Panama Title and Escrow Panama Title and Escrow
Panama Title and Escrow
Panama Title and Escrow
Financing Info

Obtaining financing in Panama is available through several local and international banks. Interest rates in Panama are very similar to those of the USA, although slightly higher.

For purchasing and refinancing, the following loans can be obtained in Panama:

  • Residential Properties
  • Commercial Properties
  • Land (Raw Land with No Improvements)
  • Construction (New Construction)
  • Second Residences
  • Properties for Investment Only (such as Rentals, etc)

Mortgage applications will require various due diligence documents to prove the borrowers background in terms of income sources, credit history, and other financial aspects. Delays in mortgage approvals are generally caused because the borrower has not provided the documents required by the bank, or they have provided documents that do not meet the banks standards. Banks generally take between 15 to 30 days for their underwriting department to review the application, verify references & income, and approve or decline a mortgage application. At the moment the bank approves a mortgage loan, they will issue a letter with the terms and conditions of the loan they can offer, which the borrower then signs if in agreement, and the letter is returned to the bank. The bank then issues an irrevocable payment guarantee letter for the amount of the loan, in favor of the seller.

Generally, the mortgage lenders in Panama require borrowers to provide the following due diligence documentation for mortgage loans in Panama:

  • Photocopy of Passport
  • Second Identification (such as a Drivers License or Government Issued ID Card)
  • Two Bank Reference Letters (in original format)
  • Photocopy of Last Two Years Income Tax Returns
  • Photocopy of Last Two Months Pay Receipts (Unless Applicant is Self-Employed)
  • Financial Statement to Prove Net Worth (including Proof of Bank Account Statements, Investment Accounts, Home Equity, Property, etc.)
  • Photocopy of Promise to Purchase Agreement or Letter of Intent to Purchase / Sell (signed between Purchaser and Seller)
  • Photocopy of Personal Credit History Report (ie. Equifax, etc)
  • Letter of Reference from Employer (or Commercial Reference Letter if Self-Employed).
  • Photocopy of Check or Wire Transfer as Proof of the Down Payment Made by Buyer to Seller.

For mortgage applicants who are NOT Residents of Panama, the mortgage loan terms & conditions are generally:

  • Maximum Term: 25 Years (in some cases 30 years, depending on the lenders' risk assessment)
  • Maximum Loan: 70% of Purchase Price (or 70% of Appraised Value, which ever is lower)
  • Mandatory Insurance:  Life Insurance for the value of the loan, as well as Fire Insurance for the value of the loan
  • Interest Rate:  From 5.5% to 7.5%, depending on lenders risk assessment

Mortgage loan terms in Panama may vary depending on the lenders risk assessment of the borrower and the property. Banks in Panama offer mortgage loans for just about any properties, including raw land, homes at the beaches, apartments or homes in Panama City, homes in the mountains (ie. Boquette, Altos del Maria, El Valle de Anton), rental properties, properties for investment purposes, as well as new constructions.  Although there are over 100 banks in Panama, there are only a hand full of banks that offer mortgage loans to foreigners (non-Panamanians), in addition, there are not many that have English speaking loan officers, so going about it on your own may be challenging.  We are willing and able to assist customers to identify the right banks with the best loan terms and conditions.

Contact Us for more information on Mortgage Loans in Panama or Home Financing in Panama.


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