Adoption Loans

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
Website: 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
Website: http://www.acresofhope.com/foundation.htm

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
Website: http://chinacare.org/adoptions.html

Source

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