GLENDORA, Calif. — Couples who need help covering the cost of an adoption can now turn to a local credit union for help. America's Christian Credit Union introduced a new adoption loan program that will help prospective parents cover the costs of travel, legal expenses, agency fees or any other cost related to bringing a new child into their families.
The inspiration for the program came from a member who took out an unsecured consumer loan several years ago so she could pay for a trip to Nepal as she was planning to adopt a child from the Asian nation.
Prospective parents have turned to other means than high-interest signature loans to cover the adoption costs but the nationwide housing crash has made it much more difficult to find a source of funds.
"One of the things we've seen is that people will get home equity loans to do this sort of thing," said VP-Marketing Bryan London. "The costs can be staggering. Adoptions can range from $5,000 to $40,000 or more and we're in southern California; [home] equity has dropped 40%."
Federal and state grants are available for families looking to adopt, but those grants do not cover all of the costs in the process in many cases.
London said the adoption loan program is another way for the $500-million credit union to live out its mission of "reach, serve and teach."
"We want to be that extra step, that bridge that can help them," he explained. "If they're doing an international adoption they are going to need money for expenses for travel. If our loan can be the loan from start to finish that is what we want to do, too."
The program is in its infancy, and so the final interest rates on the loans have not been fully hammered out but London said they would be "very competitive" despite the lack of collateral, though members will have to show the credit union papers that prove the adoption is in progress.
Members can borrow up to $50,000 under the program and while no loans have been completed yet, the America's Christian CU is already hearing responses from adoption agencies it contacted. London is hopeful that the work to build the loan program's brand through those agencies as well as community churches will also attract new members.
But at the end of the day, the most important part of the new program is fulfilling the credit union's mission.
"What a joy it will be when we get that first loan, it's going to be amazing," said London.
