Intended Parents

Home Equity Loans for Surrogacy

Everything you Need to Know about HELOCs

Affording surrogacy can seem challenging, but financing options like a Home Equity Line of Credit (HELOC) might help make your dreams of parenthood a reality.

By tapping into the value of your home, a HELOC offers a flexible way to cover the costs of surrogacy.

Curious about the cost of surrogacy? Contact us online now to get a transparent breakdown of surrogacy costs.

Here, we’ll break down everything you need to know about using a HELOC loan for surrogacy, from how it works to the pros and cons, and even alternative financing options.

Whether you’re just starting your surrogacy journey or exploring ways to fund it, this guide will give you the tools you need to build your family with confidence.

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a loan that allows homeowners to borrow money using the equity they’ve built in their property. Equity is the difference between the current value of your home and the amount you still owe on your mortgage.

A HELOC gives you access to this equity as a revolving line of credit, which you can draw from as needed, similar to a credit card.

HELOCs are often used for significant expenses like home renovations or, increasingly, family-building options like affording surrogacy.

Pros and Cons of Using a HELOC Loan for Surrogacy

Pros of a HELOC

Lower Interest Rates: HELOCs often offer lower interest rates compared to other surrogacy loans or credit cards, making them a cost-effective option.
Faster Process: Securing a HELOC for IVF can be quicker than other loan types, especially if you already have a good credit score and sufficient equity.
Easier to Qualify: Homeowners with significant equity and stable income may find it easier to qualify for a HELOC than for unsecured loans.

Cons of a HELOC

Risk to Your Home: Falling behind on HELOC payments could result in you losing your home.
Variable Interest Rates: Many HELOCs have variable rates, which could increase over time and make repayment less predictable.
Complexity: Managing a HELOC requires careful budgeting and planning to ensure you stay on track with payments.

Want help exploring your options? Contact us online now to speak with a professional about your surrogacy financing strategy.

How to Get a HELOC Loan for Surrogacy

Calculate how much equity you’ve built in your home. Most lenders require at least 15%-20% equity.

Compare lenders to find the best surrogacy loan rates and terms that suit your financial situation.

Gather documents like proof of income, tax returns, and home valuation reports.

This step can expedite the process and give you a clearer picture of your borrowing capacity.

Carefully read the terms to ensure you understand repayment obligations and risks.

Other Surrogacy Financing Options

While HELOCs can be a practical solution, they’re not the only option for financing surrogacy. Below are some other financing options to consider:

Grants for Surrogacy

Certain organizations offer grants to help intended parents cover the costs of surrogacy. These can provide financial relief without repayment.

The Hope for Fertility National Grant: Provides $250-$10,000 and is available to intended parents experiencing infertility.
The Cade Foundation: Provides up to $10,000 for family-building, including surrogacy.
Baby Quest Foundation: Offers $2,000–$16,000 for IVF and surrogacy-related expenses.
The Samfund: Provides grants of up to $4,000 for young adult cancer survivors to cover family-building expenses, including surrogacy.
Fertile Hope (LIVESTRONG Foundation): Offers financial assistance through its Sharing Hope Program for cancer survivors undergoing fertility treatments, including surrogacy. Grant amounts vary based on individual needs.

Personal Loans

Unsecured personal surrogacy loans are an option for those without significant home equity. However, they often come with higher interest rates.

Fertility Loans

Specialized fertility financing programs are tailored to the needs of those pursuing surrogacy or IVF.

CapexMD: Offers flexible loan terms tailored to surrogacy expenses, including medical and legal costs.
BetterMed: Provides up to $350,000 in loans with zero percent interest rates.
LightStream: Loans range from $5,000–$100,000 with no collateral required.
Sunfish: Specializes in financing options up to $100,000 for fertility and surrogacy, offering customized payment plans to fit your budget.

401k/Retirement Accounts

Some people opt to withdraw or borrow from a 401(k). While this can provide quick funds, be mindful of potential penalties or reduced retirement savings.

Health Savings Accounts (HSA)

If your HSA permits, you can use these funds for eligible medical expenses related to surrogacy, offering tax advantages.

Other Resources

Financial aid from family, crowdfunding campaigns, or other creative options can help offset surrogacy costs.

Using a HELOC for surrogacy can be a strategic way to make your dream of parenthood a reality. Understanding how HELOCs work and considering alternative financing options can help you make a decision that aligns with your financial goals.

If you’re ready to take the next step or need expert advice, we’re here to help. Reach out to us to explore your financing options, set a budget and plan your next steps toward parenthood.