LOANS

Our financial services selection is comprised of outstanding and highly competitive loan programs designed to provide you with the peace of mind you deserve.

While it's far from ideal to borrow money for an adoption, Adoptive Families may find a loan necessary to cover the large and immediate expenses. In some cases, you may be able to pay the loan back quickly once you receive a tax credit or are reimbursed by your employer or the military.

HOME EQUITY LOANS. Interest rates often are reasonable and the interest may be tax deductible. Just remember, you're putting your home at risk.

LOW INTEREST LOANS. Some banks offer low interest loans or credit lines for Adoptive Parents.

PRIVATE GRANT AND SPECIAL LOAN PROGRAMS. Adoption loans, both home equity and unsecured, may be obtained through the National Adoption Foundation. They also award grants to needy adoptive parents. (Refer to the Resource List for more information.)

RELIGIOUS ORGANIZATIONS. Most religious congregations receive voluntary offerings during services. Inquire with your local congregation about applying for a loan from church funds. 

RELATIVES. Individuals often turn to family or friends in their search for adoption funding. Family loans typically carry lower interest rates than financial institutions, and if done correctly, family or friends can experience the satisfaction of providing a special gift to help adoptive families achieve their dream of becoming a parent. There are potential downsides to family loans, including stress on personal relationships and Internal Revenue Service guidelines. However, if you work out the details beforehand and seek the guidance of a financial planner, the final outcome can be rewarding for all involved. 

INSURANCE. You may be able to borrow from the cash value of your life insurance policy.

CREDIT CARD, RETIREMENT AND 402(K) LOANS. Two other possible sources Adoptive Parents may be tempted to use for adoption expenses are credit cards and loans on retirement accounts, such as 401(k) and profit-sharing plans. Credit cards are an easy source of cash, but typically charge high interest rates. Loans on retirement plans offer somewhat lower interest rates. However, under some circumstances, the loan becomes a taxable withdrawal. In addition to income taxes you'll have to pay on the withdrawal, you'll also have to pay a 10 percent penalty if you're younger than 59 1/2 years of age. Most financial planners recommend that you not tap these sources unless it's absolutely necessary.

The decision on whether to take out a loan to help pay for adoption expenses can be difficult. It's important as Adoptive Parents to maintain financial stability for the good of the child. Delving into future retirement savings or running up credit card debt can add to your financial stress, so only borrow within your means.

As a perspective Adoptive Couple you can be excited about your adoption plans and you can now feel you are well-informed about the financial issues you will face. This knowledge will assist you in knowing where to go and who to ask to get your questions answered. It also helps you to understand the wide variety of answers you may receive. You can now start preparing for your children with much more confidence than you initially had when you began considering adoption.