Adoption Loans: Financing Options for Adopting a Child

Growing your family through adoption is a generous and commendable endeavor, but it can also be expensive.

According to the Children’s Bureau, an Office of the Administration for Children & Families under the umbrella of the U.S. Department of Health and Human Services, adoption through a private service can cost as much as $60,000. While there are more affordable ways to adopt a child, like through the public child welfare system or independently, many families must still turn to adoption loans to cover the cost.

Below, we’ll review the best adoption loans, including personal loans, and how they work. We'll also explore alternatives to traditional adoption financing, including adoption grants and interest-free loans.

Compare personal loans for adoptions

Methodology

Credible evaluated 31 lenders across 899 data points to find the best adoption loans. The top picks offer personal loans specifically for adoptions. We considered rates, available loan amounts, repayment term options, discounts, and customer service features as well as Credible marketplace data, including prequalification rates, average APRs for approved borrowers, and average credit scores. We chose the best lenders based on the following weighted categories:

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was sourced and verified by a senior editor to make sure it was accurate and up to date. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.
 

How to compare adoption loans

Taking out a personal loan for an adoption? Here’s how to compare potential lenders and loan offers:

Eligibility requirements

First and foremost, make sure you’re eligible for a loan before applying. Basic personal loan requirements include U.S. citizenship and age of majority, but lenders also have varying requirements around the following:

• Credit score: The minimum credit score for a personal loan varies by lender, but many require a credit score in the 600s or above.
• Income: Lenders want to ensure you have enough money coming in each month to afford the monthly loan repayment. Income might be traditional salary or wages, but it could also mean 1099 payments as a contractor or government benefits.
• Debt-to-income ratio: Making money is not enough. Lenders also want to ensure you don’t owe too much debt relative to your income. To determine this, they’ll often look at your debt-to-income (DTI) ratio. Requirements vary, but lenders typically prefer a DTI below 36%.

Annual percentage rate (APR)

A personal loan’s annual percentage rate (APR) reflects the total cost of the loan, including the interest and any upfront fees, like the origination fee. Personal loan APRs typically range from 6.49% to 35.99%.

Comparing APRs rather than interest rates alone gives you a better idea of how much you’ll spend. In general, choose the loan with the lowest APR for the best deal, but still consider other factors such as loan amount and funding time when making your decision.

Funding time

Funding time refers to how fast you can get the money after your loan application is approved. In general, personal loan funding times are much faster than other types of financing, such as cash-out refinances and home equity loans.

Some lenders (particularly online lenders) offer funding as soon as the same day or the next day. Others may take several business days before depositing funds in your bank account.

If you have an urgent expense related to the adoption process, choose a lender that can get you the needed cash as soon as possible.

Loan amount

Adoptions can get expensive, depending on which route you take; private adoptions can go as high as $60,000. If you have a ballpark estimate of how much cash you need, only consider lenders that offer loans large enough to cover those costs.

Here are the loan amounts available from our featured adoption loan lenders:

• Avant: $1,000 - $35,000
• Citi: $2,000 - $30,000
• Best Egg: $2,000 - $50,000
• LightStream: $5,000 - $100,000

Loan amounts vary by lender but typically range from $1,000 to $50,000, with a few lenders offering personal loans of up to $100,000 or more.

Repayment terms

Typical personal loan repayment terms run between two and seven years. In some cases, lenders may offer much longer terms; LightStream, for instance, has personal loans with repayment terms as long as 20 years.

If your monthly budget is tight (and will be tighter once you have a child) and you need to borrow a significant amount of money, choosing a longer repayment term can keep your monthly payments more manageable. Just note that you’ll spend more over the life of the loan.

What is an adoption loan, and how does it work?

An adoption loan is a type of personal loan used to cover expenses associated with adopting a child, including adoption agency fees, lawyer costs, supplies, and medical and travel expenses.

• Personal loans: Personal loans are available from a variety of financial institutions, including online lenders, banks, and credit unions. They're typically installment loans that are repaid month by month, with interest, over a period of 2 to 7 years. Some lenders offer personal loans specifically for adoptions.
• Interest-free loans: Some nonprofits offer adoption loans that don't charge interest. Unlike a traditional personal loan, whose application process focuses strictly on the borrower's financial qualifications, requirements for this type of loan may involve religious affiliations. You may also be able to finance an adoption with a grant from a nonprofit organization.

Although covering adoption expenses is one of the many ways that personal loans can be used, always confirm with your lender that adoption is included in the approved loan purposes.

Before you finance an adoption

One major caveat to getting an adoption loan: Repaying a personal loan means committing to another expense on top of the costs of raising a child. In addition to food, clothing, medical care, toys, and so on, you'll also have a monthly loan payment to consider.

