How to Afford Adoption

Adoption is one of the most beautiful and life-changing decisions you can make — and cost is a common concern for those looking to grow their family. If you're wondering how you can afford adoption in Michigan, you're not alone. For many hopeful parents, the financial aspect is the biggest hurdle standing between them and their dream of becoming a family.

The good news? You have more options than you think. From grants and loans to employer benefits and tax credits, there are many ways to make adoption financially possible.

Imagine holding your baby for the first time — that moment could be closer than you think. Schedule a consultation today to take the first step.

How Can I Afford Adoption? [Why You Have to Pay to Adopt]

Many people are surprised to learn that adoption comes with a price tag and wonder why the cost is what it is.

When you pursue infant adoption in Michigan, your expenses cover essential services such as:

These costs ensure that the process is ethical, legal, and supportive for everyone involved.

But when it comes to cost, what really matters is who you trust with your adoption journey.

Some professionals may offer lower prices, but that often means lower transparency, fewer services, or even legal risk. Choosing a licensed and fully transparent agency like ours means complete financial protection, honest timelines, and expert guidance throughout.

Below, we’ll explore how to pay for adoption — and how Michigan families like yours are making it possible with us.

How to Pay for Adoption

Wondering how to afford infant adoption or adopting a baby in Michigan? Here are the most common and effective options:

Did You Know Some Families Receive $15,000 or More in Grants — without Repaying a Dime?

Adoption grants are a powerful way to reduce your out-of-pocket costs. Unlike loans, grants do not need to be repaid, making them an ideal funding source for many hopeful adoptive families.

Here are several reputable organizations that provide grants to Michigan families pursuing adoption:

Provides grants of up to $15,000 to families across the U.S., including those in Michigan, who are in the final stages of the adoption process and need help bridging the financial gap to complete their journey. Priority is given to families adopting children with urgent needs, sibling groups, or older children.

Offers grants of up to $7,000 for domestic and international adoptions, with a focus on middle- and low-income families. They consider applicants at any point in the adoption process, though grants are typically awarded later in the journey. They also offer low-interest adoption loans.

While primarily known for offering interest-free adoption loans, ABBA Fund also provides adoption assistance to Christian families through their partner church network and donor-advised funds. Their goal is to help families reduce the financial burden so they can move forward confidently in their adoption journey.

Offers grants of up to $20,000 to eligible adoptive families regardless of race, religion, gender, marital status, or sexual orientation. Their mission is to reduce the financial barriers to adoption and promote inclusivity. Grants are awarded quarterly through a competitive application process.

Provides adoption grants to help families bring home vulnerable children. While the foundation is smaller, its mission is rooted in helping families who feel called to adoption but are struggling with the cost. They also support adoption-related missions and services globally.

These grant programs, when combined with other financial strategies, can dramatically reduce the overall cost of adoption. If you're wondering how to afford domestic adoption, applying to multiple grant opportunities like these can be a smart step.

Loans

If you’re wondering how to afford adopting a baby without delaying your journey, adoption loans can offer a practical solution. These loans allow you to cover upfront costs and repay over time, sometimes with favorable interest rates or flexible terms. Below are reputable organizations and financial institutions that provide adoption-specific loans:

As a financial marketplace, LendingTree connects prospective borrowers with a variety of lenders offering personal loans that can be used for adoption-related expenses. Borrowers can compare rates, loan terms, and monthly payments from multiple lenders to find the best fit for their financial situation. Loan amounts typically range from $1,000 to $50,000, with varying terms based on creditworthiness.

ACCU offers adoption loans exclusively to members with terms up to 60 months and amounts up to $50,000. They also provide special rates for adoptive families and a streamlined application process tailored to the adoption timeline. The organization serves Christian families and emphasizes its mission to support life-affirming financial services.

TruStone offers adoption loans as part of their personal loan options with competitive rates and flexible repayment terms. Their adoption loans can help cover home study costs, agency fees, legal expenses, and travel. While based in the Midwest, their adoption loan program is accessible to many prospective parents in Michigan.

In addition to offering grants, A Child Waits Foundation also provides low-interest adoption loans of up to $10,000. Their loans are designed for families adopting domestically or internationally who may not qualify for traditional loans. Flexible terms and prompt disbursement help families proceed with adoption without financial delay.

