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Adoption Loans: Is It Possible to Get One?

Adoption Loans: Is It Possible to Get One?
Lauren Ward
Lauren WardUpdated March 19, 2025
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent, and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or network providers. Read more about our Editorial Guidelines and How We Make Money.
Adopting a child can be a life-changing and rewarding experience, but the process often comes with significant financial costs. Adoption expenses, including agency fees, legal costs, travel, and medical expenses, can add up quickly, making it difficult for families to afford without financial assistance.Adopting an infant domestically costs an average of $20,000 to $45,000, and international adoptions can cost up to $70,000.Fortunately, adoption loans are available to help prospective parents cover these costs. These loans can come in various forms, such as personal loans, specialized adoption loans, or home equity financing, depending on a family’s financial situation and credit history.Keep reading to learn more on adoption loans, adoption grants, and which type of financing option is best for you.

Can I Use a Personal Loan as an Adoption Loan?

A personal loan can be used as an adoption loan to help cover the costs associated with adopting a child, such as agency fees, legal expenses, travel, and medical costs. Personal loans are unsecured, meaning they don’t require collateral, and they offer lump-sum funding with fixed interest rates and repayment terms.While there are adoption-specific loans on the market, there's nothing preventing you from using a personal loan to cover the costs of adoption. Recommended: How Do Personal Loans Work?

What Is an Adoption Loan Program?

An adoption loan program is simply a personal loan offered by banks, credit unions, nonprofit organizations, and adoption agencies, often with lower interest rates or flexible repayment terms to make adoption more affordable.To qualify for an adoption loan program, applicants typically need to meet the following requirements:
  • Good credit score (varies by lender, but generally 600 or higher)
  • Stable income and employment history to show repayment ability
  • Proof of adoption process (such as agency approval or home study completion)
  • Debt-to-income ratio within an acceptable range
  • U.S. citizenship or permanent residency (for most lenders)
  • Personal references or cosigner (if required)
Meeting these requirements can help prospective adoptive parents secure the financial assistance they need to complete the adoption process successfully.

International Adoption Loans 

Adopting a child from another country can be especially expensive. Parents looking to adopt internationally can expect to spend anywhere from $35,000 to $70,000. Like domestic adoption loans, international adoption loans can be obtained from banks, credit unions, nonprofit organizations, and adoption agencies, with some lenders offering low-interest rates, deferred payments, or flexible repayment terms. To qualify, applicants typically need a good credit score, stable income, proof of the adoption process, and a reasonable debt-to-income ratio. Some families may also explore grants, employer adoption benefits, or fundraising as alternative ways to cover international adoption costs.

Can You Get an Adoption Loan With Bad Credit?

There are personal loans for bad credit, and the money can be used toward adoption expenses. As with any type of loan aimed at people with bad credit, the drawback is that you may pay more in interest and fees, so it will be more expensive for you in the long run. However, compared to a grant, both the application process and time to receive funds is often pretty fast.

Adoption Grants vs Adoption Loans

There are both loans for adoption and grants for adoption. Because they are two different types of financial products, there are some pretty stark differences between them. The biggest difference is that a loan has to be paid back (usually with interest and fees), but a grant does not require repayment.  The application process is also fundamentally different. With an adoption grant, it can take months to find out whether your application was denied or approved. With a lender, the process can be as fast as a single day.
Adoption GrantsAdoption Loans
Provides funds for adoptive families✓✓
Must be paid backX✓
Comes with interestX✓
Long waiting period✓X
Requires monthly payments and collateralX✓
Extensive application process✓X
Fast access to fundsX✓
Useful for fast adoption processX✓
Credit history checked✓✓

Adoption Loan or Personal Loan Better for Adopting a Child?

If you meet the eligibility requirements, an adoption loan may save you money. The reason for this is that adoption loans often come with lower interest rates than personal loans. The drawbacks are that many of the programs don’t offer as much money as you could get with a personal loan and the eligibility requirements are usually more strict. Plus, with a personal loan, if you have any leftover cash, you can use that money for other purposes. Ultimately, if you qualify for an adoption loan with favorable terms, it may be the better option, but if those aren’t available, a personal loan can still be a viable alternative for financing your adoption journey.Recommended: Average Personal Loan Interest Rate

The Advantages and Disadvantages of Using Personal Loans for Adoption 

The pros and cons of personal loans in general are similar to the pros and cons of using a personal loan specifically for adoption. 
Benefits of Personal Loans for AdoptionsDrawbacks of Personal Loans for Adoption
Fast application and disbursement processBorrower will pay interest and fees
Money can be used for other needsMoney must be paid back
High borrowing limitsIncreases debt
May not require collateralHigher monthly payments than other alternatives

Advantages of Using Personal Loans for Adoption

Payment Plan 

Personal loans come with extended repayment terms so the monthly payments will typically be lower. However, the longer the term, the more you’ll pay in interest overall.

Multiple Uses 

Unlike other loans that have very specific uses, a personal loan is designed to be used for personal reasons. You’re not using it to purchase a car, a home, or pay for your college tuition. Therefore, if you have any money left over, you can use it how you see fit. 

Approval 

There are many personal loans on the market, including ones for borrowers with subprime credit. Compared to grants or adoption-specific loans, you are more likely to get approved for a personal loan than you are with any other program. Plus, the process for getting approved can be much faster in many situations.  

Disadvantages of Using Personal Loans for Adoption

Interest Rates

Personal loans come with interest rates, and the size of the interest rate depends on your qualifications. Those with better credit scores will typically receive lower rates and better terms than those with poor credit.

Debt 

Any personal loan you take out is going to be debt, which means it’s going to affect your monthly cash flow. If you already have debt (whether it's in the form of credit card debt, student loans, a mortgage, or an auto loan), then adding a personal loan payment to the mix is going to further increase your debt-to-income ratio and reduce the amount of cash you can use for other things. 

Fees

Some lenders charge a variety of fees that could also increase your total repayment. An origination fee, for example, is a percentage of the loan amount that’s taken from the funds before they’re even disbursed to your account. And if you’re ever late making a payment, you may have to pay a fee for that each time. Recommended: Personal Loan Tips That Can Help You Get Approved

The Takeaway 

Personal loans can be used as adoption loans. While there are adoption-specific loans, the application process can be lengthy and the requirements may be difficult to meet. Personal loans, on the other hand, are available to borrowers across a wide range of income brackets and credit scores. Therefore, while they come with interest, they are easier to apply and qualify for.If you’re interested in a personal loan to finance your adoption, consider Lantern by SoFi. With just one simple application, you’ll be connected to top lenders in our network, allowing you to find a loan with rates and terms that work for you.Check your rate and compare offers with Lantern.

Frequently Asked Questions

Can you get a loan for an adoption?
Can personal loans be used as adoption loans?
What are adoption loan programs?
Photo credit: iStock/SolStock
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About the Author

Lauren Ward

Lauren Ward

Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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