Posted by Maria Arias on February 06, 2017 | Real Estate Advices | 0

How you can get a Residential Mortgage in Panama

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.

Residency in Panama