A 2022 analysis by the Brookings Institution estimated the average cost of raising a child from birth to age 17 at $310,605. Your costs will vary, depending on the age of your child and other factors, but you'll need to make room in an already crowded budget for loan payments until you've repaid your adoption loan.  

Pros and cons of adoption loans

Consider the following pros and cons of adoption loans:

Pros

• Fast funding: With personal loans, you can generally have the funds within a few days. No hold ups to the adoption process!
• Large loan amount: Many adoption grants and interest-free loans top out at $7,500 or $10,000, but adoptions can be vastly more expensive. You can typically get a personal loan for $50,000 or more, which should be enough to cover the cost of adoption.
• No equity or collateral needed: Some loans, like home equity loans, require you to borrow against the equity in your home; other loans, like car loans, require collateral. Personal loans for adoption, on the other hand, are typically unsecured — no equity or collateral needed.
• Predictable interest costs and monthly payments: Personal loan interest rates are typically fixed rather than variable, so the size of your monthly payment won't fluctuate.

Cons

• High interest rates: Personal loan interest rates can go as high as 36%. This can make adoption loans more expensive than the interest-free options offered by certain organizations, as well as home equity loans and home equity lines of credit (HELOCs).
• Monthly budget constraints: Taking out a personal loan to finance an adoption means you’ll have to budget for monthly payments for several years. These payments may be even more challenging to manage once you add in the other new costs of raising a child.
• Credit requirements: Interest-free adoption loans and adoption grants do not have credit score requirements; even borrowers with bad credit can apply. Personal loans may have more stringent credit score requirements.

How to get an adoption loan

Here’s how to get a personal loan to pay for an adoption:

1. Research lenders: Familiarize yourself with personal loan lenders online and at local banks and credit unions. Review their eligibility requirements and loan amounts to make sure they’re the right fit.
2. Get prequalified: If possible, use an online loan marketplace like Credible to prequalify with multiple lenders. This will allow you to compare multiple lenders in one spot, analyzing details like APRs and repayment terms.
3. Apply online or in-person: You can usually apply for a personal loan online and get a decision within minutes. In-person applications may take longer for approval. Once approved, review the loan agreement, and sign if you want to move forward.
4. Use the funds to cover costs: Personal loans are typically funded fast. As soon as the money reaches your bank account, you can start using it to cover various adoption-related expenses.
5. Make a repayment plan: Many lenders allow you to set up automatic payments (and may offer a slight rate discount for doing so). This helps ensure you never miss a payment.

How to get an adoption loan with bad credit

Lenders often have strict credit requirements for personal loans. If your credit score is below fair, limit your search to lenders willing to work with borrowers who have bad credit. You may need to offer collateral (like a car) or add a cosigner to a loan to improve your approval odds.

Alternatively, you can look for funding sources that don’t require a credit check, such as:

• A loan from a friend or family member
• Crowdfunding options
• Adoption grants
• 401(k) loans

A note on adoption tax credits

While not a loan, it’s worth noting that you may be able to recoup some of the cost of an adoption when you file your taxes next year. The Internal Revenue Service (IRS) offers an adoption tax credit worth up to $17,280 for qualified expenses in 2025. Qualified adoption expenses include:

• Adoptions fees
• Attorney fees and court costs
• Travel expenses, such as meals and lodging
• Other expenses directly related to the adoption
• Costs before identifying an eligible child, such as home study fees

The tax credit is nonrefundable, which means you’ll be able to reduce the amount of taxes you owe, but you won’t receive a tax refund if it reduces your tax burden by more than you owe. Still, this can save you a lot of money come next tax season; you may be able to use the savings to pay off your personal loan early to save money on interest. Few lenders charge prepayment penalties nowadays, but check the terms of your loan agreement to make sure.

Other ways to pay for adoption

Personal loans are a smart way to pay for an adoption. You can generally get approved with fair or better credit, funding is fast, and you can use the money as flexibly as you need. But there are other ways to pay for an adoption as well. 

Interest-free adoption loan options

Some non-profit organizations (typically religious) offer adoption loans without interest to prospective parents who align with the organization’s beliefs. Here are some examples to consider:

• Jewish Free Loans Association: Qualifying applicants can borrow up to $7,500 without fees or interest; adding a second guarantor (your spouse cannot count as a second guarantor) increases the adoption loan amount to $20,000. The Jewish Free Loans Association adoption loan is available to California residents who can demonstrate need. Jewish Free Loans Association also offers financing for in vitro fertilization and surrogacy.
• Lifesong for Orphans: Lifesong for Orphans is a Christian organization offering interest-free loans through covenant agreements. To qualify, you’ll have to send a pastoral letter of recommendation.
• Pathways for Little Feet: Pathways for Little Feet is a Christian organization offering interest-free adoption loans up to $10,000.
• Pathways for Little Feet: Pathways for Little Feet is a Christian organization offering interest-free adoption loans up to $10,000.
• International Association of Jewish Free Loans: The International Association of Jewish Free Loans is a network that helps Jewish families find interest-free loans. IAJFL isn’t itself a lender but can simplify the process of finding an interest-free adoption loan.
• A Child Waits Foundation: A Child Waits Foundation helps U.S. parents adopt international children, regardless of religion, age, marital status, or sexual orientation. Loan amounts are up to $10,000; however, the loans are not interest-free. Rates are fixed at 3%, which is still much lower than the typical personal loan rate.
• Adoption Assistance for Christian Families: The ABBA Fund (Adoption Assistance for Christian Families) helps Christian families finance, on average, a third of overall adoption costs ($6,000 to $8,000).