Adoption loans can be a key part of your financial plan, especially when combined with grants, tax credits, and employer assistance. If you're exploring how to pay for adoption in Michigan, these trusted lenders offer valuable support to help make your dream a reality.

Fundraising

Many families successfully raise funds through crowdfunding platforms, community events, or family support networks. Here are a few ideas to get the ball rolling:

What if Your Daily Coffee Habit Could Fund Your Future Family? Saving for Adoption Doesn’t Have to be Painful

While this may seem daunting, planning ahead and setting small, consistent contributions toward your adoption fund can make a big difference over time.

Pro tip: Open a separate “adoption account” to track your savings and progress.

Employer Benefits

Some Michigan employers provide adoption assistance through financial reimbursement programs, paid leave, or both. These benefits can significantly reduce your overall adoption costs and give you the time you need to bond with your new child.

See if your employer is on the Dave Thomas Foundation’s list of top adoption-friendly workplaces.

In Michigan, state employees are eligible for 12 weeks of paid parental leave following the birth or legal adoption of a child. This benefit applies to both parents, including those welcoming a child through domestic adoption. To qualify, employees must have completed at least 12 months of service and worked a minimum of 1,250 hours in the 12 months before the leave begins.

If you are not a state employee, the federal Family and Medical Leave Act entitles eligible employees with up to 12 weeks of job-protected, unpaid leave within a 12-month period. This leave can be used for the placement of a child through adoption and for bonding time afterward. To qualify, employees must work for a covered employer and meet certain tenure and hours-worked requirements.

While FMLA does not guarantee paid leave, or how to pay for adoption, it ensures your job will be protected while you take time to focus on your family.

The 2024 Adoption Tax Credit is worth $16,810 — Are you Prepared to Claim it?

The adoption tax credit is one of the most valuable financial resources available to hopeful adoptive families — including those in Michigan. It helps offset the high costs of adoption by reimbursing families for certain qualified adoption-related expenses.

For the 2024 tax year, the maximum federal Adoption Tax Credit is $16,810 per child. This is a non-refundable credit, meaning it can reduce your federal income tax liability — but it won’t result in a refund beyond your tax liability. However, any unused credit can be carried forward for up to five subsequent years.

Qualified expenses that can be claimed under the credit include:

Income limits: For 2024, the credit begins to phase out for families with modified adjusted gross incomes (MAGI) above $239,230 and is completely phased out at $279,230.

Important Notes for Michigan Families:

There is no separate Michigan state adoption tax credit, but families in Michigan are fully eligible to claim the federal credit.
Combining the tax credit with grants, loans, and employer benefits can significantly reduce your financial burden.
Families adopting through Michigan foster care may be eligible for the full credit if the child is considered to have special needs, regardless of expenses incurred.

Before filing, consult a tax professional to ensure you maximize your benefit and understand the documentation required.

Get the Support You Deserve

You deserve to become a parent. And you deserve to do it with a team that will support your emotional and financial wellbeing at every step.

We’ve helped more than 13,000 families across the country — including right here in Michigan — realize their dreams of parenthood. Our complete financial protection program ensures you won’t lose money on a failed adoption, and our transparent pricing means you always know what to expect.

You’ve waited long enough. Speak with a specialist today to start your Michigan adoption journey.

How to Afford Adoption [FAQ]

How much does it cost to adopt a child in Michigan?

The cost of private infant adoption in Michigan typically ranges from $25,000 to $60,000, depending on the services and agency you choose. This includes legal fees, home study expenses, and birth mother support. Foster-to-adopt is a lower-cost alternative but comes with different eligibility and timelines.

How much is the adoption subsidy in Michigan?

In Michigan, children adopted from foster care may be eligible for a state adoption subsidy to help with costs. Subsidies can include a monthly payment, medical coverage, and non-recurring expense reimbursement.

How do you financially prepare for adoption?

Start by creating a budget, researching your financing options, and looking into grants, loans, and tax credits. Planning early allows you to spread costs out over time and reduce financial stress later.

How much income should you have to adopt?

There’s no specific income requirement to adopt in Michigan, but you must demonstrate the ability to meet your family’s basic needs. Agencies are more focused on financial stability than a specific dollar amount.

Disclaimer
Information available through these links is the sole property of the companies and organizations listed therein. American Adoptions provides this information as a courtesy and is in no way responsible for its content or accuracy.

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