Loans FAQ
Frequently Asked Questions
Q: What are the differences betweeb mortgage-based lonas and unsecured loans?
A: A mortgage-based loan is secured by your home and usually has longer terms. The payments on a mortgage-based loan, or a portion of the payments may be tax deductible. An unsecured loan has shorter terms and the payments are typically not tax deductible.
Q: What are loan rates and fees?
A: Rates & fees are set by the lender(s) and will vary based on your credit scores as well as other factors such as debt to income ratios, and credit history.
Q: Am I eligible for a special rate because I'm adopting?
A: The specific lender who is willing to approve your loan will set the rate based on their loan criteria and guidelines. Although we provide you access to several loan options, we cannot guarantee any rates or that your loan will be approved.
Q: I'm considering an international adoption, and I need between $20,000- $30,000. Can I get this through an unsecured loan or mortgage-based loan?
A: : That really depends on your specific situation. If you have lots of equity in your home, it's possible you could do a home equity loan to cover the costs. If you want to get this amount of money unsecured, you need excellent credit. To fund your adoption you may need to get funds from various sources. i.e., some from a mortgage-based loan and some from an unsecured loan. In essence you have to be a little creative and work within the available options to find a way to access the funds. While pursuing the necessary financing, please keep in mind the importance of financial stability for the child you are adopting. It is not our intent to overextend any family hoping to adopt.
Q: I can't qualify now, but want to in the future. Can you help me fix my credit?
A: We have some good information that may help you improve your credit. Please see the Affording Adoption section of our Web site.
Q: What sources might help me pay back my loan more quickly?
A: You may consider several sources, depending on your situation. Employer reimbursement, Military reimbursement, and the Adoption Tax Credit may all help you pay back the loan more quickly. Be sure to check the options that may apply to you thoroughly as restrictions may apply. Please consult your tax advisor for realistic information about how these resources will effect your specific situation.
Q: Should I be speaking to anyone specifically to help prepare for the financial aspects of adoption financing?
A: Yes. You should consult your accountant or tax advisor to get specific information about how the Adoption Tax Credit, Employer reimbursement, or other factors will impact your individual situation.
Q: I have enough money in my 401(k), investments, and/or retirement account to pay for my adoption costs. Is it a good idea to use this money?
A: Before pulling money from your retirement/investment accounts, please consult your accountant/tax advisor about the possible tax implications. You should also involve your financial planner if you have one. Your Human Resources department at work may also have information about your 401(k) or retirement plan. They can help you find out how to access this money and what penalties or interest you may have to pay, if any.
