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Difference between revisions of "Adoption Loans"

 
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Loans are one way to pay for some or all [[Adoption Costs|adoption costs]]. Some organizations offer low-interest adoption loans to qualifying families. You can also talk to your bank about home equity or line of credit loans, although they are usually at a higher interest rate than that offered for adoption-specific loans. While loans do require repayment, there are resources that can help you with that once your adoption is finalized, such as the [[Adoption Tax Credit]].
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[[Adoption]] loans come in several variations, but usually share a similar purpose: helping [[Adoptive Parents|adoptive parents]] manage the cashflow difficulties commonly encountered during their [[adoption]] process.
  
=Borrowing From Yourself=
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A few of the most common types of [[adoption]] loans found in the [[organizations]] below are perpetual funds, [[adoption]] lenders, and specialized bank loans.
Before you take a loan out from someone else, consider borrowing from yourself. Many company 401k plans allow employees to borrow up to 50 percent of their current 401k balance. The big advantage of this is that you are paying yourself interest. The downside is that if you change companies, you will be expected to pay off the loan or take the 10 percent tax penalty on the loan amount as an early withdrawal.
+
  
=Credit Cards=
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Perpetual funds can offer an "honor [[system]]" based loan, usually free of interest, in which a borrower is expected to pay back the loan by a set date. These funds are usually initiated through charitable donation, but can essentially come from anywhere. They are limited to a set number of people they can help due to the no-interest nature of the perpetual fund [[system]], but if they are associated with an organization, such as a church, they can thrive off of regular donations from the members of that organization.
Some agencies will encourage you to take out a new low-interest credit card to pay adoption related bills. Then you can supposedly pay off the credit card with your tax credit before the rate goes up. However, given the potentially long timeline of an international adoption, you may end up paying higher interest long before the tax credit comes back.  
+
  
=Home Equity Loan=
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[[Adoption]] lenders are groups specifically dedicated to providing [[adoption]]-specific loans. Some of these groups are peer-to-peer lending systems, where an applicant posts their need for a loan on an online board, and people with money to invest can look at the listing and fill a portion of the loan. They can have high interest rates if a borrower has a poor credit history, but if managed carefully can actually become powerful tools for managing a family's finances by getting money for immediate expenses at the necessary times. It's important to note, however, that not all lending groups are equally trustworthy. It is wise to consult with a financial expert or other trusted company before engaging in an [[adoption]] loan of any kind.
Another alternative to consider is a home equity loan. These are typically low interest loans that come with a check book you can use to write checks to pay your bills. The biggest advantage here is that interest from a home equity loan may be tax deductible. However, some financial advisers recommend using credit cards instead of home equity loans since credit cards are unsecured debt. If you get in trouble paying off a home equity loan, you could lose your house.
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=Adoption Loans=
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Many larger banks offer specialized loans for [[Adoptive Parents|adoptive parents]] that may have special features designed to accommodate the needs of the [[adoption]] process. Bank of America, for example, offers unsecured [[adoption]] loans that are meant especially for [[Adoptive Parents|adoptive parents]] to cover their financial needs.
Most banks do not specifically offer adoption loans, but there are numerous organizations that do offer low- or no-interest loans for adoption.  
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'''National Adoption Foundation'''
 
The National Adoption Foundation offers unsecured loans through a revolving $9 million loan bank for [[Adoptive Parents|adoptive parents]]. The interest and payments on loans help finance loans for other [[Adoptive Parents|adoptive parents]]. This foundation also has a limited program for grants.
 
For an application packet, contact them at:
 
National Adoption Foundation
 
100 Mill Plain Road
 
Danbury, CT 06811
 
Phone: 203-791-3811
 
http://www.nafadopt.org
 
  
'''Acres of Hope, Inc.'''
 
Acres of Hope, Inc., is a non-profit charitable foundation dedicated to providing educational information, emotional support, parent-to-parent support, advocacy services, financial assistance, and a loan program for families dealing with children of physical and emotional challenges. In addition, their mission is to promote greater community understanding, acceptance, and support for families involved in adopting special needs children cross-racially and cross-culturally.
 
To learn more, contact:
 
Acres of Hope, Inc.
 
