStream and SoFi currently offer adoption loans of up to $100,000. If you use AutoPay, rates can be as low as 5.74%. Please keep in mind that you need a good or excellent credit score to apply. If your credit score isn’t high enough you can search for other lenders who offer adoption loans, but you’ll have a slightly higher interest rate. With any lender, you can simply apply online and get a quick response during business hours. They’ll deposit the funds you need directly into your checking account within a few days!

Why Should I Get a Personal Loan?

The benefit of using a personal loan to pay for adoption costs is it comes with a fixed interest rate and payment. This will help you create a predictable adoption budget. Anytime you consider taking a loan or any major financial decision, be sure to consult with a financial advisor.

With flexible adoption loan terms, you’re able to choose a payment level that matches within your budget. Here’s a quick example: say you need to borrow $15,000 and you qualify for a 7.99% APR. Your monthly payment for a three-year loan would be $470. If that monthly payment is too much for you, try extending the term to five years. This would reduce your monthly payment to $304.

You’d pay more in interest throughout the adoption loan, but you’d also have more each month to cover the costs involved in raising your baby or child!

Mardie Caldwell, C.O.A.P.

Written by Mardie Caldwell, C.O.A.P.

Founder of Lifetime Adoption, adoptive mom, adoption expert, and Certified Open Adoption Practitioner (C.O.A.P).

Since 1986, adoption expert Mardie Caldwell has been dedicated to bringing couples and birth parents together in order to fulfill their dreams.

“Many years ago, I was also searching for a child to adopt. We didn’t know where or how to get started. Through research, determination, and a prayer, our dream of a family became reality. I started with a plan, a notebook, assistance from a caring adoption consultant and a lot of hard work; this was my family I was building. We had a few heartaches along the way, but the pain of not having children was worse!

Within weeks we had three different birth mothers choose us. We were overwhelmed and delighted. Many unsettling events would take place before our adoption would be finalized, many months later. Little did I know that God was training and aligning me for the adoption work I now do today. It is my goal to share with our families the methods and plans which succeed and do not succeed. I believe adoption should be affordable and can be a wonderful “pregnancy” for the adoptive couple.

I have also been on both sides of infertility with the loss of seven pregnancies and then conceiving by new technology, giving birth to a healthy daughter. I have experienced first-hand the emotional pain of infertility and believe my experience allows me to serve your needs better.

It is my hope that for you, the prospective parents, your desire for a child will be fulfilled soon.”

Read More About Mardie Caldwell

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