Residential mortgage in Panama are available for foreigners. Panama mortgage lenders rely on loan-to-value ratio and the ability to pay. Panama mortgage lenders prefer 10 to 15 year terms than the standard 30 year terms like in the U.S.A.
Documents required for a foreigner to get a Residential Mortgage in Panama
- Bank mortgage application
- Entire Passport photocopy
- An additional photo identification photocopied
- A recent utility bill, including applicant´s name and home address
- Credit report
- Resume with education and work history
- 2 original bank reference letters
- 2 professional reference letters
- Banks statements for the last 12 to 24 months
- Income tax returns from the previous 2 years
- Letter explaining sources of income
- Immigration status
- Property appraisal from a bank-approved appraiser
- Receipt of the purchase contract and down payment
Panama banks required all documents from other countries to be authenticated, it can be through a Panamanian consulate or by Apostille.
Self-employed applicants required to provide additional documents such as: information about the company, letter describing the history of the company and the type of business, last 2 years audited financial statements, 2 reference letters from companies’ applicant, and 2 original bank reference letters for the company.
The process for releasing funds involve: A deed transferring ownership filed in the Public Registry, a copy of the filed deed delivered to the bank; and Proof that the loan was filed as a mortgage lien on the property in favor of the Panama bank.