Can I use a personal loan to pay for adoption costs?

Adoption costs by type: Domestic public (foster care): $0-$2,500, largely covered by government. Domestic private agency: $20,000-$45,000. Independent domestic: $15,000-$40,000. International: $30,000-$60,000 depending on country.

Federal adoption tax credit: In 2026, the federal adoption tax credit is up to $15,950 per child for qualified expenses. This is a dollar-for-dollar credit, not a deduction. You cannot claim it until the adoption is finalized, so you need upfront cash and can apply the credit on next year's taxes.

Adoption grants: Several nonprofits offer grants ($1,000-$7,500): National Adoption Foundation, Gift of Adoption Fund, Lifesong for Orphans. These do not need repayment. Apply first and fill remaining gaps with loans.

Using a personal loan: Borrow to cover agency fees, legal fees, home study costs, travel, and finalization costs. Choose a term that lets you carry the loan until you receive the tax credit (12-24 months often works). Then make a large lump-sum payment once you file and receive the credit.

Loan amounts and rates: Credit scores above 700 qualify for $15,000-$40,000 at 9%-16% APR. Shorter terms keep interest costs down. No lender restrictions on adoption as a use; simply select 'personal/family' or 'major purchase' as the purpose.

Some specialized options: USAA and PenFed Credit Union often serve this need well for eligible borrowers. Prosper and LightStream also list family planning as accepted purposes.