adoption loan

Baby and Adoption Loans

Information verified correct on March 28th, 2017

If you’re planning to adopt and are wondering about finance, read this guide to find out what your options are.

It’s an exciting time when you decide to add to your family, as a couple or an individual. But both baby and adoption costs can quickly add up throughout the process. There are loans, as well as grants, subsidies and reimbursements, that are designed to give you access to funds for your growing family when you need them.

LightStream Adoption Loans

LightStream’s Adoption Loans

An adoption loan with no fees for soon-to-be-parents with good to excellent credit.

  • Min. Loan Amount: $5,000
  • Max. Loan Amount: $100,000
  • Loan Term: 24 to 84 months
    Payment example: Monthly payments for a $10,000 loan at 5.99% APR with a term of 3 years would result in 36 monthly payments of $304.17.
  • Turnaround Time: Varies
  • Interest Rate: As low as 5.99, with AutoPay**

    Personal loans you can consider to cover adoption costs

    Rates last updated March 28th, 2017
    Max. Loan Amount Minimum Credit Score Turnaround Time Requirements
    Prosper Personal Loan
    Loans made simple.
    $35,000 640 1-3 business days You are over 18 years of age, you are an American citizen or a permanent resident of the US, and you don’t have bad credit history. Go to site More
    NetCredit Personal Loan
    You could borrow up to $10,000 and get an interest rate personalized to your credit score
    $10,000 300 1 business day Varies based upon state of application Go to site More
    LightStream Adoption Loans
    This loan allows you to focus on your adoption, not the financing.
    $100,000 680 Varies You must have good or excellent FICO and be an American citizen or a permanent resident of the US. Go to site More

    Have we missed anything in the comparison table? Tell us

    • If the provider quotes a different rate to the one above please let us know

    Personal loan lender matching services

    These matching services connect consumers with personal loan lenders. It is important to note that these services do not make credit decisions and they are not lenders, loan brokers or agents for any lender or loan broker. They can help link you up with a lender that might be able to help you access a loan.

    Rates last updated March 28th, 2017
    Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
    Max. Loan Amount Minimum Credit Score Turnaround Time Requirements
    PersonalLoans.com
    An online loan matching service that connects you with lenders.
    $35,000 Varies by Lender 1-2 days You must be employed, 18+ with a bank account. Go to site More
    Zippyloan Personal Loans
    This broker can match you to lenders offering $100 to $15,000, often with flexible repayment options.
    $15,000 Varies by lender Good credit, a steady income and manageable debt. Go to site More
    LendingTree Personal Loan
    What everybody ought to know about LendingTree and the personal loans it provides.
    $35,000 639 If you apply during working hours on a business day you can get access to approved funds within 24 hours. You must be an American citizen or a permanent resident of the US, You must be at least 18 years of age and You should have a regular source of income Go to site More
    Accredited Debt Relief
    Offering free consultations, Accredited Debt Relief can help you lower your monthly payments and interest rates or get out from under serious debt. Call 1-877-569-5675.
    Varies based on lender No minimum Varies by lender Must be at least 18 years old and a legal US resident; additional terms may apply based on services and products used. Go to site More

    Have we missed anything in the comparison table? Tell us

    • If the provider quotes a different rate to the one above please let us know

    How does a baby and adoption loan actually work?

    Most baby and adoption loans are generally unsecured, meaning you don’t have to provide any kind of collateral (such as a house or car that you own). Depending on your circumstances, you can borrow up to $25,000 through an unsecured personal adoption loan. The maximum you qualify for depends on factors such as the lender you choose, your creditworthiness and the adoption details.

    Most baby and adoption loans are generally unsecured, meaning you don’t have to provide any kind of collateral (such as a house or car that you own). Depending on your circumstances, you can borrow up to $25,000 through an unsecured personal adoption loan. The maximum you qualify for depends on factors such as the lender you choose, your creditworthiness and the adoption details.

    What types of financing options are available?