Route 1 Box 97 Mason, WI 54856 
 
Phone: 715-765-4118
 
Fax: 715-765-4119
 
http://www.acresofhope.com/foundation.htm
 
  
'''Adorable Adoption'''
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=Borrowing From Yourself=
Adorable Adoption offers grants for qualified families who are pursuing international adoption with the Yunona [[Adoption Agency|adoption agency]]. Grants are as follows: $2,000 per one child or $4,000 for two children. You must send a letter explaining why adoption is a hardship for you.  
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Before you take a loan out from someone else, consider borrowing from yourself. Many company 401k plans allow employees to borrow up to 50 percent of their current 401k balance. The big advantage of this is that you are paying yourself interest. The downside is that if you change companies, you will be expected to pay off the loan or take the 10 percent tax penalty on the loan amount as an early withdrawal.
  
Direct inquiries to: Adorable Adoption
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=Credit Cards=
Attn: Grant Request
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Some agencies will encourage you to take out a new low-interest credit card to pay [[adoption]] related bills. Then you can supposedly pay off the credit card with your tax credit before the rate goes up. However, given the potentially long [[timeline]] of an [[International Adoption|international adoption]], you may end up paying higher interest long before the tax credit comes back.  
1131 Balboa Street
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San Francisco, CA 94118
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Phone: 415-305-6381
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Fax: 775-258-4149
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E-mail: info@adorableadoption.com
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http://www.adorableadoption.com/grants.htm
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'''JSW Adoption Foundation'''
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=Home Equity Loan=
The JSW Adoption Foundation is a private foundation established to assist potential [[Adoptive Parents|adoptive parents]] by providing cash grants to subsidize a portion of the adoption expenses. Grants awarded are valued at $2,000 and up. Preference is given to childless applicants and those who are experiencing extraordinary hardship and financial need.  
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Another alternative to consider is a home equity loan. These are typically low interest loans that come with a check book you can use to write checks to pay your bills. The biggest advantage here is that interest from a home equity loan may be tax deductible. However, some financial advisers recommend using credit cards instead of home equity loans since credit cards are unsecured debt. If you get in trouble paying off a home equity loan, you could lose your house.  
For further information, contact:
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JSW Adoption Foundation  
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127 East Main Street, Suite 5 
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Port [[Washington]], WI 53074 
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Phone: 262-268-1386
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http://www.jsw-adoption.org 
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'''[[China]] Care Foundation'''
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=Adoption Loans=
[[China]] Care Foundation is especially interested in helping families who are adopting [[Special Needs|special needs]] children. To encourage the adoption and care of orphans from [[China]], the [[China]] Care Foundations provides financial aid in the form of grants or loans for the adoption and/or medical treatment of orphans.
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[[Adoption]] loans come in several variations, but usually share a similar purpose: helping [[Adoptive Parents|adoptive parents]] manage the cashflow difficulties commonly encountered during their [[adoption]] process.
For more information, contact: 
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[[China]] Care Foundation
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Greenwich Ave. Post Office
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P.O. Box 142 Greenwich, CT 06807
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Phone: 203-861-6395
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Fax: 203-618-0470
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http://chinacare.org/adoptions.html 
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'''[[Christian Adoption]] Resources'''
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A few of the most common types of [[adoption]] loans found in the [[organizations]] below are perpetual funds, [[adoption]] lenders, and specialized bank loans.
Prospective adoptive couples may apply for a grant after they have an approved home study from a licensed [[Adoption Agency|adoption agency]]. Their [[Adoption Agency|adoption agency]] must provide a letter of recommendation.
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For more details, contact: 
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[[Christian Adoption]] Resources Inc
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P.O. Box 253
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Mount Joy, PA 17552
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Phone: 717-492-1868
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E-mail: CARIMinistries@aol.com 
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http://www.christianadoptionresources.org/
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'''Gift of Adoption Fund'''
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Perpetual funds can offer an "honor [[system]]"-based loan, usually free of interest, in which a borrower is expected to pay back the loan by a set date. These funds are usually initiated through charitable donation, but can essentially come from anywhere. They are limited to a set number of people they can help due to the no-interest nature of the perpetual fund [[system]], but if they are associated with an organization, such as a church, they can thrive off of regular donations from the members of that organization.
Gift of Adoption Fund Applicants must have a completed and approved home study prepared by a qualified agency or professional licensed in the state in which they reside before they can apply for a grant. Applicants are evaluated based on their income, assets, liabilities, earning potential, and other financial resource opportunities. Preference is given to applicants who are experiencing extraordinary financial hardship. Examples of this include adopting a [[Special Needs|special needs]] child and/or situational hardship on the part of the parents. Grant amounts vary between $2,000 and $5,000. Grants are awarded monthly.
