In the United States, the cost of surrogacy ranges from $100,000 to $150,000. In Europe, the prices start at $50,000. It can be challenging to spend this much out of pocket on surrogacy. When borrowing from family or friends is not an option, surrogacy loans can be a solution. In this article, we will explain how you can get a surrogacy loan and surrogacy loan rates.
What is a Surrogacy Loan?
A surrogacy loan is a type of financing that helps intended parents cover expenses involved in the surrogacy process. There are several types of surrogacy loans: besides personal loans, different kinds of organizations and grants offer financing for surrogacy. Let’s look at the surrogacy loan types to help you choose your best option.
Surrogacy Loan Types
1. Intended parents usually rely on banks to get a surrogacy loan. You can get a personal loan with a lower interest rate with a good credit score. There are two kinds of personal loans: secured and unsecured. A secured loan requires collateral, usually a house or another substantial property. Banks are more secure providing this type of loan and, in this case, offer lower interest rates. The approval process is faster, and there are usually more financing options.
With home equity loans, you can use the funds for anything. However, they put your home at risk if you cannot repay the loan within the established timeframe. Additionally, if the value of your house decreases, you could owe more than your home is worth.
Unsecured loans do not require collateral. They are more challenging to receive and usually have higher interest rates. On the other hand, people who were denied an unsecured loan are often eligible for a secured one.
2. Intended parents can also loan funds from their retirement accounts. In the United States, you can borrow up to 50% of your retirement savings, which must be paid back within a specific time frame from your paycheck. The downside is that the money you take from your retirement will stop earning until you pay it back, so your retirement funds might stall.
3. Fertility Financing Loans. Specific organizations offer loans and payment plans to people struggling with infertility. Their services also include financing surrogacy locally and abroad. If you decide to pursue surrogacy in another country, there are medical travel loans that cover surrogacy abroad.
4. Surrogacy Grants. Several charitable organizations offer annual surrogacy grants to people seeking a solution to creating a family. Grant financing is a gift and does not need to be paid back. To be selected for a surrogacy grant, intended parents must meet specific criteria and complete the application process. These grants might not cover the entire surrogacy costs but provide a substantial amount to help with part of the expenses.
Surrogacy Loan Rates
The companies providing the loans will determine the interest rate you pay based on your credit score and overall work and financial situation. For a lower interest rate, it would be best to aim for a credit score of 660 or higher. A credit score below 600 is considered poor, making getting a loan more challenging, but it is still possible.
Fertility financing organizations can offer lower interest rates: some start as low as 6%. At the same time, banks usually ask for a much higher interest rate.
Alternative Surrogacy Financing
-
Fundraising is one alternative option intended parents choose to raise funds for surrogacy. There are many ways to raise money, including hosting online or offline events and auctions, selling various handmade products, sharing about the cause with customers and online audiences, and asking them for donations.
-
Lately, crowdfunding has been popular among people who are fundraising for medical bills. You can do crowdfunding through several online services. These services allow you to post your project and ask the community to donate small amounts.
-
Evaluating the medical costs your insurance will cover might affect the overall surrogacy price. Third-party insurance companies may also be able to work with your employer to offer more benefits.
Intended parents who went through the process of requesting surrogacy loans and fundraising recommend trying several options to accumulate surrogacy funds. This will increase your chances of gathering the necessary amount and will shorten the timeline.
To Sum Up
Surrogacy loan rates largely depend on your credit score. To estimate your interest rate, the companies will evaluate your credit history, overall work and financial situation. Other options to obtain surrogacy loans and funds include retirement accounts, fertility financing loans, and grants. If you have questions about surrogacy costs and payment plans, contact us to discuss individual options. Together, we will find a solution that works for your unique situation.
