Best Adoption Loans, Grants and Other Financing Options

Using a combination of loans and grants can help make adoption more affordable.

Headshot of Carol Pope
Written by
Carol Pope
Updated August 27, 2024
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Achieve: Best for joint adoption loans

8.99% - 29.99%

24 to 60 months

$5,000 - $50,000

620

1.99% - 6.99%

Pros
  • APR discount for adding a co-borrower
  • Assigns each applicant a personal loan consultant
  • Don’t need good credit to qualify
Cons
  • Keeps 1.99% - 6.99% of your loan as an origination fee
  • Might find a lower rate if you have excellent credit
  • Doesn’t give as much time to pay off your loan as some lenders

What to know

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If you have someone else willing to go in on a loan with you, put Achieve on your radar. It offers an annual percentage rate (APR) discount for adding a co-borrower to your application. This is also called taking out a joint loan.

While you could get a discount on your APR, keep in mind Achieve’s fees. Even if you have excellent credit, expect for Achieve to keep at least 1.99% of your loan as an origination fee.

Read our full Achieve personal loan review.

How to qualify

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Achieve doesn’t shed much light onto its borrower requirements. Other than a credit score of at least 620, it may ask you to provide the following documents and information:

  • Proof of income
  • Social Security number
  • Government-issued ID
  • Employment status
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Discover: Best for good-credit borrowers

7.99% - 24.99%

36 to 84 months

$2,500 - $40,000

720

None

Pros
  • 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
Cons
  • Since you can only borrow up to $40,000, might not offer the funding you need
  • Can’t apply with another person
  • $39 late payment fee

What to know

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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. It only accepts scores of at least 720, and you can’t include a co-borrower to boost your approval odds.

Read our full Discover personal loan review.

How to qualify

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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
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LightStream: Best for no-fee adoption loans

9.49% - 25.49% (with autopay)

24 to 84 months

Loan Term Disclosure

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 7.49% APR with a term of 3 years would result in 36 monthly payments of $777.54. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

$5,000 - $100,000

Not specified

None

Pros
  • 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
  • Could get your loan the same day that you apply
Cons
  • 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

What to know

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You could borrow up to $100,000 with LightStream, and best of all, it doesn’t charge any fees. Plus, if you get a cheaper APR from a competitor, LightStream might beat it by 0.10 percentage points.

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.

Read our full LightStream personal loan review.

How to qualify

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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
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SoFi: Best for free financial planning

8.99% - 29.99% (with discounts)

24 to 84 months

$5,000 - $100,000

Pricing Disclosure

Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

680

0.00% - 7.00% (optional)

Pros
  • 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, which should cover most adoptions (and adoption-related expenses)
Cons
  • Have to pay an origination fee to unlock SoFi’s lowest rates
  • May not approve bad credit
  • Can’t get all APR discounts (one requires debt consolidation, which doesn’t apply to adoption loans)

What to know

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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.

Read our full SoFi personal loan review.

How to qualify

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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
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Upstart: Best for bad-credit borrowers

7.80% - 35.99%

36 or 60 months

$1,000 - $50,000

300

0.00% - 12.00%

Pros
  • 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
Cons
  • Potential for double-digit origination fee
  • Only two repayment terms to choose from
  • No co-borrowers or cosigners

What to know

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Upstart is a personal loan marketplace that can help you compare multiple online lenders at one time. Some of Upstart’s partners work with credit scores as low as 300.

But even if Upstart approves you for a bad credit loan, be prepared for a rate as high as 35.99%. You could be on the hook for thousands of dollars in the form of an origination fee.

Read our full Upstart personal loan review.

How to qualify

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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
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Trustpilot

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.

On this page

How much does it cost to raise a child?

Expenses don’t stop after a successful adoption. According to a 2024 LendingTree study, parents spend an average of $11,505 annually per child.

If you’re considering an adoption loan, also think about the long term. Have plenty of room in your budget for what your kid will need to live a happy, healthy life.

How to use LendingTree to compare adoption loans

  1. 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.

    For more information, check out our personal loan statistics.
  2. 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.
  3. Compare and win. Reviewing your loan options with LendingTree is easy. We’ll show you your top offers, help you customize your loan to fit your budget and show you how your rate compares to the average.
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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. Most HELOC lenders require a credit score of at least 620.

Since they don’t come as a lump sum, a HELOC could be a good option — it can help you deal with surprise expenses. However, HELOCs are risky. If you can’t pay back what you borrow, you will lose your home to foreclosure.

 401(k) loan

If you have a 401(k) plan that allows you to borrow, 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.

Adopting a child usually requires a home study. Here, the adoption agency (or the government, if going through foster care) will take a look at your home, lifestyle and finances. Having bad credit might not be an issue.
 
The adoption agency might run your credit, but there are no laws saying that they have to. They 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 $15,950 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.