A

Child

Waits

Foundation

A financial

resource for

those seeking

loans for

international

adoption.

How much will the Foundation loan to prospective parents and what are the terms of the loan?

The amount we will loan prospective parents depends on the total cost of the adoption and upon the financial status of the applicants. The maximum loan amount is $10,000 or a maximum of 50% of the total adoption costs, whichever is lower. Loans are for a period of no more than five years with an interest rate currently at 5%.

Why is there a maximum loan amount?

In keeping with the Foundation's purpose, by limiting the amount of each loan, we are able to help more families, which results in bringing more children home.

Who is eligible for a loan?

Loan eligibility is determined by financial need. The cost for an adoption is significant and this often restricts adoption to people in the upper financial tiers. This restricts the pool of potential parents even though many prospective parents have an income level that would allow them to comfortably raise children. We are most interested in providing sufficient funds that will allow the adoption to be completed. Families need to exhaust all other reasonable means of financing before applying for our loan.

We provide funds to cover only a portion of the adoption. Prospective parents must assure that they have the initial portion of the adoption fees. Once approved for a loan, funds are dispersed several weeks prior to the adoption being finalized internationally. Currently we fund only international adoptions. Additionally, loan applicants must be working with an adoption agency that is licensed by the state of operation.

When is the best time to apply for a loan?

The best time to apply for the loan is after your home study has been completed. We need a copy of your approved home study in order to process your loan application. (As it takes about 6 - 8 weeks to process an application, please allow enough time before you travel.) In special circumstances we can process an application sooner if travel occurs sooner than expected. If you submit your application and it has not been approved before you plan to travel, please contact the Foundation otherwise your application will no longer be valid and the loan will not be approved. We do not make loans to families that have already traveled and brought their child or children home.

Can a single person apply for a loan and is their an age requirement?

The foundation will accept loan applications from anyone who is adopting internationally. Marital status or age will not prevent someone from receiving a loan. However, be sure to check with your adoption agency as each country has different requirements for adoption.

Will bad credit prevent a person from receiving a loan?

Because we judge each loan application on a case-by-case basis, bad credit will not always prevent a person from receiving a loan. However, if the applicant does have poor credit we may require additional information on the co-signer.

I have excellent credit, why do I need a co-signer?

All loan applicants must have a co-signer. Furthermore, the co-signer must have his or her signature notarized and submit a copy of their most recent tax return. As the Foundation is not a bank, and funds to help families and children are limited, we must take every effort to secure repayment of loans. Having a co-signer gives us additional security that the loan will be repaid. Additionally, cosigner's signatures must be notarized to ensure that the document is legal. A 1040 from the co-signer is required to verify that the person has an income, which would enable them to repay the loan if it becomes necessary. Please note: a spouse is considered a co-applicant, not a co-signer.

Why is there an application fee?

Until recently we have not charged an application fee. We have required in the past that all applicants obtain a copy of their recent credit report and include that with their application material. Applicants were required to pay a fee of approximately $9 per person to Equifax or another credit reporting bureau for their credit report. To expedite matters, we have begun to provide the service of obtaining credit reports for our applicants; therefore we must now charge an application fee to help defray some of the costs of obtaining credit reports and processing applications.

Why does the Foundation make loans to prospective parents rather than making outright gifts?

Our objective is to maximize the number of children that are adopted. By making loans, rather than outright gifts, we ensure that the total capital we have for this purpose will not decrease over time. We cannot always count on funding efforts to replenish decreases in capital and thus loans that are indexed to inflation are a way to assure that the capital does not decrease over time. By paying back a loan, families in essence become contributors to the Foundation. In this way, a family who has been helped by the Foundation continues to preserve the means that will be used to help the next family.

Why does the Foundation only fund international adoptions?

We limit the Foundation's activities to international adoptions for a variety of reasons. The domestic demand for American children is so great that it is rare for such children to not be adopted. This is not the case for children in foreign countries - a majority of these children will not be fortunate enough to find homes. Since the Foundation has limited resources, we felt we could more effectively reach our goal if we limited loans to foreign adoptions.