Growing a family by adopting a child is a major life event that, while fulfilling, can also be quite expensive.
Whether you’re considering an adoption from abroad or within the U.S., the associated costs can quickly add up to between $5,000 and $40,000 per child, according to AdoptUSKids. If you choose to adopt through the foster care system, the process can be entirely free or cost as much as $2,600, according to FamilyEquality.
A personal loan can help you pay for all or part of the expenses associated with adopting a child, such as legal fees or travel costs. Many online lenders offer adoption loans so you can spread out the costs over time.
An adoption loan is a personal loan that you can use specifically for adoption expenses. You receive the money as a lump sum, which can then be used to cover some or all of the associated costs, from agency fees to travel costs.
To qualify for an adoption loan, you’ll have to meet the lender’s eligibility requirements, including minimum income and credit score criteria. Depending on the lender, you may also need to provide some details about the adoption itself.
Personal loans make it easy to budget because both the interest rate and monthly payments are fixed, meaning they never change over the life of the loan. The payments are spread out over a set loan term, typically between one and seven years. That helps you know exactly what to expect and how long it will take you to repay the loan in full.
Yes, you can use a personal loan to cover the expenses associated with adoption. Some lenders offer loans specifically for adoption, but you can also use a personal loan to pay for your adoption costs.
It’s a good idea to compare multiple lenders to make sure you get the best loan for your unique financial situation. This way, you can find a loan with an APR and repayment term that fits into your budget.
If you’re ready to get an adoption loan, follow these five steps:
Decide how much you need to borrow: Before you apply for an adoption loan, make sure to add up all of the expenses, such as travel, healthcare, or agency fees. Be sure to borrow only what you need — and can realistically afford to repay — to avoid straining your monthly budget. You can use a personal loan calculator to estimate monthly dues for APRs and terms you may be quoted in step two, below.
- Compare rates and terms with multiple lenders: When shopping for a personal loan, it’s wise to compare multiple lenders via prequalification. Receiving rate quotes via a soft credit check can ensure that you find the best loan for your needs. It will also inform you whether your application could use a cosigner or co-borrower who could help you qualify or snag a lower interest rate. Be sure to consider not only loan amounts, APRs, and repayment terms, but also any additional fees the lender charges, such as origination or late payment fees.
- Submit an online loan application: Once you’ve decided on a lender, you’ll submit a loan application. Be prepared to provide basic information, such as your name and address, as well as financial documents like recent pay stubs and tax returns.
- Review and sign the loan agreement: If your loan application is approved, the lender will send you a loan agreement. This explains the conditions of your loan, and includes the amount you’re borrowing, how you can use your loan, your repayment term, APR, and your repayment schedule. If you agree to the terms of your loan, you’ll sign and return the agreement so you can get your loan funds.
- Receive your funds: After you sign your loan agreement, the lender will release your money, usually via direct deposit. The time to fund for personal loans can range from as soon as the same or next business day after approval to up to a week.
Related: Learn more about getting a personal loan on Credible.com
Because of their flexible loan use and low APRs compared to other financing options like credit cards, personal loans are a commonly used resource for families to cover adoption expenses.
If you’re looking for an adoption loan and don’t qualify for interest-free loans and grants, consider the following 12 Credible partner lenders:
Another financing option to consider is an interest-free loan from a not-for-profit or religious organization. These loans are specifically designed to help qualifying families afford adoptions.
The application for these interest-free loans may be more intense compared to personal loans — and the funding time may take longer — but you’ll save money in the long run by not having to pay any interest alongside your principal payments.
Here are a few zero-interest adoption loans to consider:
Adoption grants are a great financial resource because the money does not need to be repaid. Some options for adoption grants include:
You’ve probably heard that adoption is expensive, but exactly how much should you expect to spend? It largely depends on where the child currently lives.
For domestic adoptions: Fees can add up to between $20,000 and $45,000 if you want to adopt a baby through an agency or attorney. If you plan to adopt through the foster care system, the cost can go up to $2,600, or it could be completely free. Some states are friendlier and cheaper when it comes to adoption costs, so check with local agencies to get a more specific idea of estimates.
For international adoptions: Expect to spend anywhere from $35,000 to $70,000. Each country has its own regulations on who can adopt and what types of fees are involved beyond your own attorney and travel costs.
If you’re unsure about using a personal loan for an adoption — and you don’t have access to zero-interest loans or grants (above) — consider these alternative financing options:
Related: Learn more about getting a personal loan on Credible.com