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To learn more, contact: 
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Gift of Adoption Fund 
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101 East Pier Street, 1st Floor
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Port [[Washington]], WI 53074
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Phone: 262-268-1386 or 877-905-2367
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Fax: 262-268-1387
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E-mail: info@giftofadoption.org
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Website: http://www.jsw-adoption.org/ 
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'''His Kids, Too!'''
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[[Adoption]] lenders are groups specifically dedicated to providing [[adoption]]-specific loans. Some of these groups are peer-to-peer lending systems, where an applicant posts their need for a loan on an online board, and people with money to invest can look at the listing and fill a portion of the loan. They can have high interest rates if a borrower has a poor credit history, but if managed carefully can actually become powerful tools for managing a family's finances by getting money for immediate expenses at the necessary times. It's important to note, however, that not all lending groups are equally trustworthy. It is wise to consult with a financial expert or other trusted company before engaging in an [[adoption]] loan of any kind.
His Kids, Too! Is a Christian nonprofit international humanitarian aide organization that provides aid to orphans and widows in several countries, although their primary focus is [[Ukraine]], [[Russia]], and [[Albania]]. For parents adopting international children, His Kids Too! provides an adoption grant of up to $2,000 for one child, and up to $4,000 for two children. Grants are paid directly to the agency or facilitation service.  
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For more information, contact: 
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His Kids, Too! PMB # 180, 3491 Thomasville Rd. Tallahassee, FL 32309
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E-mail: Hiskidstoo2@aol.com 
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Website: http://www.hiskidstoo.org
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'''Love Knows No Borders'''
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Many larger banks offer specialized loans for [[Adoptive Parents]] that may have special features designed to accommodate the needs of the [[adoption]] process. Bank of America, for example, offers unsecured [[adoption]] loans that are meant especially for [[Adoptive Parents|adoptive parents]] to cover their financial needs.
Love Knows No Borders (LKNB), a not-for-profit organization, was founded in [[Connecticut]] by Matthew and Vanessa Donaher to assist U.S. families with the costs associated with international adoption. LKNB embodies the organization's belief that financial concerns need not serve as an obstacle to those individuals and couples willing to open their hearts to a child through adoption. To obtain an application for financial assistance, please send two self addressed stamped envelopes to:
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Love Knows No Borders c/o Vanessa Donaher
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76 Grist Mill Rd.
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Monroe, CT 06468
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Email: VDonaher@loveknowsnoborders.org
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Website: http://www.loveknowsnoborders.org
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'''Siblings [[Adoption Agency]]'''
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The pages featured below are meant to give a general overview of the lending [[programs]] they describe. As all financial situations are unique, they are not meant as specific financial counsel. For specific or up-to-the-minute details on any of these lenders, it is advisable to contact them directly. A few examples of major [[adoption]]-friendly loan [[organizations]] are:
Siblings Adoption offers grants toward international adoption for qualified families. Grants are $2,000 for one child and $4,000 for two children. You must explain in your application why international adoption is a financial hardship for you.  
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To learn more, contact: 
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Siblings Adoption
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Attn: Grant Request
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508 High Point Drive
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Golden CO 80403 
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Phone: 303-216-9009
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E-mail: info@siblingsadoption.com 
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Website: http://www.siblingsadoption.com 
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'''The International Adoption Center'''
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*[[America's Christian Credit Union]]
The International Adoption Center provides [[Adoption Grants|adoption grants]] to qualifying families. Up to a maximum of $1,000 per couple. A letter stating the nature of the financial need, along with supporting documents, is required for consideration.
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*[[Hebrew Free Loan Association]]
Contact:
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*[[National Adoption Foundation]]
International Adoption Center
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*[[Prosper.com]]
7401 Old York Road
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Elkins Park, PA 19027
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Phone: 215-782-1191 
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Fax: 215.782.1193
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E-mail: info@adopthaw.org 
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Website: [http://www.adoptlaw.org/tiac_htm/7specpro.htm]
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=Source=
 
=Source=
Strickert, Marty.  '''Guide to International Adoption''' Originally published by Adoption Media, LLC.   
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Strickert, Mary.  '''Guide to [[International Adoption]]''' Originally published by [[Adoption]] Media, LLC.   
 
