The political stability and economic growth Panama has experienced over the last decade continues to drive real estate investment. With an increasing number of investors seeking retirement properties and second homes, the real estate market of this Central American Paradise has remained strong and stable, despite the US crisis. 

While the US real estate market and lending environment remains in turmoil, an increasing number of investors have chosen to invest abroad.  It's proximity to, and relationship with the US and uparalleled beauty as a vacation destination, continue to strengthen it's foundation as a market of choice for those seeking to invest in Central American real estate.

The process for obtaining a mortgage in Panama is not much different from obtaining a bank loan in the US.  Local banksoffer long term mortgages as well as secondary home equity loans.

Can a foreigner living in Panama get a mortgage? The answer is yes.

Panama Mortgage Term – The way this is computed is you start with the number 75 and then deduct you age and the remaining figure is about the term length of a mortgage you can get from a Panama Bank. So if you are 50 you should be able to get a 25 year mortgage. If you are 35 it does not mean you will get a 40 year mortgage, you would get a 25 year mortgage which is normally the maximum mortgage term. If you are 69 years old will you get a mortgage? It will be hard, life insurance would be required to pay off the mortgage in the event of your death and the term would be 15 years. A mortgage term of 15 years is about the least the bank writes. Anything of shorter duration would result in very large payments.

Panama Mortgage Down Payment – Generally the banks require a down payment of 20% to 30%. Sometimes 40% is required.

Panama Mortgage Credit Underwriting – A foreigner will of course not appear in a Panama Credit Bureau Report. What is done is the foreigner is asked to provide copies of their credit reports from the credit bureaus in their home country. The foreigner is also asked to provide income tax return copies from their home country. The bank looks at their cash flow position and their ability to service the debt their mortgage will incur so all the debts are weighed against available cash flow to see if the borrower is likely to be able to service the debt.

Panama Mortgage Time Frames – Generally we see mortgages close in 30 to 60 days from the time a completed application is submitted.

Panama Mortgage Appraisals – It is a good idea for you to get your own appraisal of any property before making an offer. Why guess.

Panama Mortgages Assumable – No. They are not assumable.

Anonymous Mortgages – The question would be if one could get a mortgage from a bank on a property owned by an anonymous bearer share corporation. The answer would be no unless you completely guaranteed everything personally.

Private Money Panama Mortgages – Sellers will often carry their own paper. This is usually going to happen in an older property where the seller has owned the property for some time. The house will often be owned by a bearer share corporation and the stock certificates will be held back until the payments are completed. There are contracts to this effect that need to be drawn up – do not try this yourself, get a competent lawyer.