Best Adoption Loans, Grants and Other Financing Options
Using a combination of loans and grants can make adoption more affordable
| Lender | User rating | APR | Term | Amount | Min. credit score | |
|---|---|---|---|---|---|---|
|
8.99% – 29.99% | 24 to 60 months |
$5k – $50k |
640 | ||
|
7.99% – 24.99% | 36 to 84 months |
$2.5k – $40k |
720 | ||
|
11.39% – 25.29% (with autopay) | 24 to 84 months |
$5k – $100k |
Not specified | ||
|
8.99% – 35.49% (with discounts) | 24 to 84 months |
$5k – $100k |
680 | ||
|
6.70% – 35.99% | 36 to 60 months |
$1k – $75k |
300 |
Best for: Joint adoption loans – Achieve
- APR discount for adding a co-borrower
- Assigns each applicant a personal loan consultant
- Don’t need good credit to qualify
- Keeps 1.99% – 8.99% of your loan as an origination fee
- Other lenders offer lower starting rates for borrowers with excellent credit
- Doesn’t give as much time to pay off your loan as some lenders
If you have someone else willing to go in on your adoption loan with you, put Achieve on your radar. It offers a discount for adding a co-borrower to your application. This is also called taking out a joint loan.
While you could save with discounted rates, keep in mind that Achieve charges an origination fee on every loan. Even if you have excellent credit, expect for Achieve to keep at least 1.99% of your loan as an origination fee.
Other than a credit score of at least 640, Achieve will typically ask you to provide the following documents and information:
- Proof of income
- Social Security number
- Government-issued ID
- Employment status
Best for: Excellent customer service – Discover
- Three repayment assistance options in case of financial hardship
- 97% of LendingTree users recommend Discover after taking out a loan
- Competitive rates for borrowers with strong credit
- May not offer enough money to cover an adoption
- Can’t apply with another person
Discover offers personal loans with excellent customer service and borrower safety nets. For instance, you might be able to postpone your payment and make a partial payment if you’re having trouble. It also allows permanent loan term extensions, resulting in more overall interest but a lower monthly payment.
That said, not everyone will qualify for an adoption loan through Discover. You’ll need a credit score of at least 720, and you can’t include a co-borrower to boost your approval odds.
You’ll need to meet these eligibility criteria to get a Discover loan:
- Age: Be at least 18
- Citizenship: Have a Social Security number
- Administrative: Have a physical address, email address and internet access
- Income: Minimum income of $40,000 (individually or as a household)
- Credit score: 720+
Best for: No-fee adoption loans – LightStream
- No origination fees, late fees or prepayment penalties
- Unique Rate Beat program could help you save if you get a better offer from a competitor
- Get money as soon as today
- Can’t check rates without dinging your credit
- Doesn’t allow you to change your due date if you need extra time
- Only approves good to excellent credit
You could borrow up to $100,000.00 with LightStream, and best of all, it doesn’t charge any fees. Plus, if you get a cheaper APR from a competitor, LightStream will beat it by 0.10 percentage points if the offer meets certain conditions.
Unlike many lenders, LightStream doesn’t allow you to prequalify for a personal loan. Instead, you have to agree to a hard credit hit to see if you’re eligible. If you’re shopping rates with more than one company that requires a hard credit hit, get your applications in within 14 days. That way, only one hit will count against you.
LightStream doesn’t specify its exact credit score requirements, but you must have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:
- At least five years of on-time payments under a variety of accounts (credit cards, auto loans, etc.)
- Stable income and can handle paying their current debt obligations
- Savings, whether in a bank account, an investment account or a retirement account
Best for: Free financial planning – SoFi
- Loans come with no-cost financial planning
- As long as you apply before 7 p.m. EST on a business day, likely to get same-day funds
- Can borrow up to $100,000.00, which should cover most adoptions (and adoption-related expenses)
- Have to pay an origination fee to unlock SoFi’s lowest rates
- Must have good credit
- Can’t get all APR discounts (one requires debt consolidation, which doesn’t apply to adoption loans)
Welcoming a new member into the family is life-changing. It’s budget-changing, too. SoFi offers free meetings with certified financial planners to help you come up with a realistic budget that accounts for your new loved one.
Still, you can’t get its lowest rates unless you pay an optional origination fee. Compare offers that both do and don’t include the fee to see if it’s worth it.
You must meet the requirements below in order to get a loan from SoFi:
- Age: Be the age of majority in your state (typically 18)
- Citizenship: Be a U.S. citizen, an eligible permanent resident or a non-permanent resident (a DACA recipient or asylum-seeker, for instance)
- Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
- Credit score: 680+
Best for: Bad-credit borrowers – Upstart
- At 300, Upstart has one of the lowest credit score minimums around
- 10-day grace period before Upstart considers you late, and 15-day grace period before it charges a late payment fee
- Can compare multiple loan offers
- Potential for double-digit origination fee
- Only two repayment terms to choose from
- No co-borrowers or cosigners
Upstart is a personal loan platform that offers bad credit loans.
