If you don’t want to take out an adoption loan, you may have other options.
Adoption grants
Frequently issued by nonprofit organizations, an adoption grant is money that you don’t have to pay back. If you can, 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. Its grants have no income requirement, range from $500 to $2,000 and can be used for any adoption-related expense. However, you’re required to pay a $15 processing fee with your application.
- A Child Waits Foundation: Grants from the A Child Waits Foundation are between $1,000 and $7,500. With some exceptions, applicants must have an annual income less than $150,000. You’ll also need to pay a $20 application fee.
- Gift of Adoption Fund: To qualify for a grant from the Gift of Adoption Fund, you must demonstrate financial need; there’s also a $50 fee to apply. If you’re eligible, though, you could be awarded between $1,000 and $7,500 (with an average grant totalling $3,500).
Adoption crowdfunding
With crowdfunding, you could find a little help from your friends (and strangers). AdoptTogether is a nonprofit organization and crowdfunding platform where anyone can donate money toward your adoption journey.
AdoptTogether is free to join — simply create a profile including family pictures, your adoption story, the amount of money you need and the crowdsourcing will begin. Eligible applicants can also request adoption grants.
HELOC
A home equity line of credit (HELOC) is a type of secured loan that uses your house as collateral. The amount you can borrow (and at what interest rate) depends on several factors, including your home’s appraised value, your equity and your credit score.
For a set number of years (called the draw period), you can borrow as many times as you’d like, up to your HELOC limit. Eventually, you’ll enter the repayment period. This is when you’ll pay back what you borrowed, either in a lump sum or in monthly installments.
Still, HELOCs can be risky: If you don’t hold up your end of the bargain, you’ll lose your home. At the same time, they can be helpful for the disciplined borrower, and provide a significant amount of money to use for adoption expenses.