Revision as of 19:26, 9 April 2014

Loans are one way to pay for some or all 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.

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

Most banks do not specifically offer adoption loans, but there are numerous organizations that do offer low- or no-interest loans for adoption.

National Adoption Foundation The National Adoption Foundation offers unsecured loans through a revolving $9 million loan bank for adoptive parents. The interest and payments on loans help finance loans for other 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 Adorable Adoption offers grants for qualified families who are pursuing international adoption with the Yunona 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. Direct inquiries to: Adorable Adoption Attn: Grant Request 1131 Balboa Street San Francisco, CA 94118 Phone: 415-305-6381 Fax: 775-258-4149 E-mail: info@adorableadoption.com http://www.adorableadoption.com/grants.htm

JSW Adoption Foundation The JSW Adoption Foundation is a private foundation established to assist potential 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. For further information, contact: JSW Adoption Foundation 127 East Main Street, Suite 5 Port Washington, WI 53074 Phone: 262-268-1386 http://www.jsw-adoption.org

China Care Foundation China Care Foundation is especially interested in helping families who are adopting 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. For more information, contact: China Care Foundation Greenwich Ave. Post Office P.O. Box 142 Greenwich, CT 06807 Phone: 203-861-6395 Fax: 203-618-0470 http://chinacare.org/adoptions.html

Christian Adoption Resources Prospective adoptive couples may apply for a grant after they have an approved home study from a licensed adoption agency. Their adoption agency must provide a letter of recommendation. For more details, contact: Christian Adoption Resources Inc P.O. Box 253 Mount Joy, PA 17552 Phone: 717-492-1868 E-mail: CARIMinistries@aol.com http://www.christianadoptionresources.org/

Gift of Adoption Fund 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 child and/or situational hardship on the part of the parents. Grant amounts vary between $2,000 and $5,000. Grants are awarded monthly. To learn more, contact: Gift of Adoption Fund 101 East Pier Street, 1st Floor Port Washington, WI 53074 Phone: 262-268-1386 or 877-905-2367 Fax: 262-268-1387 E-mail: info@giftofadoption.org Website: http://www.jsw-adoption.org/

His Kids, Too! 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. For more information, contact: His Kids, Too! PMB # 180, 3491 Thomasville Rd. Tallahassee, FL 32309 E-mail: Hiskidstoo2@aol.com Website: http://www.hiskidstoo.org

Love Knows No Borders 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: Love Knows No Borders c/o Vanessa Donaher 76 Grist Mill Rd. Monroe, CT 06468 Email: VDonaher@loveknowsnoborders.org Website: http://www.loveknowsnoborders.org

Siblings Adoption Agency 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. To learn more, contact: Siblings Adoption Attn: Grant Request 508 High Point Drive Golden CO 80403 Phone: 303-216-9009 E-mail: info@siblingsadoption.com Website: http://www.siblingsadoption.com

The International Adoption Center The International Adoption Center provides 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. Contact: International Adoption Center 7401 Old York Road Elkins Park, PA 19027 Phone: 215-782-1191 Fax: 215.782.1193 E-mail: info@adopthaw.org Website: http://www.adoptlaw.org/tiac_htm/7specpro.htm

Source

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