Adoption is an expensive undertaking for all involved. It costs the adopting parents, anywhere from $15,000 to $40,000 or more in order to make their family complete.
This cost includes things like medical expenses incurred during pregnancy, legal fees, and court costs associated with terminating parental rights of birth parents and adopting the child into the new family structure.
The good news however is that adoption can be partially funded by an adoption loan offered through Wells Fargo. To learn more about these loans you’re invited to read this article.
Wells Fargo provides loans on adoptions, on a case-by-case basis. The adoptive parent must qualify for the loan and be able to make their own payments (no money is provided directly to the birth parents).
The interest rate associated with these loans varies depending on which program you apply through. There are two programs offered; Wells Fargo’s Adoption Expense Program (AEP) and their Adoption Support Program (ASP).
Wells Fargo offers financial support in two ways, via an adoption expense loan or an adoption grant. With an adoption expense loan, they will provide funds up to $15,000 which must be repaid at 6.99% APR over a 10 year time period.
This makes it so repayment of the funds does not have to begin until later on in the process when the family has the financial capacity to do so. With their adoption support program, they offer grants in varying amounts of $5,000 or up to one-half of total incurred expenses (whichever is less), with no repayment required.
Wells Fargo Adoption Loans Process
There are some factors that make Wells Fargo different from other loan options in regards to Adoption loans. One is that there is no application fee associated with their program and second, no minimum credit score is required. So if you feel like another bank may be too strict on either one of these things then Wells Fargo may be an option for you.
One thing to note about both AEP and ASP is that they require at least 6 months of advanced commitment before beginning the process of receiving funding. This means that you are not able to get the preapproval funds immediately upon applying for the loan. This can be a bit of an inconvenience but if you are in no rush then this shouldn’t matter too much.
If you find yourself in need of money right away, Wells Fargo offers a third option called ACH Advance. What is nice about this program is that they offer up to $40,000 with a repayment time frame that can last from 3-12 months. However, there usually is a fee associated with the use of their ACH Advance service.
In most cases when taking out a loan for adoption purposes you will have your fees and expenses reimbursed by your agency after they receive payment from the adoptive parents.
However, some agencies require all fees to be paid upfront. If you find yourself in this situation, then be sure to inquire with all the lenders you are considering about their reimbursement policy and repayment options.
As you can see Wells Fargo is an adoption-friendly lender that provides adoptive parents with a straightforward, flexible loan product. If you are looking for an adoption loan using Wells Fargo financing then contact them at Adopt-a-Rama to speak to one of their expert finance coordinators about the best options available to you!