While it's far from ideal to borrow money for an adoption, adoptive families may find a loan necessary to cover the large and immediate expenses. In some cases, you may be able to pay the loan back quickly once you receive a tax credit or are reimbursed by your employer or the military. Interest rates often are reasonable and the interest is tax deductible. Just remember, you're putting your home at risk. You may be able to borrow from the cash value of your life insurance policy.
Some banks offer low-interest loans or credit lines for adoptive parents.
Adoption loans, both home equity and unsecured, may be obtained through the National Adoption Foundation. They also award grants to needy adoptive parents. Credit cards are an easy source of cash, but typically charge high interest rates. Most financial planners recommend that you not tap these sources unless it's absolutely necessary. The decision on whether to take out a loan to help pay for adoption expenses can be difficult and has serious consequences for the entire family.