 |
|
|
|
| your
location >> adoption financing >> adoption loans |
 |
|
Adoption
Loans
Some
adoptive families have utilized a bank loan or a line
of credit to assist them with their adoption expenses.
While borrowing money for an adoption may not be an adoptive
family's first choice, adoptive families may find a loan
helpful in covering the large and immediate adoption expenses
especially if they will be able to repay the loan quickly
with a tax credit or an employer's adoption benefit reimbursement.
Several possible loan sources include:
HOME EQUITY LOANS:
Interest rates often are reasonable and the interest is
tax deductible. Just remember, you're putting your home
at risk.
INSURANCE: You
may be able to borrow from the cash value of your life
insurance policy.
LOW-INTEREST LOANS: Some
banks offer low-interest loans or credit lines for adoptive
parents. MBNA
America has a loan program
through the National Adoption Foundation that is tailored
for adoption. Visit their website or call MBNA at 888-844-3775
for more information or for an application.
PRIVATE GRANT AND SPECIAL LOAN
PROGRAMS: The National
Adoption Foundation offers
adoption grants and low-interest loans, both home equity
and unsecured, to qualified adoptive families. Visit their
website for more information and how to submit an application.
Lifetime
Adoption offers a simple loan
program to qualified families with average credit. There
are no upfront fees. Families may repay the loan at any
time and can finance the loan up to five years. Visit
their website or call 530/271-1740 to receive an application
via fax or Email.
RELIGIOUS ORGANIZATIONS: Many
church congregations welcome the opportunity to help fellow
church members adopt a child from another country by organizing
community fundraisers or by offering a cash gift to help
cover adoption expenses.
The Hebrew
Free Loan Association offers
Jewish families interest-free loans to adopt domestically
or internationally.
RELATIVES: Although
it may be uncomfortable to ask family members for money,
don't overlook the potential generosity of extended family
members who might be waiting for an opportunity to help
out with your adoption in order to be a part of making
your dream a reality.
CREDIT CARDS & RETIREMENT
ACCOUNTS: Two other possible
sources to use for adoption expenses are credit cards
and loans on retirement accounts, such as 401(k)s 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, if either spouse loses or changes jobs and the
loan cannot be repaid within a short period of time, the
loan becomes a taxable withdrawal with an additional 10%
early withdrawal penalty fee. Although tempting to use,
adoption loans by credit card or on retirement accounts
should be considered only as a last resort.
(Loan information courtesy
of the National Endowment for Financial Education's booklet
"How to Make Adoption an Affordable Option.")
|
|
|