    There are several different baby and adoption loans available depending on your circumstance. These include:

    • Unsecured personal loans.
      Banks and credit unions across the US provide unsecured personal loans that you can use for adoption costs. To qualify, you usually need a good or excellent credit rating.
    • Peer-to-peer loans.
      Online peer-to-peer lending platforms connect borrowers with investors who can fund your loan. Your credit rating plays an important role in finding an investor. It also helps determine the interest rate you get.
    • Bad credit personal loans.
      If you suffer from poor or bad creditworthiness, you can look for loan providers that offer personal loans to individuals with less-than-perfect credit. The interest you’ll have to pay will be higher when compared to conventional personal loans.
    • Adoption grants.
      Some organizations offer grants to people who wish to adopt children. The National Adoption Foundation is one example. Others include A Child Waits Foundation, Help Us Adopt, Gift of Adoption Fund and CMomA.
    • Federal adoption tax benefits.
      You can offset some of the costs involved in adoption through the Federal Adoption Tax Credit, which the US Government made permanent in July 2013. This tax credit can be beneficial if you have tax liabilities. The maximum amount available has changed every year, starting with $12,970 in 2013, to $13,190 in 2014 and $13,400 in 2015.
    • Employer adoption reimbursements.
      A significant number of government agencies and businesses offer adoption benefits to their employees. These can come in the form of adoption information, referral services, post adoption counseling and paid or unpaid leave. Some employers also provide financial reimbursement for agency fees, as well as medical and legal expenses.
    • Government subsidies. You may be able to take advantage of federal and state adoption assistance if you are adopting a hard-to-place child. These subsidies are designed to help you meet the child’s ongoing requirements and are available for children that are in the care of public or private agencies.

    How can you compare baby and adoption loans?

    Considering the following factors before choosing a baby and adoption loan can help you find the right option for you:

    • Interest. The interest your loan attracts can have a significant impact on how much you end up paying for the money you borrow. Some organizations, such as Lifesong for Orphans, provide interest-free adoption loans. But you may have to meet certain eligibility criteria to qualify.
    • Fees. Fees your lender may charge include application fees, disbursement fees, prepayment fees and late payment fees.
    • Eligibility criteria. In most circumstances, you should have good creditworthiness to qualify. Some grant providers might require personal references from your pastor, employer, co-workers or friends.
    • Turnaround time. The loan processing time can vary depending on which option you choose. If you apply for a personal loan or a peer-to-peer loan, you can receive the approved funds within days. When it comes to grants and subsidies, the process takes longer.
    • Loan term. Your loan term determines the value of your repayments. Make sure you consider your current financial circumstances and the size of the repayments before requesting a specific loan term. If possible, choose a shorter loan term so that you can reduce the amount of interest you pay over the life of the loan.

    lady pushing a pram

    How much does adoption cost?

    The costs of adopting a child vary significantly depending on the kind of adoption you’re pursuing. If you’re adopting a child through a County Foster/Adopt program, the process usually costs between $0 and $1,000. If you’re adopting a newborn voluntarily using the services of a non-profit organization, on the other hand, you may end up spending $10,000 to $25,000. And adopting a newborn through an attorney can cost $20,000 to $30,000.

    If you wish to take the private domestic infant adoption route, you can use the services of an adoption lawyer or agency. The costs would vary depending on factors such as expenses borne by the birth mother, attorney or agency fees, background checks, failed adoption matches, out-of-state agency fees and travel.

    Adoption agency fees can range from $5,000 to over $40,000. However, more than half fall within the $10,000 to $30,000 bracket. Some adoption agencies make use of sliding fee scales, where they charge fees based on your income.

    Things to avoid when choosing a baby and adoption loan

    • If you think you might have trouble repaying the borrowed money in a timely manner, avoid taking a loan in the first place. Not making repayments on time would have an adverse effect on your creditworthiness and could impact your ability to borrow money in the future.
    • Be wary of taking a loan with a very high annual percentage rate (APR) that would increase the overall cost of the loan. Instead, check if you qualify for any grants or subsidies.

    Frequently asked questions about baby and adoption loans

    Is there any way to reduce the cost of adoption?

    You can reduce the cost of adoption significantly by adopting a waiting child currently in foster care through a public agency. In this case, the public agency would complete the homestudy section of the process at no extra cost. If you and the child live in the same county or state, the agency may also cover post-placement supervision costs.

    Can I get any kind of a payment plan through an adoption agency?

    Adoption agencies normally offer payment plans to adoptive parents. For example, you may be able to pay one-third of the fees when you apply, one-third when the homestudy process is complete and the remainder upon the child’s placement.

    Are there any military reimbursements meant for adoptions?

    Yes. If you’re on active duty in the military, you can get a one-time adoption costs reimbursement of up to $2,000 per child, with a limit of $5,000 per year. If a child suffers from a disability, he or she may qualify for up to $1,000 a month in assistance.

    Important information

    ** LightStream – Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
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