The adoption process can be highly expensive. The procedure may cost up to $45,000 for those who use the services of a private adoption agency, and up to $35,000 in case of independent adoption. Thus, the question of financing may come up. If the costs keep you away from adopting a child, we advise you to consider personal loans for adoption. As this is a loan for private needs, you may borrow up to $35,000, depending on the lender. The repayment process usually takes several years.
Adoption expenses vary greatly, depending on the chosen specialist (attorney or agency) and the type of adoption, but they typically comprise the following:
- Agency fees/application costs/attorney fees. When choosing a private adoption agency, make sure it is licensed by the territorial government
- Home study fees/review of the home environment
- Legal fees, such as court costs and other expenses related to an adoption order, or mandatory fees with document translation if needed
- Travel and living expenses of adoptive parents and the child (e.g., lodging and airfare)
- Immigration expenses for international adoption
- Any other expenses required to be a territorial government (e.g., birth certificate, background checks)
- Post-placement/supervision
- Medical expenses for the birth mother or child
- Marketing/advertising costs for domestic adoption
Take these expenses into consideration when planning adoption and do careful research. A personal loan can help you finance every stage of the process. Insuring your loan is also an important issue to escape problems in case of disability or critical illness.
The adoption process in the US typically involves the following steps:
- Decide on the type of adoption (e.g., domestic, international)
- Choose an adoption professional (e.g., attorney, agency)
- Complete required training and home study
- Choose a child to adopt and complete the placement process
- Finalize the adoption in court
- Apply for a new birth certificate if needed
Best Personal Loans
Loans for adoption in the US are usually provided by banks, credit unions, and special finance companies. The most common options for adoption loans include:
- Personal loans
- Home equity loans. They are a type of loan that allows you to borrow money against the value of your home
- Adoption financing companies
- Tax credits
- Grants/Funds from charitable organizations
A personal loan is probably the fastest way to get immediate cash. To obtain a personal loan in the US, you typically need to:
- Check if you’re eligible by analyzing your credit score
- Compare loan offers from multiple lenders
- Submit a loan application with personal information and financial details
- Provide documentation (e.g., proof of income, ID) to verify your information
- Receive loan approval or denial and, if approved, sign loan agreement
Plenty of loan companies offer their services, so it’s essential to evaluate these factors when choosing adoption loans:
- Interest rate. This corresponds with the total interest paid over the term. Different lenders propose multiple options
- Fees. Always ask if there are any hidden fees. Avoid lenders with a high application or prepayment costs. Look for fair lenders with few fees and good interest rate
- Always read the terms and conditions before making a deal. They usually include crucial information about loan amount, interest rate, repayment term, fees, collateral requirements, income requirements, and credit score
Can I Apply for a Loan with Low Income?
Obtaining a loan can be difficult for individuals with low income, but there are still options to choose from:
- Payday loans, short-term and high-interest loans usually repaid on the next payday
- Personal loans, typically with more flexible terms
- Using a valuable item as collateral in exchange for a loan
Can I Get an Adoption Loan with Bad Credit?
There are personal loan lenders providing loans to individuals with poor credit histories or bad credit scores. No credit check loans usually come with a higher interest rate in comparison with good credit loans. Online loans for bad credit are more likely to be approved with collateral.
How Else Can I Finance Adoption?
An adoption loan can be also provided by non-profit or religious organizations with low or no interest. But amounts to borrow might be smaller. Another drawback is that your application will be considered within weeks and might not be approved, while personal loans take much less time.
Financing an adoption can involve some other options besides loans and grants:
- Personal line of credit. It can be useful for ongoing adoption expenses. However, a personal line of credit may have a higher interest rate compared to a personal loan
- Cash-out refinance. This type of loan means incorporating adoption expenses into your mortgage and spreading the payments over the mortgage term. We should note that there are mortgage closing costs (around $5,000)
- Friends and family. It may be a less expensive traditional option. But be sure that you feel reliable to repay
- Crowdfunding: Crowdfunding platforms can help you run a campaign to raise money for adoption, especially if you have a captivating adoption story. However, such platforms may charge a transaction fee for each donation
- Credit cards. They usually have high-interest rates compared to standard personal loans and might lead to debt. We recommend looking for another option
Compare as many options and lenders as possible to find the best loan for your needs. Keep in mind that repaying an adoption may take up to 7 years. All loan options can carry a high risk for your credit score, so apply for a loan when you feel ready to repay it.