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Mortgage For Buying A House In Panama – Panama Real Estate 101:

Mortgage For Buying A House In Panama – Panama Real Estate 101:

buying a house in panamaTo help those needing a Mortgage For Buying A House In Panama, this article was written by Martin Lipsman with PANAMA MORTGAGE GROUP for Try Panama Real Estate – Rentals – Relocation.

As the majority of the investors needing Mortgage For Buying A House In Panama are not residents of the country, the Panamanian banks are easing restrictions on lending to foreigners. As of today non – residents qualify for up to 70% financing of the purchase price for up to a 25 year term. There is an age restriction for applicants at 75 years of age. This means in order to qualify for the full 25 year term, you must be 50 years of age or younger. If an applicant is 60 years old for example, the maximum term he or she could obtain is 15 years ( 75 year old restriction – 60 years old = 15 year term). Loans obtained from a Panamanian bank DO NOT REPORT to your credit report from your home country. Extra debt on your credit report will lower your credit score and make it more difficult to obtain other financing in your home country when calculating your monthly debts. The mortgage will only show on your Panamanian credit and will help establish a credit base for any future financing in Panama.

Types Of Mortgage For Buying A House In Panama

The following Loan types for purchases and refinances are available today:

  • Residential
  • Commercial
  • Land
  • Construction
  • 2nd homes
  • Investment Properties
  • Beach Properties

When applying for a Mortgage For Buying A House In Panama the bank will ask you for a number of documents detailing your financial background. It is imperative you provide them with everything they ask for, any missing documents will cause a delay in the approval process. Once the buyer has satisfied all of the banks documentation requirements, there is a 14 day turnaround on approvals. During this 14 day period, the banks credit committee will analyze your case based on your income and repayment abilities. Once approved , a loan term sheet will be issued by the bank for the buyers review. If the buyer agrees to the loan, he or she signs the term sheet, returns it to the bank, and is issued a irrevocable promissory letter for the loan amount approved. The promissory letter will stay valid for up to 6 months without having to renew any of the required documents.

The following documentation is required for the approval of a Mortgage For Buying A House In Panama

  • 2 Photo ID’s (Passport and driver’s license)
  • 2 Bank reference letters
  • Tax Returns for the last 2 years
  • Last two pay stubs (does not apply to self-employed)
  • Asset Verification (bank accounts, retirement accounts, equity in your home, stocks, bonds, etc.)
  • Purchase Contract
  • Personal Credit Report
  • Job reference letter
  • Proof of any down payment made
  • Appraisal of property

Buying a house in Panama non-resident loan terms and conditions if approved:

  • 25 year term maximum
  • 70% of purchase price financing
  • Life and Fire insurance required
  • 6.25% interest rate ( All non- residents qualify for the same interest rate if approved, rates are not credit score driven)

Depending on which bank you apply with and the type of loan you are applying for , the terms may vary from the ones above. Panamanian banks offer loans on land, beach homes, city homes, mountain homes, investment properties, and construction loans.There are over 80 banks in Panama and few bank officers that are able to speak english, obtaining a mortgage on your own directly with the bank may be a bit overwhelming. Panama Mortgage Group is the only mortgage specialist located in Panama that has the experience and know how to find you the best terms and loan programs available. Getting pre-qualified for financing in the initial stages of the purchase process is crucial in ensuring a smooth transaction.  Click Get more info on buying a house in Panama to contact us today for a quick and free pre-qualification consult.

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