But if you have bad credit, be prepared for a rate as high as 35.99%. You could also be on the hook for thousands of dollars in the form of an origination fee.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Employment: Have a job or job offer that starts within six months, or have regular income
- Credit-related factors: Debt-to-income ratio no higher than 50% (45% in Connecticut, Maryland, New York and Vermont), no bankruptcies within the last year, fewer than six inquiries on your credit report in the last six months and no current delinquencies
- Credit score: 300+
Interest-free adoption loans
Some religious organizations offer interest-free adoption loans. However, most of these require that you be a member of a specific faith to qualify.
-
Jewish Free Loans Association
You don’t have to be a member of any particular faith to qualify for an interest-free loan from the Jewish Free Loans Association. Note that these loans require a cosigner and max out at $12,000. -
Lifesong for Orphans
Those who follow the Christian faith can apply for an adoption grant or interest-free adoption loan or set up a fundraising campaign through Lifesong for Orphans. -
Pathways for Little Feet
Pathways for Little Feet provides interest-free adoption loans of up to $10,000 to eligible Christian couples. The organization also offers grants for post-adoption therapy for adopters, adoptees and birth mothers. -
International Association of Jewish Free Loans
This network helps Jewish adoptive parents find interest-free loans from local Hebrew organizations.
Adoption grants
An adoption grant is money that you don’t have to pay back. Maximize grants before taking out loans to lower your out-of-pocket expense. Some popular adoption grants include:
-
HelpUsAdopt.org
HelpUsAdopt offers adoption grants from $1,000 to $20,000 to cover lawyer or adoption agency fees. You must demonstrate financial need, and priority goes to those who don’t have children. Unlike some organizations, HelpUsAdopt doesn’t charge any fees to apply. -
The National Adoption Foundation
The National Adoption Foundation provides adoption grants and low-cost adoption loans between $500 and $2,000. There are no income requirements, and you can use loan funds for any adoption-related costs. There’s a $15 processing fee to apply. -
A Child Waits Foundation
Grants from the A Child Waits Foundation are between $1,000 and $7,500. Applicants usually must earn less than $150,000 a year. You’ll also need to pay a $20 application fee. -
Gift of Adoption Fund
To get a grant from the Gift of Adoption Fund, you must demonstrate financial need. It also costs $50 to apply. If you’re eligible, you could get between $1,000 and $7,500 (with an average grant totalling $3,500).
On average, domestic adoption through a private agency costs $30,000 to $60,000. The financial hurdles of adoption — home studies, lawyer fees and agency fees, for example — are a major stressor during a joyous time. That’s where an adoption loan could help.
An adoption loan is a personal loan that you can use to pay for just about anything in the adoption process. You’ll receive funds in a lump sum and pay it back in equal monthly installments, plus interest.
Adoption loans are usually unsecured loans. That means they don’t require collateral, so you won’t have to put your house on the line.
Expenses don’t stop after a successful adoption. Parents spend an average of $11,505 annually per child, according to a LendingTree study.
If you’re considering an adoption loan, also think about the long term. Have plenty of room in your budget to pay for what your kid will need to live a happy, healthy life.
How to use LendingTree to compare adoption loans
Check your credit score
Use LendingTree Spring to get your free credit score. We’ll also give you alerts when your credit score changes, helping you keep tabs on your finances. Knowing your credit score will help you understand if your offers are competitive.
Check your rate
With one quick form, you could have offers from up to five lenders on the LendingTree loan marketplace. We have the nation’s largest network of lenders, and checking rates doesn’t hurt your credit score.
Compare and win
Reviewing your loan options with LendingTree is easy. We’ll show you your top offers and help you customize your loan to fit your budget.
Adoption loan alternatives
Home equity line of credit
A home equity line of credit (HELOC) lets you borrow from your house’s value. HELOCs work like a credit card. You can borrow over and over again, until you’ve hit your maximum limit. If you can’t pay back what you borrow, you will lose your home to foreclosure. Most HELOC lenders require a credit score of at least 620.
401(k) loan
If you have a 401(k) plan that allows it, you could take out a 401(k) loan. The nice thing about 401(k) loans is that you pay yourself back the interest. But if you leave your job, you may have to pay your balance in full immediately. There are no credit score requirements for 401(k) loans.
Employer adoption reimbursement benefits
Your company might have a reimbursement program to help you cover adoption expenses. If it does, you’ll need to keep detailed records and itemized receipts, but the hassle is likely worth it. According to the 2024 Best Adoption-Friendly Workplaces survey, workplaces that have an adoption reimbursement paid out an average of $16,422.
Frequently asked questions
There are a lot of different adoption financing options. You could take out a loan or HELOC. Grants are also an option, and maybe your job offers adoption reimbursement. Outside of that, some people cover adoption costs with credit cards, crowdfunding or by saving up over time.
The adoption agency might run your credit, but there are no laws saying it has to. It will, however, consider your debt-to-income ratio. This is how much you owe compared to how much you make. Generally, you must prove that you can afford child care and have a stable income (although these aren’t the only factors the agency will consider).
You can claim adoption on your tax returns (up to $16,810 per child, for tax year 2023). How much you make impacts how much you can claim. Some eligible exemptions include adoption fees, court costs, lawyer fees and adoption-related travel expenses.
For more information, please see the IRS’s page on adoption credit and adoption assistance programs.