Adoption grants

Getting an interest-free adoption loan often requires affiliation with a certain religious group, which may leave out many prospective parents, particularly LGBTQ+ parents. But same-sex couples are four times more likely to adopt a child or step-child than opposite-sex partners, so it’s important to research non-faith-based options, such as adoption grants through non-profits.

Here are some adoption grants to consider, regardless of affiliation with a certain faith or community:

• HelpUsAdopt.org: HelpUsAdopt.org is a non-profit organization that awards adoption grants (up to $30,000) regardless of marital status, race, ethnicity, religion, sexual orientation, or gender.
• National Adoption Foundation: Before the pandemic, the National Adoption Foundation offered both loans and grants. While the loan program is still paused post-pandemic, you can apply for a grant (between $500 and $2,000) — and it’s open to anyone regardless of factors such as marital status or sexual orientation.
• A Child Waits Foundation: In addition to loans, A Child Waits Foundation offers grants for both domestic and international adoptions. Grants do not usually exceed $7,500.
• Gift of Adoption Fund: The Gift of Adoption Fund awards adoption grants of up to $15,000, with no regard to race, religion, age, gender, sexual orientation, or marital status.
• State-specific grants: Many states offer grants or subsidies to help prospective parents cover the cost of adoption. Examples include the Ohio Adoption Grant Program, California’s Adoption Assistance Program, and New Jersey’s Adoption Subsidy Program.

Family and friends

Before turning to high-interest debt to finance your adoption, turn to your inner circle. Close friends and family members may offer to help cover your costs, and even neighbors, coworkers, and members of organizations, such as churches, clubs, and sports leagues, may be willing to pitch in.

It’s worth asking for help from your loved ones, either as a gift or a loan. Just remember that everyone’s financial situation is different: If someone says no, thank them and move on. And if someone says yes, repay them as promptly as you can if they offer a loan, not a gift. In the case of a loan, you should draw up a formal agreement and make sure the person lending you the money is aware of the potential tax implications.

Crowdfunding

Crowdfunding via an official platform is a way to make your goal seem more legitimate when asking family and friends for support. Such platforms can also reach people far beyond your network; you may be surprised by the kindness of strangers who are willing to help.

You can try traditional crowdfunding resources such as GoFundMe, but there are also adoption-specific crowdfunding platforms to consider:

• AdoptTogether
• AdoptionBridge
• ABBA Fund

Home equity line of credit

If you’re already a homeowner who has built significant equity in your home, you may be able to qualify for a home equity loan or home equity line of credit (HELOC).

• A home equity loan is a lump-sum loan, borrowed against the equity in your home. It has a fixed interest rate and fixed monthly payment.
• A HELOC is an ongoing line of credit with a draw period (a time during which you can borrow what you need) and then a repayment period. The interest rate is variable.

While both home equity loans and HELOCs are viable, keep in mind that each option involves using your home as collateral and risking foreclosure if you default on payments. The approval process can be time-consuming because of home appraisals, and you'll likely have to pay various fees.

401(k) distribution or loan

If you’ve been saving for retirement with a 401(k), you might be able to use it to help fund an adoption. The Setting Up Every Community for Retirement Enhancement (SECURE) Act of 2019 allows you take a distribution of up to $5,000 ($10,000 total if both parents tap into an eligible retirement plan) to cover adoption costs, without the typical 10% penalty associated with early 401(k) withdrawals.

Alternatively, you may be able to take a loan from your 401(k) to finance an adoption. A 401(k) loan is available to account holders without a credit check, and there’s no tax penalty. However, your retirement account balance will decrease, which cuts into your earning potential, and you’ll have to pay interest. The max amount you can borrow is $50,000.

Employer adoption reimbursement benefits

Some employers offer adoption assistance, as an employee benefit. According to American Adoptions, employer assistance often ranges from $7,500 to an uncapped amount; the average is $9,300.

Ask your employer’s HR department if it offers adoption assistance. If it does not, consider moving to a job offering this benefit before expanding your family through adoption (if that is a viable path for your career).

Note: The Family Medical Leave Act (FMLA) also requires employers to allow eligible employees to take a leave of absence for the adoption of a child, much like parents would be permitted to take time off following the birth of a biological child.