[[Category: Affording Adoption]]
 
[[Category: Affording Adoption]]

Latest revision as of 21:43, 13 August 2015

Adoption loans come in several variations, but usually share a similar purpose: helping adoptive parents manage the cashflow difficulties commonly encountered during their adoption process.

A few of the most common types of adoption loans found in the organizations below are perpetual funds, adoption lenders, and specialized bank loans.

Perpetual funds can offer an "honor system" based loan, usually free of interest, in which a borrower is expected to pay back the loan by a set date. These funds are usually initiated through charitable donation, but can essentially come from anywhere. They are limited to a set number of people they can help due to the no-interest nature of the perpetual fund system, but if they are associated with an organization, such as a church, they can thrive off of regular donations from the members of that organization.

Adoption lenders are groups specifically dedicated to providing adoption-specific loans. Some of these groups are peer-to-peer lending systems, where an applicant posts their need for a loan on an online board, and people with money to invest can look at the listing and fill a portion of the loan. They can have high interest rates if a borrower has a poor credit history, but if managed carefully can actually become powerful tools for managing a family's finances by getting money for immediate expenses at the necessary times. It's important to note, however, that not all lending groups are equally trustworthy. It is wise to consult with a financial expert or other trusted company before engaging in an adoption loan of any kind.

Many larger banks offer specialized loans for adoptive parents that may have special features designed to accommodate the needs of the adoption process. Bank of America, for example, offers unsecured adoption loans that are meant especially for adoptive parents to cover their financial needs.


Borrowing From Yourself

Before you take a loan out from someone else, consider borrowing from yourself. Many company 401k plans allow employees to borrow up to 50 percent of their current 401k balance. The big advantage of this is that you are paying yourself interest. The downside is that if you change companies, you will be expected to pay off the loan or take the 10 percent tax penalty on the loan amount as an early withdrawal.

Credit Cards

Some agencies will encourage you to take out a new low-interest credit card to pay adoption related bills. Then you can supposedly pay off the credit card with your tax credit before the rate goes up. However, given the potentially long timeline of an international adoption, you may end up paying higher interest long before the tax credit comes back.

Home Equity Loan

Another alternative to consider is a home equity loan. These are typically low interest loans that come with a check book you can use to write checks to pay your bills. The biggest advantage here is that interest from a home equity loan may be tax deductible. However, some financial advisers recommend using credit cards instead of home equity loans since credit cards are unsecured debt. If you get in trouble paying off a home equity loan, you could lose your house.

Adoption Loans

Adoption loans come in several variations, but usually share a similar purpose: helping adoptive parents manage the cashflow difficulties commonly encountered during their adoption process.

A few of the most common types of adoption loans found in the organizations below are perpetual funds, adoption lenders, and specialized bank loans.

Perpetual funds can offer an "honor system"-based loan, usually free of interest, in which a borrower is expected to pay back the loan by a set date. These funds are usually initiated through charitable donation, but can essentially come from anywhere. They are limited to a set number of people they can help due to the no-interest nature of the perpetual fund system, but if they are associated with an organization, such as a church, they can thrive off of regular donations from the members of that organization.

Adoption lenders are groups specifically dedicated to providing adoption-specific loans. Some of these groups are peer-to-peer lending systems, where an applicant posts their need for a loan on an online board, and people with money to invest can look at the listing and fill a portion of the loan. They can have high interest rates if a borrower has a poor credit history, but if managed carefully can actually become powerful tools for managing a family's finances by getting money for immediate expenses at the necessary times. It's important to note, however, that not all lending groups are equally trustworthy. It is wise to consult with a financial expert or other trusted company before engaging in an adoption loan of any kind.

Many larger banks offer specialized loans for Adoptive Parents that may have special features designed to accommodate the needs of the adoption process. Bank of America, for example, offers unsecured adoption loans that are meant especially for adoptive parents to cover their financial needs.

The pages featured below are meant to give a general overview of the lending programs they describe. As all financial situations are unique, they are not meant as specific financial counsel. For specific or up-to-the-minute details on any of these lenders, it is advisable to contact them directly. A few examples of major adoption-friendly loan organizations are:

Source

Strickert, Mary. Guide to International Adoption Originally published by Adoption Media, LLC.